Will Nikkei Extend Recent Winning Streak?

Sep 08 21, 07:45 GMT

General trend

Nikkei has rebounded from the opening decline [Topix Banks index supported by rise in UST yields; Information & Communication index also outperforms; Transports lag].
Shanghai Composite ended morning trading approx. flat [Consumer indices lagged].
Hang Seng has pared gain.
S&P ASX 200 has lagged [Resources index drops].

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.1%.
PEB.NZ Denies press speculation, board did not approve capital raise (erroneously released); process for approval to dual list as a Foreign Exempt Entity on the Australian Stock Exchange (ASX) is progressing well.
(AU) Australia sells A$1.0B v A$1.0B indicated in 0.50% Sept 2026 bonds, avg yield 0.681%, bid to cover 6.08x.
(AU) Reserve Bank of Australia (RBA) offers to buy A$800M in Semi Govt Bonds v A$1.0B prior.
(NZ) Reserve Bank of New Zealand (RBNZ) has undertaken a thematic review of banks’ compliance with our liquidity policy, identifying a range of system, controls and risk management weaknesses as well as areas of good practice that the industry can learn from.

Japan

Nikkei 225 opened -0.3%.
(JP) JAPAN Q2 FINAL GDP Q/Q: 0.5% V 0.4%E; GDP ANNUALIZED Q/Q: 1.9% V 1.6%E.
(JP) Japan LDP Leadership Candidate Kishida: Would retain bold monetary easing as leader, would revise the neo-liberal economic policy.
(JP) Japan govt to extend virus emergency measures to end of Sept and gradually ease Covid restrictions starting in Oct – Japan press.
(JP) Japan Chief Cabinet Sec Kato: Govt is considering specific plans on how to ease coronavirus restrictions on citizen activities.
6502.JP Updates on strategic review: To focus on enhancing corporate value, continuing to explore viability of strategic alternatives, including resolving issues related to privatization.
(JP) Japan July Current Account: ¥1.91T v ¥2.29Te prior; Adj Current Account: ¥1.43T v ¥1.85Te.
9984.JP Speculation that yesterday’s announcement of a swap deal with Deutsche Telekom will lead to a buyback – press.
7203.JP Exec: Sees investment related to development of battery supply system and R&D to be ~¥1.5T by 2030; plans to use solid-state batteries in hybrid EVs (yesterday after the close).

Korea

Kospi opened -0.3%.
005380.KR Denies press report that it was seeking to sell one of its plants in China.
(KR) According to Woori Finance Research Institute, Bank of Korea (BOK) will raise interest rates by 25bps to 1.0% in November, to deal with concerns over financial imbalances and the recovery – Yonhap.

China/Hong Kong

Hang Seng opened +0.2%; Shanghai Composite opened -0.1%.
(CN) Quantitative trading in China comprises ~20% of total stock market turnover – China Securities.
(CN) China People’s Daily: China to increase transparency of policies; To crackdown to better support companies in competition.
(CN) China PBOC sets Yuan reference rate: 6.4674 v 6.4533 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net drain CNY40B prior.
3333.HK Fitch cuts China Evergrande Group rating 3 notches to CC from CCC+.
(CN) China NDRC launches green power trading pilot work plan, 17 provinces to participate in power trading.

North America

(US) Said that Senator Joe Manchin (D-WV) would support maximum $1.5T in spending plan.
(US) EPA: continue to follow up with ongoing air releases at Exxonmobil Baton Rouge and Shell Norco facilities, also following up on several oil spills or reports of possible ones.
(US) Fed’s Bullard said to be pushing for a quick taper after weaker than expect jobs data.
BLK Said to have raised CNY6.7B for its first China mutual fund.
PYPL To acquire Paidy a leading two-sided payments platform and provider of buy now, pay later solutions in Japan for ¥300B/$2.7B cash.
(MX) Report of 7.4 magnitude earthquake reported near Guerrero, Mexico buildings shake in Mexico City, also a 6.9 magnitude reported; Tsunami threat issued.
(US) NHC: Hurricane Larry continues toward the northwest over central Atlantic, likely to produce dangerous swells over western Atlantic coast this week.

Europe

(FR) Insee sees French 2021 GDP at 6.25% (prior 6.0%), on the verge over moving past impact of COVID – French press.
(UK) PM Johnson: Need to help the NHS recover; Confirms 1.25% health and social care tax; dividend income to be taxed 8.75% starting in April 2022 (prior 7.5%) – parliament comments (late EU yesterday).

Levels as of 01:20 ET

Nikkei 225, +0.6%, ASX 200 -0.4% , Hang Seng -0.4%; Shanghai Composite -0.2% ; Kospi -0.9%.
Equity S&P500 Futures: flat; Nasdaq100 flat, Dax flat; FTSE100 -0.4%.
EUR 1.1851-1.1839 ; JPY 110.33-110.25 ; AUD 0.7405-0.7382 ;NZD 0.7115-0.7092.
Gold flat at $1,799/oz; Crude Oil +0.2% at $68.45/brl; Copper -0.1% at $4.2698/lb.