Asian equity markets trade mixed, after declines in the US
|Asia Market Update: Asian equity markets trade mixed, after declines in the US; Shanghai Composite moves between gains and losses
General Trend:
- Shanghai Composites pares loss after trading in ‘bear market’ territory
- Japanese megabanks trade broadly lower; On Thursday 7-day TIBOR moved into negative territory for first time since 1995
- Automakers in Japan trade lower after recent profit warning form Daimler; Toyota drops over 2.5%
- Australia’s ANZ rises after doubling share buyback to A$3.0B
- Esprit declines over 3% after issuing profit warning
- Japan May CPI data was mixed, core in line while headline CPI was above ests
- Japan June prelim manufacturing PMI rises amid growth in new orders and increasing output; Export orders index declines for first time since 2016
- OPEC due to meet later today; OPEC+ expected to meet on Saturday, June 23rd
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- ASX 200 Telecom index -2.4%, Energy -1.8%, Resources -1.3%, Consumer Discretionary -1%; Financials +0.8%
- (AU) Australia sells A$300M v A$300M indicated in 3.00% March 2047 bonds, avg yield 3.1435% v 3.2741% prior, bid to cover: 4.0x v 3.07x prior
- (NZ) New Zealand May Credit Card Spending M/M: -1.6% v 0.6% prior; Y/Y: 3.7% v 7.0% prior
China/Hong Kong
- Shanghai Composite opened -0.7%, Hang Seng -0.3%
- Hang Seng Utilities index +0.7%, Services +0.5%, Industrial Goods +0.5%; Energy -0.8%, Materials -0.7%
- (HK) There is speculation that the equity market in Hong Kong might be being impacted by the expected IPO of Xiaomi, in addition to trade concerns – US financial press
- (US) Some Trump administration officials reportedly pushing to resume trade talks ahead of China implementing tariffs on July 6th; advisers still at odds over strategy - press
- (CN) For the week, the PBoC injected a net of CNY140B in its open market operations (OMOs) v CNY240B net injection w/w.
- (CN) China PBoC sets yuan reference rate at 6.4804 v 6.4706 prior
- (CN) China Jan-May State-owned Enterprise (SOE) total profit CNY1.29T, +20.9% y/y; Rev CNY22.3T, +10.2% y/y
- (CN) China said to consider removing rating requirement for bond sales - Chinese Press
- (HK) US/China trade war might reduce Hong Kong GDP by up to 0.2% - US financial press
Japan
- Nikkei 225 opened -1%
- TOPIX Securities index -1.1%, Info & Communications -1%, Marine Transportation -0.8%, Real Estate -0.7%, Iron & Steel -0.6%
- (JP) JAPAN JUN PRELIMINARY PMI MANUFACTURING: 53.1 V 52.8 PRIOR
- (JP) JAPAN MAY NATIONAL CPI Y/Y: 0.7% V 0.6%E; CPI EX FRESH FOOD (CORE): 0.7% V 0.7%E
- (JP) Japan Apr All Industry Activity Index M/M: 1.0% v 0.9%e
- (JP) Japan ruling LDP party said to plan leadership election on Sept 20th as Shinzo Abe seeks re-election - Japanese Press
Korea
- Kospi opened -0.6%
- (KR) Fitch affirms South Korea sovereign rating at AA-; Outlook Stable
- (KR) South Korea said to deny speculated capital gains tax on cryptocurrencies
Other
- (MY) Malaysia names Nor Shamsiah new central bank (BNM) Gov (as speculated)
- (ID) Indonesia Central Bank Gov: Rupiah currency (IDR) year to date depreciation is 'tolerable'; Bought IDR1.25T in bonds from the secondary market on Thursday.
North America
- US equity markets ended lower: Dow -0.8%, S&P500 -0.6%, Nasdaq -0.9%, Russell 2000 -1.1%
- S&P500 Energy -1.9%, Industrials -1.3%
- FED BANK STRESS TEST RESULTS: ALL 35 BANKS EXCEED MINIMUM CAPITAL REQUIREMENTS
- (US) Lipper: US-based money market funds had $51.0B in net outflows for week ended Wed (largest outflow since 2011)
- (US) Moody's raises Florida's GO bond rating by 1 notch to Aaa from Aa1; Outlook Stable
Europe
-(UK) BOE Gov Carney’s annual Mansion House speech: preparing for new global financial system
- (GR) Greece creditors agree on debt relief package (as speculated)
Levels as of 01:30ET
- Nikkei 225, -0.7%, ASX 200 -0.2%, Hang Seng +0.1%; Shanghai Composite +0.4%; Kospi +0.4%
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.1%, Dax +0.4%; FTSE100 +0.3%
- EUR 1.1599-1.1618 ; JPY 109.84-110.09 ; AUD 0.7373-0.7399 ;NZD 0.6854-0.6900
- Aug Gold -0.1% at $1,269/oz; Aug Crude Oil +1.3% at $66.36/brl; Jul Copper +0.1% at $3.03/lb
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