Japan Prelim PMI slides to 6-month low

Asia Mid-Session Market Update: Japan Prelim PMI slides to 6-month low; North Korea carries out another rocket engine test

US Session Highlights

- (US) INITIAL JOBLESS CLAIMS: 241K V 240KE; CONTINUING CLAIMS: 1.944M V 1.93ME

- (US) APR FHFA HOUSE PRICE INDEX M/M: 0.7% V 0.5%E

- Stocks opened to the upside this morning, with the Dow gaining 50 points, before retracing late afternoon. Other major markets followed suit, with both the Dow and the S&P wiping out all their gains and closing slightly down on the day. The Nasdaq managed to post a small gain, and the Russell kept 0.4% of it gains for the day. In the S&P, the Health Care sector gained 1.1%, helping to pare losses from Consumer Staples and Financials, which lost 0.6% each.

US markets on close: Dow -0.1%, S&P500 -0.1%, Nasdaq flat

- Best Sector in S&P500: Health Care

- Worst Sector in S&P500: Consumer Staples

- Biggest gainers: ORCL +8.6%; SPLS +6.2%; KMX +4.6%

- Biggest losers: ACN -4.0%; DPS -3.6%; WLTW -2.4%

- At the close: VIX 10.5 (-0.3pts); Treasuries: 2-yr 1.35% (flat), 10-yr 2.15% (-1bps), 30-yr 2.72% (flat)

US movers afterhours

- SGH Reports Q3 $0.62 v $0.62e, Rev $207M v $205Me; Guides Q4 $0.62-0.66 v $0.61e, Rev $205-215M v $213Me, gross margin 21-23%; +2.1% afterhours

- BBBY Reports Q1 $0.58 adj v $0.66e, Rev $2.74B v $2.80Be; Affirms FY17 EPS to decline low single digits to 10%, implies low end $4.12 v $4.29e; -7.4% afterhours

Politics

- (NZ) Latest Roy Morgan survey shows ruling National Party support rise 3.5pts to 46.5% following FY17/18 budget - NZ press

- (VE) Venezuela opposition to block streets nationwide on Friday

Key economic data

- (JP) JAPAN JUNE PRELIMINARY PMI MANUFACTURING: 52.0 V 53.1 PRIOR; 9th straight month of expansion; 6-month low

Speakers and Press

China

- (CN) PBoC: China banks are confident about June-end liquidity - Chinese press

- (CN) China Banking Regulator (CBRC): China banks' NPL ratio fell 16bps y/y to 1.99% in May

- (CN) China said to cut retail gasoline price by CNY250/ton starting June 24th - press

Australia/New Zealand

- (NZ) Quotable Value (QV): Average cost of building a home in New Zealand rose 3.5% y/y in May - NZ press

Korea

- (KR) US officials: North Korea has carried out another rocket engine test, likely for small stage of 3-stage ICBM type rocket engine - press

Asian Equity Indices/Futures (00:30ET)

- Nikkei +0.2%, Hang Seng +0.1%, Shanghai Composite -0.7%, ASX200 +0.0%, Kospi +0.1%

- Equity Futures: S&P500 +0.1%; Nasdaq +0.1%, Dax +0.1%, FTSE100 flat

FX ranges/Commodities/Fixed Income (00:30ET)

- EUR 1.1160-1.1170; JPY 110.95-111.45; AUD 0.7540-0.7560; NZD 0.7200-0.7270

- Aug Gold +0.7% at 1,254/oz; Aug Crude Oil +0.1% at $42.55/brl; July Copper -0.1% at $2.59/lb

- iShares Silver Trust ETF daily holdings rise to 10,571 tonnes from 10,504 tonnes prior

- (CN) PBOC SETS YUAN MID POINT AT 6.8238 V 6.8197 PRIOR; Weakest Yuan fix since May 31st and 4th straight weaker setting

- (CN) PBoC: To skip today's open market operation (OMO)

- (CN) China Finance Ministry sells 3-month bonds at 3.376%

- (AU) Australia Finance Ministry (AOFM) sells A$600M in 1.75% 2020 bonds; avg yield 1.843%; bid-to-cover 5.29x

Asia equities notable movers

Australia

- CSR (CSR) +2.0%; Guides FY17/18 earnings to rise y/y; Chairman to stand down at the 2018 AGM

- Infigen (IFN) -4.9%; Cuts FY17 EBITDA to A$136-138M from A$147M prior forecast

Japan

- Takata (7312) +45.5%; Toyota, Honda and Nissan will continue to financially support Takata after it files for bankruptcy protection - Nikkei

- Don Quixote (7532) +0.2%; FY16/17 Rev said to rise 10% to ~¥830B; Op profit seen around ¥46.5B, above ¥45.5B prior forecast - Nikkei

- Toshiba (6502) -4.2%; Reportedly to request securities report filing deadline extension - Japan press

Hong Kong

- Lonking Holdings Limited (3339) +3.0%; Issues positive H1 profit alert

- China Electric (85) -2.4%; Guides H1 profit -90% to -80% y/y due to prior one off gain

- Bauhaus International Holdings (483) +31.3%; Reports FY17 (HK$) Net 64.9M v 52.9M y/y; Rev 1.31B v 1.51B y/y; SSS -10%