BOJ Tankan Survey Generally Below Ests, China PMI Data Also Misses

Jul 01 21, 06:54 GMT

General trend

Asian equity markets have moved generally lower during the session amid the start of the new quarter.
Chipmakers trade mixed following results/guidance from Micron.
Nikkei has erased the opening gain [Decliners include Topix Marine Transportation, Electric Appliances, and Information & Communication indices].
Shanghai Composite moved modestly lower during the morning session [Industrial, Consumer Discretionary and IT indices decline; Financials, Property and Consumer Staples rise].
S&P ASX 200 has moved lower after the flat open [Decliners include Consumer and Financial indices].
Hang Seng is closed for holiday.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia Jun Final PMI Manufacturing: 58.6 v 58.4 prelim.
(AU) Australia Jun AIG Performance of Manufacturing Index: 63.2 v 61.8 prior (record high).
(AU) Australia May Final Trade Balance (A$): 9.7B v 10.0Be.
(AU) Australia Jun CoreLogic House Prices M/M: 1.9% v 2.3% prior.
(AU) Australia May Job Vacancies: 23.4% v 14.1% prior.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$316.5B v A$307.6B prior.
(NZ) New Zealand May Building Permits M/M: -2.8% v +4.8% prior.
(NZ) New Zealand sells NZ$500M v NZ$500M indicated in 2024, 2029, and 2037 nominal bonds.

China/Hong Kong

Hang Seng closed for holiday, Shanghai Composite opened +0.3%.
(CN) CHINA JUN CAIXIN PMI MANUFACTURING: 51.3 V 51.9E (14TH MONTH OF EXPANSION) [3 MONTH LOW].
(CN) China PBOC: to encourage more agricultural products futures.
(CN) China Ministry of Finance (MOF): To increase oversight of special local Govt bonds.
(CN) China President Xi: China has built a moderately prosperous society; Reform and opening up was critical step for China – Comments at Communist Party Centenary (100-year anniversary).
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY30B in 7-day reverse repos prior; Net drain CNY20B v Net inject CNY20B prior.
(CN) China PBOC sets Yuan reference rate: 6.4709 v 6.4601 prior.
(HK) Macau Jun Casino Rev (MOP): 6.5B v 10.4B prior; Y/Y: 812.5% v 492.2% prior.

Japan

Nikkei225 opened +0.1%.
(JP) JAPAN Q2 TANKAN LARGE MANUFACTURING INDEX: 14 V 16E; OUTLOOK SURVEY: 13 V 18E (4TH CONSECUTIVE IMPROVEMENT); Large All-industry Capex: 9.6% v 7.2%e.
(JP) Japan Jun Final PMI Manufacturing: 52.4 v 51.5 prelim (Confirms 5th straight expansion).
(JP) BOJ Nakagawa (new board member): Must be mindful of downside risks on economy and prices [comments from Jun 30th].
(JP) Japan Chief Cabinet Sec Kato: Not considering extra budget or economic measures for now; to judge whether to compile additional stimulus package with eye on economic outlook and people’s livelihoods; Coronavirus vaccine certificates to be issued in July.
(JP) Japan Average Land Prices -0.5% y/y as of Jan 1st (first decrease in 6-years) – Tax Agency.
(JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0580% v 0.0780% prior; bid to cover: 3.54x v 2.94x prior.

Korea

Kospi opened flat.
(KR) South Korea Jun PMI Manufacturing: 53.9 v 53.7 prior (9th straight expansion).
(KR) South Korea May Trade Balance: $4.4B v $4.9Be.
(KR) South Korea formally proposes KRW33T extra budget (as speculated) – Press.

Other Asia

(IN) India Jun PMI Manufacturing: 48.1 v 50.8 prior (1st contraction in 11 months).
(MY) Malaysia Jun PMI Manufacturing: 39.9 v 51.3 prior (1st contraction in 3 months, weakest since Apr 2020).
(TW) Taiwan Jun PMI Manufacturing: 57.6 v 62.0 prior (lowest since Nov 2020, 12th straight expansion).
(VN) Vietnam Jun PMI Manufacturing: 44.1 v 53.1 prior (1st contraction in 7 months).

North America

(US) JUN CHICAGO PURCHASE MANAGERS INDEX: 66.1 V 70.0E.
Reportedly financial services sector will be exempted from new global tax rules for multinationals – FT.

Europe

(IE) Ireland Central Bank raises 2021 GDP growth forecast to 8.3% (prior 5.9%); Raises 2022 GDP growth forecast from 4.7% to 5.4% – Quarterly Report.
(IE) Ireland Jun PMI Manufacturing: 64.0 v 64.1 prior.
(TR) Turkey Central Bank (CBRT) raises FX reserve Requirement ratios by 200bps.

Levels as of 01:20 ET

Nikkei 225, -0.4%, ASX 200 -0.5% , Hang Seng closed; Shanghai Composite +0.2% ; Kospi -0.4%.
Equity S&P500 Futures: +0.2%; Nasdaq100 flat, Dax +0.2%; FTSE100 +0.1%.
EUR 1.1860-1.1846 ; JPY 111.16-111.02 ; AUD 0.7503-0.7484 ;NZD 0.6998-0.6977.
Gold +0.2% at $1,775/oz; Crude Oil +0.2% at $73.61/brl; Copper -0.6% at $4.2645/lb.