Nikkei Supported By Fast Retailing’s Earnings

Jul 13 18, 07:18 GMT

General Trend:

Asian equity markets trade mixed , indices in China and Australia lag
Nikkei component Fast Retailing rises over 6%, Q3 op profit was above ests
S&P500 E-Mini Futures trade at 5-month high during the Asian session
China June trade surplus higher than expectations, surplus with US widens and hits record high
China PBoC conducts medium-term lending facility (MLF) at unchanged rate, skips daily open market operation (OMO)
New Zealand June PMI hits lowest level since Dec 2017
Singapore Q2 GDP slows more than expected
China Q2 GDP data due next week (July 16th)
Upcoming US bank earnings in focus (Citi, JPMorgan, PNC, Wells Fargo)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.2%
ASX 200 Financials index -0.6%; Energy +0.4%, Telecom +0.3%
(NZ) New Zealand Jun Business NZ PMI: 52.8 v 54.5 prior (lowest level since Dec 2017)

China/Hong Kong

Shanghai Composite opened -0.2%, Hang Seng +0.7%
Hang Seng Consumer Goods index +1.9%, Services +1.3%, Info Tech +0.8%, Industrial Goods +0.6%, Utilities +0.6%, Financials +0.4%, Property/Construction +0.4%
(CN) CHINA JUNE TRADE BALANCE: $41.6B V $27.7BE: Exports Y/Y: 11.3% v 9.5%e; Imports Y/Y: 14.1% v 21.3%e
(CN) China Customs official Huang Songping comments after release of Jan-June trade data: China’s rapid trade growth in H1 set solid foundation for full year growth, but faces some downward risks in H2; will not have special regulatory measures targeting US goods and will not delay US goods at ports
(CN) Treasury Sec Mnuchin: many of our trade talks with China have broken down
(CN) China PBoC set yuan reference rate at 6.6727 v 6.6726 prior
(CN) CHINA PBOC CONDUCTS CNY188.5B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) V CNY200B PRIOR AT 3.30% V 3.30% PRIOR; Confirms it has skipped daily open market operation (OMO)
(CN) China Finance Ministry said to have implemented certain tax breaks for small companies- US financial press
(CN) China said to have extended the period related to loss carry-forwards for certain high-tech companies

Japan

Nikkei 225 opened +0.9%
Topix Electric Appliances index +1.8%
Nikkei 225 July options said to settle at ~22,452
(JP) Japan Vice Finance Minister for International Affairs Asakawa (top currency official) said to be reappointed – financial press
(JP) Japan Chief Cabinet Sec Suga: EU Juncker to visit Japan on Tuesday as part of the signing of the Japan-EU EPA
(JP) Japan Fin Min Aso: To spend ¥2B of reserve funds for flood disaster areas to provide necessities
(JP) Japan May Final Industrial Production M/M: -0.2% v -0.2% prelim; Y/Y: -4.2 v 4.2% prelim,

Korea

Kospi opened +0.4%
(KR) South Korea companies said to delay foreign currency bond issuance; notes risks related to trade – Local Press
(KR) South Korea June Export Price Index M/M: 0.9% v 0.9% prior; Y/Y: 1.6% v 0.1% prior

Other

North America

US equity markets ended higher: Dow +0.9%, S&P500 +0.9%, Nasdaq +1.4%, Russell 2000 +0.4%
S&P500 Technology +1.6%, Telecom +1.6%
Apple [AAPL]: Announces investment fund in China aimed at connecting suppliers with renewable energy sources; to jointly invest ~$300M over 4 years into the China Clean Energy Fund
(US) US Commerce Sec Ross says he plans to sell all of his equity holdings, made ‘inadvertent’ errors in divesting holdings; to put proceeds from equity sales into US Treasuries – US financial press

Europe

(UK) Pres Trump reportedly warned PM May that soft Brexit would ‘probably kill’ potential for future trade deal with US – UK press

Levels as of 01:30ET

Nikkei 225 +2%, ASX 200 flat, Hang Seng +0.4%; Shanghai Composite -0.4%; Kospi +1%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.4%
EUR1.1655-1.1676 ; JPY 112.47-112.79 ; AUD 0.7398-0.7424 ;NZD 0.6764-0.6787
Aug Gold -0.1% at $1,246/oz; Aug Crude Oil +0.1% at $70.39/brl; Jul Copper +0.2% at $2.781 /lb