Equity Losses Generally Seen In Asia

Jul 30 21, 06:15 GMT

General trend

Hang Seng again weighed down by TECH index.
Shanghai Composite ended morning trading off of the lows [Consumer Staples and Financial indices declined; IT index gained].
Nikkei has extended decline; Companies expected to report earnings include Nomura Holdings, Mizuho Financial, Hitachi, Komatsu, Sumitomo Mitsui Financial, Takeda, ANA Holdings, Mazda, Japan Tobacco, KDDI, NEC, Makita, Seiko Epson.
S&P ASX 200 has outperformed [Financials rise after NAB’s buyback announcement].
Companies due to report during the NY morning include AbbVie, Aon, American Axle, Booz Allen Hamilton, Bloomin Brands, Caterpillar, CBOE, Charter Communications, Colgate, Capri Holdings, Chevron, Dana Inc, Enbridge, W.W. Grainger, Huntsman Corp, Johnson Controls, Lazard, LyondellBasell, Newell, Restaurant Brands, TELUS, Uxin Limited, VF Corp, Weyerhaeuser, Exxon.
China official PMI data is due on Saturday (Jul 31st) [Friday night in the US].

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia Jun Private Sector Credit M/M: 0.9% v 0.5% prior; Y/Y: 3.1% v 1.9% prior.
(AU) Australia Q2 PPI Q/Q: 0.7% v 0.4% prior; Y/Y: 2.2% v 0.2% prior.
(AU) Australia sells A$700M v A$700M indicated in 2.75% Nov 2027 bonds, avg yield 0.7316%, bid to cover 5.5x.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$342.9B v A$344.1B prior.
(NZ) New Zealand Jun Building Permits M/M: +3.8% v -2.4% prior.
(NZ) New Zealand July Consumer Confidence Index: 113.1 v 114.1 prior.

China/Hong Kong

Hang Seng opened -1.0%, Shanghai Composite -0.4%.
(CN) China State Planner (NDRC): Key fertilizer companies in China will suspend exports of fertilizer; summoned certain key fertilizer companies for talks.
DiDi: Responds to Certain Market Speculation; Confirms not considering going private.
(CN) China National Reserve Administration (SRB) provides update on its 2nd batch of base metals on July 29th; Released 170K tons of copper, aluminum and Zinc; Will continue to release metals in the near term based upon supply and demand.
(CN) China Finance Ministry (MOF): To remove steel products tax rebates for 23 items, confirms to raise export tariffs for certain steel products from Aug 1st.
(CN) China PBOC Depuy Gov Pan Gongsheng: Should promote an orderly and steady opening up for high-level capital accounts as well as the liberalization and ease of cross-border trade.
(CN) China Sec Journal: China residents are showing increased interest in China equity assets.
(CN) China Banking and Insurance Regulatory Commission (CBIRC): Places ban on trust firms establishing non-financial units.
(CN) China 1-day repo rate increases to 2.1234%, +~50bps [ahead of month end].
(CN) China PBOC Open Market Operation (OMO): Injects CNY30B in 7-day reverse repos v CNY30B in 7-day reverse repos prior; Net CNY20B v Net inject CNY20B prior.
(CN) China PBOC sets Yuan reference rate: 6.4602 v 6.4942 prior.

Japan

Nikkei 225 opened -0.4%.
(JP) Bank of Japan Board member Noguchi: BoJ may be able to begin debate on strategy for hitting price target around end 2021.
(JP) JAPAN JUN PRELIMINARY INDUSTRIAL PRODUCTION M/M: 6.2% V 5.0%E (fastest gain M/M since July 2020); Y/Y: 22.6% V 20.7%E.
(JP) Japan Govt Official: Global chip shortage is continuing, but impact is easing, helping auto output stage sharp rebound in June.
(JP) JAPAN JUN RETAIL SALES M/M: 3.1% V 2.7%E; Y/Y: 0.1% V 0.2%E.
(JP) JAPAN JUN JOBLESS RATE: 2.9% V 3.0%E.
(JP) Japan confirms to seek continuation of state of emergency in Tokyo until Aug 31st; confirms to add surrounding Tokyo area to state of emergency.

Korea

Kospi opened -0.3%.
(KR) South Korea Jun Industrial Production M/M: 2.2% v 1.5%e; Y/Y: 11.9% v 9.6%e.
(KR) South Korea Jun Cyclical Leading Index Change: 0.3 v 0.4 prior.
(KR) South Korea Aug Business Manufacturing Survey: 92 v 99 prior.
(KR) South Korea Jun Retail Sales M/M: +1.4% v -1.8% prior.

Other Asia

(PH) Philippines Central Bank (BSP) Gov Diokno: Sees Jul CPI at 4.3%.
Taiwan Semi: Said to report gas contamination at key chip plant that is an Apple supplier – Press.
Taiwan Semi Statement: As of now the incident does not have an ‘obvious’ impact on the operation.

North America

Amazon [AMZN]: Reports Q2 $15.12 v $12.22e, Rev $113.1B v $115.1Be; Guides Q3 Rev $106-112B +10-16% y/y v $119.2Be; Guides Q3 op income $2.5-6.0B v $8.1Be.
(US) Q2 ADVANCE GDP ANNUALIZED Q/Q: 6.5% V 8.5%E; PERSONAL CONSUMPTION: 11.8% V 10.5%E.

Levels as of 01:20 ET

Nikkei 225, -1.8%, ASX 200 -0.2% , Hang Seng -2.4%; Shanghai Composite -0.9% ; Kospi -1.1%.
Equity S&P500 Futures: -0.9%; Nasdaq100 -1.4%, Dax -0.8%; FTSE100 -0.7%.
EUR 1.1894-1.1877 ; JPY 109.60-109.36 ; AUD 0.7405-0.7379 ;NZD 0.7019-0.6993.
Gold -0.2% at $1,827/oz; Crude Oil -0.6% at $73.19/brl; Copper -0.2% at $4.5118/lb.