|

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.

Author

TradeTheNews.com Staff

TradeTheNews.com Staff

TradeTheNews.com

Trade The News is the active trader’s most trusted source for live, real-time breaking financial news and analysis.

More from TradeTheNews.com Staff
Share:

Editor's Picks

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.


Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
BoJ recap: A pause for now... but Japan has entered a new inflation phase
The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.
The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.