Asian Markets Trade Mixed After Lack Of Direction From US Stocks

Jun 12 19, 06:45 GMT

General Trend:

Hang Seng underperforms amid focus on extradition bill protests
Chinese equities decline in early trading, markets rose over 2.5% on Tuesday on expectations of more infrastructure spending
Nikkei trades generally flat; TOPIX Machinery index rises on better than expected machine orders data
Softbank weighed down by regulatory concerns about Sprint/T-Mobile merger
Tesla rose in afterhours trading as it held its annual shareholders meeting
Oil prices decline over 1% during Asian trading amid API oil inventories and comments from UAE Oil Min
China CPI accelerates on higher fruit and pork prices; Analysts note core inflation remains ‘low’
PBoC uses 28-day reverse repo amid focus on China’s interbank market, prior gov’t takeover of Baoshang Bank
HKD and HK money market rates rise amid protests, nothing seen regarding any currency intervention; Some have noted possible cash hoarding by banks ahead of quarter end
KRW declines after comments from BoK Gov Lee, Lee later asked reporters not to over-interpret his remarks
Australia consumer confidence declines despite easing by RBA, deepening economic concerns noted
Aussie declines ahead of upcoming key data out of Australia and China
Aussie May labor market data due on Thursday
Japan Economy Min Motegi and USTR Ligthizer are expected to meet on Thursday (June 13th)
China’s key May data (including industrial production) due for release on Friday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.2%
(NZ) New Zealand May Total Card Spending M/M: 0.2% v 0.4% prior; Retail Card Spending M/M: -0.5% v 0.5%e
(AU) Reserve Bank of Australia (RBA) Assist Gov Kent makes no comments on monetary policy at the Australian Renminbi Forum Melbourne
(AU) Australia Jun Westpac Consumer Confidence Index: 100.7 v 101.3 prior; m/m: -0.6% v +0.6% prior (first decline since March)
(AU) Australia Regulator APRA: to revise some proposals related to bank capital requirements; covers credit cards, personal car loans, and mortgages

Japan

Nikkei 225 opened -0.4%
(JP) In a Nikkei Op Ed analysts speculate that a “Cold War 2.0” between China and the US could end Japan’s economic stagnation and deflation
7201.JP Two leading proxy advisory firms,Glass Lewis and Institutional Shareholder Service, urge shareholders to vote against reappointment of CEO Saikawa at AGM June 25th – Nikkei
(JP) JAPAN APR CORE MACHINE ORDERS M/M: +5.2% V -0.9%E; Y/Y: +2.5% V -5.3%E
(JP) Japan May PPI (CGPI) M/M: -0.1% v 0.0%e Y/Y: 0.7% v 0.7%e
(JP) Japan PM Abe: Will exchange options with Iran leaders to ease tensions – comments ahead of trip June 12-14

Korea

Kospi opened flat
(KR) US President Trump: received a “beautiful” and “very warm” letter Monday from North Korean leader Kim
(KR) Bank of Korea (BOK) Gov Lee: Will make appropriate policy response to economic changes; BOK needs to prepare various policy scenarios for timely response – prepared statement to mark the central bank’s 69th anniversary
(KR) South Korea Fin Min Hong: BOK Gov Lee remark hints at policy easing
(KR) South Korea May Unemployment Rate: 4.0% v 4.1%e v 4.1% prior

China/Hong Kong

Hang Seng opened -0.7%; Shanghai Composite opened -0.3%
(CN) CHINA MAY CPI M/M: 0.0% V 0.0%E; Y/Y: 2.7% V 2.7%E (y/y fastest pace since early 2018); Food price CPI y/y: 7.7% v 6.1% prior
(CN) Pres Trump: reiterates that China wants to make a trade deal ‘very badly’, will not do China deal unless it’s a great deal
(CN) China National Development and Reform Commission (NDRC), Industry Ministry and the natural resources ministry launch survey of rare earth in seven regions – Xinhua
(CN) China May retail vehicle sales 1.61M, -12.5% y/y (12th consecutive decline)
(HK) Hundreds of demonstrators said to storm road near government offices amid protests about extradition bill – financial press
(CN) China PBoC Open Market Operation (OMO): Injects combined CNY35B in 7-day and 28-day reverse repos v CNY10B in 7-day prior; Net CNY25B drain v CNY50B drain prior
(CN) China PBoC sets yuan reference rate: 6.8932 v 6.8930 prior
(HK) Hong Kong legislature to reschedule today’s meeting (was supposed to vote on extradition to China bill)

Other Asia

(IN) In India there are so many unsold cars in India now that 7 of the 10 automakers in India are taking forced holidays – press
(SG) Singapore Central Bank (MAS) June Economist Survey: Cut 2019 GDP outlook to 2.1% (prior 2.5%); sees 2020 GDP at 2.3%
(SG) Singapore Apr Retail Sales M/M: 0.5% 1.8%e; Y/Y: -1.8% v -0.2%e

North America

TSLA CEO Musk: There is a good shot for a record quarter; Model 3 is outselling competitors, no issues with demand; expect to reach volume product by the end of the year – annual meeting comments
(US) Weekly API Oil Inventories: Crude: +4.9M v +3.5M prior
UAE Energy Min (OPEC president) Mazrouei: OPEC+ is very close to an agreement extension; it’s ‘not a challenge’ to reach a deal
(MX) Mexico Foreign Min Ebrard: Have 45 days to show safe third country deal not needed; US wants third country deal discussed if measures fail; reiterates there is no secret agreement

Europe

(CH) EU’s Juncker: Swiss framework agreement will NOT be renegotiated
(UK) UK Brexit Minister Barclay says he supports Boris Johnson in the PM leadership race – UK Press

Levels as of 1:20 ET

Nikkei 225, -0.2%, ASX 200 +0.1%, Hang Seng -1.8%; Shanghai Composite -0.6%; Kospi -0.2%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.4%; FTSE100 -0.3%
EUR 1.1335-1.1325 ; JPY 108.58-108.43 ; AUD 0.6964-0.6948 ;NZD 0.6589-0.6568
Gold +0.4% at $1,336/oz; Crude Oil -1.5% at $52.46/brl; Copper -0.1% at $2.666/lb