_edited_edited.png)
- TradeTheNews.com Asia Market Update: Markets mostly higher outside of China; USD generally stronger; US FuTs rally mid session; Aussie building approvals decline.
General Trend:
- Hang Seng lower from tech and pharma names; Markets continue to process audit deal between US and China
- New lockdowns and restrictions in Shenzhen due to covid, raising more manufacturing concerns
- Japan Fin Min kicked in with some verbal intervention as USD/JPY continues its track towards 140.
- AUD under pressure on lower iron ore prices and weaker building approval data for July
- South Korea gives more details on 2023 budget, raises it y/y, but slowest growth in spending in 6 years
- Japan jobless rate remains unchanged as expected
- China PBOC sets CNY at its second strongest setting on record
- China MoF notes it will make good use of local govt special bonds in H2
- Looking ahead: China official PMI expected in tomorrow’s session
***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened +0.0%
- (AU) AUSTRALIA JULY BUILDING APPROVALS M/M: -17.2% V -3.0%E
- SFR.AU Reports FY22 Net $111.4M v $128.6M y/y; EBITDA $447.3M v $337.0M y/y; Rev $922.7M v $609.0M y/y
- WDS.AU Reports H1 Underlying Net $1.82B v $354M y/y; EBITDA $3.97B v $1.49B y/y; Rev $5.81B v $2.50B y/y
Japan
-Nikkei 225 opened +0.8%
- (JP) Japan planning to build several hydrogen receiving terminals - Japan press
- (JP) Japan Fin Min Suzuki: Will monitor moves in US monetary policy and markets; currency moves depending on a variety factors at time
- (JP) JAPAN JULY JOBLESS RATE: 2.6% V 2.6%E; Job-To-Applicant Ratio: 1.29 v 1.27e
- 6701.JP Announced ¥30B buyback (2.46% of shares, yesterday after the close)
- (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 ¥2.8T v ¥2.8T indicated in 0.005% 2-year JGBs: Avg Yield: -0.0830% v -0.0740% prior; bid-to-cover: 3.61x v 4.33x prior
- 7203.JP Reports July global sales 872.8K units, -6.2% y/y; Global production 706.5K units, -8.6% y/y
Korea
-Kospi opened +0.6%
- (KR) Bank of Korea (BOK) Gov Rhee: No change in policy stance since meeting last week
- (KR) South Korea 2023 budget proposes to spend KRW639T, +5.2% y/y (2022 was +8.9% increase); To issue up to KRW167.8T in govt bonds in 2023 (slowest growth on spending in 6-years)
- (KR) Recent satellite images show flood damage at North Korea nuclear test site – Yonhap
- (KR) South Korea and Mongolia agree to seek closer ties on rare earth supply - Yonhap
China/Hong Kong
-Hang Seng opened +0.2%; Shanghai Composite opened 0.0%
- (CN) China Finance Ministry: Will make good use of local govt special bonds in H2, will strictly curb new local govt hidden debt in H2; strive to stabilize employment and prices
- (CN) China Securities Daily Op Ed: Economically strong provinces shouldering the responsibility of boosting growth should look to expand effective investment, stabilize production and exports as well as take targeted measures to stimulate consumption
- (CN) China drafts rules to protect IPO value analysis independence - Shanghai Securities News
- (CN) China Premier Li: China has rolled out “more forceful” economic policies this year than it did in 2020; facing an arduous task in ensuring its recovery - speaking to State Council yesterday
- (CN) China Govt sending high level officials to supervise stimulus policy roll out in five provinces - press
- 1288.HK Reports H1 (CNY) Net 128.9B v 122.3B y/y, Rev 387.7B v 366.3B y/y
- (CN) China Securities Times Op Ed: Pork prices are unlikely to rise again as production capacity remains normal and authorities have stepped up adjustments like selling pork from state reserves
- (CN) China investment in virtual power plants expected to reach as much as CNY450B by 2030 - Economic Information Daily
- (CN) China PBOC to sell CNY5.0B v CNY5.0B prior in 3-month Central Bank Bill Swap (CBS) today at 0.1% v 0.1% prior; PBOC: Reiterates that the operation is aimed at supporting banks’ perpetual bond sales
- (CN) China PBOC sets Yuan reference rate: 6.8802 v 6.8698 prior (5th consecutive stronger setting)
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v Net CNY0B prior
- 1211.HK Reports H1 (CNY) Net 3.60B v 1.17B y/y, Rev 150.6B v 166.0Be
North America
- (US) Fed's Kashkari (non-voter): Happy to see the market's reaction to the comments made from Jackson Hole – press
- (TW) US President Biden administration expected to ask Congress to approve $1.1B arms sale to Taiwan – press
- (MX) Mexico Central Bank (Banxico) Dep Gov Heath: Fed rate rises will continue with Mexico doing the same, think it is very, very premature to think of the end of the upward cycle of the monetary policy rate here in Mexico
Europe
- (UK) PM front runner Truss planning to approve North Sea oil and gas drilling - UK press
- (EU) China reselling some surplus LNG to EU, to help them avoid possible winter shortage - FT
***Levels as of 01:00ET/06:00BST***
- Hang Seng -0.8%; Shanghai Composite -0.6%; Kospi +0.9%; Nikkei225 +1.2%; ASX 200 +0.7%
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.3%; FTSE100 +0.2%
- EUR 1.0013-0.9981; JPY 138.78-138.35; AUD 0.6917-0.6873; NZD 0.6168-0.6132
- Commodity Futures: Gold -0.1% at $1,747/oz; Crude Oil -0.4% at $96.59/brl; Copper -0.3% at $3.59/lb
Add TTA-UK on your registration to qualify for the 3 Weeks Trial.