Asia Market Update: Asian equity markets trade mostly lower as caution prevails ahead of G20; US and China officials confirmed recent phone contact, Trump/Xi expected to meet on 2nd day of G20

 

General Trend:

- Concerns about possible US restrictions continue to weigh on IT and Telecom Services firms in China

- Shanghai banking index underperforms, press reports note lingering impact of bailout announcement related to Baoshang Bank

- Shanghai Pudong Development Bank declines , US judge rules the firm is in contempt for refusing to comply with North Korea sanctions probe

- China Merchants Bank declines over 5%

- Chinese footwear company Li Ning rises over 13% on its guidance

- Brokerage firms are among the decliners in Japan, along with Softbank and Fast Retailing

- ASX 200 index supported by rise in gold miners

- Kiwi (NZD) rises ahead of Wednesday’s RBNZ policy decision

- Gold Futures extend gain as the US Fed and geopolitical concerns remain in focus

- China June local government bond issuance may hit record high, funds are being used to finance infrastructure projects (Chinese press)

 

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened flat

- (NZ) New Zealand May Trade Balance (NZ$): 264M v 250Me

- SPO.AU Applies for ASX delisting

-(NZ) New Zealand Fin Min Robertson: OECD survey notes global risks

Japan

-Nikkei 225 opened -0.3%

- 7201.JP CEO : Will implement swift reforms of corporate governance system, see tough times ahead but will put efforts into improving governance; planning business recovery within 3-years; Prioritizing performance recovery, postponing discussions on deepening alliance talks - AGM

-RNO.FR CEO: I did everything I could to smooth over relationship between Renault and Nissan, which was worse than I expected; i never considered FCA pact without alliance - Nissan AGM

- (JP) Japan May PPI Services Y/Y: 0.8% v 1.0%e

- (JP) Japan, US and Australia will jointly finance a $1.0B LNG project in Papua New Guinea as part of pact made in Nov to offer alternative to China's Belt and Road – Nikkei

- (JP) Bank of Japan (BOJ) minutes from April policy meeting (two meetings ago): although it would take time to achieve 2% price stability target, appropriate to persistently continue with the current powerful monetary easing as the momentum toward achieving 2% inflation was being maintained with the output gap remaining positive (little changed from prior months minutes)

- (JP) Japan Economy Min Motegi: Planning to hold talks with Lighthizer, talks will proceed along the line of joint statement

- (CN) China Center for International Economic Exchanges Vice Chairman Wei Jianguo: Trade volume between China and Japan is expected to see double digit growth in 2019 - China Daily

-(JP) Japan MoF sells ¥745.5B v ¥900B indicated in 0.4% (prior 0.40%) 20-year bonds; avg yield 0.2080% v 0.359% prior; bid to cover 4.08x v 5.47x prior

Korea

-Kospi opened flat

- (KR) US Pres Trump: I sent North Korea Leader Kim a very friendly letter; Kim sent me birthday wishes

- (KR) South Korea Jun Consumer Confidence: 97.5 v 97.9 prior (5-month low)

- (KR) South Korea Fin Min Hong has asked 18 major banks to increase its lending to small and medium sized companies as part of efforts to boost the economy – Yonhap

- (KR) South Korea would still like to have an inter-Korea summit before S. Korea President Moon holds talks with President Trump this weekend – Yonhap

- 017670.KR To set up JV with Deutsche Telekom to develop 5G technology

China/Hong Kong

-Hang Seng opened -0.2%; Shanghai Composite opened -0.1%

- (CN) China will "not allow" G20 to talk about protests in Hong Kong, considers it an internal affair – Nikkei

- (CN) China June local govt bond issuance expected to hit a record high of CNY800B with CNY594B issued as of June 21 and additional CNY200B planned for last week of June - China Daily

- (CN) Senior White House Administration Official: China President Xi likely to meet with Trump on second day of G20, will be confirmed by officials later – press

- (CN) China MOFCOM: Confirms Vice Premier Liu He and USTR Lighthizer exchanged comments over the phone; agreed to maintain communications

- (CN) China PBoC sets yuan reference rate: 6.8580 v 6.8503 prior

- (CN) China PBoC Open Market Operation (OMO): Skips for the second consecutive session

- (CN) China Center for International Economic Exchanges Vice Chairman Wei Jianguo: Trade volume between China and Japan is expected to see double digit growth in 2019 - China Daily

Other

- (US) President Trump has told Japan and China they are responsible for defending their own ships in Strait of Hormuz (implying US will no longer help) - Nikkei citing tweets

- (SG) Singapore PM Loong: China and the US need to engage at the top level to build trust; trade war consequences will be "even more serious than the financial crisis" a decade ago - press interview

-(TH) Thailand May Manufacturing Production Index Y/Y: -4.0% v -1.5%e (lowest since 2014)

North America

- (US) Fed's Kaplan (dove, non-voter): concerned a rate cut now could fuel imbalances; wise to take time to consider if we need to change rates

- (US) Jun Dallas Fed Manufacturing Activity: -12.1 v -2.0e (lowest since Jun 2016)

- (US) Pres Trump: Reiterates he can fire Fed Chair Powell if he wanted to; no plans to do anything; Powell is incorrect on 4-year term understanding

-(IR) Iran For Min Spokesman Mousavi: Latest US sanctions means 'closing channel of diplomacy forever'

Europe

-(DE) Germany Finance Ministry: 2020 budget to rise 1% to €359.9B

 

Levels as of 1:20 ET

- Nikkei 225, -0.7%%, ASX 200 -0.1%, Hang Seng -1.3%; Shanghai Composite -1.5%; Kospi -0.3%

- Equity Futures: S&P500 -0.3%; Nasdaq100 -0.5%, Dax -0.2%; FTSE100 -0.3%

- EUR 1.1411-1.1394; JPY 107.41-106.77 ; AUD 0.6973-0.6954 ;NZD 0.6646-0.6615

- Gold +1.1% at $1,434/oz; Crude Oil -0.7% at $57.47/brl; Copper +0.2% at $2.712/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.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures