HomeContributorsFundamental AnalysisJapan Power Companies Planning Record High Bond Offerings

Japan Power Companies Planning Record High Bond Offerings

General Trend:

  • Asian equity markets trade mostly lower; US stocks ended down in shortened session ahead of July 4th holiday
  • Chinese and Hong Kong property shares decline
  • Japanese chip equipment companies trade generally lower amid declines in shares of Micron: Tokyo Electron -5.1%, Advantest -4.7%, SUMCO -4.9%
  • Nikkei weighted Fast Retailing declines, reported drop in monthly SSS
  • Chinese Telecom ZTE rises after being given temporary relief by US government
  • Samsung expected to report prelim Q2 results on Friday July 6th, Op profit expected to decline q/q
  • Aussie rises after better than expected retail sales, later pares gain
  • Australian PMI Services surveys paint mixed picture in June: AIG index hits record high, CBA index declined
  • China Caixin PMI Services Index unexpectedly rose amid higher input costs
  • Yuan (CNY) trades higher despite being fixed weaker by PBoC
  • China PBoC Advisers comment on risks related to deleveraging measures
  • BoJ’s Harada warns against early rate hike

Headlines/Economic Data

Japan

  • Nikkei 225 opened -0.5%
  • TOPIX Electric Appliances index -2.3%, Securities -0.8%, Marine Transportation -0.6%; Information & Communication +0.7%, Retail Trade +0.5%, Real Estate +0.5%
  • (JP) Japan government said to see FY19 real GDP growth of 1.5% (vs 1-2% that was speculated) – Japanese Press
  • (JP) JAPAN JUN PMI SERVICES: 51.4 V 51.0 PRIOR; COMPOSITE: 52.1 V 51.7 PRIOR
  • (JP) 10 regional power companies in Japan are planning to sell approx. ¥1.7T in bonds during the current fiscal year (FY19), +17% y/y (the highest amount in 10-years) – Japanese Press
  • (JP) Bank of Japan (BOJ) Harada: BOJ bold easing policy is having intended effects; need to continue current easing to reach 2% inflation

Korea

  • Kospi opened -0.1%
  • 005380.KR Hyundai/Kia expected to record Q2 net lower due to slowing sales in US and China – Korean press
  • (KR) Bank of Korea (BoK) sells 2-year monetary stabilization bonds; yield 2.06% v 2.10% prior
  • (KR) South Korea Jun Foreign Reserves: $400.3B (record high) v $398.9B prior

China/Hong Kong

  • Hang Seng opened 0.0%, Shanghai Composite -0.4%
  • Hang Seng Energy index -2.7%, Consumer Goods -2.3%, Property/Construction -2.2%, Industrial Goods -2.1%, Materials -2%, Info Tech -2%, Financials -0.9%
  • 763.HK US Commerce Dept gives ZTE temporary authorization to resume some business activities until Aug 1st – press
  • (CN) PBoC Financial Research Institute Head Sun Guofeng: Reiterates prudent, neutral monetary policy; reiterates 2018 monetary policy not overall loosening; RRR cut doesnt mean monetary policy easing
  • (CN) Former PBoC Adviser said to issue warning about risks related to deleveraging – China Financial News
  • (CN) China said to be pressuring the EU to issue a ‘strong’ joint statement against US President Trump’s trade policies at the upcoming Sino-European summit (July 16-17); some EU officials said to have concerns about the Chinese proposal – financial press
  • (CN) China PBOC Gov Yi Gang: closely watching moves in fx market, reiterates to keep yuan basically stable and at reasonable level; reiterates ‘prudent, neutral’ monetary policy (after the close yesterday)
  • (CN) China State Council financial stability and development committee: China is completely equipped with the favorable conditions to win the battle against major financial risks and counter external risks – Xinhua
  • (CN) China PBoC set yuan reference rate at 6.6595 v 6.6497 prior (weakest setting since Aug 23, 2017)
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v skips prior; Net: CNY80B drain v CNY150B drain prior
  • (CN) China PBOC has told mobile-payment providers that they need to deposit all customer funds with the central bank rather than elsewhere; proportion of funds to be placed with the central bank will rise incrementally from roughly 50% now to 100% by next year
  • (CN) CHINA JUN CAIXIN PMI SERVICES: 53.9 V 52.7E; COMPOSITE: 53.0 V 52.3 PRIOR
  • (CN) China plans to raise fuel standards for diesel vehicles from July 2019 – US financial press

Australia/New Zealand

  • ASX 200 opened +0.1%
  • ASX 200 Financials index -0.9%, Consumer Discretionary -0.7%; Telecom +1.1%
  • (NZ) Fonterra Global Dairy Trade Auction: Dairy Trade price index: -5.0% v -1.2% prior
  • (AU) Australia Jun AiG Performance of Service Index: 63.0 v 59.0 prior (record high)
  • (AU) Australia Jun CBA PMI Services: 52.7 v 55.9 prior; Composite: 52.9 v 55.6 prior
  • (AU) AFR notes uptick in Australia shadow banking in the residential developers market as big banks shy away
  • (NZ) New Zealand Jun ANZ Commodity Price m/m: -1.0% v 1.5% prior (1st decline since Dec 2017)
  • (AU) Australia sells A$800M v A$800M indicated in Nov 2029 bonds, avg yield 2.6094% v 2.7059% prior, bid to cover 3.50x v 3.62x prior
  • (AU) AUSTRALIA MAY TRADE BALANCE (A$): 0.83B V 1.20BE; Exports m/m: +4% v -2% prior; Imports m/m: +3% v 0% prior
  • (AU) AUSTRALIA MAY RETAIL SALES M/M: 0.4% V 0.3%E

Other Asia

  • (MY) Officials in Malaysia have arrested former PM Najib – financial press

North America

  • US equity markets ended lower in holiday shortened session: Dow -0.5%, Nasdaq -1.2%, S&P 500 -0.5%
  • S&P500 Technology -1.2%, Telecom -1.2%
  • Micron [MU]: Spokesperson: Micron has not yet been served with injunction in China; will not comment until receiving formal court notice
  • T-Mobile [TMUS]: Officials from the US House said to call for ‘full and robust’ probe of transaction between Sprint and T-Mobile USA; cites Softbank’s ties to China’s Huawei – Japanese Press
  • (US) Weekly API Oil Inventories: Crude: -4.5M v -9.2M prior
  • (US) On Tuesday, the US Treasury 2 and 10 yield spread hit the flattest level since Aug 2007, the spread declined below 30bps – FT

Europe

  • (DE) Bundesbank rejects monetary policy motivated by ECB investment – German press

Levels as of 01:30ET

  • Hang Seng -0.9%; Shanghai Composite -0.4%; Kospi flat; Nikkei225 -0.2%; ASX 200 -0.5%
  • Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 +0.1%
  • EUR 1.1654-1.1679; JPY 110.27-110.63; AUD 0.7376-0.7426; NZD 0.6744-0.6779
  • Aug Gold +0.4% at $1,258,/oz; Aug Crude Oil +0.6% at $74.60/brl; Sept Copper +0.3% at 2.934$/lb
Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading