HomeContributorsFundamental AnalysisAsia Trades Mixed After US Losses, US Equity FUTs Rise

Asia Trades Mixed After US Losses, US Equity FUTs Rise

General Trend:

  • Australia’s Resources, Energy and Financial indices decline; Rio Tinto trades lower after management shake-up
  • Topix Marine Transportation and Pharma indices are among the gainers, Securities index declines
  • Japan Display rises after quarterly earnings report and outlook, later pared gain
  • Gainers in HK include Tech, Gaming and Auto firms; Property index declines
  • Shanghai Composite declined by 0.2% during morning session, banks and property firms were among the decliners; IT shares rose
  • Oracle rose over 3% in afterhours trading following results/guidance; Peloton rose over 9% after its results/guidance
  • China’s Aug banking statistics (including M2 and new yuan loans) might be released later today
  • The new US sanctions on Huawei are due to take effect next Tuesday (Sept 15th); The new sanctions will ban the supply of chips made with US components to Huawei [without prior approval from the US]

Headlines/Economic Data

Australia/New Zealand

  • ASX200 opened -0.2%
  • Rio Tinto [RIO.AU]: CEO J-S Jacques to leave company on Mar 31st or when new CEO is appointed; Iron Ore Chief Chris Salisbury to step down from position immediately, to leave company on Dec 31st [The company said the executive changes are in response to the Juukan Gorge Caves destruction]
  • (AU) Victoria state (Australia) reports 43 additional coronavirus cases v 51 prior; 9 additional deaths
  • (NZ) New Zealand Aug Manufacturing PMI: 50.7 v 59.0 prior (3rd straight expansion)
  • (NZ) New Zealand Aug REINZ House Sales y/y: 24.8% v 24.6% prior
  • (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$440M v NZ$480M prior in government bonds as part of QE v NZ$440M sought
  • (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$1.35B v NZ$1.35B prior in government bonds next week

China/Hong Kong

  • Hang Seng opened +0.2%, Shanghai Composite -0.3%
  • (CN) China State Run Press: China regulators should improve short selling mechanisms,
  • Huawei is holding its Developers Conference 2020 between Sept 10-12th
  • ZTE [763.HK]: Proposes acquiring 24% interest in ZTE Microelectronics from the China IC Fund (Big fund)
  • US Pres Trump: there will be no extension of TikTok sale deadline – press
  • (CN) China Nonferrous industry Association Official: Expects China copper scrap imports down ~50% in 2020
  • Cathay Pacific [293.HK]: Reportedly expected to forgo relief from Hong Kong Govt, paves way for layoffs – SCMP
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY90B in 7-day reverse repos v Injects CNY140B in 7-day prior; Net drain CNY10B v Net inject CNY20B prior
  • (CN) China PBoC Open Market Operation (OMO) Net inject total CNY230B for the week v Net drain total CNY470B prior
  • (CN) China PBOC sets Yuan reference rate: 6.8389 v 6.8331 prior
  • (CN) China and India reaffirm need to disengage at disputed border region – joint statement
  • Bytedance: To invest ‘several billion dollars’ in Singapore (Currency not specified)
  • (CN) China Aug smartphone shipments -13.4% y/y – China Academy of Information and Communications (CAICT) [from Sept 10th]
  • (CN) China Finance Ministry (MOF) sells 30-year bonds; avg yield: 3.81% v 3.80%e

Japan

  • Nikkei225 opened -0.5%
  • (JP) Nikkei Sept Futures and Options are expected to settle at 23,272 – financial press
  • (JP) Bank of Japan (BOJ) To hold meeting on Market operations on Oct 20th (Tues) from 5:30 PM Japan time (830 GMT)
  • (JP) Japan Chief Cabinet Sec Suga (LDP Ruling Party Leadership Candidate): we will call for sales tax hike in the future given Japan cannot avoid decline in population [from Sept 10th]
  • (JP) Follow Up: Japan Chief Cabinet Suga (LDP Party Leadership Candidate): Agrees with PM Abe on no need to raise sales tax for 10 years
  • (JP) Follow Up: Japan Foreign Min Motegi: To hold talks via video with UK Trade Min Truss in the afternoon (Sept 11th), aims to reach broad agreement on trade deal
  • (JP) Japan Fin Min Aso: Fraud victims of Docomo should be fully compensated; Coronavirus has put severe pressure on Japan Govt finances; No comment on Hypothetical plan to dissolve diet
  • (JP) JAPAN Q3 BSI LARGE ALL INDUSTRY Q/Q: +2.0 V -40.0E; LARGE MANUFACTURING Q/Q: +0.1 V -52.3 PRIOR [The BSI data is seen as being correlated with the BoJ’s Tankan survey. The BoJ Q3 Tankan Survey is due to be released on Oct 1st]
  • (JP) Japan Aug PPI M/M: 0.2% v 0.2%e; Y/Y: -0.5% v -0.5%e
  • (JP) Japan Govt reported to allocate ¥1.6T from reserve fund for coroanvirus measures – Press
  • (JP) Japan reported to set up coronavirus testing sites at nightlife districts in the country – Japanese Press

Korea

  • Kospi opened -0.3%
  • (KR) South Korea Sept 1-10th Exports Y/Y: -0.2%; Imports Y/Y -7.6%; Chip exports +43.2% y/y
  • (KR) South Korea Health Min Official Yoon: South Korea to monitor virus situation for 1-2 more days before changing rules on social distancing (in line)
  • (KR) South Korea confirms 176 additional coronavirus cases v 155 prior (9 straight days of <200 cases)

Other Asia

  • (ID) Indonesia Parliamentary Budget Committee: Agrees with Govt to increase the 2021 Budget deficit assumption to 5.7% v 5.5% prior
  • (IN) India said to plan to restrict copper and aluminum imports, plans to raise surveillance of copper and aluminum imports – financial press

North America

  • (US) Senate does not have votes to advance Republican ‘skinny’ coronavirus aid bill (as expected) – press
  • (BR) Brazil President Bolsonaro: Asked team what we can do about a weaker BRL; always talking with central bank about FX rate
  • (US) US Senator Grassley (R-IA): Urges Trump to lift steel tarrifs to help Iowa (In Line with prior requests)

Europe

  • (EU) ECB members said no need to overreact to Euro currency gains – press

Levels as of 1:20 ET

  • Nikkei 225, +0.5%, ASX 200 -0.7% , Hang Seng +0.5%; Shanghai Composite +0.3% ; Kospi -0.5%
  • Equity S&P500 Futures: +0.7%; Nasdaq100 +0.7%, Dax +0.6%; FTSE100 -0.3%
  • EUR 1.1840-1.1811 ; JPY 106.20-106.07 ; AUD 0.7279-0.7250 ;NZD 0.6666-0.6642
  • Gold -0.9% at $1,947/oz; Crude Oil -0.3% at $37.20/brl; Copper +0.7% at $2.9947/lb

 

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