Asia Market Update: Quiet trading session for Asia; NZ 10-yr yields extend decline, track USTs; US Fed decision [Jun 16th] is among the key events for next week; RBA also in focus.
- Asian equity indices opened generally higher after modest gains on Wall St.
- Nikkei is currently flat after opening slightly higher.
- Shanghai Composite lagged during the morning session [Consumer Staples and Liquor firms underperformed; Financials also dropped amid release of monthly banking stats].
- Hang Seng ended morning trading near the opening level (+0.4%).
- S&P ASX 200 has moved higher after opening flat [Gainers include Resources, Energy and Utilities indices; Financials lag].
- RBA June meeting minutes due on Jun 15th (Tues).
- RBA Gov Lowe is due to speak on Jun 17th (Thurs) [title of speech is ‘From Recovery to Expansion’].
- Companies expected to report during the NY morning include Cheetah Mobile.
- ASX 200 opened flat.
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$ 252.8B v A$249.5B prior (Record high).
- (NZ) Reserve Bank of New Zealand (RBNZ) offers to buy a total of NZ$220M in government bonds next week under QE program v NZ$250M prior.
- (NZ) New Zealand May Business Manufacturing PMI: 58.6 v 58.3 prior.
- Hang Seng opened +0.4%, Shanghai Composite +0.1%.
- (CN) CHINA MAY M2 MONEY SUPPLY Y/Y: 8.3% V 8.1%E [from Jun 10th].
- (CN) CHINA MAY NEW YUAN LOANS (CNY): 1.400T V 1.500TE [from Jun 10th].
- (CN) CHINA MAY AGGREGATE FINANCING (CNY): 1.920T V 2.000TE [from Jun 10th].
- (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: 6.3856 v 6.3972 prior.
- (CN) Former PBOC Official Hu Xiaolian: Warns China to not weaponize yuan (CNY) internationalization; Internationalization still at early stage.
- (CN) China Ministry of Finance (MOF) Sells 30-year bonds: avg yield 3.6457% v 3.6190% prior; bid to cover 2.77x.
- (CN) China State Planner (NDRC): Will no longer issue subsidies for solar plants or onshore wind projects for remainder of 2021.
- (CN) China to allow people from Taiwan to come to Mainland China to get the coronavirus vaccination.
- Nikkei 225 opened +0.2%.
- (JP) Nikkei 225 June Options settle at 29,046.
- *(JP) JAPAN Q2 BSI LARGE ALL INDUSTRY Q/Q: -4.7 V -5.5E; LARGE MANUFACTURING Q/Q: -1.4 V +1.6 PRIOR.
- (JP) Japan govt considering lifting virus emergency regulations in Tokyo on June 20th - Japanese press.
- (JP) Japan Econ Min Nishimura: The number of new coronavirus infections on declining trend.
- (JP) Japan Fin Min Aso: G7 leaders are continuing talks on Digital tax; Expects China to be in discussion topics at G7.
- Kospi opened +0.1%
- (KR) Bank of Korea (BOK) Gov Lee: To normalize policy if recovery is certain; Household debt has become more serious recently; Economic recovery to become clearer in H2.
- (KR) South Korea June 1-10 Imports Y/Y: 31.0% v 51.5% prior; Exports Y/Y: 40.9% v 81.2% prior.
- (KR) South Korea Apr Export Price Index Y/Y: 12.3% v 10.6% prior; Import Price Index Y/Y: 13.8% v 15.0% prior.
- (KR) South Korea to extend social distancing measures for additional 3-weeks.
- (KR) South Korea sells 50-year bonds: avg yield 2.165% v 2.230% prior.
- (US) White House statement: To work with bipartisan group of Senators on infrastructure bill.
- (EU) Three ECB policymakers reportedly sought to cut PEPP pace at today's meeting, according to sources - press.
- (IR) US lifts sanctions on some Iran oil officials while adding certain other people onto the list.
Levels as of 1:20 ET
- Nikkei 225, flat, ASX 200 +0.2% , Hang Seng +0.5%; Shanghai Composite -0.4% ; Kospi +0.7%.
- Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%.
- EUR 1.2191-1.2168 ; JPY 109.45-109.32 ; AUD 0.7759-0.7744 ;NZD 0.7207-0.7185.
- Gold +0.3% at $1,902/oz; Crude Oil -0.3% at $70.08/brl; Copper +0.1% at $4.4932/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.