Asia Trades Mixed After US Losses, US Equity FUTs Rise

Sep 11 20, 06:03 GMT

General Trend:

Australia’s Resources, Energy and Financial indices decline; Rio Tinto trades lower after management shake-up
Topix Marine Transportation and Pharma indices are among the gainers, Securities index declines
Japan Display rises after quarterly earnings report and outlook, later pared gain
Gainers in HK include Tech, Gaming and Auto firms; Property index declines
Shanghai Composite declined by 0.2% during morning session, banks and property firms were among the decliners; IT shares rose
Oracle rose over 3% in afterhours trading following results/guidance; Peloton rose over 9% after its results/guidance
China’s Aug banking statistics (including M2 and new yuan loans) might be released later today
The new US sanctions on Huawei are due to take effect next Tuesday (Sept 15th); The new sanctions will ban the supply of chips made with US components to Huawei [without prior approval from the US]

Headlines/Economic Data

Australia/New Zealand

ASX200 opened -0.2%
Rio Tinto [RIO.AU]: CEO J-S Jacques to leave company on Mar 31st or when new CEO is appointed; Iron Ore Chief Chris Salisbury to step down from position immediately, to leave company on Dec 31st [The company said the executive changes are in response to the Juukan Gorge Caves destruction]
(AU) Victoria state (Australia) reports 43 additional coronavirus cases v 51 prior; 9 additional deaths
(NZ) New Zealand Aug Manufacturing PMI: 50.7 v 59.0 prior (3rd straight expansion)
(NZ) New Zealand Aug REINZ House Sales y/y: 24.8% v 24.6% prior
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$440M v NZ$480M prior in government bonds as part of QE v NZ$440M sought
(NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$1.35B v NZ$1.35B prior in government bonds next week

China/Hong Kong

Hang Seng opened +0.2%, Shanghai Composite -0.3%
(CN) China State Run Press: China regulators should improve short selling mechanisms,
Huawei is holding its Developers Conference 2020 between Sept 10-12th
ZTE [763.HK]: Proposes acquiring 24% interest in ZTE Microelectronics from the China IC Fund (Big fund)
US Pres Trump: there will be no extension of TikTok sale deadline – press
(CN) China Nonferrous industry Association Official: Expects China copper scrap imports down ~50% in 2020
Cathay Pacific [293.HK]: Reportedly expected to forgo relief from Hong Kong Govt, paves way for layoffs – SCMP
(CN) China PBoC Open Market Operation (OMO): Injects CNY90B in 7-day reverse repos v Injects CNY140B in 7-day prior; Net drain CNY10B v Net inject CNY20B prior
(CN) China PBoC Open Market Operation (OMO) Net inject total CNY230B for the week v Net drain total CNY470B prior
(CN) China PBOC sets Yuan reference rate: 6.8389 v 6.8331 prior
(CN) China and India reaffirm need to disengage at disputed border region – joint statement
Bytedance: To invest ‘several billion dollars’ in Singapore (Currency not specified)
(CN) China Aug smartphone shipments -13.4% y/y – China Academy of Information and Communications (CAICT) [from Sept 10th]
(CN) China Finance Ministry (MOF) sells 30-year bonds; avg yield: 3.81% v 3.80%e

Japan

Nikkei225 opened -0.5%
(JP) Nikkei Sept Futures and Options are expected to settle at 23,272 – financial press
(JP) Bank of Japan (BOJ) To hold meeting on Market operations on Oct 20th (Tues) from 5:30 PM Japan time (830 GMT)
(JP) Japan Chief Cabinet Sec Suga (LDP Ruling Party Leadership Candidate): we will call for sales tax hike in the future given Japan cannot avoid decline in population [from Sept 10th]
(JP) Follow Up: Japan Chief Cabinet Suga (LDP Party Leadership Candidate): Agrees with PM Abe on no need to raise sales tax for 10 years
(JP) Follow Up: Japan Foreign Min Motegi: To hold talks via video with UK Trade Min Truss in the afternoon (Sept 11th), aims to reach broad agreement on trade deal
(JP) Japan Fin Min Aso: Fraud victims of Docomo should be fully compensated; Coronavirus has put severe pressure on Japan Govt finances; No comment on Hypothetical plan to dissolve diet
(JP) JAPAN Q3 BSI LARGE ALL INDUSTRY Q/Q: +2.0 V -40.0E; LARGE MANUFACTURING Q/Q: +0.1 V -52.3 PRIOR [The BSI data is seen as being correlated with the BoJ’s Tankan survey. The BoJ Q3 Tankan Survey is due to be released on Oct 1st]
(JP) Japan Aug PPI M/M: 0.2% v 0.2%e; Y/Y: -0.5% v -0.5%e
(JP) Japan Govt reported to allocate ¥1.6T from reserve fund for coroanvirus measures – Press
(JP) Japan reported to set up coronavirus testing sites at nightlife districts in the country – Japanese Press

Korea

Kospi opened -0.3%
(KR) South Korea Sept 1-10th Exports Y/Y: -0.2%; Imports Y/Y -7.6%; Chip exports +43.2% y/y
(KR) South Korea Health Min Official Yoon: South Korea to monitor virus situation for 1-2 more days before changing rules on social distancing (in line)
(KR) South Korea confirms 176 additional coronavirus cases v 155 prior (9 straight days of <200 cases)

Other Asia

(ID) Indonesia Parliamentary Budget Committee: Agrees with Govt to increase the 2021 Budget deficit assumption to 5.7% v 5.5% prior
(IN) India said to plan to restrict copper and aluminum imports, plans to raise surveillance of copper and aluminum imports – financial press

North America

(US) Senate does not have votes to advance Republican ‘skinny’ coronavirus aid bill (as expected) – press
(BR) Brazil President Bolsonaro: Asked team what we can do about a weaker BRL; always talking with central bank about FX rate
(US) US Senator Grassley (R-IA): Urges Trump to lift steel tarrifs to help Iowa (In Line with prior requests)

Europe

Levels as of 1:20 ET

Nikkei 225, +0.5%, ASX 200 -0.7% , Hang Seng +0.5%; Shanghai Composite +0.3% ; Kospi -0.5%
Equity S&P500 Futures: +0.7%; Nasdaq100 +0.7%, Dax +0.6%; FTSE100 -0.3%
EUR 1.1840-1.1811 ; JPY 106.20-106.07 ; AUD 0.7279-0.7250 ;NZD 0.6666-0.6642
Gold -0.9% at $1,947/oz; Crude Oil -0.3% at $37.20/brl; Copper +0.7% at $2.9947/lb