General Trend:
Asian equities trade generally lower, US said to consider additional trade actions on China
Shanghai Composite pares gains as PBoC cut the RRR following recent market speculation
HK IPOs in focus, money market rates hit 10-year high: Xiaomi set maximum offering price for floatation, Meituan files for ~$6.0B IPO
BoJ June Meeting Summary of Opinions: Not appropriate to adopt policy that would ‘forcibly’ push up demand in short period of time, reason for sluggishness in prices is not likely to be merely shortage of demand
Turkish Lira (TRY) rises over 1.5%, country’s election board said Erdogan received a ‘simple majority’ (97.2% of the votes counted); Currency later pares gains
Yen (JPY) trades broadly firmer in the face of general equity weakness and focus on trade; AUD/JPY drops over 0.5%; yuan (CNY) declines over 0.5%
Brent Crude futures decline over 1.5% as OPEC+ agreed to raise production
Offshore yuan falls to lowest level this year and its longest consecutive decline in 2-yrs
Japan auto makers under pressure, expected to be caught up in US trade wars
US President Trump said to plan new restrictions on technology exports to China and Chinese investment; announcement expected by the end of the week
Headlines/Economic Data
Japan
Nikkei 225 opened +0.1%
TOPIX Retail trade index -1%, Information & Communication -1%, Real Estate -0.9% Electric Appliances -0.5%; Securities +0.8%, Marine Transportation +0.6%
(JP) Japan ruling Liberal Democratic Party (LDP) lawmaker Shigeru Ishiba said to consider announcing candidacy for LDP leader – Japanese Press
(JP) According to NHK survey, economist see headline BOJ large manufacturers’ business conditions for June at 20-23 v 24 in March, would mark second consecutive decline – NHK
Toshiba, 6502.JP US SEC has completed accounting investigation of unit; did not receive any warning nor fine
(JP) Japan PM Abe reiterates will keep requesting US tariff exemptions for Japan companies
Korea
Kospi opened -0.2%
Lotte, LOTZ.KR Chairman Shin Dong-bin raised stake ~10.5% v ~8.6% prior – Japanese Press
(KR) Three South Korean vehicle brands, all belonging to Hyundai Motor Group, surpassed their Japanese and German rivals in a United States quality ranking – Korean press
(KR) According to analysts South Korean shares are expected to remain in a relatively tight range this week as investors take to the sidelines amid global trade tensions – Korean press
(KR) South Korea sells KRW700B in 20-yr bonds, avg yield 2.60% v 2.76% prior
China/Hong Kong
Hang Seng opened 0.0%, Shanghai Composite +0.5%
Hang Seng Materials index -1.9%, Services -1.8%, Industrial Goods -1.1%, Property/Construction -1%, Info Tech -0.7%, Consumer Goods -0.6%, Financials -0.4%; Energy +1.5%, Utilities +0.5%
(CN) China cuts Reserve Ratio Requirement (RRR) for some banks by 50bps, effective July 5th; (3rd cut this year) as a result releasing CNY700B v CNY400Be in liquidity
Aluminum Corporation of China Limited, 2600.HK Controlling shareholder Chinalco to increase shareholding in company for not less than CNY400M and no more than CNY1.0B within 12-months
(HK) Certain banks in Hong Kong said to reduce commissions at mortgage brokerage units – Local Press
(US) US President Trump said to plan new restrictions on technology exports to China and Chinese investment; announcement expected by the end of the week – US financial press
(CN) China PBoC Open Market Operation (OMO): Skips OMO operations v CNY70B injected in 7 and 14 day reverse repos prior: Net: injection CNY10B v CNY20B injection prior
(CN) China PBoC sets yuan reference rate at 6.4893 v 6.4804 prior
(CN) China Vice Premier Liu He and EU agree to resolutely oppose trade protectionism, defend multilateral system – speaking after summit with EU
Australia/New Zealand
ASX 200 opened +0.2%
ASX 200 Financials index -1.2%, Telecom -0.4%, REIT -0.4%; Energy +1.7%, Resources +1.4%, Utilities +0.6%
Gateway, GTY.AU Hometown raises indicative bid to A$2.35/share (prior A$2.10 prior)
CBA.AU To demerge wealth management and mortgage broking units; to undertake strategic review of general insurance business including a possible sale
HT1.AU Confirms to sell Adshel business to oOh!media for A$570M; to conduct A$275M capital raise; fully franked special dividend worth A$220M
North America
Xerium [XRM]: To be acquired by Andritz for $13.50/shr cash in a $833M deal, includes $590M liabilities
GE [GE]: Follow Up: Said to be near agreement to sell industrial-engines unit to Advent; sale speculated to raise at least $3.0B – US financial press
Europe
Erytech, ERYP.FR To discontinue development program for acute lymphoblastic leukemia; announces refocusing of development activities
(TR) Turkey Elections Board: With 97.2% of votes counted, Erdogan has simple majority
Levels as of 01:30ET
Hang Seng -0.8%; Shanghai Composite -0.1%; Kospi -0.1%; Nikkei225 -0.5%; ASX 200 -0.3%
Equity Futures: S&P500 -0.4%; Nasdaq100 -0.4%, Dax -0.4%; FTSE100 -0.4%
EUR 1.1646-1.1673; JPY 109.40-110.03; AUD 0.7417-0.7442;NZD 0.6896-0.6922
Aug Gold -0.2% at $1,268/oz; Aug Crude Oil -0.2% at $68.44/brl; Jul Copper +0.1% at $3.05/lb
