Morning Coffee Update - Equity markets trade mixed, CN and HK lag.


Morning Coffee Update

- TradeTheNews.com Asia Market Update: Equity markets trade mixed, CN and HK lag; US equity FUTs rise on tech earnings [Apple, Amazon]; JPY extends gain


General Trend:

- Hang Seng weighed down by declines in the TECH and Property indices

- Nikkei 225 pared gain as the Yen rose

- Japanese cos. expected to report earnings include Sony, Hitachi, Fujitsu, KDDI, Komatsu, Daiwa Securities, Mazda Motor, Japan Tobacco

- Australian equities have extended gains; REITs supported by lower bond yields



***Headlines/Economic Data***

Australia/New Zealand

-ASX 200 opened +0.2%

- (AU) According to an economist poll, 30 of 32 economists expect a 50bps hike from the RBA on Aug 2nd, with the remaining 2 expecting an even larger hike of up to 75bps

- (AU) Australia sells A$1.0B v A$1.0B indicated in 3.00% Nov 2033 bonds; Avg Yield: 3.0913% ; bid-to-cover 2.25x

- (AU) Australia Q2 PPI Q/Q: 1.4% v 1.6% prior; Y/Y: 5.6% v 4.9% prior

- (AU) Australia Jun Private Sector Credit M/M: 0.9% v 0.8% prior; Y/Y: 9.1% v 9.0%e


Japan

-Nikkei 225 opened +0.4%

- (JP) JAPAN JULY TOKYO CPI Y/Y: 2.5% V 2.4%E; CPI (EX-FRESH FOOD) Y/Y: 2.3% V 2.2%E (HIGHEST SINCE OCT 1992)

- (JP) JAPAN JUN JOBLESS RATE: 2.6% V 2.5%E

- (JP) JAPAN JUN PRELIMINARY INDUSTRIAL PRODUCTION M/M: 8.9% V 4.2%E; Y/Y: -3.1% V -7.0%E

- (JP) JAPAN JUN RETAIL SALES M/M: -1.4% V 0.2%E; Y/Y: 1.5% V 2.9%E

- (JP) Bank of Japan (BOJ) July Summary(AU) According to an economist poll, 30 of 32 economists expect a 50bps hike from the RBA on Aug 2nd, with the remaining 2 expecting an even larger hike of up to 75bps of Opinions: Must be mindful of risk that monetary tightening by US and European central banks could lead to US recession, negative market shock and affect Japan's economy

- (JP) Japan Govt expected to adopt a new system which would allow for local Govts to implement countermeasures against coronavirus outbreaks - Press

- (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) Bank of Japan (BOJ) announcement related to daily bond buying operation: unchanged

- (JP) Japan Cabinet approves ¥257.1B in measures to combat inflation


Korea

-Kospi opened +0.7%

- (KR) South Korea Finance Min: Expects 6% range CPI in Jul; Expects Trade deficit in July due to increasing energy imports

- (KR) South Korea Jun Cyclical Leading Index Change: 0.0 v +0.1 prior

- (KR) South Korea Jun Industrial Production M/M: +1.9% v -0.8%e; Y/Y: 1.4% v 2.1%e

- (KR) South Korea President Yoon Approval falls to 28% from 32% - Gallup


China/Hong Kong

-Hang Seng opened +0.1%; Shanghai Composite opened flat

- (CN) China PBOC to sell CNY5.0B v CNY5.0B prior in 3-month Central Bank Bill Swap (CBS) today at 0.1%

- (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

- (CN) China PBOC sets Yuan reference rate: 6.7437 v 6.7411 prior

- (CN) China Jun YTD Foreign Direct Investment (FDI CNY) Y/Y: 17.4% v +17.3% prior

- (CN) Shanghai adds 1 mid-risk area to lockdown

- (CN) China Ministry of Commerce (MOFCOM) Official: Foundation for recovery in consumption not yet solid, need more efforts to increase consumption

- (CN) China Ministry of Finance (MOF) sells 3-month and 6-month bills


Other

- (SG) Singapore Jun Resident Deposits and Balances (S$): 511.3B v 509.6B prior

- (SG) Singapore Jun M2 Money Supply Y/Y: 4.0% v 4.1% prior; M1 Money Supply Y/Y: 1.6% v 6.1% prior(SG) Singapore Jun M2 Money Supply Y/Y: 4.0% v 4.1% prior; M1 Money Supply Y/Y: 1.6% v 6.1% prior

- (SG) Singapore Q2 preliminary Unemployment Rate: 2.1% v 2.1%e


North America

- (US) Activist Investor Ackman: The carried interest loophole should end now; Fed is not close to a neutral rate

- TSLA: CEO Musk: Inflation may be trending lower; too early to say for sure if co's prices are going to rise


Europe

- (UK) July Lloyds Business Barometer: 25 v 28 prior


Levels as of 01:20 ET / 6.30 BST

- Nikkei 225, -0.2%, ASX 200 +0.9% , Hang Seng -2.2%; Shanghai Composite -0.7% ; Kospi +0.4%

- Equity S&P500 Futures: +0.6%; Nasdaq100 +1.3%, Dax -0.6%; FTSE100 flat

- EUR 1.0224-1.0189 ; JPY 134.67-132.96 ; AUD 0.7019-0.6980 ;NZD 0.6320-0.6261

- Gold +0.6% at $1,760/oz; Crude Oil +0.2% at $96.60/brl; Copper -0.6% at $3.4745/lb