China Trade Data Seen On Friday

Jul 11 19, 06:38 GMT

General Trend:

Asian chip-related companies rise after Q2 sales from Taiwan Semi
Taiwanese DRAM maker Nanya said its guidance has factored in possible effects from Japan’s exports curbs on South Korea
Shanghai Property index rises in early trading (first gain in 6 sessions)
Chinese heavy equipment firm Sany Heavy rises on guidance
Nikkei weighted Fast Retailing expected to report earnings after market close
Bandai Namco expected to rise after being added to Nikkei 225 index, DMG Mori declines after not being added to the index
Shares of Japan Post Insurance weighed down by insurance policy issue
Japan’s rift with South Korea said to move to financial sector (press)
South Korea and Japan speculated to hold talks on July 12th (Friday)
US dollar trades generally weaker after Fed comments, Gold Futures rise in Asian trading
China Premier Li announced plans for trade stabilization measures ahead of Friday’s trade data
China NDRC met with domestic light industry companies amid trade dispute with US
Energy companies continue storm preparations related to the Gulf of Mexico, US gasoline futures rise in Asian trading
Australia regulator places higher capital requirements on ANZ, NAB and Westpac; cited higher operational risk

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(AU) AUSTRALIA JUL CONSUMER INFLATION EXPECTATION: 3.2% V 3.3% PRIOR
(AU) AUSTRALIA MAY HOME LOANS M/M: -0.1% V -1.0%E; Investment Lending m/m: -1.7% v 0.5%e; Owner Occupied Loan Value m/m: -2.7% v 0.0%e
(NZ) New Zealand May Total Card Spending M/M: 0.1% v 0.2% prior; Retail Card Spending M/M: 0.0% v 0.7%e
WHC.AU Reports Q4 managed ROM coal production 7.3Mt v 5.9Mt y/y; Managed saleable coal production 5.2Mt v 4.7Mt y/y

Japan

Nikkei 225 opened +0.1%
(JP) Japan considering joining US led naval coalition to escort commercial ships in waters off Iran’s coast; will depend on if the US plan fits Japan’s legal framework on the use for force – Nikkei
(JP) Japan and South Korea to hold trade talks on July 12th
TM Reportedly shifts plans for Alabama assembly plant to make SUVs instead of Corollas – press
5929.JP Has halted new lending in South Korea – Korean press
7974.JP Announces Switch Lite console will launch on Sept 20th, priced at $199.99
7181.JP Admits to mismanaging more than 90k insurance policies; will launch independent probe and refund overpaid premiums

Korea

Kospi opened +0.6%
(KR) S&P: External risks are not at level to affect South Korea sovereign rating, Japan trade tensions will impact South Korea economic growth
(KR) South Korea considering a KRW120B extra budget to support impact of Japan export curbs – Yonhap
(KR) South Korea to include up to KRW300B in extra budget to support impact of Japan export curbs – Yonhap
(KR) South Korea July 1-10th Exports -2.6% y/y; Chip exports -25% y/y
(KR) South Korea Industry Ministry: No signs that Japan companies are cutting investment into Korea yet
(JP) Japan Deputy Chief Cabinet Sec Nogami: No comment on specific issues regarding South Korea exports; exports controls do not violate principals of free trade

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened +0.4%
(CN) China Jun passenger vehicle wholesales 1.73M, -9.6% y/y (12th consecutive decline) – CAAM
HUAWEI.CN US Treasury Sec Mnuchin has urged Huawei’s suppliers to seek exemption from blacklist – US financial press
(CN) Chinese Academy of Fiscal Sciences Liu Shangxi: China will not turn to global financial crisis stimulus playbook to offset US trade war; a Lehman style simulus package will not help China economy; more likely to use tax reductions and budget management reform – SCMP
(CN) China PBOC sets yuan reference rate: 6.8677 v 6.8856 prior
(CN) China PBoC Open Market Operation (OMO): Skips for the 14th consecutive; Net drain CNY100B v drain CNY20B prior

Other Asia

(PH) Philippines Central Bank (BSP) Chief Diokno: Will further refine bank’s rate-corridor program and monetary operations; Remain vigilant to ensure monetary policy settings consistent with promoting price stability and growth

North America

(US) Fed Chair Powell testifies before House Financial Services Panel: There is a risk weak inflation will be even more persistent than Fed currently anticipates
(US) Fed Chair Powell: would not resign if Pres Trump asked him to do so, would serve out his full 4-year term – House testimony; recent jobs data has not changed my outlook – Q&A
(US) FOMC MINUTES FROM JUNE 19 MEETING: MANY PARTICIPANTS SAW RATE CUT AS WARRANTED IN THE NEAR TERM IF RECENT GLOBAL TRADE AND OTHER RISKS CONTINUED TO WEIGH ON OUTLOOK
(US) Fed’s Bullard (dove, voter, dissenter): FOMC should have foregone rate hike this past Dec; FOMC was overly preemptive in Dec with inflation so low
(US) US Treasury Sec Mnuchin: In talks about debt ceiling action before recess
(BR) Brazil Pension Bill passes 1st round voting 379 to 131

Europe

(FR) US govt confirms has opened section 301 probe on France digital tax
(DE) Germany official Peter Beyer said Europe should brace for US tariffs on ‘several’ fronts in the months ahead; Germany Economy Minister Altmaier is expected to meet with US Trade Representative (USTR) Lighthizer and US Commerce Sec Ross on Thursday – financial press

Levels as of 1:20 ET

Nikkei 225, +0.5%, ASX 200 +0.5%, Hang Seng +1%; Shanghai Composite +0.3%; Kospi 1.3%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.4%, Dax +0.4%; FTSE100 +0.3%
EUR 1.1281-1.1250 ; JPY 108.46-107.85 ; AUD 0.6979-0.6953 ;NZD 0.6670-0.6635
Gold +1% at $1,426/oz; Crude Oil +0.6% at $60.77/brl; Copper -0.2% at $2.687/lb