HomeContributorsFundamental AnalysisAussie Financials Rise On Eased Guidance Related To Dividends

Aussie Financials Rise On Eased Guidance Related To Dividends

General Trend:

  • Japanese equities decline amid earnings and recent Yen strength; Automakers and Iron/Steel cos. decline amid drop in Nissan; Brokerage index drops ahead of earnings from Nomura later today
  • Various Japanese firms decline after issuing financial results/guidance (Nissan, Fanuc, Canon)
  • McDonald’s Japan declines over 8%, co. expressed surprise related to plan by McDonald’s to cut stake
  • Shanghai Composite rises by over 1% in early trading; gaining sectors include IT, Consumer Discretionary and Financials
  • Kweichow Moutai declines after issuing H1 results, later pares loss
  • Gainers in Australia include financials, Resource and Energy firms decline
  • Rio Tinto is due to issue H1 results [generally reports during the London morning]
  • USD/JPY trades near ¥105 ahead of Fed decision, Japan MOF official commented
  • Australia AOFM (debt agency) CEO is due to deliver a speech on Thursday, July 30th. [expected at 330 GMT]
  • Companies expected to report during the NY morning include ADP, Boeing, Bunge, GE, General Dynamics, GM, Silicon Labs, Spotify

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) Australia Regulator (APRA): Updated capital management guidance for banks and insurance companies; Easing dividend payment restrictions; boards should retain at least 50% of earnings when deciding on capital distributions
  • *(AU) AUSTRALIA Q2 CPI Q/Q: -1.9% V -2.0%E (Largest Q/Q fall in 72-year history of Data series); Y/Y: -0.3% V -0.5%E; CPI Trimmed Mean (core) Q/Q: -0.1% v 0.1%e; Y/Y: 1.2% v 1.4%e; June quarter inflation decline was mainly due to free childcare (as expected)
  • (AU) Australia PM Morrison: Victoria Coronavirus cases are impacting the Domestic economy
  • (AU) Australia State Queensland says it will close borders to all of greater Sydney area (New South Wales Capital)
  • Air New Zealand [AIR.NZ]: To place additional bookings to Australia on hold until Aug 28th, cites restrictions imposed by Australia’s government

China/Hong Kong

  • Hang Seng opened -0.3%, Shanghai Composite -0.2%
  • ASM Pacific [522.HK]: Reports Q2 (HK$) 365.8M v 69.4M y/y, Rev 4.32B v 3.61B y/y; would not provide guidance for bookings
  • ASM Pacific [522.HK]: ASM Materials HK (unit) to sell 55.56% stake to investor SPVs for $200M
  • (CN) China National Health Commission Coronavirus Update for July 28th: 101 additional cases v 68 prior; Additional deaths: 0 v 0 prior; Xinjiang reports 89 additional coronavirus cases
  • (US) China Daily: Washington is the ‘biggest threat’ to the US dollar, notes escalation in the tensions between the US and China after recent events related to consulate office closures [updated]
  • (CN) China PBoC reported to be looking into China Bank consumer loan businesses – China securities Journal [relates to lending on online platforms]

Japan

  • Nikkei 225 opened -0.5%
  • (JP) Japan Ministry of Finance (MOF) Senior Official: FX stability is important, watching market with sense of urgency; No comment of current FX levels
  • (JP) Fitch affirms Japan sovereign rating at A; Outlook cut to Negative from Stable
  • (JP) Japan reported to guide FY20 GDP down ~4.5% – Nikkei [similar to BOJ FY20/21 GDP forecast of -4.7%]
  • Softbank [9984.JP]: ARM unit says it is still committed to China JV; Current JV Chief refuses to step down after blocking client support measures; China board is working with [China’s] govt to resolve dispute [follows report that Arm China asked China’s gov’t to ‘protect’ it from parent co. Arm Limited]

Korea

  • Kopsi opened +0.2%
  • (KR) South Korea July Consumer Confidence: 84.2 v 81.8 prior

Other Asia

  • (SG) Singapore Q2 Jobless rate 2.9% v 2.9%e

North America

  • (US) Fed extends emergency lending programs by 3 months through Dec 31st to provide certainty to borrowers
  • (US) House Speaker Pelosi: does not believe Sen Maj Leader McConnell is ready to make an agreement on virus aid
  • (US) Senate Democratic Minority Leader Schumer: Republican business Liability requirement in Coronavirus aid plan is not acceptable
  • Altice USA [ATUS]: Announces agreement to sell 49.99% of Lightpath Fiber Enterprise Business to Morgan Stanley Infrastructure Partners for $2.3B in cash [implied enterprise value $3.2B]

Levels as of 1:20 ET

  • Nikkei 225, -1.2%, ASX 200 -0.2% , Hang Seng +0.1%; Shanghai Composite +1.3% ; Kospi +0.2%
  • Equity S&P500 Futures: -0.2%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.5%
  • EUR 1.1733-1.1713 ; JPY 105.24-104.95 ; AUD 0.7175-0.7148 ;NZD 0.6668-0.6646
  • Gold +0.1% at $1,947/oz; Crude Oil -0.2% at $40.95/brl; Copper -0.1% at $2.9093/lb
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