07:30 Asia Market Update via TradeTheNews

Asian equities trade generally lower after mixed session on Wall St.

General Trend: - Nikkei has declined after the modestly higher open [Softbank Group weighs on Topix Information & Communication index; Pharma index outperforms on Eisai news]

- Hang Seng has reversed the opening gain [TECH index drops over 1%; Geely and BYD rise following monthly sales figures]

- Shanghai Composite ended the morning session lower after flat open [Consumer Staples and Financials drop]

- S&P ASX 200 has traded generally flat [Resources index drop amid lower Chinese ore prices; Financials also decline]

- China May inflation data is due on Wed (Jun 9th)

- RBA Assist Gov (Financial Markets) Kent is due to speak at The KangaNews Debt Capital Markets Summit (Jun 9th at 11:30 PM GMT)

- Companies due to report during the NY morning include Chico’s, J. Jill Group, Momo Inc, Navistar, Thor Industries.

***Headlines/Economic Data***

Australia/New Zealand -ASX 200 opened 0.0%

- (AU) Australia AOFM (debt agency) CEO Nicholl: To offer less detail on issuance plans; 2021-22 forecast net financing task is ~A$100B - MQG.AU Macquarie and Nuix said to be facing possible ASIC investigation over Nuix IPO – SMH

- (AU) Australia May NAB Business Confidence: 20 v 23 prior; Business Conditions: 37 v 32 prior

- (AU) Australia Treasurer Frydenberg said iron ore prices >$150/ton would add A$12.0B to budget; notes government has taken a conservative approach with regards to assumptions for iron ore prices - Comments from Fitch Webinar.


-Nikkei 225 opened +0.1% - (JP) JAPAN Q1 FINAL GDP Q/Q: -1.0% V -1.2%E; GDP ANNUALIZED Q/Q: -3.9% V -4.8%E

- (JP) In May the Bank of Japan (BOJ) did not buy any ETFs (1st time since Gov Kuroda started easing in 2013) – press

- (JP) Japan Apr Labor Cash Earnings Y/Y: 1.6% v +0.2% prior; Real Cash Earnings Y/Y: 2.1% v 0.5% prior (Highest since July 2010) - 4523.JP Impact of FDA approval of Adhelm was already included in forecasts; **reminder: BIIB Alzheimer's drug Aduhelm (aducanumab) with Eisai wins FDA approval (first new treatment for Alzheimer’s disease in nearly two decades)

- (JP) Japan May Eco Watchers Current Survey: 38.1 v 34.0e; Outlook Survey: 47.6 v 38.0e.


-Kospi opened 0.0% - 000660.KR Confirms found defects in a few DRAM products; too early to estimate potential losses, in talks with the customers impacted by the defect [comments on press report]

- (KR) South Korea Apr Current Account (BOP): $1.9B v $7.8B prior (12th consecutive surplus); Balance of Goods (BOP): $4.6B v $7.9B prior - 005930.KR Samsung Electronics, LG Display to delay exit from LCD to 2022 [in line] due to surge in demand – Nikkei.

China/Hong Kong

-Hang Seng opened +0.4%; Shanghai Composite opened 0.0%

- (CN) Analysts note that the China PBOC may inject liquidity at the appropriate time - China Securities Journal

- (CN) China Resources and a state fund to set up a JV for semiconductor chips, total investment of CNY7.55B – filing

- (CN) China is expected to comply with the global minimum on corporate tax, especially since it doesn't rely on tax incentives to attract investment like it used to - SCMP

- (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: 6.3909 v 6.3963 prior

- (CN) China PBOC has been adopting a 'prudent stance' on liquidity injections since Mar 2021, notes the central bank's daily OMO liquidity injections of CNY10.0B; cites analysts - PBOC-backed Financial News

- (CN) Said that Guangdong province (China) will allow tighter spreads in bond auctions; the lower end of the spread said to be 15bps/comparable China government bond

- (CN) CHINA MAY FOREIGN RESERVES: $3.222T V $3.215TE (2nd straight increase) (yesterday after the close).

North America - HOOK Phase 1 HB-200 data show unprecedented T cell response, favorable tolerability, and preliminary efficacy as monotherapy for advanced HPV16+ cancers

- (US) Commerce Sec Raimondo: Chip shortage will pose a daily challenge for the next year or so - CNBC Europe

- (UK) May BRC Sales LFL Y/Y: 18.5% v 39.6% prior.

***Levels as of 01:15ET/06:15BST***

- Hang Seng -0.4%; Shanghai Composite -0.6%; Kospi -0.1%; Nikkei225 +0.1%; ASX 200 +0.2%

- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -0.2%; FTSE100 -0.0% - EUR 1.2195-1.2178; JPY 109.45-109.20; AUD 0.7766-0.7727; NZD 0.7235-0.7215

- Commodity Futures: Gold +0.1% at $1,900/oz; Crude Oil -0.7% at $68.72/brl; Copper -0.6% at $4.49/lb.

- Source TradeTheNews.com


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