Asia Summary
Following Wednesday’s gains in US equities, most of the Asian bourses opened the session modestly higher. The Bank of Japan’s generally inline interest rate decision and commentary have had little noticeable impact on markets. Looking ahead, traders are focusing on the upcoming ECB interest rate decision and comments. Corporate earnings in focus for the New York morning include Bank of New York, Blackstone Group, Nucor, Travelers and Union Pacific
Key economic data
(JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED; Delays reaching 2% inflation target to ~FY19 from ~FY18
(JP) JAPAN JUN TRADE BALANCE: ¥439.9B V + ¥488BE; ADJ TRADE BALANCE: ¥81.4B V ¥127.5BE
(AU) AUSTRALIA JUN EMPLOYMENT CHANGE: 14.0K V +15.0KE; UNEMPLOYMENT RATE: 5.6% V 5.6%E
(AU) AUSTRALIA Q2 NAB BUSINESS CONFIDENCE: 7 V 7 PRIOR
(AU) Australia Jun RBA Gross FX Transactions (A$): -1.12B v -735M prior
Speakers and Press
China
(CN) China expected to increasing monitoring cash flows in Macau – SCMP
(CN) FX Regulator SAFE: China Banks sold net of CNY142.5B in foreign exchange in June; Fund flows situation stabilized and improved in H1
Australia/New Zealand
(AU) Australia Treasurer Morrison: See the economy building momentum – Australian
Korea
(KR) US intel sources: North Korea is making preparations for another ICBM or intermediate missile test, possibly in two weeks – CNN
(KR) South Korea Finance Min Kim Dong-Yeon: To announce economic policy direction next week
Japan
(JP) Japan Cabinet Office (Govt) July report: Leaves economic assessment unchanged
Other
(DE) Germany Wisemen Bofinger said to recommend rate target for tapering of ECB bond purchases – German Press; Bofinger says instead of a fixed reduction in bond purchases, central bankers should use a yield target for long-term bonds.
(US) House Budget Committee releases FY18 budget with fiscal spending of $1.13T, includes $621.5B in defense spending and $511B in other discretionary spending
Asian Equity Indices/Futures (00:30ET)
Nikkei +0.6%, Hang Seng +0.2%, Shanghai Composite +0.2%, ASX200 +0.6%, Kospi +0.1%
Equity Futures: S&P500 flat; Nasdaq flat, Dax flat, FTSE100 +0.1%
FX ranges/Commodities/Fixed Income (00:30ET)
EUR 1.1533-1.1505; JPY 112.18-111.78; AUD 0.7987-0.7927; NZD 0.7371-0.7340
Aug Gold -0.3% at 1,238/oz; Aug Crude Oil flat at $47.30/brl; Sept Copper +0.4% at $2.72/lb
GLD SPDR Gold Trust ETF daily holdings fall 5.3 tonnes to 816.1 tonnes
(CN) China PBoC OMO: injects CNY60B in 7 and 14 day reverse repos v CNY140B prior
USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT 6.7464 V 6.7451 PRIOR
(NZ) New Zealand sells NZ$200M in 2.75% 2025 bonds; avg yield 2.8190%
AUD/USD in focus: Following the release of Australia’s June employment data, the Aussie initially gained over 0.3%,but the currency has since reversed gains, as 3-year yields moved off of session highs.
Equities notable movers
Australia
Myer Holdings,MYR.AU Guides FY17 adj Net profit A$66-70M v A$71Me; deputy CEO Daniel Bracken resigns; -9.8%
Bellamy, BAL.AU To resume trading today, -9.6%
Mobile Embrace,MBE.AU Settles litigation with GBD Ventures; Under the terms of the settlement, all parties are to be responsible for payment of their own costs; +9%
Santos, STO.AU Raised FY17 production guidance; +8%
Hong Kong/China (Sunac)\
Sinotruk, 3808.HK Positive Profit alert: H1 Profit to record a substantial increase >400%; +28.8%
Sunac China Holdings, 1918.HK Reduced asset purchase with Wanda amid debt and regulator concerns; +16%
Japan
FujiFilm,4901.JP Announces results from Phase II Clinical Trial of "T-817MA" in Patients with Alzheimer’s Disease in the United States; +3.8%
New Zealand
Fletcher Building, FBU.NZ Profit warning, impairment charge and management change; -6%
US markets on close: Dow +0.3%, S&P500 +0.5%, Nasdaq +0.6%, Russell +0.99%
Best Sector in S&P500: Energy
Worst Sector in S&P500: Industrials
Biggest gainers: VRTX +20.8%; SNI +14.7%; MUR +6.7%
Biggest losers: NTRS -8.4%; GWW -7.0%; NAVI -6.8%
At the close: VIX 9.79 (-0.1pts); Treasuries: 2-yr 1.36% +0.6%), 10-yr 2.27% (+0.4%), 30-yr 2.85% (-0.01%)
US Market Summary
Stocks continued their rally today, brushing aside concerns on timely implementation of economic reform policies. Nasdaq hit a new all-time high at 6385, rising 41 points. S&P also hit a new all-time close and high, rising 13 points, to close at 2473.
(US) Trump at a lunch with senators pleaded for them to come together and repeal and replace the Obama healthcare law. He said the GOP had been very close to striking a deal and that lawmakers should not leave town for the summer without reaching an agreement.
(US) Crude oil stocks declined more than expected. EIA figures showed a reduction of 4.7 million barrels; forecasts had been for a reduction of 3.2 million. WTI crude spiked higher, gaining 1.2% soon after the data release, to trade over $47/bbl for the first time in two weeks.
US Afterhours Movers
PTC Reports Q3 $0.28 v $0.28e, Rev $292M v $291Me; Guides Q4 $0.33-0.38 v $0.38e, R$303-308M v $309Me; Non-GAAP op margin 18-19% ; -10.9% afterhours
AVA HydroOne to acquire Avista for US$53/shr cash in $5.3B deal; +18.8% afterhours
HPJ Reports preliminary Q2 gross profit $11-12M v $7.6M y/y, R$50-52M v $36.7M y/y ; +18.4% afterhours
Notable US corporate earnings in the afterhours included Steel Dynamics, Qualcomm, American Express and T-Mobile US
