Another mixed equity session for Asia, cautious moves seen

Asia Market Update: Another mixed equity session for Asia, cautious moves seen; US CPI data in focus [Wed, Aug 10th], CN CPI also due on Wed.

General trend

- Nikkei 225 lags following results from SoftBank Group.

- Japanese cos. expected to report results include Kobe Steel, Mazda, Asahi Group.

- Australian financials weighed down by NAB’s guidance
Chinese markets rise during morning trading; Property shares supported by stimulus talk; which was later refuted by HK Govt.

- Japan Cabinet reshuffle confirmed for Aug 10th.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.1%.

- NAB.AU Reports Q3 (A$) Cash profit 1.80B v 1.70B y/y; CET1 11.6% v 12.6% y/y.

- (AU) Reserve Bank of Australia (RBA): Will explore case for use of Central Bank Digital Currency, project to take ~1-year.

- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence W/W: -4.5% v +2.1% prior.

- AHF.AU Cases yogurt manufacturing at Manifold street; Halts fresh milk processing at Camperdown Manifold street; To focus on Infant formula and nutritional.

- (AU) Australia Aug Consumer Confidence: 81.2 v 83.8 prior; M/M: -3.0% v -3.0% prior (8th consecutive decline).

- (AU) Australia July NAB Business Confidence: 7 v 2 prior; Business Conditions: 20 v 14 prior.

- REA.AU Reports FY22 (A$) Core Net 407.5M v 326.4M; Core EBITDA 673.5M v 564.8M y/y; Rev 1.17B v 927.8M y/y.

Japan

- Nikkei 225 opened -0.0%.

- (JP) Japan Trade Min Hagiuda expected to become the LDP policy chief under the cabinet reshuffle - Japanese Press.

- (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].

- 9984.JP Reports Q1 Net -¥3.16T v +¥761.5B y/y, Pretax -¥3.29T v +¥1.29T y/y, Rev ¥1.57T v ¥1.48T y/y (yesterday after the close).

- (JP) Bank of Japan (BOJ) announced review of the benchmark ratio used to calculate the macro add-on balance in current account balances at the BOJ to which a zero interest rate is applied: set the ratio at 33.0% (25.5% prior) for the Aug reserve maintenance period.

- (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.7% 30-year JGBs, Avg Yield: 1.1190% v 1.2340% prior, bid-to-cover: 2.95x v 3.25x prior.

Korea

- Kospi opened 0.0%.

- (KR) South Korea ship builders received >50% of all new global ship orders in July - South Korea press.

- (KR) Heavy rainfall in around Seoul overnight Monday left 7 dead, 6 missing and flooded homes, vehicles and subway stations; insurers lower.

- 017670.KR Reports Q2 (KRW) Net 254B v 796B y/y; Op 460B v 397B y/y; Rev 4.29T v 4.82T y/y.

China/Hong Kong

- Hang Seng opened 0.0%; Shanghai Composite opened 0.0%.

- (HK) Said that the Hong Kong Govt is considering waiving double stamp duty for China home buyers - Press.

- (CN) China Economic Daily Op Ed: China should promote innovation of bond products and advance the development of integrated equity-debt products in order to offer more financing tools to private firms.

- (CN) Rate and RRR cuts are unlikely - China Press.

- (CN) China PBOC sets Yuan reference rate: 6.7584 v 6.7695 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v Net CNY0B prior.

- (HK) Hong Kong Monetary Authority (HKMA) purchases HK$2.975B to defend currency peg.

Other

- (TH) Thailand Fin Min Arkhom: In favor of modest rate increases to help shield growth, see CPI peaking this quarter and easing in Q4.

- (TW) Taiwan military begins live fire drills.

- (SG) Singapore PM preparing to increase support measures to help deal with increased cost of living - press.

- (TW) Taiwan Foreign Min Wu: Although China is targeting Taiwan now, its activities around the world show its ambitions are growing beyond Taiwan.

- (TW) ~20 China and Taiwan warships stayed close to Taiwan Strait median line this morning, with some Chinese ships briefly attempting to cross the line - press.

North America

- SOFI Softbank filing shows company is determined to sell partial or complete stake in Company – filing.

- (CN) Said that talks between Canada and US on Enbridge pipeline are making progress – press.

- TSLA Reports July China made cars delivered 28.2K, -64.2% m/m - PCA.

Europe

- (UK) July BRC Sales LFL Y/Y: +1.6% v -1.3% prior; Sales volumes are falling to a rate not seen since the depths of the pandemic, as inflation continues to bite, and households cut back spending.

Levels as of 01:15ET

- Hang Seng +0.9%; Shanghai Composite +0.3%; Kospi +0.4%; Nikkei225 -0.9%; ASX 200 -0.0%.

- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax -0.2%; FTSE100 -0.1%.

- EUR 1.0201-1.0189; JPY 135.04-134.68; AUD 0.6994-0.6970; NZD 0.6294-0.6273.

- Commodity Futures: Gold -0.2% at $1,802/oz; Crude Oil -0.2% at $90.61/brl; Copper +0.1% at $3.59/lb.

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