Asian indices opened generally higher after losses during prior session
|Asia Market Update: Asian indices opened generally higher after losses during prior session; HK declines upon return from holiday; China markets to return on Monday.
General Trend:
- Chinese telecoms drop in Hong Kong, US Defense Dept. released list of Chinese companies designated as 'owned or controlled by Chinese military' (included Chinese telecoms among other companies)
- Qantas declines by over 8% in Australia following capital raise
- Australian Energy, Resources and Financial firms rise after losses seen on Thursday
- Aussie Consumer Discretionary sector rises as Australia eases social distancing rules
- Australia PM Morrison plans to discuss loan deferrals with the major domestic banks, he expects most states to reopen their borders in July
- Automakers and financials are among the gainers in Japan following prior session’s weakness
- Nike drops over 3% in afterhours trading amid weaker results
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- (AU) Australia PM Morrison: Gave approval for the mass adoption of the two square meter rule for smaller public locations
- (AU) Reserve Bank of Australia (RBA) adds A$1.77B to banking system through repos vs A$4.95B prior [largest daily injection since March 24th]
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$41.8B v A$38.0B prior [prior lowest amount of excess cash since March 20th]
- (AU) Reserve Bank of Australia Deputy Gov to speak on June 30th at 12:30 AEST (Tuesday)
- (AU) Australia Victoria state reports 30 additional coronavirus cases v 33 prior
- (AU) Australia sells A$1.0B v A$1.0B indicated in 4.25% April 2026 bonds, avg yield 0.479%, bid to cover 5.9x
- (NZ) New Zealand Treasury: Forecasts Q3 unemployment at 9.0% v 10.0% prior
- (NZ) New Zealand June ANZ Consumer Confidence: 104.5 v 97.3 prior
- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$260M v NZ$270M prior in government bonds as part of QE v NZ$260M sought
- (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$940M v NZ$940M prior in government bonds next week
China/Hong Kong
- Hang Seng opened -0.3%, Shanghai Composite closed
- (US) US reportedly to consider 12-month extension to China Goods tariff exclusion list of particular exclusions granted in the October 2019 notice – press
- (HK) US Senate passes bill punishing China for Hong Kong security law via unanimous consent - press
Japan
- (JP) Bank of Japan Gov Kuroda: BOJ will lower entire yield curve if necessary; Emergency measures for virus-impacted companies will be gradually curtailed as economy recovers.
- *(JP) JAPAN MAY TOKYO CPI Y/Y: 0.3% V 0.3%E; CPI (EX-FRESH FOOD) Y/Y: 0.2% V 0.2%E
Korea
- Kospi opened +1.1%
- (KR) South Korea Jun Consumer Confidence: 81.8 v 77.6 prior
Other Asia
- (SG) Singapore Apr Industrial Production M/M: -16.5% v -5.6%e; Y/Y: -7.4% v +7.7%e
North America
- *FED BANK STRESS TEST RESULTS: FED TO LIMIT BIG BANK DIVIDEND PAYOUTS AND BUYBACKS TO PRESERVE CAPITAL DURING DOWNTURN; BANKS WILL HAVE TO RESUBMIT CAPITAL PLANS LATER THIS YEAR
- (US) Fed Total Balance Sheet Size as of June 24th: $7.097T, -$75.5B w/w (2nd straight decline)
- (US) Vice President Pence to meet with airline CEOs on June 26th
- (US) White House Coronavirus task force to hold briefing at 12:30EST (16:30GMT) on June 26th
- (CL) Chile Chuquicamata will halt smelter and refinery operations (Mining operation is largest copper mine in the world)
Europe
- (IR) Iran State Media confirms reported gas tank explosion in Tehran
- Air France [AF.FR]: Follow Up: France and the Netherlands reach agreement on €3.4B aid package for KLM - financial press
- (FR) France Jun car registrations said to be near year ago levels - financial press
Levels as of 1:20 ET
- Nikkei 225, +1.2%, ASX 200 +1.5% , Hang Seng -0.6%; Shanghai Composite closed ; Kospi +1.2%
- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.1%, Dax +0.1%
- EUR 1.1226-1.1208; JPY 107.24-107.07; AUD 0.6897-0.6861; NZD 0.6450-0.6414
- Gold -0.1% at $1,769/oz; Crude Oil +1.3% at $39.22/brl; Copper +0.2% at $2.669/lb
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