Asia Market Update: Indices trade generally higher amid the vaccine news released after the US close; Shanghai market lags, CN state fund recently sold shares in BOCOM, Trump signed bill to impose financial sanctions related to China; China GDP data due tomorrow.


General Trend:

- Shanghai Composite drops over 1.9% during morning session; Decliners include IT cos. and banks

- Shanghai and HK property firms decline, Shenzhen said to tighten certain home purchase rules

- ZTE declines by over 3% in HK; Trump confirmed the US would end HK’s preferential treatment [this could lead to restrictions on HK’s access to certain high-tech products]

- Kweichow Moutai may report H1 results later today (financial press)

- Japanese Iron/Steel, Real Estate and Transport firms are among the gainers; JP banks lag the broader market

- Sectors moving higher in Australia include Resources and Consumer Discretionary

- Australian energy firms continue to reveal impairment losses (Woodside Petroleum, Origin Energy)

- AUD/JPY rises ahead of AU and China data due on Thursday, tracks gains in equity markets

- Australia Jun jobs data is due for release on July 16th (Thursday)

- China Q2 GDP data is due on Thurs (July 16th), y/y expected at +2.2% vs -6.8% prior

- Bank of Korea (BOK) also due to hold policy meeting on Thursday

- Companies expected to report results during the NY morning include Bank of NY, Goldman Sachs, PNC, UnitedHealth, US Bancorp


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.3%

- (AU) Australia Jul Westpac Consumer Confidence: 87.9 v 93.7 prior; M/M: -6.1% v 6.3% prior

- (AU) Australia New South Wales State reports 13 additional coronavirus cases

- (AU) Victoria state reports 238 additional coronavirus cases v 270 prior; Reports 1 additional death

- (NZ) New Zealand PM Ardern: New Zealand Must prepare for coronavirus penetrating borders; Elimination strategy will remain in place

China/Hong Kong

- Hang Seng opened +1.6%, Shanghai Composite +0.2%

- Bank of Communications [3328.HK]: China pension fund sold 42.3M A-shares in Bank of Communications on Tuesday – press

- Meituan [3690.HK]: China reported to be in talks to test digital yuan (CNY) currency with Meituan

- (CN) Shenzhen (China) said to tighten home purchase rule regarding social security payments - US financial press

- (CN) A couple of banks in China have asked the PBOC to ease the way that it assesses one indicator related to capital adequacy - financial press [the specific indicator was not disclosed]

- (US) Pres Trump: China sanctions legislation will hold China accountable for its actions in Hong Kong; also signs executive order ending preferential treatment for Hong Kong - comments at 'Hong Kong Autonomy Act' signing ceremony

- (HK) US White House issues executive order on Hong Kong Normalization (As expected)

- (CN) US President Trump: We can impose massive tariffs on China if we want; reiterates China is buying massive amounts of Agricultural product; Reiterates you will see more coming on actions toward China.

- (CN) US Speaker of House Pelosi (D-CA): Urges Trump to consider every tool for action on China

- (US) China: will implement Sanctions on US officials over Hong Kong

- (CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Injects CNY30B via 7-day reverse repos prior

- *(CN) CHINA PBOC CONDUCTS CNY400B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: RATE 2.95% V 2.95% PRIOR; completely rolls over maturing MLF and TMLF funds

- (CN) China PBOC sets Yuan reference rate: 6.9982 v 6.9996 prior

- (HK) Hong Kong Police reported to arrest democratic party Vice Chairman - Press

- (CN) China to promote new energy vehicle sales in rural areas


- Nikkei 225 opened +1%

- (JP) Bank of Japan (BOJ) left policy unchanged (as expected); In case of rapid yield rise, BOJ will buy JGBs promptly

-(JP) Bank of Japan (BOJ) Gov Kuroda to give a briefing at 06:30GMT (2:30EST)

- (JP) Tokyo reported to raise coronavirus alert to highest level - Japan Press

- (JP) Tokyo finds a 48 coronavirus case cluster at a Movie Theater

- (JP) Japan Econ Min Nishimura: Current amount of coronavirus infections is 'not yet' large; Doing utmost to avoid declaring state of emergency

- (JP) Japan to consider central bank digital currency (CBDC) in cooperation with other countries - Japanese press


- Kospi opened +1.2%

- *(KR) SOUTH KOREA JUN UNEMPLOYMENT RATE: 4.3% V 4.5%E (Down from 10 year high)

- (KR) Bank of Korea (BOK) reports Board Member Cho has sold certain stock assets; Will attend Jul 16th rate decision meeting

Other Asia

- (ID) Indonesia Jun Trade Balance: $1.27B v $1.2Be; Exports Y/Y: +2.3% v -12.6%e

North America

- Moderna [MRNA]: NEJM reports trial data shows mRNA-1273 COVID-19 vaccine has produced antibodies in all patients tested during initial Phase 1 study – press

- New York Times [NYT]: Reported to move part of Hong Kong office to South Korea - US financial press [follows recent passage of the new national security law related to HK]

- (US) US regulator reported to be investigating certain oil fund disclosures – financial press

- (US) Fed's Brainard (voter, dove): monetary policy will need to shift to provide more stimulus rather than focus on stabilization (July 14th)

- (US) Fed's Kaplan (dove, voter): seeing pronounced slowing again since mid-June; prefers health care protocols over the Fed doing more; hopeful Fed will let some programs ease

- (US) Fed's Harker (hawk, voter in 2020): we are in a downturn that is both exceptionally painful and stubbornly long lasting; pandemic impact on economy is not a brief setback (July 14th)


- OPEC+ committee reportedly outlining a plan for 842K bpd in extra compensation cuts for Aug-Sep timeframe - press


Levels as of 1:20 ET

- Nikkei 225, +1.5%, ASX 200 +1.8% , Hang Seng -0.2%; Shanghai Composite -0.9% ; Kospi +0.8%

- Equity S&P500 Futures: +0.8%; Nasdaq100 +0.4%, Dax +0.8%; FTSE100 +1%

- EUR 1.1423-1.1393 ; JPY 107.31-107.19 ; AUD 0.7019-0.6969 ;NZD 0.6564-0.6530

- Gold -0.2% at $1,809/oz; Crude Oil +0.5% at $40.48/brl; Copper -0.1% at $2.9352/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 struggles around 1.21 amid sour market mood

EUR/USD has extended its falls and struggles around 1.21 as the risk-off mood and elevated US bond yields favor the dollar. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.


Gold melts below $1,750, lowest in 8 months amid high Treasury yields

Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.

Gold news

S&P 500 Day Ahead Outlook: Inflation fears see bears back bashing

An ugly day for stock markets on Thursday as the dirty word inflation reared its head again. Just when you thought Powell had killed off the thought, it came back stronger in the sequel!

Read more

Bitcoin ready for bullish continuation as crypto bull cycle pauses

Bitcoin retest support at $45,000 after failing to break the resistance at $52,000. A break above the range between $48,000 and $49,500 will bring back a bullish impulse.

Read more

US Dollar Index remains firm around 90.60 post-data

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, keeps the bid tone unchanged around 90.60 on Friday.

US Dollar Index News

Forex Majors