Asian Equities Trade Mixed Ahead Of US Payrolls Report

Jul 05 19, 05:45 GMT

General Trend:

Shanghai property index drops over 1.8%, China said to have asked trusts to limit financing to property sector (local press)
Australian equities outperform, REITS and Energy companies gain
Aussie iron ore miners underperform, China said to probe iron ore price increases
USD/JPY trades in tight range ahead of US payrolls report

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
(AU) Australia APRA finalizes guidance on mortgage lending
(AU) Australia Jun AiG Performance of Construction Index: 43.0 v 40.4 prior (10th consecutive month of contraction)

China/Hong Kong

Shanghai Composite opened flat, Hang Seng flat
China Commerce Ministry (MOFCOM): Tariffs must be removed for a trade deal with U.S.(comments from July 4th)
(CN) China wants clarity on Huawei situation before making agricultural purchases from US – SCMP
(CN) China Banking and Insurance Regulator (CBIRC) official Zhou Liang: H1 New Yuan Loans exceeded CNY9.0T (implies June new loans of over CNY990B v CNY1.18T m/m)
(CN) China said to ask certain trusts to limit financing related to property sector – Chinese Press
(CN) China state insurance fund expected to takeover Baoshang Bank’s NCDs from July 8th – financial press
(CN) China regulators to examine drivers of rise in iron ore prices, plan to crack down on price increases that are ‘arbitrary’ – Chinese Press
(CN) China reportedly considering to cut infrastructure project capital needs – China Press
(CN) FT notes recent move by China money market rates to 10-year low following recent PBOC cash injections
(CN) China police reportedly installing data-harvesting app MFSocket on smartphones during random street checks – US Press

Japan

Nikkei 225 opened flat
(JP) Japan FSA: Reportedly considering tougher rules for life insurance companies, notes low interest rate environment – Japan Press
(JP) Japan May Household Spending Y/Y: +4.0% v 1.5%e (fastest increase since May 2015)
(JP) Japan Jun Official Reserve Assets: $1.32T v $1.31T prior
(JP) Japan PM Abe: To implement a macro policy approach should the global economic situation deteriorates (comments from July 4th)
(JP) Bank of Japan (BOJ) Dep Gov Amamiya: For now, sticking to our baseline scenario on economy but we also recognize that downside risks are strong and high for main price scenario; Digital currencies would allow central bank to more effectively apply negative rates but no central bank is thinking of doing this

Korea

Kospi opened +0.1%
Samsung Electronics [005930.KR]: Reports Prelim Q2 (KRW) Op 6.5T v 6.0Te (-56.3% y/y), Rev 56.0T v 54.5Te (-4.2% y/y)

Other

North America

(US) Magnitude 6.5 earthquake reported earlier today in central/southern California (said to be the largest quake in over 20 years), followed by several smaller ones

Europe

(DE) Bundesbank Spokesman said ECB member/Bundesbank President Weidman is not applying for job elsewhere; says Weidmann is ‘happy’ in current role as Bundesbank President – US financial press
(IR) On Thursday, UK Royal Marines seized Iran oil tanker in Gibraltar – financial press

Levels as of 1:20 ET

Nikkei 225,flat, ASX 200 +0.8%, Hang Seng +0.1%; Shanghai Composite -0.1%; Kospi flat
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.3%, Dax -0.1%%; FTSE100 flat
EUR 1.1289-1.1277 ; JPY 107.88-107.78 ; AUD 0.7030-0.7020 ;NZD 0.6695-0.6681
Gold -0.1% at $1,420/oz; Crude Oil -1.1% at $56.72/brl; Copper -0.3% at $2.670/lb