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