Modest Equity Moves Seen Ahead Of US CPI Data, HK Earnings In Focus

General trend

• Financials trade generally higher after US gains and rise in 10-yr Treasury yields.
• Nikkei is higher and currently near the opening level [Autos, Financials and Transports trade higher; Softbank weighs on Topix Information & Communication index]; Companies due to report earnings include Rakuten, Japan Post Bank, Japan Post Holdings, Japan Post Insurance, Dentsu.
• Hang Seng rebounded from the opening decline [Property and Financial firms rise]; Earnings in focus [HKEX, Cathay Pacific, Lenovo].
• Shanghai Composite ended morning trading modestly higher after the lower open [Property index rose over 4.5%; Financials also gain; Liquor firms drop amid regulatory concerns].
• S&P ASX 200 has remained higher [Financials supported by results from CBA; Energy and Resources indices also rise].
• Companies due to report during the NY morning include FTC Solar, Canada Goose, Perrigo, Wendy’s.
• NZ Q3 Inflation Expectation data is due on Thursday (Aug 12th).

Headlines/Economic data

Australia/New Zealand

• ASX 200 opened +0.2%.
• CBA.AU Reports FY21 (A$) Cash profit 8.7B v 7.3B y/y; Rev 24.4B v 23.8B y/y, launches off market A$6.0B share buyback.
• (NZ) Reserve Bank of New Zealand (RBNZ) comments on new RBNZ Act: Key changes include the appointment of a new statutory Governance Board, whose work will start in mid-2022. The Board will be responsible for all decision-making except those related to the Monetary Policy Committee (MPC). The Governor remains chair of the MPC and will also sit on the future board.
• IAG.AU Reports FY21 (A$) Cash profit 747M v 279M y/y, Rev 18.9B v 18.6B y/y.
• (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$354.9B v A$351.6B prior (record high).
• (AU) Australia sells A$300M v A$300M indicated in 3.25% Jun 2039 bonds, avg yield 1.7723%, bid to cover: 3.10x.

Japan

• Nikkei 225 opened +0.6%.
• (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.7% 30-year JGBs, avg yield 0.6470% v 0.6800% prior, bid to cover: 3.07x v 3.63x prior.
• 2503.JP Reports Q2 Net ¥23.8B v ¥33.3B y/y, Pretax ¥56.5B v ¥56.0B y/y, Rev ¥864.0B v ¥872.5B y/y; Cuts FY guidance (after the close).
• 9984.JP Reports Q3 Net ¥761.5B v ¥1.26T y/y, Pretax ¥1.29T v ¥834.1B y/y, Rev ¥1.48T v ¥1.28T y/y (after the close).
• 5108.JP Reports Q2 Net +¥352.3B v -¥22.0B y/y, Op ¥169.7B v ¥9.2B y/y, Rev ¥1.57T v ¥1.26T y/y, raises FY guidance (after the close).

Korea

• Kospi opened -0.2%.
• (KR) South Korea July Unemployment Rate: 3.3% v 3.8%e (lowest since Aug 2020).
• (KR) South Korea Fin Min Hong: Govt jobs program helped to boost labor market in July, fiscal spending should continue to support jobs; COVID resurgence impact to be seen from August.
• (KR) North Korea: Will make the US and South Korea feel massive security crisis every minute; also fails to answer hotline with South for second day – KCNA.
• (KR) South Korea Aug 1-10 Imports Y/Y: 63.1% v 33.3% prior; Exports Y/Y: 46.4% v 14.1% prior; Chip Exports y/y: 44.6% v 15.6% prior.
• (KR) South Korea confirms total 2,223 additional coronavirus cases (record high).

China/Hong Kong

• Hang Seng opened -0.4%; Shanghai Composite opened -0.1%.
• (CN) China Securities Daily: China Analyst has proposed a wider band on CNY trading.
• (CN) Private school owners forced to relinquish control of institutions to the China state – FT.
• (CN) China Education Supervision Committee Office of the State Council to establish semi-monthly notification system, effective Aug 30th.
• (CN) China PBOC sets Yuan reference rate: 6.4831 v 6.4842 prior.
• (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.

Other

• (SG) SINGAPORE FINAL Q2 GDP Q/Q: -1.8% V -2.0%E; Y/Y: 14.7% V 14.2%E; Raises 2021 GDP outlook to 6-7% (prior 4-6%).
• (SG) Monetary Authority of Singapore (MAS): Current monetary policy is appropriate for now.

North America

• (US) Fed’s Evans (dove, voter): Would like to see a few more employment reports ahead of decision to taper the Fed’s asset purchases; A difference of a month or two in the decision will not matter.
• FUBO Reports Q2 -$0.38 v -$0.54e, Rev $130.9M v $121Me; Fubo Sportsbook with real-money wagering remains on track for Q4 launch.
• T Affirm F21 Capex $17B; Confirms HBO will cease to be offered as a subscription on Amazon Channels during Q3; Supply chain disruptions leading to slower than expected ramp of fiber ecosystem, Raises FY21 services Rev +3% (prior: 2%).

Levels as of 01:15ET

• Hang Seng -0.0%; Shanghai Composite +0.2%; Kospi -0.6%; Nikkei225 +0.5%; ASX 200 +0.3%.
• Equity Futures: S&P500 -0.1%; Nasdaq100 -0.0%, Dax -0.1%; FTSE100 +0.1%.
• EUR 1.1726-1.1712; JPY 110.69-110.51; AUD 0.7351-0.7335; NZD 0.7013-0.6996.
• Commodity Futures: Gold +0.1% at $1,733/oz; Crude Oil -0.3% at $68.11/brl; Copper -0.4% at $4.33/lb.