Asian Equity Markets Open Higher

Jun 10 19, 06:50 GMT

General Trend:

Chinese and Hong Kong shares rise after Friday’s holiday
Chinese banks and property shares rise as PBoC sees more room to ease if needed
Chinese automakers trade generally higher; China plans to boost consumption of auto and electronic products
Chinese insurance companies rise, gov’t considering increase in caps for equity investment
Japan automakers rise on US/Mexico agreement, weaker yen
China May trade surplus a mixed bag, exports unexpectedly rise and imports decline more than expected
China exports rise ahead of US’ June tariff increase
Few comments seen from China PBoC Gov after weekend G20 talks with US Treasury Sec Mnuchin
Offshore yuan (CNH) remains weaker after recent comments from PBoC Gov
US dollar trades generally firmer after agreement between US and Mexico, USD index pares some of recent declines seen after jobs data
Peso rises over 1.9% on deal between US and Mexico
AUD/JPY reversed opening gains; Nikkei Futures pared advance, China imports declined, offshore yuan drops
US defense companies Raytheon and United Technologies announce stock merger agreement
Hong Kong’s extradition bill in focus amid recent protests, debate on measure expected to begin on Wed (June 12th)

Headlines/Economic Data

Australia/New Zealand

ASX 200 closed for holiday
BHP.AU Dams at mines in South Australia and Western Australia are among 5 in the company’s global portfolio that have earned an ”extreme” risk rating should they fail – AFR

Japan

Nikkei 225 opened +1%
(JP) Japan Fin Min Aso did not bring up topic of FX and whether to include currency clause in trade deal during talks with Mnuchin
(JP) Bank of Japan (BOJ): There was no debate on BOJ policy at G20 meeting; G20 reaffirmed commitment to us all policy options if risks materialized, no talks about specific measures for each country
(JP) JAPAN Q1 FINAL GDP Q/Q: 0.6% V 0.6%E; ANNUALIZED GDP Q/Q: 2.2% V 2.2%E
*(JP) JAPAN APR PRELIM BOP BASIS CURRENT ACCOUNT: ¥1.71T V ¥1.51TE; ADJ CURRENT ACCOUNT: ¥1.60T V ¥1.44TE
(JP) Japan May Bank Lending Ex-Trusts y/y: 2.8% v 2.5% prior; Including Trusts y/y: 2.6% v 2.4% prior

Korea

Kospi opened +0.7%
(KR) South Korea Presidential Aide: Government plans to announce steps to support growth ‘soon’ – financial press
(KR) In May foreigners became net sellers of South Korea equities, selling KRW2.9T v purchased KRW2.5T in purchases in April – Yonhap
(KR) South Korea Govt: UK FTA will allow South Korea exports like autos and parts to continue to be exported to UK with no tariffs
(KR) South Korea President Moon chief policy adviser Cheong Wa Dae: South Korea’s economy is positioned to face heightened downside risks as the trade dispute between the United States and China escalates, hurting global trade and manufacturing activity – Yonhap
(KR) South Korea Fin Min Hong: Accommodative monetary policy is needed

China/Hong Kong

Hang Seng opened +0.9%; Shanghai Composite opened +0.2%
(CN) CHINA MAY FOREIGN RESERVES: $3.1T V $3.090TE
(CN) CHINA MAY TRADE BALANCE: $41.7B V $23.2BE; May Trade Surplus with the US: $26.9B v $21.0B prior
(CN) CHINA MAY TRADE BALANCE (CNY): 279.1B V 136.0BE
(CN) China PBoC sets yuan reference rate: 6.8925 v 6.8945 prior
(CN) China PBoC Open Market Operation (OMO): Injects CNY30B in 7-day reverse repos v CNY10B prior; Net CNY50B drain
(CN) China authorities called on several tech companies this week to warn them not to reduce exposure to China more than they had to (including pulling out of China or end their business partnerships or stopped supplying US companies) due to US trade restrictions or there would be “consequences” – US press
(CN) US Treasury Sec Mnuchin: Had constructive talks with China PBOC Gov Yi Gang, including candid talks on trade – tweet
(CN) China PBOC Gov Yi Gang when asked for comments on meeting with Mnuchin said he was busy and declined to comment on meeting or on prospective meeting between Trump and Xi
US Treasury Sec Mnuchin: Huawei discussions are really national security discussions, separate from trade, Trump could ease restrictions on Huawei if trade talks progress
(HK) Over 1M protesters new extradition law with mainland China; largest protest since 1997 Hong Kong handover; some injuries reported as protests turn violent
(CN) China FX Regulator (SAFE): China’s economy has the ability to counteract external shocks has strengthened

Other

G20 Finance Min and Central Bank leaders joint communique: Pledge to use all the policies they can to protect global growth from disruptions due to trade and other tensions; risks from trade and geopolitical tensions are “intensifying” – from Japan meeting this weekend

North America

RTN Raytheon and United Technologies Aerospace Businesses to Combine in Merger of Equals in all stock deal; both companies affirm FY19 guidance
(MX) Pres Trump: US has reached an agreement with Mexico; tariffs are “indefinitely suspended”; Mexico has agreed to “take strong measures to stem the tide of migration”
(MX) US President Trump: MEXICO HAS AGREED TO IMMEDIATELY BEGIN BUYING LARGE QUANTITIES OF AGRICULTURAL PRODUCT FROM OUR GREAT PATRIOT FARMERS!” – tweet
(US) Bipartisan legislation introduced in the Senate could compel US-listed Chinese companies to turn over audit records or face delisting

Europe

(UK) PM Candidate Boris Johnson: Will withhold Brexit bill unless the EU agrees to better terms
(EU) ECB policymakers open to cutting rate if growth weakens, cites sources – financial press
(EU) ECB Visco (Italy) said the rise in the Euro has to do with interactions with US rates, market has understood ECB correctly – financial press
(DE) ECB Weidmann (Germany) said Germany economy could decline ‘slightly’ in Q2, stimulus package not needed despite economic dip – financial press
Renault [RNO.FR]: The Chairmen of Fiat and Renault said to have discussed reviving merger plan; advisor to Fiat’s Chairman Elkann said to be meeting Nissan’s management – financial press

Levels as of 01:20ET

Hang Seng +2.1%; Shanghai Composite +1.0%; Kospi +1.2%; Nikkei225 +1.2%; ASX 200 closed for holiday
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.4%, Dax +0.5%; FTSE100 +0.3%
EUR 1.1307-1.1331; JPY 108.38-108.67; AUD 0.6969-0.7009; NZD 0.6631-0.6665
Commodity Futures: Gold -1.0% at $1,332/oz; Crude Oil +0.7% at $54.35/brl; Copper +0.6% at $2.64/lb