Samsung Electronics tips a big Q2 miss

Asian Mid-session Update: Samsung Electronics tips a big Q2 miss; Large number of China SMEs halt trading as market drubbing resumes

Economic Data

- (AU) AUSTRALIA JUN AIG PERFORMANCE OF CONSTRUCTION INDEX: 46.4 V 47.8 PRIOR (3rd consecutive contraction)

- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 111.0 v 116.3 prior

- (NZ) NEW ZEALAND Q2 NZIER BUSINESS OPINION SURVEY: 5 V 23 PRIOR (3 year low)

- (JP) JAPAN JUN OFFICIAL RESERVE ASSETS: $1.24T V $1.25T PRIOR

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +1.3%, S&P/ASX +1.7%, Kospi -0.5%, Shanghai Composite -2.8%, Hang Seng +0.1%, Sept S&P500 +0.3% at 2,070

Commodities/Fixed Income

- Aug gold -0.5% at $1,167/oz, Aug crude oil +1.0% at $53.04/brl, Sept copper -0.1% at $2.53/lb

- SLV: iShares Silver Trust ETF daily holdings fall to 10,115 tonnes from 10,119 tonnes

- (CN) PBoC to inject CNY50B in 7-day reverse repos (4th consecutive injection); Offer yield at 2.5%, unchanged from prior.

- (KR) South Korea sells 30-yr govt bond at 2.77%

Market Focal Points/FX

- Investors remain on edge over the Greek uncertainty despite the broadly welcomed resignation of controversial Fin Min Varoufakis. His replacement Tsakalotos has been the point man on negotiations with creditors thus far and continues to push for resuming the dialogue, just as euro area leaders prepare for a summit to discuss Greece on Tuesday. ECB has already refused to raise the ELA ceiling in today's decision, but ECB's Novotny introduced the possibility of some type of bridge financing without a bailout to be considered. Commentary from EU commissioner Oettinger in German press was more resolute, stating his opposition for Greece to remain in EMU.

- Shanghai Composite resumed its steady decline after yesterday's late session bounce, though participation of traded shares continued to decline. Over 200 Chinese-listed firms halted trading in their shares to protect their market caps, raising the total of halts in the prior week to 560 firms or 23% of A-share listed names. The decline continues despite the 11th straight day of decline in total margin debt to CNY1.77T v CNY1.91T last week. Comments from China Premier Li, who said the economy is resilient to risk, have also done little to quell the down draft.

- Preliminary Q2 results from Samsung Electronics were notably softer relative to estimates and y/y levels, though shares held up with modest gains. Q2 Op profit of KRW6.9T compares to KRW7.2T y/y and below KRW7.2Te. Analysts noted the figures suggest sales of Galaxy S6 smartphones vastly underperformed expectations.

- Down under, traders await RBA decision which is widely expected to hold rates for the 2nd straight meeting. AiG construction index came in contraction for the 3rd straight month due to weakness engineering activity "outweighing expansion in housing". New Zealand's NZIER Q2 business survey hit a 3-year low, sending NZD/USD toward 5-year lows near $0.6670. Trading in other USD majors was more subdued - AUD/USD was down about 25pips below $0.7470, EUR/USD down 30pips below $1.1030, and USD/JPY little changed above 122.50.

Equities

US equities/ADRs:

- AAP: Added to S&P500 index, replacing Family Dollar after close on July 8th; +2.3% afterhours

- SHLM: Reports Q3 $0.72 v $0.76e, R$561M v $578Me; -8.7% afterhours

- AMD: Cuts Q2 Rev guidance to fall -8% q/q (implies $948M v $999Me) v prior guidance of -6% to 0%; -13.8% afterhours

- TSYS: Forms Special Committee to Explore Strategic Alternatives

Notable movers by sector:

- Consumer discretionary: Beiqi Foton Motor Co 600166.CN -8.6% (June result)

- Financials: CITIC Securities 600030.CN -3.8%, GF Securities 000776.CN -5.9%, Haitong Securities 601688.CN -7.8% (21 brokerages sent investment fund; To increase proprietary investment); China Vanke Co 000002.CN -2.5% (proposes bond sales); Agricultural Bank of China 601288.CN +4.7% (fund invested in blue chips)

- Industrials: Qinhuangdao Port 3369.HK +2.5% (plans A-share offering)

- Materials: BHP Billiton BHP.AU -0.1%, Rio Tinto RIO.AU +1.1% (iron ore price decline); Panoramic Resources PAN.AU -2.2% (quarterly result); Saracen Mineral Holdings SAR.AU +0.6?(Q4 result)

- Technology: Truly International Holdings 732.HK +3.0% (June result); Samsung Electronics 005930.KR +1.8% (Q2 prelim result); MediaTek Inc 2454.TW -0.2% (June result); iProperty Group IPP.AU +0.8% (Q1 result)

- Energy: China Petroleum & and Chemical Corp 600028.CN +4.1%, PetroChina Co 601857.CN +6.9% (fund invested in blue chips); Oil Search Ltd OSH.AU +2.1%(preferred pick by Macquarie )