Asian Indices Opened Generally Higher, HK Outperforms After Recent Holiday

Jul 02 20, 06:20 GMT

General Trend:

Hong Kong property developers outperform amid the release of June sales figures, gaming companies generally rise after June revenues data
Jiangxi Copper rises over 4% in HK on above avg. vol, Shanghai Copper hit highest level since late 2019
ZTE declines by over 2% in HK, US FCC designated Huawei and ZTE as national security threats (press from June 30th)
IT, Property and Consumer Discretionary companies rise in Shanghai
Gainers in Japan include Transports, Automakers and Financials
Tokyo Mothers (small cap) index drops over 4%, AnGes (drug co.) declines by over 16%
Sectors moving higher in Australia include Telecom, Financials and Consumer Discretionary; Resource companies lag
China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.2%
(AU) Australia Victoria State reported 77 additional coronavirus cases v 73 prior (over 2 month high)
(HK) Australia PM Morrison: Considering making Australia a safe haven for Hong Kong amid Hong Kong Security law
(AU) Australia May Trade Balance (A$): 8.0B v 9.0Be
(AU) Australia Treasurer Frydenberg: reiterates govt has no plans to raise the Goods and Services Tax (GST)
(NZ) New Zealand Health Min David Clark Resigns

China/Hong Kong

Hang Seng opened +0.6% (after holiday), Shanghai Composite -0.1%
(US) US Commerce Dept assistant Sec for Export Administration Richard Ashooh has resigned, he was viewed by some as a ‘moderating’ voice related to China issues – financial press
(CN) US House of Representatives passes China sanctions in response to new Hong Kong law, the bill will now go back to the Senate which has already passed a similar measure – press
(HK) US Senate Sponsors of Hong Kong bill: Hong Kong Bill could be considered on July 2nd
(US) Trump Administration ‘strongly warns’ U.S. businesses against contributing to China’s human rights abuses
(HK) Sec of State Pompeo: US will release guidelines regarding the Hong Kong supply chain
(US) Presidential candidate Biden: I would impose economic sanctions on China as President if they attempt to curb US free speech and would prohibit US companies from abetting repression in China
(CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY70B v Net drain CNY180B prior (4th straight skip); PBOC says liquidity is relatively high
(CN) China PBOC sets Yuan reference rate: 7.0566 v 7.0710 prior

Japan

Nikkei 225 opened +0.3%
(JP) TOKYO FINDS OVER 100 ADDITIONAL CORONAVIRUS CASES
(JP) Tokyo will set up a coronavirus task force
(JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.10% 10-year JGBs, avg yield 0.058% v 0.000% prior, bid to cover 3.7x v 3.36x prior
(JP) Japan Jun Monetary Base y/y: 6.0% v 3.9% prior

Korea

Kospi opened +0.5%
(KR) SOUTH KOREA JUN CPI M/M: 0.2% V 0.0%E; Y/Y: 0.0% V -0.2%E
(KR) South Korea Joint Chiefs of Staff is closely monitoring North Korea following report related to possible ‘assault drill’ by the North – Yonhap

North America

Levels as of 1:20 ET

Nikkei 225, flat, ASX 200 +1.6% , Hang Seng +1.6%; Shanghai Composite +1.6% ; Kospi +0.9%
Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax +0.4%; FTSE100 +0.6%
EUR 1.1261-1.1246; JPY 107.55-107.33; AUD 0.6928-0.6903; NZD 0.6494-0.6465
Gold -0.2% at $1,776/oz; Crude Oil flat at $39.84/brl; Copper +0.3% at $2.741/lb