Asia Market Update: Indices opened generally higher after gains in the US, HK is closed for holiday; China said to consider targeting US media.

 

General Trend:

-Shanghai Composite index tested the 3,000 psychological level for the first time since March amid easing by the PBOC, sectors moving higher include Consumer Discretionary and Property

-Japanese equities lag amid the stronger Yen; Declining sectors include Real Estate, Insurance and Transportation

-Consumer Discretionary sector rises in Australia, energy sector lags

-FedEx rose over 8% in afterhours trading on better than expected results

-Japan 30-yr JGB yield rises to highest level since March 2019, BoJ’s July bond purchase plan has led to speculation that the central bank may seek to steepen the yield curve; US 30-year Treasury Bond FUTs decline amid the new month and quarter

-Bank of Korea (BOK) plans to conduct outright purchase of KRW1.5T worth of gov’t bonds on Thursday (July 2nd)

 

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened +0.1%

-(AU) Australia Victoria state reports 73 additional coronavirus cases v 64 prior (over 2 month high)

-(AU) Australia Jun Final CBA PMI Manufacturing: 51.2 v 49.8 prelim (Move into expansion territory after 3 Months of contraction)

-(AU) Australia Jun AiG Performance of Manufacturing Index: 51.5 v 41.6 prior (Highest since July 2019)

-(AU) AUSTRALIA MAY BUILDING APPROVALS M/M: -16.4% V -7.8%E; Y/Y: -11.6% V -7.8%E

-(AU) Australia May Private Sector Houses Approvals M/M: -4.4% v +2.7% prior

-(AU) Australia May CoreLogic House Prices M/M: -0.8% v -0.5% prior

-(AU) Australia sells A$2.0B v A$2.0B indicated in 2.75% Nov 2028 bonds, avg yield 0.7959%, bid to cover 3.6x

-Air New Zealand [AIR.NZ]: Announces Auckland to Melbourne passenger flights will be suspended from July 1-14 [citing govt restrictions]

-(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: There is 'nothing magic' about 50% of QE ceiling [relates to indemnity agreement with NZ government]; By August RBNZ will have clarity on LSAP program on delivery stimulus

-(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$390M v NZ$146M prior in government bonds as part of QE v NZ$390M sought

China/Hong Kong

-Hang Seng closed for holiday, Shanghai Composite opened +0.2%

-(CN) China may announce restrictions on US media - Global Times

-(CN) CHINA JUN CAIXIN PMI MANUFACTURING: 51.2 V 50.5E

-(CN) FCC designates Huawei and ZTE as national security threats – press

-(CN) China PBoC said to cut the Relending rate by 25bps to 2.00% on July 1st; to also cut interest rates related to financial stability refinancing loans by 50bps to 1.75% - financial press

-(CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY180B v Net drain CNY90B prior (3rd straight skip)

-(CN) China PBOC sets Yuan reference rate: 7.0710 v 7.0795 prior

-(CN) China to strengthen rules on selling bonds related to coronavirus relief

-(HK) China briefing on Hong Kong national security law: New Law will plug loopholes in Hong Kong legal systems

-(HK) Hong Kong Police Spokesman: People who display pro-independence material will face arrest and prosecution under Hong Kong National Security Law

-(HK) Macau Jun Gaming Rev (MOP): 716M v 1.76B prior; Y/Y: -97.0% v -93.2% prior

Japan

-Nikkei opened +0.2%

-*(JP) JAPAN Q2 TANKAN LARGE MANUFACTURING INDEX: -34 V -31E (lowest level since 2009); OUTLOOK SURVEY: -27 V -24E

-*(JP) JAPAN JUN CONSUMER CONFIDENCE INDEX: 28.4 V 28.0E

-(JP) Bank of Japan (BOJ) announces Bond purchases for month of July (June 30th)

-(JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: raises purchases of 3-5 year JGBs (as expected)

-(JP) BoJ Dep Gov Wakatabe: Central banks must consider price stability during coronavirus pandemic - Column in Nikkei

-(JP) Japan Chief Cabinet Suga: Current coronavirus situation does not require emergency declaration currently

-(JP) Japan Dep PM Aso: Snap election in autumn is preferable - financial press (from June 30th)

-(JP) Japan govt reportedly considering loosening travel restrictions with China and South Korea - Japanese press

-(JP) Japan PM Abe said to plan to attend G7 meeting in late Aug, the meeting will be held in the US - Japanese press

-(JP) Tokyo reports >60 cases of coronavirus (3rd straight day of >50 cases)

Korea

- Kospi opened +1%

- (KR) South Korea Jun PMI Manufacturing: 43.4 v 41.3 prior

- (KR) South Korea Jun Trade Balance: $3.7B v $4.1Be

Other Asia

- (IN) India Jun PMI Manufacturing: 47.2 v 30.8 prior (3rd straight contraction)

- (PH) Philippines Central Bank (BSP): To issue BSP securities for the first time in Q3 via auction; notes the need for greater flexibility to manage liquidity

- (TW) Taiwan Jun Manufacturing PMI: 46.2 v 41.9 prior

North America

- (US) US Senate passes Paycheck Protection Program extension bill, also passes bill which gives companies more time to apply for relief

- Alphabet [GOOGL]: Google to delay reopening of offices due to coronavirus concerns related to western and southern US states; all of the company's US offices to remain closed until at least early Sept - Press

- Apple [AAPL]: Looking to reduce production delays for its 5G iPhones - Nikkei

- BOC Aviation [2588.HK]: Confirms cancellation of orders for 30 Boeing 737 Max planes, deferred delivery of other 737 Max jets

Europe

- Airbus [AIR.FR}: Plans to cut 15K jobs (~11% of workforce)

- SocGen [GLE.FR]: Australia regulator ASIC: SocGen Australia pleads guilty to client money offences

 

Levels as of 1:20 ET

- Nikkei 225, -1.1%, ASX 200 +0.2% , Hang Seng closed; Shanghai Composite +0.9% ; Kospi +0.1%

- Equity S&P500 Futures: -0.4%; Nasdaq100 -0.3%, Dax -0.2%; FTSE100 -0.3%

- EUR 1.1240-1.1215 ; JPY 108.16-107.58 ; AUD 0.6918-0.6885 ;NZD 0.6466-0.6440

- Gold flat at $1,800/oz; Crude Oil +1.3% at $39.79/brl; Copper +0.6% at $2.732/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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex Majors

Cryptocurrencies

Signatures