Asian Indices Opened Higher After US Gains

Jun 30 20, 06:50 GMT

General Trend:

South Korean chipmakers rise after guidance from Micron
Transports are among the biggest gainers in Japan after the earlier rise seen in the US transports sector
Japan Display (JDI) to report FY19 results after the market close
Early gainers in Shanghai included Consumer and IT companies, financials underperform
Gaming and tech firms are among the gainers in Hong Kong
Energy, Consumer and Financial firms are among the gainers in Australia
Bank of Japan (BOJ) expected to issue July bond buying plan later today

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.4%
(AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle: Reiterates ready to scale bond purchase if needed; June quarter (Q2) GDP better than originally feared – speech on RBA policy actions and balance sheet
(AU) Australia Victoria State reports 64 new coronavirus cases (more than 2 month high), said to consider lockdowns related to Melbourne; South Australia also said to cancel plan to reopen its borders – Local media
(AU) Australia June Private Sector Credit M/M: -0.1% v 0.0%e; Y/Y: 3.2% v 3.4%e
(AU) Australia mid-May to mid-June Total Payroll Jobs: +1.0%; Weekly payrolls June 6th – 13th 0.2%
(NZ) Reserve Bank of New Zealand (RBNZ) Chief Economist Yuong Ha: risks to economy remain to the downside; MPC reaffirms its guidance set in March of no change in OCR until March 2021
(NZ) New Zealand June ANZ Business Confidence: -34.4 v -41.8 prior; Activity Outlook: -25.9 v -38.7 prior

China/Hong Kong

Hang Seng opened +0.7%, Shanghai Composite +0.1%
(US) Sec of Commerce Ross: regulations affording preferential treatment to Hong Kong are now suspended over China’s actions; Commerce Department regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions, are suspended
(HK) China Legislature (NPC) passes Hong Kong Security Law (as expected)
(HK) Hong Kong to publish new security law in gov’t gazette later on Tuesday, China to also hold press briefing on the security law on Tuesday – HK Press
(CN) CHINA JUN MANUFACTURING PMI (GOVT OFFICIAL): 50.9 V 50.5E (4th straight month of expansion, 3-month high); Non-Manufacturing PMI: 54.4 v 53.6e (5th straight month of expansion)
(CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY90B v Net drain CNY40B prior
(CN) China Finance Ministry (MOF) sells 5-year and 10-year special treasury bonds
(CN) China PBOC sets Yuan reference rate: 7.0795 v 7.0808 prior
(CN) New Swine Flu strain in pigs identified, reported to be able to infect humans and has potential to turn into a global pandemic – Press

Japan

Nikkei 225 opened +1.6%
ANA Holdings [9202.JP]: Japan Bank for International Cooperation (JBIC) will help ANA make purchases from Boeing and Airbus
(JP) JAPAN MAY PRELIMINARY INDUSTRIAL PRODUCTION M/M: -8.4% V -5.9%E; Y/Y: -25.9% V -23.1%E
(JP) JAPAN MAY JOBLESS RATE: 2.9% V 2.8%E
(JP) Japan MoF sells ¥3.0T v ¥3.0T indicated in 0.10% 2-year JGBs, avg yield: -0.136% v -0.172% prior, 4.7x bid to cover v 5.28x prior
(JP) JAPAN MAY HOUSING STARTS Y/Y: 807K V 788KE; Y/Y: -12.3% V -14.4%E

Korea

Kospi opened +1.5%
(KR) Bank of Korea (BOK): To provide US dollar loans to local financial firms via repurchase agreements (as speculated); will accept FX bonds as collateral for repo transactions
(KR) South Korea sells 30-year Govt bonds: avg yield 1.595% v 1.585% prior
(KR) South Korea Vice Fin Min Kim Yong-beom: South Korea will monitor flow of liquidity in South Korea; To establish tool to provide foreign-currency funds to local financial firms through repurchase (repo) agreements
(KR) SOUTH KOREA MAY INDUSTRIAL PRODUCTION M/M: -6.7% V -2.0%E ; Y/Y: -9.6% V -4.5%E
(KR) South Korea May Business Survey – Manufacturing: 51 v 49 prior; Non-Manufacturing: 60 v 56 prior
(KR) Reported that a meeting between North Korea leader Kim and US President Trump before US 2020 Election is unlikely, cites US envoy Stephen Biegun; the official noted factors including the time remaining before the Nov US elections and coronavirus impact – Korea Press
(KR) Japan may be seeking to add more export curbs targeted at South Korea [no specific products were mentioned] – Yonhap

North America

(US) US Treasury: US taxpayers will be allowed to request a further extension [to file taxes] to Oct 15th from July 15th – US financial press
(US) US Treasury Sec Mnuchin testimony before the US House panel has been released: have over $250 billion remaining to create or expand programs as needed [refers to programs related to the Federal Reserve lending facilities under Section 13(3) of the Federal Reserve Act]
(US) US Arizona State Gov: Orders closures of Bars, Clubs and gyms to be closed for next 30 days
Uber [Uber]: Offers to buy delivery service Postmates, offer speculated at ~$2.6B – US financial press

Levels as of 1:20 ET

Nikkei 225, +1.9%, ASX 200 +2.1% , Hang Seng +1%; Shanghai Composite +0.7% ; Kospi +1.9%
Equity S&P500 Futures: +0.2%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.3%
EUR 1.1252-1.1234; JPY 107.78-107.54; AUD 0.6885-0.6857 ;NZD 0.6432-0.6408
Gold +0.1% at $1,782/oz; Crude Oil -0.7% at $39.43/brl; Copper +0.4% at $2.695/lb