Asian Equities Trade Mixed After Similar US Session

Jun 30 21, 06:06 GMT

General Trend

Modest equity moves seen coming into the month and quarter-end.
Nikkei has pared the opening gain [Topix Information & Communication index rises; Marine and Air Transportation indices drop; Iron & Steel index also declines]; Retail index weighed down by earnings from Sugi Holdings and J. Front Retailing; Adastra and Nitori may report results later today.
Hang Seng has also pared gain; Gaming firms outperform amid speculation related to the HK/Macau border reopening; Macau Jun Casino Revs may also be released on Thurs.
Shanghai Composite has moved modestly higher after opening flat [IT index rises over 2%; Financials had modest gains during morning session; Property index drops over 1%].
S&P ASX 200 has outperformed [Telecom index supported by Telstra; REIT index rises after a prior decline; Consumer Staples rise amid lockdown measures; Utility index weighed down by AGL news].
South Korea and Japan May Industrial Production data impacted by auto chip shortage.
With the recent fresh lockdowns in Australia, analysts speculate that RBA will extend QE at their July 6th meeting but will leave some flexibility on bond purchases.
China repo rates continue to rise into the month and quarter-end despite stepped up PBOC cash injections: 1-day repo rate rises >30bps.
BOJ Q2 Tankan Survey is due to be released on July 1st (Thurs).

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
FCG.NZ Reports FY21 NZ Milk Collection 1,539M kgMS, +1.5% y/y; Australia Collection 7.7M kgMS, +0.2% y/y.
TLS.AU To sell 49% of towers business for A$2.8B, Values overall business at A$5.9B.
(AU) CBA says various lockdowns in Australia have reduced the probability that the RBA will cut QE bond buys by 50% at its Jul 6 policy meeting – financial press.
(AU) Australia May Private Sector Credit M/M: 0.4% v 0.2% prior; Y/Y: 1.9% v 1.3% prior.

Japan

Nikkei 225 opened +0.3%.
(JP) JAPAN MAY PRELIMINARY INDUSTRIAL PRODUCTION M/M: -5.9% V -2.1%E (1st decline in 3-months); Y/Y: 22.0% V 27.0%E.
(JP) Japan Ministry of Economy, Trade, and Industry said to stop plans to rebuild nuclear plants due to issues at TEPCO plant, but without this will be difficult to reach the carbon-free target by 2050 – Nikkei.
6503.JP Spokesperson: Mitsubishi Electric falsified inspection data for some of its train air-conditioning equipment going back to the 1980s; ‘confirmed that there was no impact on the safety, features or performance of the products themselves’ – Nikkei.
(JP) Speculated that Japan FY20/21 Tax Rev >¥60T, to a record high; Higher than ¥55.1T Govt expectation – Press.
(JP) Japan Chief Cabinet Sec Kato: Examining Mitsubishi Electric Data Issue, the issue is regrettable.

Korea

Kospi opened +0.1%.
(KR) South Korea May Industrial Production M/M: -0.7% v +0.7%e; Y/Y: 15.6% v 18.3%e (y/y fastest growth since June 2010).
(KR) South Korea May Cyclical Leading Index Change: 0.4 v 0.5 prior.
(KR) South Korea May Retail Sales M/M: -1.8% v 2.3% prior; Y/Y: 3.1% v 8.6% prior.
(KR) South Korea decides to skip a multinational naval exercise, will take part in another US-led exercise that will also involve Australia in July – Yonhap.
(KR) North Korea Leader Kim: Criticized Communist Party quarantine efforts, a “grave incident” has happened that could threaten the safety of the people and country in nationwide anti-epidemic efforts – local press.

China/Hong Kong

Hang Seng opened +0.4%; Shanghai Composite opened 0.0%.
(CN) CHINA JUN MANUFACTURING PMI (GOVT OFFICIAL): 50.9 V 50.8E (15TH MONTH OF EXPANSION).
(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: 6.4601 v 6.4567 prior.
002024.CN Consortium led by Alibaba and Jiangsu local govt is close to acquiring a stake in Suning.com – press.
2799.HK Issues update in relation to financial statements and the guarantor under the terms and conditions of notes and securities: Auditors need more time and information to complete audit; there has been no event of default under securities.
(HK) Chatter that the Hong Kong Macau border may re-open mid-July with some limitations – HK press.

Other

(SG) Singapore Central Bank (MAS): Raises 2021 All Items CPI to 1.0-2.0% (prior 0.5-1.5%); To review 2021 GDP 4.0-6.0% Target in August meeting, likely to be higher.

North America

(US) Weekly API Crude Oil Inventories: -8.2M v -7.2M prior (6th straight weekly draw).
(US) Fed’s Waller: Did not move dot forward at FOMC Meeting in June; Has very optimistic outlook.

Europe

(UK) Chancellor of the Exchequer Sunak (Fin Min) expected to announce £15.0B in green savings bonds offering this week that will facilitate investment into renewable energy projects at a speech at Mansion House in London – UK press.
(UK) Business Sec Kwarteng announces post-Brexit system for overseeing subsidies to companies, pledges to make quicker decisions than when in the EU – press.

Levels as of 01:15ET

Hang Seng -0.1%; Shanghai Composite +0.5%; Kospi +0.6%; Nikkei225 +0.1%; ASX 200 +0.5%.
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.1%.
EUR 1.1910-1.1897; JPY 110.59-110.44; AUD 0.7528-0.7509; NZD 0.7004-0.6988.
Commodity Futures: Gold -0.2% at $1,760/oz; Crude Oil +0.7% at $73.48/brl; Copper +0.4% at $4.27/lb.