Asia Market Update: Asian equities track recent US declines amid central bank policy uncertainty, focus on earnings season; Shares on China’s new technology board rise in debut, South Korea data impacted by Japan export curbs

General Trend:

- Shanghai IT index declines on launch of new technology board in China

- Some Chinese companies are said to have made inquiries related to purchases of US farm products (Xinhua)

- China State Media: New import plan related to US farm goods shows Chinese commitment, the plan is a response to recent 'positive' signals from US officials

- Hang Seng underperforms ; decliners include property shares, insurers, gaming companies and telecoms

- Hundreds of thousands said to protest in HK; train operation MTR declines on reports of violence in subway stations

- Brent Crude Futures rise over 1%, UK said to plan sanctions related to Iran (UK press)

- South Korea exports on track to decline for 8th straight month in July as chip shipments continue to drop, July 1-20th imports from Japan -14.5% y/y

- Japan upper house elections in line with expectations

- RBA Gov Lowe is due to speak on inflation targeting and economic welfare on July 25th (Thursday)

- US companies expected to report during the NY morning include Haliburton


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.2%

China/Hong Kong

-Shanghai Composite opened +0.1%, Hang Seng -0.5%

- (CN) Some companies in China are looking to purchase farm products from the US, cites authorities – Xinhua

- (CN) New import plan related to US farm goods shows Chinese commitment, the plan is a response to recent 'positive' signals from US officials - China State Media

-(CN) China H1 new local government bond issuance CNY2.18T (+55.2% y/y) vs CNY3.08T quota for 2019; June new local gov't bond issuance CNY717B (monthly high for 2019) – Xinhua

- (CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v injects CNY100B prior; Net CNY50B injected v CNY100B injected prior

- (CN) China PBOC sets yuan reference rate: 6.8759 v 6.8635 prior

- (CN) China city Tangshan, which is a large steel producer, steps up pollution curbs - China Press


- Nikkei 225 opened -0.3%

- (JP) Japan PM Abe's LDP led coalition government expected to win half of the open seats in today's upper house election, LDP and partner Komeito retained their simple majority - Japan Press


- Kospi opened -0.2%

-Samsung Electronics: Considering expansion of investment in the US due to Japan curbs, according to Yonhap; Samsung refutes the story

- (KR) South Korea July 1-20 Exports Y/Y: -13.6% v -10% prior; Chip Exports: -30.2% y/y; Imports from Japan -14.5% y/y (Note: South Korea exports are on track to decline for the 8th straight month in July)


- (IN) Reserve Bank of India (RBI) Gov Das: signs are looking good for economy; interest rate stance now depends on data; rate cuts and accommodative stance equate to 100 bps easing

North America

- (US) Trump Administration and Legislators said to be approaching deal on budget caps and debt ceiling; awaiting Pres Trump approval - US Press

- (US) US confirms it will deploy forces to Saudi Arabia and increase maritime surveillance in the Arabian


- (IR) UK ministers are planning to put sanctions on the Iran regime; Foreign ministry to announce it will freeze Iranian assets after tanker was seized - UK press

- (IR) Iranian News agency FARS: second UK oil tanker Mesdar has left Iranian waters (from July 19th)

- (UK) Fin Min Hammond confirms that he will resign if Boris Johnson becomes Prime Minister - UK Press

- (UK) UK government said to consider carbon surcharge related to airline tickets - UK Press

- (IE) EU said to be preparing aid package for Ireland to soften no-deal Brexit - UK Press

-(DE) Germany Fin Min: June tax Rev +6.8% y/y, data suggest German manufacturing to remain sluggish - Monthly report


Levels as of 1:20 ET

- Nikkei 225, -0.4%, ASX 200 -0.3%, Hang Seng -0.8%; Shanghai Composite -0.8%; Kospi flat

- Equity Futures: S&P500 flat; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 flat

- EUR 1.1221-1.1207 ; JPY 108.07-107.70 ; AUD 0.7047-0.7035 ;NZD 0.6781-0.6756

- Gold +0.1% at $1,427/oz; Crude Oil +0.9% at $56.12/brl; Copper +0.3% at $2.751/lb

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