Asian Indices Opened Generally Higher After Losses During Prior Session

Jun 26 20, 06:28 GMT

General Trend:

Chinese telecoms drop in Hong Kong, US Defense Dept. released list of Chinese companies designated as ‘owned or controlled by Chinese military’ (included Chinese telecoms among other companies)
Qantas declines by over 8% in Australia following capital raise
Australian Energy, Resources and Financial firms rise after losses seen on Thursday
Aussie Consumer Discretionary sector rises as Australia eases social distancing rules
Australia PM Morrison plans to discuss loan deferrals with the major domestic banks, he expects most states to reopen their borders in July
Automakers and financials are among the gainers in Japan following prior session’s weakness
Nike drops over 3% in afterhours trading amid weaker results

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.4%
(AU) Australia PM Morrison: Gave approval for the mass adoption of the two square meter rule for smaller public locations
(AU) Reserve Bank of Australia (RBA) adds A$1.77B to banking system through repos vs A$4.95B prior [largest daily injection since March 24th]
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$41.8B v A$38.0B prior [prior lowest amount of excess cash since March 20th]
(AU) Reserve Bank of Australia Deputy Gov to speak on June 30th at 12:30 AEST (Tuesday)
(AU) Australia Victoria state reports 30 additional coronavirus cases v 33 prior
(AU) Australia sells A$1.0B v A$1.0B indicated in 4.25% April 2026 bonds, avg yield 0.479%, bid to cover 5.9x
(NZ) New Zealand Treasury: Forecasts Q3 unemployment at 9.0% v 10.0% prior
(NZ) New Zealand June ANZ Consumer Confidence: 104.5 v 97.3 prior
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$260M v NZ$270M prior in government bonds as part of QE v NZ$260M sought
(NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$940M v NZ$940M prior in government bonds next week

China/Hong Kong

Hang Seng opened -0.3%, Shanghai Composite closed
(US) US reportedly to consider 12-month extension to China Goods tariff exclusion list of particular exclusions granted in the October 2019 notice – press
(HK) US Senate passes bill punishing China for Hong Kong security law via unanimous consent – press

Japan

(JP) Bank of Japan Gov Kuroda: BOJ will lower entire yield curve if necessary; Emergency measures for virus-impacted companies will be gradually curtailed as economy recovers.
*(JP) JAPAN MAY TOKYO CPI Y/Y: 0.3% V 0.3%E; CPI (EX-FRESH FOOD) Y/Y: 0.2% V 0.2%E

Korea

Other Asia

(SG) Singapore Apr Industrial Production M/M: -16.5% v -5.6%e; Y/Y: -7.4% v +7.7%e

North America

*FED BANK STRESS TEST RESULTS: FED TO LIMIT BIG BANK DIVIDEND PAYOUTS AND BUYBACKS TO PRESERVE CAPITAL DURING DOWNTURN; BANKS WILL HAVE TO RESUBMIT CAPITAL PLANS LATER THIS YEAR
(US) Fed Total Balance Sheet Size as of June 24th: $7.097T, -$75.5B w/w (2nd straight decline)
(US) Vice President Pence to meet with airline CEOs on June 26th
(US) White House Coronavirus task force to hold briefing at 12:30EST (16:30GMT) on June 26th
(CL) Chile Chuquicamata will halt smelter and refinery operations (Mining operation is largest copper mine in the world)

Europe

(IR) Iran State Media confirms reported gas tank explosion in Tehran
Air France [AF.FR]: Follow Up: France and the Netherlands reach agreement on €3.4B aid package for KLM – financial press
(FR) France Jun car registrations said to be near year ago levels – financial press

Levels as of 1:20 ET

Nikkei 225, +1.2%, ASX 200 +1.5% , Hang Seng -0.6%; Shanghai Composite closed ; Kospi +1.2%
Equity S&P500 Futures: +0.1%; Nasdaq100 +0.1%, Dax +0.1%
EUR 1.1226-1.1208; JPY 107.24-107.07; AUD 0.6897-0.6861; NZD 0.6450-0.6414
Gold -0.1% at $1,769/oz; Crude Oil +1.3% at $39.22/brl; Copper +0.2% at $2.669/lb