Mixed Equity Trading In Asia

Jul 26 21, 06:43 GMT

General trend

10-yr government bond yields move generally lower [particularly NZ and China].
US equity FUTs trade mixed, S&P 500 lags.
Nikkei outperforms following 2 day holiday [TOPIX Iron & Steel index outperforms amid guidance from Tokyo Steel, news related to JFE; Electric Appliances, Transport and Banks indices also rise].
Hang Seng has extended decline; Tech, Education and Property firms drop amid regulatory concerns.
Shanghai Composite has also extended decline [Consumer Staples, Property and Financial indices are among the decliners].
China CSI300 Real Estate index declines >3% (lowest since Sept 2015).
S&P ASX 200 has traded fractionally higher [Resources index rises; Energy index lags]; GPT Group news weighs on REIT index.
Companies due to report during the NY morning include Check Point Software, Hasbro, Lennox International, Lockheed Martin, Otis Worldwide, PetMed Express, RPM International.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened flat.
GPT Group [GPT.AU]: Withdraws FY21 FFO and distribution guidance citing lockdowns in Melbourne and Sydney.
(AU) New South Wales Premier: Denies reports that Sydney will be under lockdown until Sept – Press.
(NZ) Markets are now pricing in ~70% chance of Reserve Bank of New Zealand (RBNZ) rate hike in Aug 2021 [down a few bps]; notes impact of Delta COVID variant – US financial press.
(NZ) New Zealand Jun Trade Balance (NZD): 261M v 489M prior.

China/Hong Kong

Seng opened -1.8%, Shanghai Composite -0.4%.
(CN) China reportedly considering barring Foreign investment in after-school tutoring; Considering asking after-school tutors to go non-profit [from Jul 23rd].
(US) Deputy Sec of State Sherman to meet with China’s Wang Yi; the talks are expected to be held on Sun and Mon (Jul 25-26th) – financial press [from Jul 21st].
(CN) China Vice Foreign Min Feng: Willing to deal with US on equal footing; Relationship with the US is in a ‘stalemate’, now faces difficulties.
(CN) China issuing notice to regulate property market order.
(CN) Shanghai (China) revised rule related to home donations, effective from Jul 24th; move seen as an attempt to lower property market speculation – press.
(CN) PBOC Said to have asked Shanghai lenders to increase mortgage rates to 5.00% from 4.60% for first time home buyers.
(CN) China Industry Ministry (MIIT): To begin a crackdown on illegal internet activities.
(CN) China FX Regulator SAFE: Reiterates stance to keep CNY currency (Yuan) basically stable in 2021.
(CN) China Foreign Ministry: China will counter sanction certain former US officials, including former Commerce Sec Ross.
(CN) China said to have urged banks to not stop lending to ‘high carbon’ sectors of the economy – Press.
(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: 6.4763 v 6.4650 prior.

Japan

(JP) Nikkei 225 opened +1.6% at 27,990 (Returned from 2 day holiday).
(JP) JAPAN JUL PRELIMINARY PMI MANUFACTURING: 52.2 V 52.4 PRIOR (6th straight expansion); PMI Services: 46.4 v 48.0 prior (18th month of contraction).

Korea

Kopsi opened +0.4%.
(KR) Bank of Korea sells KRW840B v KRW700B indicated in 1-year Monetary Stabilization Bonds (MSB): Avg yield 0.88% v 0.88% prior.

Other Asia

(SG) Singapore Jun Industrial Production M/M: -3.0% v +0.5%e; Y/Y: 27.5% v 27.2%e.

North America

(US) Reportedly Democrats may remove $20B in funding for a new infrastructure bank after Republicans opposed a provision aimed at boosting workers’ wages – press.

Europe

(FR) Said that the UK may end quarantine imposition on France visitors – UK press.

Levels as of 01:20 ET

Nikkei 225, +1%, ASX 200 flat , Hang Seng -3.1%; Shanghai Composite -2.7% ; Kospi -0.6%.
Equity S&P500 Futures: -0.3%; Nasdaq100 -0.1%, Dax -0.4%; FTSE100 -0.4%.
EUR 1.1779-1.1763 ; JPY 110.58-110.31 ; AUD 0.7372-0.7345 ;NZD 0.6986-0.6960.
Gold +0.3% at $1,807/oz; Crude Oil -0.6% at $71.64/brl; Copper flat at $4.4555/lb.