Wed, Jun 23, 2021 @ 01:41 GMT
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Asian Indices Opened Higher After US Gains

General Trend:

  • South Korean chipmakers rise after guidance from Micron
  • Transports are among the biggest gainers in Japan after the earlier rise seen in the US transports sector
  • Japan Display (JDI) to report FY19 results after the market close
  • Early gainers in Shanghai included Consumer and IT companies, financials underperform
  • Gaming and tech firms are among the gainers in Hong Kong
  • Energy, Consumer and Financial firms are among the gainers in Australia
  • Bank of Japan (BOJ) expected to issue July bond buying plan later today

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.4%
  • (AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle: Reiterates ready to scale bond purchase if needed; June quarter (Q2) GDP better than originally feared – speech on RBA policy actions and balance sheet
  • (AU) Australia Victoria State reports 64 new coronavirus cases (more than 2 month high), said to consider lockdowns related to Melbourne; South Australia also said to cancel plan to reopen its borders – Local media
  • (AU) Australia June Private Sector Credit M/M: -0.1% v 0.0%e; Y/Y: 3.2% v 3.4%e
  • (AU) Australia mid-May to mid-June Total Payroll Jobs: +1.0%; Weekly payrolls June 6th – 13th 0.2%
  • (NZ) Reserve Bank of New Zealand (RBNZ) Chief Economist Yuong Ha: risks to economy remain to the downside; MPC reaffirms its guidance set in March of no change in OCR until March 2021
  • (NZ) New Zealand June ANZ Business Confidence: -34.4 v -41.8 prior; Activity Outlook: -25.9 v -38.7 prior

China/Hong Kong

  • Hang Seng opened +0.7%, Shanghai Composite +0.1%
  • (US) Sec of Commerce Ross: regulations affording preferential treatment to Hong Kong are now suspended over China’s actions; Commerce Department regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions, are suspended
  • (HK) China Legislature (NPC) passes Hong Kong Security Law (as expected)
  • (HK) Hong Kong to publish new security law in gov’t gazette later on Tuesday, China to also hold press briefing on the security law on Tuesday – HK Press
  • (CN) CHINA JUN MANUFACTURING PMI (GOVT OFFICIAL): 50.9 V 50.5E (4th straight month of expansion, 3-month high); Non-Manufacturing PMI: 54.4 v 53.6e (5th straight month of expansion)
  • (CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY90B v Net drain CNY40B prior
  • (CN) China Finance Ministry (MOF) sells 5-year and 10-year special treasury bonds
  • (CN) China PBOC sets Yuan reference rate: 7.0795 v 7.0808 prior
  • (CN) New Swine Flu strain in pigs identified, reported to be able to infect humans and has potential to turn into a global pandemic – Press


  • Nikkei 225 opened +1.6%
  • ANA Holdings [9202.JP]: Japan Bank for International Cooperation (JBIC) will help ANA make purchases from Boeing and Airbus
  • (JP) Japan MoF sells ¥3.0T v ¥3.0T indicated in 0.10% 2-year JGBs, avg yield: -0.136% v -0.172% prior, 4.7x bid to cover v 5.28x prior
  • (JP) JAPAN MAY HOUSING STARTS Y/Y: 807K V 788KE; Y/Y: -12.3% V -14.4%E


  • Kospi opened +1.5%
  • (KR) Bank of Korea (BOK): To provide US dollar loans to local financial firms via repurchase agreements (as speculated); will accept FX bonds as collateral for repo transactions
  • (KR) South Korea sells 30-year Govt bonds: avg yield 1.595% v 1.585% prior
  • (KR) South Korea Vice Fin Min Kim Yong-beom: South Korea will monitor flow of liquidity in South Korea; To establish tool to provide foreign-currency funds to local financial firms through repurchase (repo) agreements
  • (KR) SOUTH KOREA MAY INDUSTRIAL PRODUCTION M/M: -6.7% V -2.0%E ; Y/Y: -9.6% V -4.5%E
  • (KR) South Korea May Business Survey – Manufacturing: 51 v 49 prior; Non-Manufacturing: 60 v 56 prior
  • (KR) Reported that a meeting between North Korea leader Kim and US President Trump before US 2020 Election is unlikely, cites US envoy Stephen Biegun; the official noted factors including the time remaining before the Nov US elections and coronavirus impact – Korea Press
  • (KR) Japan may be seeking to add more export curbs targeted at South Korea [no specific products were mentioned] – Yonhap

North America

  • (US) US Treasury: US taxpayers will be allowed to request a further extension [to file taxes] to Oct 15th from July 15th – US financial press
  • (US) US Treasury Sec Mnuchin testimony before the US House panel has been released: have over $250 billion remaining to create or expand programs as needed [refers to programs related to the Federal Reserve lending facilities under Section 13(3) of the Federal Reserve Act]
  • (US) US Arizona State Gov: Orders closures of Bars, Clubs and gyms to be closed for next 30 days
  • Uber [Uber]: Offers to buy delivery service Postmates, offer speculated at ~$2.6B – US financial press

Levels as of 1:20 ET

  • Nikkei 225, +1.9%, ASX 200 +2.1% , Hang Seng +1%; Shanghai Composite +0.7% ; Kospi +1.9%
  • Equity S&P500 Futures: +0.2%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.3%
  • EUR 1.1252-1.1234; JPY 107.78-107.54; AUD 0.6885-0.6857 ;NZD 0.6432-0.6408
  • Gold +0.1% at $1,782/oz; Crude Oil -0.7% at $39.43/brl; Copper +0.4% at $2.695/lb
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