RBNZ Decision Due On Wed

Aug 11 20, 06:53 GMT

General Trend:

HK gaming cos. outperform after China announced plan to remove the quarantine requirement for Macau; Property and financial firms also rise
Tencent rises over 3% after recent losses, co. expected to report earnings on Aug 12th (generally reports after the market close in HK)
Japanese equities rise after Monday’s holiday; Gainers include Real Estate and Iron/Steel firms; Banks and automakers also move higher
Softbank Group declines by over 2%, expected to report earnings after Nikkei close
Shanghai Composite rose by 0.3% during morning session; Financials rose while IT cos. declined
Australia’s Industrials index rises over 2% after earnings/guidance from James Hardie, Financials are also among the gainers
Commonwealth Bank is expected to announce results and final dividend on Aug 12th (Wed)
Keppel Corp drops over 9% in Singapore, Temasek withdrew ~$4.1B partial offer for the co.
Reserve Bank of New Zealand (RBNZ) to issue monetary policy statement on Aug 12th (Wed), QE program said to be in focus

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
(AU) Australia July NAB Business Confidence: -14 v +1 prior; Conditions: 0 v -8 prior
(AU) Australia total payroll jobs change between July 11th and July 25th: -0.1%; weekly total wages -0.8%
(NZ) New Zealand July Credit Card Spending M/M: 1.2% v 19.1% prior; Retail M/M: +1.2% v 16.3% prior
(NZ) New Zealand July ANZ Heavy Truckometer M/M: 2.7% v 14.5% prior
(NZ) New Zealand retirement village in Christchurch has begun a lockdown due to multiple residents reporting respiratory illness symptoms – NZ press
(NZ) Reserve Bank of New Zealand (RBNZ) Appoints Juliet Tainui-Hernandez as new Assistant Gov, to take effect in late 2020
(NZ) New Zealand: Extends crown liquidity facility with Local Government Funding Agency (LGFA) to 2031 (from Dec 31 2021), increases the amount to NZ$1.5B (from NZ$1.0B)

China/Hong Kong

Hang Seng opened +1.2%, Shanghai Composite flat
(HK) US reportedly to label Hong Kong goods as ‘made in China’ – financial press
(CN) China to remove quarantine requirement for Macau, effective Wed, Aug 12th
(CN) China July Passenger Vehicle Wholesales +8.5% y/y; Total Vehicle wholesales +16.4% y/y; New Energy Vehicle wholesales +19.3% y/y; Expects 2020 auto sales to decline by ~10% – CAAM
(CN) China Jul Retail Passenger Vehicle Sales Y/Y: +7.9% – PCA
(CN) China PBOC said to be ‘satisfied’ with current market rates – Financial News [in line with prior reporting]
(CN) China PBOC sets Yuan reference rate: 6.9711 v 6.9649 prior
(CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v Injects CNY10B in 7-day reverse repos prior; Net Injection CNY50B v Net drain CNY10B prior

Japan

Nikkei 225 opened +0.8% [returned from holiday]
(JP) Japan June Current Account (BoP): ¥167.5B v ¥132.6Be; Adj Current Account: ¥1.05T v ¥821.1B prior; Trade Balance (BoP): -¥77.3B v -¥556.8B prior
(JP) Japan July Bank Lending Ex-Trusts Y/Y: 6.4% v 6.2% prior; Incl Trusts Y/Y: 6.3% v 6.2% prior
(JP) Japan July Bankruptcies Y/Y: -1.6% v +6.3% prior
(JP) JAPAN JULY ECO WATCHERS CURRENT SURVEY: 41.1 V 40.0E; OUTLOOK SURVEY: 36.0 V 44.0E
(JP) Japan Fin Min Aso: Noting effect of stimulus measures, recovery signs in Japan
(JP) Japan Econ Min Nishimura: Seeing increases in virus cases related to dinner parties, karaoke, Workplaces, and dormitories; Reiterates Govt will declare emergency if needed

Korea

Kospi opened +0.4%
(KR) South Korea Aug 1-10th Exports Y/Y -23.6%; Imports Y/Y -24.3%; Chip exports -6.8% y/y

Other Asia

(SG) SINGAPORE Q2 FINAL GDP Q/Q: -42.9% V -43.0%E; Y/Y: -13.2% V -12.9%E; Narrows 2020 GDP forecast to between -5% to -7% (vs -7% to -4% prior); Monetary Authority of Singapore (MAS) policy stance is unchanged and still appropriate.

North America

Europe

Levels as of 1:20 ET

Nikkei 225, +1.8%, ASX 200 +0.5% , Hang Seng +2.5%; Shanghai Composite +0.6% ; Kospi +1.5%
Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.5%; FTSE100 +0.8%
EUR 1.1754-1.1722 ; JPY 106.17-105.92 ; AUD 0.7186-0.7144 ;NZD 0.6628-0.6584
Gold -0.8% at $2,014/oz; Crude Oil +0.7% at $42.26/brl; Copper +0.2% at $2.8720/lb