HomeContributorsFundamental AnalysisQuiet Trading Session For Asia, NZ 10-Yr Yields Extend Decline, Track USTs

Quiet Trading Session For Asia, NZ 10-Yr Yields Extend Decline, Track USTs

General trend

  • Asian equity indices opened generally higher after modest gains on Wall St.
  • Nikkei is currently flat after opening slightly higher.
  • Shanghai Composite lagged during the morning session [Consumer Staples and Liquor firms underperformed; Financials also dropped amid release of monthly banking stats].
  • Hang Seng ended morning trading near the opening level (+0.4%).
  • S&P ASX 200 has moved higher after opening flat [Gainers include Resources, Energy and Utilities indices; Financials lag].
  • RBA June meeting minutes due on Jun 15th (Tues).
  • RBA Gov Lowe is due to speak on Jun 17th (Thurs) [title of speech is ‘From Recovery to Expansion’].
  • Companies expected to report during the NY morning include Cheetah Mobile.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened flat.
  • (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$ 252.8B v A$249.5B prior (Record high).
  • (NZ) Reserve Bank of New Zealand (RBNZ) offers to buy a total of NZ$220M in government bonds next week under QE program v NZ$250M prior.
  • (NZ) New Zealand May Business Manufacturing PMI: 58.6 v 58.3 prior.

China/Hong Kong

  • Hang Seng opened +0.4%, Shanghai Composite +0.1%.
  • (CN) CHINA MAY M2 MONEY SUPPLY Y/Y: 8.3% V 8.1%E [from Jun 10th].
  • (CN) CHINA MAY NEW YUAN LOANS (CNY): 1.400T V 1.500TE [from Jun 10th].
  • (CN) CHINA MAY AGGREGATE FINANCING (CNY): 1.920T V 2.000TE [from Jun 10th].
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
  • (CN) China PBOC sets Yuan reference rate: 6.3856 v 6.3972 prior.
  • (CN) Former PBOC Official Hu Xiaolian: Warns China to not weaponize yuan (CNY) internationalization; Internationalization still at early stage.
  • (CN) China Ministry of Finance (MOF) Sells 30-year bonds: avg yield 3.6457% v 3.6190% prior; bid to cover 2.77x.
  • (CN) China State Planner (NDRC): Will no longer issue subsidies for solar plants or onshore wind projects for remainder of 2021.
  • (CN) China to allow people from Taiwan to come to Mainland China to get the coronavirus vaccination.

Japan

  • Nikkei 225 opened +0.2%.
  • (JP) Nikkei 225 June Options settle at 29,046.
  • (JP) JAPAN Q2 BSI LARGE ALL INDUSTRY Q/Q: -4.7 V -5.5E; LARGE MANUFACTURING Q/Q: -1.4 V +1.6 PRIOR.
  • (JP) Japan govt considering lifting virus emergency regulations in Tokyo on June 20th – Japanese press.
  • (JP) Japan Econ Min Nishimura: The number of new coronavirus infections on declining trend.
  • (JP) Japan Fin Min Aso: G7 leaders are continuing talks on Digital tax; Expects China to be in discussion topics at G7.

Korea

  • Kospi opened +0.1%
  • (KR) Bank of Korea (BOK) Gov Lee: To normalize policy if recovery is certain; Household debt has become more serious recently; Economic recovery to become clearer in H2.
  • (KR) South Korea June 1-10 Imports Y/Y: 31.0% v 51.5% prior; Exports Y/Y: 40.9% v 81.2% prior.
  • (KR) South Korea Apr Export Price Index Y/Y: 12.3% v 10.6% prior; Import Price Index Y/Y: 13.8% v 15.0% prior.
  • (KR) South Korea to extend social distancing measures for additional 3-weeks.
  • (KR) South Korea sells 50-year bonds: avg yield 2.165% v 2.230% prior.

North America

  • (US) White House statement: To work with bipartisan group of Senators on infrastructure bill.

Europe

  • (EU) Three ECB policymakers reportedly sought to cut PEPP pace at today’s meeting, according to sources – press.
  • (IR) US lifts sanctions on some Iran oil officials while adding certain other people onto the list.

Levels as of 1:20 ET

  • Nikkei 225, flat, ASX 200 +0.2% , Hang Seng +0.5%; Shanghai Composite -0.4% ; Kospi +0.7%.
  • Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%.
  • EUR 1.2191-1.2168 ; JPY 109.45-109.32 ; AUD 0.7759-0.7744 ;NZD 0.7207-0.7185.
  • Gold +0.3% at $1,902/oz; Crude Oil -0.3% at $70.08/brl; Copper +0.1% at $4.4932/lb.
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