General Trend:

  • Travel-sensitive companies are among the decliners in HK following the headlines related to Beijing
  • CanSino Biologics [developing coronavirus vaccine] rises over 10% in HK; Shanghai Health Care index rises over 1%
  • Real Estate, Electric Appliances and Transport firms decline in Japan; On Sunday new coronavirus cases in Tokyo hit the highest level since early May ; Japanese banks trade higher after losses on Friday
  • Consumer firms are among the leading decliners in Australia
  • PBOC conducted medium-term lending facility (MLF) operation (as expected), left the interest rate unchanged
  • China Official: New Hong Kong security law will not be ‘retroactive’
  • BoJ decision due on Tuesday (June 16th), there has been renewed speculation that the central bank could raise the size of its corporate lending program [the size of the program is currently equal to ~¥30.0T]
  • NZ to price debt syndicate on Tuesday

Headlines/Economic Data

Australia/New Zealand

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  • ASX 200 opened 0.0%
  • (NZ) New Zealand May Food Prices m/m: -0.8% v +1.0% prior
  • (AU) Australia PM Morrison: ~A$100B in economic activity will be lost this year; will have record budget deficit this year and next

Japan

  • Nikkei 225 opened -0.8%
  • 9984.JP Said to have invested more than $500M in Credit Suisse funds that were funding some of Softbank’s investments – FT
  • (JP) Japan PM Abe: Japan will review virus policies after outbreak ends – speaking to parliament
  • (JP) On Sunday, Tokyo (Japan) confirmed 47 new coronavirus cases (largest daily rise since May 5th), 18 of the cases were linked to nightlife businesses – Nikkei

Korea

  • Kospi opened -0.8%
  • (KR) Bank of Korea (BOK) launches legal advisory council for central bank-issued digital currency (CBDC) to help review legal issues related to its possible issuance of such a currency in the future – Yonhap
  • (KR) South Korea Fin Min Hong: Need to provide measures to support exports, will provide support aimed at helping companies win orders from overseas; targeting overseas orders of $30B in 2020
  • (KR) South Korea held an emergency security meeting Sunday; pressed North Korea to keep reconciliatory deals as it continues to up the ante by threatening to sever inter-Korean relations and even use military action – Yonhap
  • 003620.KR Parent, Mahindra & Mahindra, considering selling its stake in amid the coronavirus pandemic – Yonhap
  • (KR) North Korea leader Kim’s sister, Kim Yo-jong: North Korea will take its next step against South Korea for its betrayal and crimes against N. Korea; army has been entrusted to plan and take any necessary action – KCNA

China/Hong Kong

  • Hang Seng opened -1.3%; Shanghai Composite opened -0.4%
  • (CN) CHINA MAY INDUSTRIAL PRODUCTION Y/Y: 4.4% V 5.0%E; YTD Y/Y: -2.8% V -3.0%E
  • (CN) CHINA MAY RETAIL SALES Y/Y: -2.8% V -2.3%E; YTD Y/Y: -13.5% V -13.5%E
  • (CN) CHINA PBOC CONDUCTS CNY200B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION V CNY100B PRIOR: RATE 2.95% V 2.95% PRIOR
  • (CN) CHINA MAY NEW HOMES PRICES M/M: 0.5% V 0.4% PRIOR; Y/Y: 4.9% V 5.1% PRIOR
  • (CN) China National Health Commission Coronavirus Update for June 14th: 49 additional cases (10 imported v 19 prior) v 57 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 18 v 9 prior; Cases in Beijing 36
  • (CN) China National Health Commission Coronavirus Update for June 13th: 57 additional cases (largest spike since April) v 11 prior; Additional deaths: 0 v 0 prior (spike in cases resulted in Beijing locking down parts of the city and largest market)
  • (CN) Beijing, China officials have closed down parts of the city and implemented tighter controls after a record number of new coronavirus cases appeared – press
  • (CN) China PBOC sets Yuan reference rate: 7.0902 v 7.0865 prior
  • (CN) China PBoC Open Market Operation (OMO): Skips v injects CNY100B in 7 day reverse repos prior; Net drain CNY0B v drain CNY50B prior
  • (CN) China Hong Kong and Macau Affairs Office Deputy Dir: New Hong Kong security law will not be retroactive
  • (CN) CHINA MAY PROPERTY INVESTMENT YTD Y/Y: -0.3% V -0.8%E
  • (CN) China May Surveyed Jobless Rate: 5.9% v 5.9%e

Other

  • (SG) Singapore Central Bank (MAS) Economist: Cut 2020 GDP to -5.8% (prior +0.6%); CPI -0.5% (prior +0.8%), Core CPI -0.5% (prior +0.9%)

North America

  • SBUX Announces it will close 400 traditional locations in US and Canada and open new pick up locations only over the next 18 months – letter to shareholders
  • SVA Sinovac announces positive preliminary results of Phase I/II clinical trials for inactivated Vaccine candidate against COVID-19; coronavirus shot is safe and capable of eliciting an immune response from human trials
  • (US) Fed’s Kaplan (dove, voter) said the US unemployment rate will be at 8% or higher through the end of 2020 – US media
  • (US) White House econ adviser Kudlow: US needs to stop providing the extra $600/week virus boost to unemployment and replace it with a smaller bonus for those returning to work – CNN

Europe

  • (ES) Spain PM Sanchez said to be planning $4.2B package for Spain automakers – press
  • (FR) France President Macron: Want to build up an independent Europe, compared to US and China; starting Monday all of France will go into “green” zone regarding coronavirus risks, need to continue with social distancing, prepare for risks and return of virus

Levels as of 1:15ET

  • Hang Seng -1.8%; Shanghai Composite -0.5%; Kospi -2.0%; Nikkei225 -2.6%; ASX 200 -1.6%
  • Equity Futures: S&P500 -2.0%; Nasdaq100 -1.4%, Dax -2.3%; FTSE100 -1.3%
  • EUR 1.1269-1.1227; JPY 107.58-107.00; AUD 0.6848-0.6809; NZD 0.6456-0.6404
  • Commodity Futures: Gold -0.2% at $1,733/oz; Crude Oil -4.4% at $34.66/brl; Copper -1.4% at $2.56/lb
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