Chinese Equities Rise Amid Rebound In Property Shares, Comments By PBoC And Sovereign Wealth Fund

Jun 29 18, 08:51 GMT

General Trend:

Asian equity markets trade generally higher after gains in the US
Nike rises over 9% in the afterhours, raised sales guidance; US banks disclose capital return plans
China and Hong Kong equities rise, Property shares advance
China sovereign wealth fund official said A-shares are attractive after recent drop
Xiaomi IPO said to price at lower end of range
Sharp rallies over 10% after canceling stock offering; cited US/China trade spat
Osaka Gas announces investment in US shale gas project
Aussie rises amid equity gains in China, Japanese quarter-end flows in focus
Euro rises on EU migration agreement
US Treasury Dept. said to plan to release report related to China later on Friday
China issued list related to foreign investment access
PBoC discussed deleveraging measures in Q2 monetary policy report
China 10-yr bond Futures trade at highest level since April 2017
BoJ may later today announce bond purchase schedule for July
Bank of Japan (BoJ) cut purchases of 5-10 yr JGBs at daily operation
Japan jobless rate hits over 25-year low in May
Tokyo June core CPI rises more than expected, headline inflation unexpectedly rose
New Zealand consumer confidence hits lowest level since Aug 2016
Indonesia 10-yr bond yield rises ahead of central bank decision, rate hike expected
BoJ Tankan survey due for release next week (Monday, July 2nd)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
ASX 200 Utilities index +1.4%, REIT +1%, Resources +0.3%, Consumer Discretionary +0.2%, Financials flat; Telecom -0.4%
(AU) Australia May Private Sector Credit M/M: 0.2% v 0.4%e (matches Jan 2017 low) ; Y/Y: 4.8% v 5.0%e
(NZ) NEW ZEALAND JUN ANZ CONSUMER CONFIDENCE INDEX: 120.0 V 121.0 PRIOR (lowest level since Aug 2016); M/M: -0.8% V +0.4% PRIOR
(NZ) New Zealand May Building Permits M/M: +7.1% v -3.6% prior

China/Hong Kong

Shanghai Composite opened +0.1%, Hang Seng -0.1%
Hang Seng Consumer Goods index +2.8%, Info Tech +2.7%, Industrial Goods +2.4%, Property/Construction +2.2%, Services +1.8%, Materials +1.3%, Financials +1.3%
(CN) China PBOC Quarterly (Q2) Monetary Policy Committee: Reiterates stance to maintain prudent and neutral monetary policy; To control intensity and pace of structural deleveraging
(CN) For the week, the PBoC drained a net of CNY370B in its open market operations v CNY140B net injection w/w
(CN) China PBoC set yuan reference rate at 6.6166 v 6.5960 prior (weakest yuan fix since Dec 13 2017)
(US) US Ambassador to China Branstad: The Trump Administration is not convinced China is willing to make enough progress soon enough on trade issues
(CN) Zinc smelters in China said to propose 10% output cut – US financial press
(CN) China State Researcher sees GDP growth of ~6.5% in H2 2018 and 2019 – US financial press
(CN) China state planner issued special management measures list for foreign investment access, effective July 28th – press
(CN) China to revise rules related to public-private partnerships – Chinese Press

Japan

Nikkei 225 opened +0.2%
TOPIX Iron & Steel index +0.5%, Securities +0.4%; Real Estate -0.3%
(JP) JAPAN MAY JOBLESS RATE: 2.2% V 2.5%E (over 25-year low)
(JP) JAPAN MAY PRELIM INDUSTRIAL PRODUCTION M/M: -0.2% V -1.0%E; Y/Y: 4.2% V 3.4%E
(JP) Japan June Tokyo CPI Y/Y: 0.6% v 0.4%e; Ex-Fresh Food (Core) Y/Y: 0.7% v 0.6%e
(JP) JAPAN JUN CONSUMER CONFIDENCE: 43.7 V 43.8E
(JP) JAPAN MAY ANNUALIZED HOUSING STARTS: 996K V 930KE; Y/Y: +1.3% V -5.7%E
(JP) Newsprint companies in Japan said to seek first price increase in many years – US financial press

Korea

Kospi opened +0.5%
(KR) South Korea May Industrial Production m/m: 1.1% v 0.2%e; y/y 0.9% v 0.9%e
(KR) South Korea May Cyclical Leading Index Change: -0.1 v -0.3 prior
(KR) South Korea July Business Survey: Manufacturing: 80 v 79 prior; Non-Manufacturing: 80 v 85 prior

North America

US equity markets ended higher: Dow +0.4%, S&P500 +0.6%, Nasdaq +0.8%, Russell 2000 +0.3%
S&P500 Technology +1.2%, Telecom +1%
Nike [NKE]: Raised forecast for annual sales growth to high single digits (prior mid to high single digits)

Europe

(EU) EU leaders said to reach deal on migration – US financial press
Deutsche Bank [DBK.DE]: Fed objects to capital plan for Deutsche Bank US unit due to qualitative

Levels as of 01:30ET

Nikkei 225, +0.1%, ASX 200 flat, Hang Seng +1.2%; Shanghai Composite +1.5%; Kospi +0.4%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 flat
EUR 1.1558-1.1667; JPY 110.37-110.80 ; AUD 0.7334-0.7393 ;NZD 0.6736-0.6784
Aug Gold +0.1% at $1,252/oz; Aug Crude Oil -0.4% at $73.17/brl; Jul Copper +0.6% at $2.987/lb