Asian Equity Markets Trade Mixed, After Declines In The US

Jun 22 18, 06:13 GMT

General Trend:

Shanghai Composites pares loss after trading in ‘bear market’ territory
Japanese megabanks trade broadly lower; On Thursday 7-day TIBOR moved into negative territory for first time since 1995
Automakers in Japan trade lower after recent profit warning form Daimler; Toyota drops over 2.5%
Australia’s ANZ rises after doubling share buyback to A$3.0B
Esprit declines over 3% after issuing profit warning
Japan May CPI data was mixed, core in line while headline CPI was above ests
Japan June prelim manufacturing PMI rises amid growth in new orders and increasing output; Export orders index declines for first time since 2016
OPEC due to meet later today; OPEC+ expected to meet on Saturday, June 23rd

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.1%
ASX 200 Telecom index -2.4%, Energy -1.8%, Resources -1.3%, Consumer Discretionary -1%; Financials +0.8%
(AU) Australia sells A$300M v A$300M indicated in 3.00% March 2047 bonds, avg yield 3.1435% v 3.2741% prior, bid to cover: 4.0x v 3.07x prior
(NZ) New Zealand May Credit Card Spending M/M: -1.6% v 0.6% prior; Y/Y: 3.7% v 7.0% prior

China/Hong Kong

Shanghai Composite opened -0.7%, Hang Seng -0.3%
Hang Seng Utilities index +0.7%, Services +0.5%, Industrial Goods +0.5%; Energy -0.8%, Materials -0.7%
(HK) There is speculation that the equity market in Hong Kong might be being impacted by the expected IPO of Xiaomi, in addition to trade concerns – US financial press
(US) Some Trump administration officials reportedly pushing to resume trade talks ahead of China implementing tariffs on July 6th; advisers still at odds over strategy – press
(CN) For the week, the PBoC injected a net of CNY140B in its open market operations (OMOs) v CNY240B net injection w/w.
(CN) China PBoC sets yuan reference rate at 6.4804 v 6.4706 prior
(CN) China Jan-May State-owned Enterprise (SOE) total profit CNY1.29T, +20.9% y/y; Rev CNY22.3T, +10.2% y/y
(CN) China said to consider removing rating requirement for bond sales – Chinese Press
(HK) US/China trade war might reduce Hong Kong GDP by up to 0.2% – US financial press

Japan

Nikkei 225 opened -1%
TOPIX Securities index -1.1%, Info & Communications -1%, Marine Transportation -0.8%, Real Estate -0.7%, Iron & Steel -0.6%
(JP) JAPAN JUN PRELIMINARY PMI MANUFACTURING: 53.1 V 52.8 PRIOR
(JP) JAPAN MAY NATIONAL CPI Y/Y: 0.7% V 0.6%E; CPI EX FRESH FOOD (CORE): 0.7% V 0.7%E
(JP) Japan Apr All Industry Activity Index M/M: 1.0% v 0.9%e
(JP) Japan ruling LDP party said to plan leadership election on Sept 20th as Shinzo Abe seeks re-election – Japanese Press

Korea

Other

(MY) Malaysia names Nor Shamsiah new central bank (BNM) Gov (as speculated)
(ID) Indonesia Central Bank Gov: Rupiah currency (IDR) year to date depreciation is ‘tolerable’; Bought IDR1.25T in bonds from the secondary market on Thursday.

North America

US equity markets ended lower: Dow -0.8%, S&P500 -0.6%, Nasdaq -0.9%, Russell 2000 -1.1%
S&P500 Energy -1.9%, Industrials -1.3%
FED BANK STRESS TEST RESULTS: ALL 35 BANKS EXCEED MINIMUM CAPITAL REQUIREMENTS
(US) Lipper: US-based money market funds had $51.0B in net outflows for week ended Wed (largest outflow since 2011)
(US) Moody’s raises Florida’s GO bond rating by 1 notch to Aaa from Aa1; Outlook Stable

Europe

(UK) BOE Gov Carney’s annual Mansion House speech: preparing for new global financial system
(GR) Greece creditors agree on debt relief package (as speculated)

Levels as of 01:30ET

Nikkei 225, -0.7%, ASX 200 -0.2%, Hang Seng +0.1%; Shanghai Composite +0.4%; Kospi +0.4%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.1%, Dax +0.4%; FTSE100 +0.3%
EUR 1.1599-1.1618 ; JPY 109.84-110.09 ; AUD 0.7373-0.7399 ;NZD 0.6854-0.6900
Aug Gold -0.1% at $1,269/oz; Aug Crude Oil +1.3% at $66.36/brl; Jul Copper +0.1% at $3.03/lb