According to the preliminary surveys, the Australian Judo Bank Manufacturing PMI increased from 47.3 to 49.9 in April. Upward revisions could fuel speculation about an RBA rate hike.
The Jibun Bank Manufacturing PMI for Japan rose from 48.2 to 49.9.
However, recent economic indicators from Australia and China will likely resonate. Private sector PMI figures from China sent mixed signals on Tuesday, possibly indicating temporary improvements in manufacturing sector demand.
Corporate earnings results will also influence market risk sentiment. Mitsui (8031) is among the big names to release earnings results from Japan.
Commodities: Crude Oil, Gold, and Iron Ore
On Tuesday, gold spot (XAU/USD) slid by 2.12% to $2,286. WTI crude oil prices declined by 0.85%, ending the day at $81.93.
On the Singapore Futures Exchange, iron ore prices were down 1.19% on Wednesday (May 1). Iron Ore Spot ended Tuesday down 0.68%.
The USD/JPY and the Nikkei
The USD/JPY rose by 0.95% on Tuesday, ending the session at 157.789. The weaker Yen could drive buyer demand for Nikkei-listed export stocks. However, investor angst about the FOMC interest rate decision and press conference could overshadow the effects of a weaker Yen. A USD/JPY move toward 160 could reignite speculation about an intervention to bolster the Yen.
The Futures Markets
On Wednesday, the ASX 200 and the Nikkei 225 were down by 92 and 320 points, respectively. The Hong Kong markets are closed for the Labor Day holiday. While Fed jitters contributed to the pullback, a commodities sell-off pressured the ASX 200 further.
