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- TradeTheNews.com Asia Market Update: Asian equity markets trade generally higher following the US Fed decision, modest moves have been seen; JPY and CHF rise ahead of upcoming US Q2 GDP data
General Trend:
- US President Biden expected to speak to China President Xi on Thurs (July 28th) [the timing is uncertain]
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- Hang Seng erased gain during the morning session; Mainland Properties Index declines
- Shanghai Composite rose during morning trading
- Nikkei 225 pared gain as the Yen strengthened; Fanuc and Mitsubishi Motors rise after issuing financial results
- Japanese cos. expected to report earnings include Panasonic, Nissan Motor, Murata Manufacturing, Advantest, Renesas, Takeda, Keyence
- Australian equities have extended gains; Fortescue rose following production update
- US equity FUTs trade slightly lower after prior gains; Meta Platforms declines on financial outlook
- Samsung Electronics issued cautious H2 outlook
***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened +0.2%
- (AU) Australia Treasurer Chalmers updates on budget and outlook: Raises CPI expectations, expected to peak at 7.75% in Dec quarter, raises wage price index
- SFR.AU Reports Q4 Gold production 9.1M oz v 9.0M oz y/y; Copper production 34.9Kt v 18.3Kt y/y
- FMG.AU Reports Q4 Iron Ore Shipments 49.5Mt v 49.3Mt y/y, Ore Mined 59.2Mt v 64.9Mt y/y
- (NZ) New Zealand July Business Confidence: -56.7 v -62.6 prior; Inflation pressures remain intense but not obviously worsening
- (AU) Australia Q2 Import Price Index Q/Q: 4.3% v 4.5%e; Export Price Index Q/Q: 10.1% v 8.4%e
- (AU) Australia Jun Retail Sales M/M: 0.2% v 0.5%e
Japan
-Nikkei 225 opened +0.7%
- (JP) Bank of Japan (BOJ) Dep Gov Amamiya: Aiming to achieve 2.0% CPI, not temporary increase in Inflation; There are high uncertainties for wage growth
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected]
- (JP) Japan MOF sells ¥3.0T v ¥3.0T indicated in 0.00% 2-year JGBs: Avg Yield: -0.0740% v -0.0490% prior; bid-to-cover: 4.33x v 3.81x prior
- 7211.JP Reports Q1 Net ¥38.6B v ¥6.09B y/y, Op ¥30.8B v ¥10.6B y/y, Rev ¥528.7B v ¥431.9B y/y; Raises FY22 outlook; CFO: Chip shortage has eased more than expected - post earnings comments (yesterday after the close)
Korea
-Kospi opened +0.9%
- 005930.KR Reports final Q2 (KRW) Net 10.95T v 9.45T y/y; Op 14.1T v 14.0T prelim (12.6T y/y); Rev 77.2T v 77.0T prelim (63.7T y/y)
- (KR) South Korea Aug Business Manufacturing Survey: 78 v 83 prior; Non-Manufacturing Survey: 80 v 81 prior
- (KR) North Korea leader Kim: Ready to mobilize nuclear war deterrence; Calls for a posture to promptly mobilize nuclear war deterrence
- (KR) Bank of Korea (BOK) announces Mortgage Back Securities (MBSs) will be eligible for outright purchases
- (KR) South Korea National Pension Service: Overseas Investments are not the main driver of the KRW
- (KR) South Korea Jun Department Store Sales Y/Y: 2.3% v 19.9% prior; Discount Store Sales Y/Y: 18.2% v -3.0% prior
- (KR) South Korea President Yoon has ordered steps that would remove illegal activities on Stock Market Short selling
China/Hong Kong
-Hang Seng opened +0.2%; Shanghai Composite opened +0.4%
- (CN) China Securities Times: Sees low chance of further decline in short-term rates
- (HK) Hong Kong Fin Sec Chan: Confirms Hong Kong will lower GDP forecasts at next meeting; Expects H2 performance better than H1
- (HK) Hong Kong Monetary Authority (HKMA) Gov: Expects overnight and 1-month interbank rate to continue increasing at a much faster pace; Hong Kong Public should be prepared for increasing interbank rates
- (CN) China PBOC sets Yuan reference rate: 6.7411 v 6.7731 prior
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net drain CNY1.0B v Net drain CNY1.0B prior
- (HK) Hong Kong Monetary Authority (HKMA) raises base rate by 75bps to 2.75% (as expected)
- 3333.HK Creditors said to demand an additional explanation for while $2.0B in cash was seized – press
- (CN) Shanghai adds additional 6 medium-risk areas to lockdown; finds covid cases outside of quarantine
- (CN) China PBOC said to mobilizing $148B bailout for property developers - FT
North America
- (US) Senator Manchin (D-WV): Reached agreement with Leader Schumer to support the 'Inflation Reduction Act' that will pay down national debt, and lower energy and healthcare costs
- (US) FOMC RAISES TARGET RANGE BY 75BPS TO 2.25-2.50% (AS SPECULATED); RECENT INDICATORS OF SPENDING AND PRODUCTION HAVE SOFTENED, THOUGH JOB GAINS ARE ROBUST
- BBY Cuts again FY22 Enterprise SSS -11.0% (prior -6.0% to -3.0%), Op margin 4% (prior 5.2-5.4%); Pauses share buybacks; Notes consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened even further since May
- META Reports Q2 $2.46 v $2.51e, Rev $28.8B v $28.7Be; CFO David Wehner to become Chief Strategy Officer; Names Susan Li as new CFO; effective Nov 1st; Notes it reduced its hiring
- TDOC Reports Q2 -$19.22** v -$0.71e, Rev $592M v $587Me; EPS miss primarily driven by non-cash goodwill impairment charge of $3.0 billion, or $18.78 per share.
- (US) President Biden to make remarks on economy tomorrow at 14:15 ET after meeting with CEOs for update on economic conditions
Europe
- (UK) Jun Car Manufacturing 72.9K units v 62.3K prior, 5.6% y/y – SMMT; Cuts 2022 outlook for total production
- (FR) France Min Attal: Expected that France Govt will propose a 3.0% budget cut for FY23 - French press
***Levels as of 01:15ET / 6.30 BST***
- Hang Seng -0.4%; Shanghai Composite +0.5%; Kospi +0.7%; Nikkei225 +0.2%; ASX 200 +0.9%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.4%, Dax +0.3%; FTSE100 -0.2%
- EUR 1.0219-1.0181; JPY 136.59-135.10; AUD 0.7003-0.6981; NZD 0.6276-0.6252
- Commodity Futures: Gold +0.9% at $1,733/oz; Crude Oil +1.0% at $98.19/brl; Copper +0.4% at $3.48/lb