Mixed Equities Trading Session For Asia

Jun 28 21, 05:48 GMT

General trend

Asian equity markets are mixed after opening generally higher; only modest moves have been seen.
Nikkei has declined after opening +0.2% [Big component Fast Retailing rises amid broker comments; Topix Retail index also supported by Seven & I news; Topix Iron & Steel and Marine Transportation indices rise; Information & Communication index lags].
S&P ASX 200 is trading slightly lower [Travel-sensitive stocks decline amid COVID restrictions; Financials also drop; Consumer Staples rise, Woolworths resumed certain purchase limits, Metcash reported FY results].
Shanghai Composite ended the morning session flat [Financial and Property indices decline after prior gains; IT and Consumer Discretionary indices rise].
Hang Seng morning session is canceled due to storm signal; China Gas may report results later today.
Geely’s ADRs declined on IPO news.
South Korea bond yields continue to rise after last week’s comments from BoK Gov.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia Treasurer Frydenberg: Will only open international borders when safe to do so and based on medical advice.
(AU) Western Australia government imposed at least 3-day COVID-related restrictions on Perth and Peel region; also imposed new border restrictions on arrivals from Queensland, the Northern territory and the ACT.
(AU) Australia New South Wales (NSW) Premier: Preparing for coronavirus cases to rise ‘considerably’.
(AU) Australia New South Wales (NSW): Additional coronavirus measures are possible over outbreak.
(AU) Australia sells A$300M v A$300M indicated in 1.75% Jun 2051 bonds, avg yield 2.3718%, bid to cover 3.52x.
(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr to give speech on Jun 29th (Tues at 4:10 GMT) related to the central bank’s statement of intent for 2021-24.
(NZ) Bank of New Zealand (private bank) said the RBNZ might end QE program in the coming months as the central bank prepares to raise interest rates; Notes markets are pricing in a >50% probability that the RBNZ will hike rates in Nov 2021 – financial press.
(NZ) New Zealand May Jobs Filled +0.4% m/m.

China/Hong Kong

Shanghai Composite opened +0.1%.
(HK) Hang Seng Morning session is canceled due to storm.
(CN) China State Planner (NDRC): Begins investigations into Fertilizer [urea] market, seeking to learn more about the supply and demand situation related to urea prices.
Huarong: Citic Group sent team to Huarong to examine finances; Huarong said to be close to release of delayed 2020 results.
Geely [175.HK]: Board withdraws Shanghai star board listing application; When the relevant conditions are met, the Company will actively promote the listing work of Renminbi share issuance.
Li Ning [2331.HK]: Guided H1 Net (CNY) at least 1.8B v 0.68B y/y, Rev to rise >60% y/y.
(CN) China May Industrial Profits Y/Y: 36.4% v 57.0% prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY30B in 7-day reverse repos v CNY30B in 7-day reverse repos prior; Net inject CNY20B v Net inject CNY20B prior.
(CN) China PBOC sets Yuan reference rate: 6.4578 v 6.4744 prior.

Japan

Nikkei 225 opened +0.2%.
Seven & I [3382.JP]: US FTC orders divestiture of hundreds of retail stores following Speedway deal.
(JP) Bank of Japan (BOJ) June Summary of Opinions: Need to continue to support funding of business.
(JP) Bank of Japan (BoJ) is expected to release Jul bond buying plan on Jun 29th (Tues at 8 GMT).
(JP) Japan PM Suga: On high alert on the slight rise in coronavirus cases in Tokyo; To respond nimbly to coronavirus depending on situation.

Korea

Kospi opened +0.1%.
(KR) South Korea sells 30-year bonds: avg yield 2.225% v 2.290% prior.
(KR) Bank of Korea sells KRW760B v KRW800B indicated 3-Month Monetary Stabilization Bonds (MSB): Avg yield 0.62% v 0.49% prior.

Other Asia

(TW) Taiwan Central Bank (CBC): Economy is not facing ‘potential crisis’ (response to research note from Japan Broker).

North America

(US) US President Biden withdrew his suggestion that he would veto the bipartisan infrastructure deal if Congress did not pass the Democrat ‘antipoverty package’.
Tesla [TSLA]: China regulator says Tesla to ‘recall’ over 285K cars in China over problem with its autopilot feature.
(US) Fed’s Rosengren: US cannot afford a housing market boom and bust [in line] – FT.

Europe

(DE) Germany expected to attempt to ban UK travelers from the EU, regardless of whether or not they had a vaccine – UK press.
(FR) France Regional Elections: ‘Far right’ candidate Le Pen again did not win a single region, cites exit polls – financial press.
Binance: UK FCA orders Binance to cease UK activities, citing inability to conduct any regulated activity – press.

Levels as of 01:05 ET

Nikkei 225, -0.2%, ASX 200 flat , Shanghai Composite flat ; Kospi -0.1%.
Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax flat; FTSE100 -0.2%.
EUR 1.1942-1.1920 ; JPY 110.86-110.62 ; AUD 0.7602-0.7575 ;NZD 0.7079-0.7061.
Gold +0.2% at $1,780/oz; Crude Oil flat at $74.04/brl; Copper -0.3% at $4.2683/lb.