Asia Market Update: Equity markets trade generally higher; Taiex rallies as Pelosi’s Asia trip nears its conclusion; US jobs data due later on Fri.

General trend

- Chinese military drills continue (as expected); Taiwan’s Defense Ministry issued statement.

- RBI hiked by more than expected.

- Hang Seng lags after results from Alibaba.

- Nikkei 225 rebounded from the opening decline.

- Japanese companies expected to report earnings include Isuzu, Sharp, Suzuki Motor, Yamaha Motor, Mitsubishi Estate, NTT Data; Insurers to also report.

- China Jul Trade data in focus [Aug 6-7th].

Headlines/Economic data

Australia/New Zealand

-ASX 200 opened flat.

- (AU) RESERVE BANK OF AUSTRALIA (RBA) STATEMENT ON MONETARY POLICY (SOMP): Downgrades outlook for economic growth, revises inflation forecasts higher.

- (AU) Australia July AIG Services Index: 51.7 v 48.8 prior (1st expansion in 3 months).

- (AU) Australia sells A$700M v A$700M indicated in 4.75% Apr 2027 bonds: Avg Yield: 2.8527%; bid-to-cover 3.14x.

Japan

-Nikkei 225 opened -0.1%.

- (JP) Japan PM Kishida: Demanded China immediately stop military drills, lodged a protest over missiles in EEZ.

- (JP) Japan Jun Labor Cash Earnings Y/Y: 2.2% v 1.9%e; Real Cash Earnings Y/Y: -0.4% v -1.3%e.

- (JP) Japan Jun Household Spending Y/Y: 3.5% v 1.5%e.

- (JP) Japan July FX Reserves $1.32T v $1.31T 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 Industry Minister: To continue to look to Australia for a stable LNG supply despite announced export restrictions.

- (JP) Japan Chief Cabinet Sec Matsuno: China calling off the foreign minister meeting is regrettable.

- (JP) Japan Fin Min Suzuki: Need to closely scrutinize spending in FY23 budget; Responsible economic and fiscal policy is important.

- (JP) Japan Jun Preliminary Leading Index CI: 100.6 v 101.2 prior; Coincident Index: 99.0 v 94.9 prior.

Korea

-Kospi opened +0.3%.

- (KR) South Korea Jun Current Account (BOP): $5.6B v $3.9B prior; Balance of Goods (BOP): $3.6B v $2.7B prior.

- (KR) South Korea President Yoon approval falls to 24% from 28% prior - Gallup.

- (KR) South Korea Foreign Min Park to visit China Aug 8-10th.

China/Hong Kong

-Hang Seng opened +0.5%; Shanghai Composite opened +0.2%.

- (CN) China PBOC sets Yuan reference rate: 6.7405 v 6.7636 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.

- (CN) China Premier Li Keqiang: Keeping unemployment rate below 5.5% and inflation under 3.5% could allow to tolerate a slightly lower growth rate - financial press.

- (CN) Certain cities in China said to have tightened rules related to the escrow accounts of property cos. - Chinese press.

- (CN) Henan Province Financial Regulators: To begin next round of rural bank repayments starting Aug 8th; to repay scam victims with deposits of up to CNY250K.

- (CN) Follow Up: Bengbu Financial regulators announce repayments to bank clients who were victims of bank scams starting Aug 8th.

- (CN) China Ministry of Finance (MOF) Sells 3-month and 6-month bills.

- (HK) China Zuhai province restricts entry into area from Macau for those who have recovered from Coronavirus.

Other

- (TW) Taiwan Defense Ministry: China actions are arbitrarily destroying world most frequently used waterways.

- Pegatron (4938.TW) Shipments to factory in China said to have been disrupted after CEO met with US House Speaker Pelosi.

- (TW) Taiwan Defense Ministry:: Multiple China ships and aircraft crossed the median line on Aug 5th.

- (IN) INDIA CENTRAL BANK (RBI) RAISES REPURCHASE RATE BY 50BPS TO 5.40%; NOT EXPECTED.

- (IN) India Central Bank (RBI) Gov Das: Domestic economy impacted by global situation; fundamentals are strong and resilient - pre-rate decision press conference.

North America

- (US) House Speaker Pelosi: Have said from the beginning that representation is not on changing status quo in Indo Pacific or Taiwan, we had positive meetings in Taiwan on security and governance.

- TSLA Results of shareholder vote: Approve 1:3 stock split, Vote Against proposals that require annual reports on anti-harassment and discrimination efforts by company.

- CEO Musk: Expects Tesla will ultimately have 10-12 gigafactories; Interested in acquiring companies in manufacturing tech and AI; Share buyback possible depending on future cash flow - annual meeting.

- (US) Said that US Democrats are considering adding a stock buyback to the budget proposal - Press; (US) Follow Up: Senate Democrats add a stock buyback tax to the budget bill.

- (US) Senator Sinema (D-AZ) Agrees to remove the carried interest tax provision, to move forward subject to review by senate Parliamentarian.

- (US) Statement from President Biden on the Inflation Reduction Act: Look forward to the Senate taking up this legislation and passing it as soon as possible.

Europe

- (EU) Foreign Policy Chief Borrell: China and Russia will be part of a final Iran deal.

Levels as of 01:20 ET

- Nikkei 225, +0.8%, ASX 200 +0.5% , Hang Seng -0.2%; Shanghai Composite +0.1% ; Kospi +0.8%.

- Equity S&P500 Futures: +0.2%; Nasdaq100 +0.3%, Dax +0.2%; FTSE100 +0.1% - EUR 1.0230-1.0252 ; JPY 132.64-133.48 ; AUD 0.6953-0.6974 ;NZD 0.6284-0.6306.

- Gold +0.1% at $1,808/oz; Crude Oil +0.6% at $89.03/brl; Copper +1.1% at $3.5127/lb.

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD attacks 0.7100 after China data dump miss

AUD/USD attacks 0.7100 after China data dump miss

AUD/USD is on the defensive at around 0.7100, as traders assess disappointing Chinese activity data and the PBOC rate cuts. The pair tumbles as the US dollar picks up safe-haven bids amid China's data-led risk-aversion. 

AUD/USD News

USD/JPY rebounds in sync with US dollar, eyes 133.50

USD/JPY rebounds in sync with US dollar, eyes 133.50

USD/JPY is advancing towards 133.50, rebounding in the tandem with the US dollar, as risk sentiment takes a beating on discouraging Chinese activity data and the unexpected PBOC rate cuts. The pair reverses the Japanese Q2 GDP miss-led drop below 133.00. 

USD/JPY News

Gold slides beneath $1,800 on DXY rebound ahead of Fed Minutes

Gold slides beneath $1,800 on DXY rebound ahead of Fed Minutes

Gold price refreshes intraday low near $1,795 as a firmer US dollar weighed on the key asset during Monday’s Asian session. That said, the sour sentiment and catalysts from China join the market’s cautious mood ahead of this week’s FOMC meeting minutes to propel the greenback of late.

Gold News

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price is in a no man’s land and depending on how the altcoin reacts to a few barriers, investors can bet on its direction. But a minor retracement in the short-term seems likely given the current market conditions.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures