Asia tracks US gains amid dearth of significant fresh news
|Asia Market Update: Asia tracks US gains amid dearth of significant fresh news; we have yet to see any comments out of the US or China about HK’s peg
General Trend:
- Shanghai Composite rises 1% during morning session despite concerns in the local press about illegal margin lending; IT shares outperform, financials lag
- Technology names trade generally higher in HK after the Nasdaq’s rise
- Nikkei outperforms TOPIX ahead of earnings from Fast Retailing, Real Estate stocks drop in Japan; Softbank rises over 4% amid gains in the US tech sector and Alibaba
- Japanese companies expected to report earnings after the market close include Fast Retailing (largest Nikkei component) and Seven & I
- Gainers in Australia include Energy, Resource and Telecom companies
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
Headlines/Economic Data
Australia/New Zealand
-ASX 200 opened +0.3%
-(HK) Australia PM Morrison: To allow immigration program to offer opportunities to Hong Kong citizens; Australia will suspend Extradition treaty with Hong Kong (in line) - Statement on Hong Kong
-*(AU) AUSTRALIA MAY HOME LOANS VALUE M/M: -11.6% V -5.5%E; INVESTMENT LENDING M/M: -15.6% V -4.2% PRIOR
-(AU) Australia Jun Port Hedland Iron Ore exports: 51.8Mt (record high) v 47.8Mt prior (2 straight months of record exports)
-(NZ) New Zealand Jul Prelim ANZ Business Confidence: -29.8 v -34.4 prior; Activity Outlook: -6.8 v -25.9 prior
-(NZ) New Zealand Debt Management Office (DMO) sells NZ$950M v NZ$950M indicated in bonds due 2023, 2029 and 2033
China/Hong Kong
-Hang Seng opened +0.9%, Shanghai Composite opened flat
-Alibaba [9988.HK] Reportedly its financial arm Ant Financial considering IPO in Hong Kong, targeting >$200B valuation - press
-(CN) China Securities Regulatory Commission (CSRC) is warning investors about illegally financed margin trading due to run up in China stock markets - Press
-*(CN) CHINA JUN CPI M/M: -0.1% V -0.8% PRIOR; Y/Y: 2.5% V 2.5%E; PPI Y/Y: -3.0% v -3.2%e (prior largest drop since 2016)
-(CN) China PBOC sets Yuan reference rate: 7.0085 v 7.0207 prior (Strongest fix since Mar 16th)
-(CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY0B v Net drain CNY0B prior (9th straight skip)
-(CN) China Foreign Min Yi: Relationship is facing most serious challenges since relationship was established
Japan
-Nikkei 225 opened flat
-Softbank: Reported that Japan Mobile Unit is delaying bond offering – Press
-(JP) Bank of Japan (BOJ) Gov Kuroda: CPI likely to be negative for time being; Japan economy is a 'extremely' severe situation; Will not hesitate to add easing
-(JP) Tokyo reports at least 220 additional coronavirus cases
-(JP) JAPAN MAY CORE MACHINE ORDERS M/M: +1.7% V -5.0%E; Y/Y: -16.3% V -16.8%E
-(JP) Japan Jun M2 Money Supply Y/Y: 7.2% v 5.1% prior; M3 Money Supply Y/Y: 5.9% v 4.1% prior (fastest since comparable data became available in 2004)
-(JP) Japan Jun Tokyo Avg Office Vacancies: 2.0% v 1.6% prior
-(JP) Japan MoF sells ¥2.5T v ¥2.5T indicated (¥1.9T prior) in 0.10% 5-year JGB: avg yield -0.103% v -0.119% prior, bid to cover 4.25x v 3.78x prior
-(JP) Tokyo Gov Koike: Tokyo coronavirus cases 'very high' today; More testing leading to more confirmed virus cases
-(JP) Japan Economy Min Nishimura: Need to analyze whether coronavirus is spreading in Japan cities; No need to declare state of emergency (in line)
Korea
- Kospi opened +0.6%
- (KR) South Korea reported to be announcing tax hike for Koreans who own multiple homes - Korea Press
- (KR) Recent satellite imagery reportedly shows activity at previously undeclared North Korean nuclear facility which researchers believe is being used to build nuclear warheads - CNN
Other Asia
- (MY) Malaysia May Industrial Production Y/Y: -22.1% v -29.0%e
- (SL) Sri Lanka Central Bank (CBSL) cuts Key Rates by 100bps (Market expected 50bps cut)
- (TW) Taiwan reported to consider stopping Japan and Korea business travel into Taiwan, cited the recent rise in new coronavirus cases - Press
North America
- United Continental [UAL]: Cancels US to Hong Kong flights through July 10th (Friday) citing medical testing changes imposed by China
- Ford [F]: Q2 China vehicle sales 158.6K, +3.0% y/y - financial press
- (US) Fed's Rosengren (hawk, non-voter): Sees more US businesses needing rescue, Main Street lending facility may need to be extended - FT
Europe
- (UK) Jun RICS House Price Balance: -15% v -25%e
Levels as of 1:20 ET
- Nikkei 225, +0.6%, ASX 200 +0.9% , Hang Seng +0.4%; Shanghai Composite +1.4% ; Kospi +0.7%
- Equity S&P500 Futures: -0.1%; Nasdaq100 flat, Dax +0.3%; FTSE100 +0.6%
- EUR 1.1370-1.1327 ; JPY 107.36-107.18 ; AUD 0.6996-0.6968 ;NZD 0.6591-0.6562
- Gold flat at $1,821/oz; Crude Oil -0.3% at $40.79/brl; Copper +1.2% at $2.8570/lb
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.