General Trend:
- Besides the weakness in Japan’s financial sector, other decliners include Transports and Iron/Steel companies
- Stronger Yen also weighs on Japanese exporters
- Komatsu declines by over 2% in Japan, Caterpillar said to extend plant closures (press)
- Hong Kong IPOs in focus; Netease rises over 8% in debut, JD.com’s IPO said to price below maximum price
- HKMA continues to intervene against HKD strength for the 5th day
- Japan’s Q2 BSI data suggests BoJ Tankan survey may decline q/q [data due on July 1st]
- South Korea’s chip exports rose over 22% y/y in early June
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.4%
- (NZ) New Zealand May Retail Card Spending M/M: 78.9% v 65.0%e; Total Card Spending M/M: +80.7% v -48.0% prior
- JBH.AU Reports H2 comp sales to date +20.0%; Guides FY20 Net A$300-305M (after impairment charges) v A$249.8M y/y; Rev ~A$7.9B v A$7.10B y/y
- (AU) Australia Jun Consumer Inflation Expectation Survey: 3.3% v 3.4% prior
- (AU) Australia PM Morrison: Asked about China tariffs and declining exports to China: Australia will not be intimidated by China and its ‘coercion’ – Press
Japan
- Nikkei 225 opened -1.2%
- (JP) JAPAN Q2 BSI LARGE ALL INDUSTRY Q/Q: -47.6 V -38.4E; LARGE MANUFACTURING Q/Q: -52.3 V -17.2 PRIOR
- (JP) Japan Investors Net Buying of Foreign Bonds: +¥1.07T v -¥499.3B prior week; Foreign Net Buying of Japan Stocks: +¥268.7B v -¥38.0B prior week
- 7203.JP CEO: company remains profitable; considering offering loan assistance to customers due to coronavirus pandemic – AGM
Korea
- Kospi opened -0.5%
- (KR) North Korea Foreign Ministry Official: US needs to stay out of inter-Korea issues; no one has the right to interfere with inter-Korean issues – KCNA
- (KR) South Korea June 1-10th exports Y/Y +20.2% v -46.3% prior; Imports Y/Y +8.5% v -37.2% prior
- (KR) North Korea Ministry of Foreign Affairs warns US: Do not interfere with relations between North and South Korea if US wants “smooth” presidential elections – Yonhap
- (KR) Bank of Korea (BOK): Will maintain accommodative monetary policy as economic growth is expected to slump and inflationary pressure stay weak – report to parliament
China/Hong Kong
- Hang Seng opened -0.2%; Shanghai Composite opened -0.1%
- (HK) Hong Kong Monetary Authority (HKMA): Will continue to maintain monetary and financial stability; to continue monitoring market developments
- (HK) HKMA said to sell HK$3.72B to defend peg as currency hits strong end of trading band v HK$2.2B yesterday – press
- (CN) China National Health Commission Coronavirus Update for June 10th: 11 additional cases (11 imported v 3 prior) v 3 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 4 v 5 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repos v CNY60B prior; Net injects CNY10B v injects CNY60B prior
- (CN) China PBOC sets Yuan reference rate: 7.0608 v 7.0703 prior
- NetEase, 9999.HK IPO opens for trade at HK$133/shr v HK$123/shr pricing
- (CN) CHINA MAY NEW YUAN LOANS (CNY): 1.480T V 1.600TE
- (CN) CHINA MAY AGGREGATE FINANCING (CNY): 3.190T V 3.100TE
- (CN) CHINA MAY M2 MONEY SUPPLY Y/Y: 11.1% V 11.3%E
Other
- (SG) Singapore Central Bank (MAS) Gov Menon: Singapore is facing the most severe recession yet; affirms 2020 GDP forecast of -7% to -4%
North America
- (US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 0.00-0.25%; AS EXPECTED; SEES NEAR ZERO RATES THROUGH 2022; TO KEEP RATES ON HOLD UNTIL ECONOMY ON TRACK
- (US) FOMC SUMMARY OF ECONOMIC PROJECTIONS (SEP) FOR JUNE (first update since Dec); dots shows rates staying at lower bound through 2022
- (US) Fed Chairman Powell: “We’re not even thinking about thinking about raising rates” at this time; monetary policy today is well positioned to support the economy given our challenges – Q&A
- (US) VP Pence: We dont see an increase in new virus cases now, China was not straight with US on coronavirus
- GRUB Just Eat to acquire GrubHub in all-stock deal at 0.6710/shr valued at $7.3B ($75.15/shr)
Europe
- (UK) May RICS House Price Balance: -32% v -24%e
- (UK) According to The Institute of Directors (IoD) survey, businesses have dramatically scaled back investment plans for the rest of the year in response to the uncertainty surrounding the future of the UK economy
- (UK) PM Johnson to end 2 meter social distance rule by Sept at the latest – UK press
- (FR) France to end state of health emergency July 10th (1 weeks ahead of schedule), likely to keep some powers in order to help contain virus over the coming months – press
Levels as of 1:15ET
- Hang Seng -1.4%; Shanghai Composite -0.2%; Kospi -1.4%; Nikkei225 -2.3%; ASX 200 -2.9%
- Equity Futures: S&P500 -1.2%; Nasdaq100 -0.8%, Dax -1.3%; FTSE100 -1.6%
- EUR 1.1397-1.1344; JPY 107.17-106.90; AUD 0.7004-0.6921; NZD 0.6547-0.6486
- Commodity Futures: Gold +1.1% at $1,738/oz; Crude Oil -3.5% at $38.22/brl; Copper -1.5% at $2.64/lb
