Equities mixed after similar session on Wall Street
|Asia Market Update: Equities mixed after similar session on Wall St.; China Aug Caixin Services PMI due on Friday.
General trend
- Nikkei has remained slightly higher, currently trades near the opening level [Topix Banks and Information & Communication indices rise; Airlines and Steelmakers lag].
- Shanghai rebounded from the opening decline, ended morning trading +0.6% [Property index extends gain; Industrials index rises over 1%; Consumer Staples and IT indices lag].
- Hang Seng has pared gain [Financials trade generally lower, Ping An Insurance declines].
- S&P ASX 200 has lagged and remained lower [Resources index weighed down by BHP ex-dividend].
Headlines/Economic Data
Australia/New Zealand
-ASX 200 opened -0.4%.
- (NZ) New Zealand Q2 Terms of Trade Index Q/Q: 3.3% v 0.3%e.
- (AU) Australia July Home Loans Value M/M: +0.2% v -0.2%e; Investment lending M/M: 1.8% v 0.7% prior.
- (AU) Australia July Trade Balance (A$): 12.1B v 10.0Be (record high); Exports to China A$19.4B , +72% y/y (record high).
-(AU) ANZ expects RBA to delay plans to taper bond buying (which was planned to start in Sept) at rate decision next week.
Japan
-Nikkei 225 opened +0.3%.
- (JP) Bank of Japan (BOJ) Board Member Kataoka [dovish dissenter]: Need to watch downside risks to global economy; BOJ must strengthen forward guidance on interest rate targets, stronger easing needed.
- (JP) Japan considering extending COVID emergency by 2 weeks past the Sept 12th planned lifting - Japan press.
- (JP) Japan LDP Leadership Candidate Kishida: Must compile and economic stimulus package to get public cooperation in containing the flow of people and increasing hospital beds.
- (JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0230% v 0.0090% prior; bid to cover: 3.36x v 3.33x prior.
Korea
-Kospi opened -0.3%.
- (KR) South Korea Aug auto sales 544.9K units, -4.5% y/y (decline attributed to chip shortages).
- (KR) SOUTH KOREA Q2 FINAL GDP Q/Q: 0.8% V 0.7%E; Y/Y: 6.0% V 5.9%E (confirms fastest annual pace in 10-years).
- (KR) Bank of Korea (BOK) Gov Lee: Our economy showed a faster than expected recovery in the first half thanks to aggressive policy responses and a global economic recovery.
- (KR) SOUTH KOREA AUG CPI M/M: 0.6% V 0.4%E; Y/Y: 2.6% V 2.4%E (5th consecutive month above target).
China/Hong Kong
-Hang Seng opened +0.7%; Shanghai Composite opened -0.2%.
- 388.HK CEO: IPO pipeline is still strong, have about 20 companies in the 18a biotech.
- (CN) China to increase support for smaller businesses and enhance cross cyclical adjustment - regional press.
- (CN) China Sec Journal: PBOC will address the Sept funding gap; Liquidity in money markets to remain 'reasonably ample'.
- (CN) Surprise contraction in the China Aug Caixin Mfg PMI has sparked talk about support for the manufacturing sector - China Daily.
- (CN) China PBOC sets Yuan reference rate: 6.4594 v 6.4680 prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY50B in 7-day reverse repos prior; Net drain CNY40B v Net drain CNY40B prior.
Other
- OPEC+ producers confirm agree to keep production road map of 400K bpd capacity increase in Oct.
- (TW) Taiwan proposed consumption vouchers of NT$5.000/person are expected to help boost GDP to as high as 6% - Taiwan press.
North America
-AAPL Said that company is in talks with Japan and South Korea suppliers for new Apple Car - Press.
- (US) New York, New Jersey seeing record levels of rainfall, causing flooding and power outages, tornado touchdowns in South Jersey, as remnants of Ida make their way north.
- AAPL To make update to App Store that will close investigation by the Japan Fair Trade Commission.
- AAPL Japan FTC: Future anti-monopoly investigation into Apple App games is possible.
- PFE (US) FDA advisory panel (VRBPAC) to hold meeting about vaccine boosters on Sept 17th (HHS previously noted their preparedness to begin rolling out COVID-19 booster vaccines beginning week of September 20).
- GOOGL DOJ reportedly preparing antitrust lawsuit over ad technology business; Would be a second separate antitrust suit against Google - press.
- CHWY Reports Q2 Net -$16.7M v -$32.8M y/y, Rev $2.16B v $2.17Be.
Europe
- (EU) US considering a quota system in an attempt to end EU dispute on steel tariffs - press.
-(UK) Press notes that newly named BOE chief economist Huw Pill, is considered a "hawk" - FT.
Levels as of 01:15ET
- Hang Seng +0.1%; Shanghai Composite +0.6%; Kospi -1.0%; Nikkei225 +0.3%; ASX 200 -0.8%.
- Equity Futures: S&P500 -0.0%; Nasdaq100 +0.0%, Dax -0.2%; FTSE100 -0.1%.
- EUR 1.1846-1.1835; JPY 110.11-109.92; AUD 0.7374-0.7355; NZD 0.7073-0.7355.
- Commodity Futures: Gold -0.2% at $1,812/oz; Crude Oil -0.4% at $68.31/brl; Copper +0.3% at $4.29/lb.
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