Generally quiet session seen for Asian equities
|Asia Market Update: Generally quiet session seen for Asian equities; US equity FUTs decline after results from Snap; USD trades firmer.
General trend
- EUR/USD declines during Asia, recent ECB decision and Nord Stream pipeline in focus.
- Government bond yields mostly track the declines seen in the US and Europe.
- Australia and Japan PMI data slowed.
- China’s FX regulator commented on EM outflows and the domestic bond market.
- Equity markets trade mixed.
- Chinese markets lag.
- Shanghai Property index extended decline during morning trading.
- Japanese equity markets rebounded from the opening declines; Marine Transportation index supported by guidance upgrades.
- Companies due to report during the NY morning include Verizon, American Express, HCA, Schlumberger, Twitter, Cleveland-Cliffs, Autoliv.
Headlines/Economic data
Australia/New Zealand
-ASX 200 opened slightly lower.
- (AU) AUSTRALIA JUL PRELIMINARY PMI MANUFACTURING: 55.7 V 56.2 PRIOR (27TH MONTH OF EXPANSION).
- (AU) Australia announces increases to Foreign Investment fees and Penalties.
- (AU) Australia sells A$700M v A$700M indicated in 0.50% Sept 2026 bonds; Avg Yield: 3.2120%; bid-to-cover: 3.40x.
- (AU) NAB Bank expects RBA Cash rate year end at 2.85%, up from 2.35% prior.
- (AU) Westpac expects the RBA Cashrate to reach 3.35% by Feb 2023, vs 2.6% prior.
- (AU) ASIC places stop order on advertisements for PPM Units in RES Investment Fund.
Japan
-Nikkei 225 opened -0.1%.
- (JP) JAPAN JUN NATIONAL CPI Y/Y: 2.4% V 2.4%E; CPI EX-FRESH FOOD (CORE) Y/Y: 2.2% V 2.2%E (HIGHEST SINCE MAR 2015).
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥919.6B v -¥1.49T prior; Foreign Net Buying of Japan Stocks: ¥476.0B v ¥526.3B prior.
- (JP) JAPAN JULY PRELIMINARY PMI MANUFACTURING: 52.2 V 52.7 PRIOR.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan Fin Min Suzuki: Need to pay full attention to risk of rising inflation exerting downward pressure on economy.
Korea
-Kospi opened -0.2%.
- (KR) South Korea Foreign Ministry: Strongly protests Japan claims on Disputed Islets.
China/Hong Kong
-Hang Seng opened +0.7%; Shanghai Composite opened %.
- (CN) Shanghai reports 14 new coronavirus cases; Adds 6 medium risk areas to lockdown.
- (CN) China PBOC sets Yuan reference rate: 6.7522 v 6.7620 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY3.0B in 7-day reverse repos v CNY3.0B prior; Net CNY0B v Net CNY0B prior.
- (CN) China Commerce Ministry (MOFCOM): Extends anti-dumping duties on grain oriented flat-rolled electrical steel imported from Japan, South Korea, and the EU for an additional 5-year period.
- (CN) China SAFE (FX regulator): Cross border financing in H1 remains stablel Size of FX derivative trading continues to increase, China FX reserves largely stable; International Capital has been outflowing from Emerging markets recently.
- (CN) China Jun FX Net Client Settlements (CNY): 50.2B v 1.7B prior.
Other
- (SG) Singapore final Q2 URA Private Home Prices Q/Q: 3.5% v 3.2% prelim.
North America
- (US) Commerce Sec Raimondo: US Dependence on Taiwan Chips is untenable and unsafe; Chips development is a 'sputnik' moment for the US.
- Comments at Aspen Forum.
- (US) California official: Port of Oakland's largest marine terminal has been 'essentially shut down' for second day amid trucker blockade; Three other terminals have some operations underway - press.
Europe
- (UK) Jul GfK Consumer Confidence: -41 v -42e (Remains at lowest level since 1974, when records started).
- (RU) Russia Foreign Ministry: Latest round of EU sanctions will have 'disastrous consequences' for segments of global economy.
Levels as of 01:20 ET
- Nikkei 225, +0.5%, ASX 200 flat , Hang Seng +0.2%; Shanghai Composite -0.3% ; Kospi -0.6%.
- Equity S&P500 Futures: -0.5%; Nasdaq100 -0.8%, Dax -0.3%; FTSE100 -0.4%.
- EUR 1.0231-1.0180 ; JPY 137.89-137.02 ; AUD 0.6939-0.6896 ;NZD 0.6255-0.6211.
- Gold flat at $1,713/oz; Crude Oil +1.1% at $97.40/brl; Copper +0.2% at $3.3135/lb.
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