General Trend:
- Chinese financials outperform as PBoC announces bill swap operation
- China President Xi said to plan to meet Japan PM Abe later today ahead of upcoming G20 (press article from June 12th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (NZ) New Zealand Jun ANZ Business Confidence: -38.1 v -32.0 prior; Activity Outlook: 8.0 v 8.5 prior
- (NZ) New Zealand 11-month Budget Surplus NZ$6.96B, NZ$2.5B more than forecasted
- (NZ) New Zealand SSC releases investigation into Treasury Secretary Makhlouf: Makhlouf failed to take responsibility for budget breach
- GBT.AU Confirms Bravura raised offer of A$3.00/shr (prior A$2.72/shr); does not intend to revise offer beyond A$3.00/shr
- BUB.AU JV enters channel partnership with Kidswant China
Japan
- Nikkei 225 opened +0.3%
- (JP) Bank of Japan (BOJ) Dep Gov Wakatabe: Japan economy is no longer in deflation
- 6740.JP Apple reportedly to infuse ¥10.7B/$100M into Japan Display and increase their orders from the co – Japanese press
- (JP) Japan May Dept. Store, Supermarket Sales: -0.5% v 0.2%e
- (JP) Bank of Japan Q1 Flow of Funds Report: Japan household total assets ¥1,835T, +0.3% y/y
- 7201.JP CEO Saikawa re-appointed by shareholders with 78% of vote – AGM
- (JP) Japan MoF sells ¥2.0T v ¥2.0T indicated in 0.10% 2-year JGBs, avg yield: -0.216% v -0.169% prior, bid to cover 4.39x v 5.44x prior
Korea
- Kospi opened -0.1%
- 003490.KR Analysts note that Delta’s KRW100B investment could slowdown restructuring by giving more power to the Cho family owners against activist funds pushing for change – Nikkei
- (KR) South Korea President Moon: US has proposed working level talks with North Korea
- (KR) North Korea KCNA: Reiterates end of year deadline on talks with the US; talks with US are not South Korea’s issue
- (KR) South Korea May companies’ bond and share offerings -29.5% y/y
- (KR) Pres Trump: no plan to meet with North Korea’s Kim while in Asia for the G20 meeting, planning another method of communication
China/Hong Kong
- Hang Seng opened +0.5%; Shanghai Composite opened +0.2%
- (CN) China President Xi said to have requested a delay on any new China tariffs by the US as a condition to meeting with President Trump on the sidelines of G20 on Saturday – SCMP
- (CN) CHINA MAY INDUSTRIAL PROFITS Y/Y: +1.1% V -3.7% PRIOR; YTD Y/Y: -2.3% V -3.4% PRIOR
- (CN) CHINA PBOC TO CONDUCT CNY2.5B IN 1-YEAR CENTRAL BANK BILL SWAP (CBS)
- (CN) China PBoC Open Market Operation (OMO): Skips for the 4th consecutive session
- (CN) China PBOC sets yuan reference rate: 6.8778 v 6.8701 prior
- (CN) China expected to increase incentives to increase pork supplies – Chinese Press
- (CN) China Pres Xi and US Pres Trump to meet at 11:30 local time (02:30 GMT) on Saturday, in addition to 8 other meetings with world leaders
- (CN) China State Council cut the real financing interest rates for small and micro firms – Chinese press
- (CN) China Jun Swift Global Payments CNY: 1.95% v 1.88% prior
- (CN) Head of China auditing authority finds that China funding for small firms not improved despite policies to encourage lending – financial press
- (CN) China PBoC reportedly asked banks not to lower mortgage rates any further
Other Asia
- (SG) Singapore Central Bank (MAS) Gov Menon: Sees CPI near mid-point of 1-2%;GDP growth likely to be weaker than 1.5-2.5% seen due to US/China trade war impact on tech sector
- (IN) US Pres Trump: Look forward to speaking to India PM Modi; India has had high tariffs against US for years and has just recently increased the tariffs even further. This is unacceptable and tariffs must be withdrawn
North America
- (US) President Trump: it is possible we can reach the deal at G20 with China President Xi and avoid additional tariffs – Fox Business interview
- KBH Reports Q2 $0.51 v $0.39e, Rev $1.02B v $935Me
- BA Confirms and agrees with the FAA’s decision and request, and is working on the required software to address the FAA’s request – filing
- RAD Reports Q1 -$0.14 v +$0.02 y/y, Rev $5.37B v $5.39B y/y
Europe
- (IR) China said to be buying crude oil from Iran despite sanctions – press
- (UK) BOE Gov Carney: BoE forecasts do no include No-deal Brexit risk which is priced into market interest rate forecasts – Treasury Select Committee
Levels as of 1:20 ET
- Nikkei 225, +0.9%, ASX 200 +0.2%, Hang Seng +1.2%; Shanghai Composite +1%; Kospi +0.8%
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.3%, Dax +0.4%; FTSE100 +0.1%
- EUR 1.1377-1.1355 ; JPY 108.13-107.64 ; AUD 0.7000-0.6983 ;NZD 0.6688-0.6673
- Gold -0.5% at $1,408/oz; Crude Oil -0.5% at $59.08/brl; Copper +0.3% at $2.721/lb
