Asia Summary
Markets lacked direction, opening mixed and spending the session little changed. Data in the session was light and Bank of Japan (BOJ) minutes from June failed to inspire. Japan earnings start to pick up this week and will start with Mitsubishi Motors today. NZD/USD fell to a fresh session low of 0.7401 after New Zealand press reported that contagious disease was found in 14 cows, not long after returned to unchanged levels at 0.7434.
China Central Committee Political Bureau (politburo) indicated that China will continue seeking progress while maintaining stability for its economic work in H2 2017. They will also focus on stabilizing the real estate market, curbing local government debt growth and implementing supply side reform.
Key economic data
(KR) South Korea July Consumer Confidence: 111.2 v 111.1 prior (6th consecutive rise, 6.5-yr high)
(AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 115.1 v 112.5 prior
Speakers and Press
China
(CN) Liquidity condition in the money market has passed tightest period and may ease further in early August – China Securities Journal Op Ed
(CN) China President Xi: Economy in H1 maintained steady growth with a positive outlook, deepened structural adjustment, and better than expected performance in major indicators
(CN) China Think Tank sees H2 exports +6.6% in USD terms – Chinese Press
Korea
(KR) South Korea President Moon: Said to have discussed increasing the weight of South Korean ballistic missile’s warhead to 1 ton from 500kg when he met with US President Trump last month – Korean press
(KR) South Korea Finance Ministry raises GDP outlook: 2017 and 2018 GDP to 3% (prior 2.6%) on exports and extra budget; Sees 2017 exports +10.2% y/y
(KR) South Korea Fin Min Kim: Facing structural crisis of inequality and low growth; will spend 70% of extra budget in Q3
Japan
(JP) Bank of Japan (BOJ) June 15th and 16th Monetary Policy Meeting Minutes: Japan’s economy had been turning toward a moderate expansion; Financial conditions were highly accommodative
Other
Macronix, 2337.TW Reports Q2 (NT$) Net 622M v loss 835M y/y; Op 585M v loss 846M y/y; Rev 6.56B, +27% y/y
Asian Equity Indices/Futures (00:00ET)
Nikkei -0.0%, Hang Seng -0.00%, Shanghai Composite -0.1%, ASX200 +0.91%, Kospi -0.08%
Equity Futures: S&P500 -0.02%; Nasdaq -0.07%, Dax +0.02%, FTSE100 +0.02%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1664-1.1631; JPY 111.34-110.99; AUD 0.7944-0.7903; NZD 0.7445-0.7401
Aug Gold +0.15% at 1,256/oz; Aug Crude Oil +0.58% at $46.61/brl; Sept Copper +0.87% at $2.77/lb
GLD SPDR Gold Trust ETF daily holdings fall 4.14 tonnes to 809.6 tonnes
USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT V 6.7485 V 6.7410 PRIOR
(CN) China PBOC OMO injects CNY140B in 7 and 14 day reverse repos v CNY350B prior
(JP) Japan MoF sells ¥500B in 0.9% 40-year JGB bonds, bid to cover: 3.20x v 2.87x prior (highest bid-to-cover since Jan 2015)
Equities notable movers
Australia
Grange Resources, GRR.AU Reports Q4 pellet production 184Kt v 486Kt q/q; Pellets sold 318kt v 473Kt q/q; +5.8%
Yowie, YOW.AU Reports Q4 Rev +23% y/y; YNA Net Sales $3.48M, flat y/y; -13.3%
Hong Kong/China
Sunac China, 1918.HK To place 220M shares at HK$18.33/shr for HK$4.03B (~5.6% of shares outstanding and at an 8.8% discount to Monday close); -8.4%
China Merchants Bank, 3968.HK Reports H1 prelim (CNY) Net 39.3B v 35.2B y/y, Op 49.6B v 45.0B y/y, Rev 112.7B v 112.9B y/y; +11.4%
Japan
Show Denko, 4004.JP Revises FY17/18 guidance: cuts Net ¥21B from ¥25B; Op ¥60B from ¥54.5B; Rev to ¥762B from ¥745B; -5.4%
South Korea
Hynix,000660.KR Reports Q2 (KRW) Net 2.47T v 2.32Te; Op 3.05T v 2.93Te; Rev 6.69T v 6.82Te; -1.8%
Other
Logitech, LOGI Reports Q1 $0.24 v $0.22e, Rev $529.9M v $521Me; -0.2% afterhours
US markets on close: Dow -0.3%, S&P500 -0.1%, Nasdaq +0.4%, Russell +0.2%
Best Sector in S&P500: Financials
Worst Sector in S&P500: Telecom
Biggest gainers: WYNN 3.3%; NRG 3.2%; INCY +3.0%
Biggest losers: HAS -9.4%; FL -4.6%; HAL -4.2%
At 17:00ET/21:00GMT: VIX 9.43 (+0.07pts); Treasuries: 2-yr 1.37% +1.6%), 10-yr 2.26% (+1.1%), 30-yr 2.84% (+1.2%)
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