Equities trade generally lower after declines on Wall Street

Asia Market Update: Equities trade generally lower after declines on Wall St; NZD and NZ yields rise on reduction of stimulus; Big macro events seen on Thurs. (including Fed’s Powell, AU jobs, BOK, China GDP, PBOC MLF?).

General trend

- Financials trade generally lower after US bank earnings.

- Nikkei 225 has remained lower [Topix Banks, Marine Transportation, Iron & Steel and Air Transportation indices decline; Information and Communication index rises].

- Shanghai Composite ended the morning session lower [Decliners included Financial, Consumer Discretionary, Industrial and Property indices; Consumer Staples outperform].

- Hang Seng has also declined after opening flat [Financial and Property names trade generally weaker].

- S&P ASX 200 has pared gain [Resources, Energy and Consumer indices rise; Financials lag].

- Fed Chair Powell due to testify on Wed-Thurs (14-15th).

- Companies due to report during the NY morning include Bank of America, BlackRock, Citi, Delta, Infosys, PNC, Wells Fargo.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened 0.0%.

- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 0.25%; (AS EXPECTED); To discontinue LSAP purchases by July 23rd, 2021.

- (AU) New South Wales extends lockdown in Sydney through July 30th.

- (AU) Australia sells A$800M v A$800M indicated in 1.25% May 2032 bonds, avg yield 1.3878%, bid to cover 5.32x.

- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$330.8B v A$326.8B prior (Record high).

Japan

- Nikkei 225 opened -0.7%

- JEF Sumitomo Mitsui Financial to acquire 5% stake for $380M, in a capital tie up - Nikkei.

- (JP) Japan May Final Industrial Production M/M: -6.5% v -5.9% prelim; Y/Y: 21.1% v 22.0% prelim.

Korea

- Kospi opened -0.0%

- (KR) South Korea Jun Export Price Index Y/Y: 12.7% v 12.6% prior; Import Price Index Y/Y: 14.0% v 14.2% prior.

- (KR) South Korea President Moon: To increase New Deal spending up to KRW220T up from KRW160T by 2025.

China/Hong Kong

- Hang Seng opened 0.0%; Shanghai Composite opened -0.2%.

- (CN) China Jun YTD Foreign Direct Investment FDI (CNY) Y/Y: +28.7% v 35.4% prior.

- (CN) China Premier Li Keqiang: Reiterates stance to keep its macro policy stable; to keep economic activity within reasonable range through next year; recent RRR cut should focus support on small and medium enterprises (SMEs) (yesterday after the close).

- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.

- (CN) China PBOC sets Yuan reference rate: 6.4806 v 6.4757 prior.

- (CN) China NDRC Deputy Dir Zhao Penggao: To promote adjustment to industrial sector and strictly control overcapacity of coal and steel industry (update).

Other

- (SG) SINGAPORE ADVANCED Q2 GDP Q/Q: -2.0% V 1.8%E; Y/Y: 14.3% V 14.6%E.

North America

- (US) Senator Schumer (D-NY): Senate Democrats have arrived at a $3.5T budget deal for spending and tax plans; budget to include medicare expansion.

- (US) Weekly API Crude Oil Inventories: -4.1M v -8.0M prior.

- AAPL Said to be seeking 20% increase in iPhone production in the current year - Press.

Europe

- (UK) Members of Parliament reportedly call for halt to sale of UK's largest microchip plant, Newport Wafer Fab, to Dutch co Nexperia, owned by China co Wingtech - UK's Telegraph.

Levels as of 01:15ET

- Hang Seng -0.6%; Shanghai Composite -0.8%; Kospi -0.3%; Nikkei225 -0.3%; ASX 200 +0.2%.

- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.0%, Dax -0.1%; FTSE100 -0.1%.

- EUR 1.1785-1.1772; JPY 110.70-110.44; AUD 0.7467-0.7437; NZD 0.7024-0.6939.

- Commodity Futures: Gold +0.2% at $1,812/oz; Crude Oil -0.4% at $74.96/brl; Copper -0.3% at $4.28/lb.