Asian Equity Markets Trade Generally Lower Following Thursday’s Decline In The Nasdaq

Jun 08 18, 07:12 GMT

General Trend:

Shanghai Property index declines over 2%
Foxconn Industrial rises over 20% in debut of Shanghai IPO
Japan Q1 GDP unrevised and misses ests; consumption unexpectedly revised lower
BoJ said to consider cutting inflation forecasts (Japanese press); Central bank due to meet next week (June 14-15th)
Australia sells new May 2030 bonds
(JP) Japan MoF comments on April bond flows: Japanese bought the most Italian debt in 2 years, sold the most German debt since 2015, purchased the most Spanish bonds on record.
China May trade surplus misses ests, imports above expectations
China 2018 trade surplus may narrow by about 10% (Chinese Press)
China FX reserves decline for the 3rd straight month in May
US President Trump targets Canada and France ahead of G-7 summit in Quebec (June 8-9th)
China expected to release May CPI data on Saturday
Next week’s US/North Korea summit in focus (June 12th)
Fed and ECB meetings also next week (June 12-13th, June 14th respectively)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.1%; closed -0.1%
ASX 200 Telecom index -0.3%, Resources -0.2%; Energy +0.5%, Financials +0.2%
(AU) Afterpay Touch, Appen and Inghams added to S&P ASX 200 index; Iron Mountain, Asaleo Care and Retail Food Group to be removed; effective at the open of trading on June 18th
(AU) Australia sells A$2.5B v A$2.5B indicated in new May 21 2030 bonds, avg yield 2.8934%, bid to cover: 3.41x

China/Hong Kong

Shanghai Composite opened -0.3%, Hang Seng -0.3%
Hang Seng Info Tech index -2.4%, Telecom -1.8%, Utilities -1.6%, Services -1.3%, Financials -1.1%, Property/Construction -1.1%
(CN) CHINA MAY TRADE BALANCE: $24.9B V $33.8BE; Imports Y/Y: 26.0% v 18.8%e
(CN) China 2018 trade surplus may narrow by about 10% (China Securities Journal)
(CN) China may place a ban on the conversion of CDRs to overseas shares (Chinese Press)
(CN) China Securities Journal: Reiterates PBoC has room to cut the RRR despite of US Fed rate hike
(US) US Commerce Sec Ross: Not sure solved all problems with China
(CN) China Commerce Ministry: To start implementing temporary anti-dumping measures against broiled chicken imported from Brazil
(CN) China said to cut gasoline prices by CNY130/ton; to cut diesel prices by CNY125/ton; effective from June 9th – US financial press
(CN) China Banking and Insurance Regulatory Commission (CBIRC) official Chen: Reiterates to stick with structural deleveraging, enhance shadow banking regulations, make risk prevention a more important task
(CN) China PBoC sets yuan reference rate at 6.4003 v 6.3919 prior
(CN) For the week, PBoC drained a net of CNY300B in OMOs v CNY410B net injection w/w

Japan

Nikkei 225 opened -0.1%; closed -0.6%
TOPIX Iron & Steel index -1.3%, Securities -1%, Real Estate -0.6%, Marine Transportation -0.7% ; Retail Trade +0.5%
(JP) June Japan Nikkei 225 Futures and Options said to settle at ~22,825
(JP) JAPAN Q1 FINAL GDP Q/Q: -0.2% V -0.1%E; ANNUALIZED Q/Q: -0.6% V -0.4%E; Private Consumption Q/Q: -0.1% v 0.0%e
(JP) BoJ said to consider cutting inflation forecasts – Japanese Press [Note: The next quarterly outlook report is due at the July 30-31 policy meeting]
(JP) JAPAN MAY ECO WATCHERS CURRENT SURVEY: 47.1 V 49.2E; OUTLOOK SURVEY: 49.2 V 50.3E
(JP) JAPAN APR BOP CURRENT ACCOUNT ADJUSTED: ¥1.89T V ¥2.09TE; CURRENT ACCOUNT BALANCE: ¥1.85T V ¥2.08TE
(JP) Japanese sold net ¥1.12T in foreign bonds in May – US financial press
(JP) Japan May Bank Lending Ex-Trusts Y/Y: 1.9% v 2.0% prior; Including Trusts Y/Y: 2.0% v 2.1% prior
(JP) Japan Apr Trade Balance (BOP): ¥573.8B v ¥742.3Be

Korea

Kospi opened -0.1%
(KR) Pres Trump: North Korea summit is ‘ready to go’ – comments at meeting with Japan PM Abe

Other

(ID) Indonesia Central Bank: To ensure liquidity in money market ahead of long holiday; conducting stabilization measures in FX market
Lipper: US-based emerging markets (EM) stock funds had $3.4B in outflows in May (largest in 2 years)
(PH) Philippines Apr Trade Balance: -$3.6B v -$2.8B prior
(TH) Fitch affirms Thailand sovereign rating at BBB+; Outlook Stable

North America

US equities ended mixed: Dow +0.4%, S&P500 -0.1%, Nasdaq -0.7%, Russell 2000 -0.5%
S&P500 Energy +0.5%; Technology -0.9%
(US) White House: US President Trump to leave the G-7 in Canada earlier than scheduled
(US) House of Representatives votes on Rescission package: Passes bill to cancel ~$15B in approved spending
US) Weekly Fed Balance Sheet Total Assets for week ending June 6th: $4.37T, -$10.1B w/w, -$142.4B y/y; Reserve Bank Credit: $4.28T, -$10.2B w/w, -$143.7B y/y – Website
(US) Fed schedules June 14th meeting to discuss single counterparty credit limits for large bank holding companies
(AR) Argentina Treasury Min Dujovne: Deal has been signed with IMF; stand-by agreement to last for about 36 months; IMF says the prelim financing agreement is $50B

Europe

(EU) Germany automakers reportedly advocating that the EU offer Pres Trump reduced tariffs – German press
(CH) SNB’s Jordan: economic situation in Switzerland is quite good
(TR) Turkey’s government said to consider lifting state of emergency following election – Local Media
Deutsche Bank [DBK.DE]: Chair Achleitner reportedly has held discussions with shareholders about potential deal with Commerzbank – press
Bouygues [EN.FR]: Reportedly Bouygues made an takeover approach for Altice’s SFR Group – French press

Levels as of 02:00ET

Hang Seng -1.3%; Shanghai Composite -1.4%; Kospi -0.7%
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 -0.1%
EUR 1.1791-1.1811 ; JPY 109.60-109.87 ; AUD 0.7602-0.7629 ;NZD 0.7015-0.7031
Aug Gold -0.2% at $1,300/oz; Jul Crude Oil +0.2% at $66.03/brl; Jul Copper +0.1% at $3