Asia Market Update: Asia opened mostly higher; US equity markets rose amid jobs data, ahead of July 4th holiday; China and HK-listed brokers extend gains on M&A speculation.
General Trend:
- Nikkei pared opening gain, Tokyo’s daily coronavirus cases remain above 100; Transports lag in Japan, while Electric Appliance companies and Softbank gain
- Gainers in Australia include Telecoms and Consumer Staples, Financials decline
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) Australia Victoria state reports 66 additional coronavirus cases v 77 prior
- (AU) Australia sells A$2.0B v A$2.0B indicated in 0.25% Nov 2024 bonds, avg yield 0.3654% v 0.3865% prior, bid to cover 4.5x v 4.0x prior
- (AU) Australia AOFM Issuance Program Update: planning to sell 2025, 2026, 2031, and 2036 syndicated bonds; Also planning new 30 year (2051) benchmark treasury bond
- *(AU) AUSTRALIA MAY FINAL RETAIL SALES M/M: 16.9% V 16.3%E (record increase)
- (AU) Australia Jun Final CBA PMI Services: 53.1 v 53.2 prelim (Confirms 1st expansion in 5 months)
- (AU) Australia Jun AiG Performance of Construction Index: 35.5 v 24.9 prior
- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$160M v NZ$390M prior in government bonds as part of QE v NZ$260M sought
- (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$940M v NZ$940M prior in government bonds next week
China/Hong Kong
- Hang Seng opened +0.8%, Shanghai Composite opened +0.4%
- Bank of China HK [2388.HK]: To raise mortgage rates for apartment buyers - Press
- (CN) CHINA JUN CAIXIN PMI SERVICES: 58.4 V 53.2E (Highest since Apr 2010); business activity index hit a 10-year high, and the gauge for total new business also reached its highest level since August 2010
- (US) Senate approves China sanctions legislation related to Hong Kong; sends bill to Pres Trump for his signature
- (US) US Senators Portman and Cardin have proposed a non-binding resolution related to changes at the WTO
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY110B v Net drain CNY70B prior (5th straight skip)
- (CN) China PBOC sets Yuan reference rate: 7.0638 v 7.0566 prior
- (CN) China reported to tighten property resale rules to counter the speculation in the market - Press
- (CN) Lawmakers in China are reviewing the draft related to data security law, some believe the law could seek to protect individual privacy - SCMP
Japan
- Nikkei 225 opened +0.5%
- (JP) Tokyo reports ~125 coronavirus cases (2nd straight day >100 cases )
- (JP) Japan considering revising coronavirus regulations after finding >100 coronavirus cases in Tokyo - Press
- (JP) Japan Jun Final PMI Services: 45.0 v 42.3 prelim (6th straight contraction)
- (JP) Bank of Japan (BOJ): Q1 Japan output gap: 0.29% v 1.07% q/q (lowest since Q1 2017, 2nd straight decline)
- (JP) Japan ruling Party LDP reported to call on Japan Govt to cancel China President Xi visit to China due to passage of Hong Kong Security Law- Press
- (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Raises purchases of 1-3 year JGBs (as expected)
Korea
- Kospi opened +0.6%
- (KR) South Korea Jun Foreign Reserves: $410.8B v $407.3B prior (record high)
- (KR) North Korea Leader Kim said to have attended political bureau meeting on Thursday, officials said to have talked about work related to the coronavirus epidemic - KCNA
Other Asia
- Cadila Healthcare [CDH.IN]: COVID-19 vaccine reportedly receives DCGI nod for clinical trials - press
- Foxconn Technology: Plants reportedly are affected by India hold up of China imports - press
- (IN) India Jun PMI Services: 33.7 v 12.6 prior (4th straight contraction)
- (SG) Singapore Jun Retail Sales M/M: -21.5% v -8.0%e; Y/Y: -52.1% v -47.0%e
North America
- (US) Texas Gov Abbott imposes mandatory face mask requirement in every Texas county that has 20 or more COVID-19 cases – press
- (US) Fed Total Balance Sheet Size as of July 1st: $7.06T, -$33.9B w/w (3rd straight decline) [Central Bank liquidity swaps: $226.8B, -$49.9B w/w]
- Regeneron [REGN]: REGN and SNY halt Kevzara (sarilumab) Phase 3 U.S. Trial in COVID-19 Patients; Did not meet primary and key secondary endpoints
Europe
- (UK) Jun Final GfK Consumer Confidence: -27 v -29e
- (IE) Ireland Jun Services PMI:39.7 v 23.4 prior (4th consecutive contraction)
Levels as of 1:20 ET
- Nikkei 225, +0.2%, ASX 200 flat , Hang Seng +0.6%; Shanghai Composite +0.9% ; Kospi +0.4%
- Equity S&P500 Futures: -0.2%; Nasdaq100 -0.1%, Dax flat; FTSE100 flat
- EUR 1.1249-1.1233 ; JPY 107.57-107.43 ; AUD 0.6931-0.6912 ;NZD 0.6519-0.6503
- Gold -0.2% at $1,787/oz; Crude Oil -0.8% at $40.34/brl; Copper -0.7% at $2.714/lb
Reprinted from fxstreet，the copyright all reserved by the original author.
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