General Trend:
- Tencent rises over 3.5% in HK, Trump admin said to tell US firms that they can continue to use Wechat in China (from Aug 21st); Others gainers in HK include Financial and Property firms
- Shanghai Composite rose by 0.2% during morning session; Industrial, IT and Consumer firms rose; Financials lagged
- Telecom and Consumer firms are among the gainers in Australia, Energy and Financial firms decline
- Fortescue Metals rises over 2.5% after reporting FY results, raised dividend
- Gainers in Japan include Retail, IT and Pharma firms; Banks also rise; Decliners include Transportation and Real Estate firms
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) Australia Treasurer Frydenberg: Warns Australia economic recovery likely to be delayed until the second wave of coronavirus in Victoria is under control; Victoria State accounts for 25% of Australia GDP – Financial Press
- (NZ) New Zealand PM Ardern: Extends Auckland lockdown until August 30th (Sunday)
- (NZ) New Zealand Q1 Retail Sales (ex-inflation) Q/Q: -14.6% v -15.0%e
- (NZ) New Zealand Treasury comments on bond syndicate: Expects to issue at least NZ$2.0B in 4.50% April 2027 bond, the issuance will be capped at NZ$4.0B; initial pricing guidance is 18-22bps/April 2025 bond
- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$466M v NZ$240M prior in government bonds as part of QE v NZ$500M sought
China/Hong Kong
- Hang Seng opened +1%, Shanghai Composite +0.3%
- Tencent [700.HK]: Trump Administration officials reportedly telling US firms that they can continue to use Wechat in China – press (from Aug 21st)
- AAC Technologies [2018.HK]: Reports Q2 (CNY) Net 268M v 338M y/y; Rev 4.3B v 3.8B y/y
- Huawei: Reported that it has asked a Taiwan supplier to suspend providing parts to Co, cited the inability to buy chips from Mediatek – Taiwan Press
- (CN) China PBOC sets Yuan reference rate: 6.9194 v 6.9107 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY160B in 7-day and 14-day reverse repos v Injects CNY200B in 7-day reverse repos and 14-day reverse repos prior; Net injection CNY110B v Net Injection CNY50B prior
- (CN) China President Xi: Will roll out more measures to reduce burdens on companies and stabilize jobs (from Aug 21st)
- (CN) China Premier Li Keqiang said the domestic economy can grow in 2020 if country reaches its employment target – US financial press
- (CN) China officials (including PBOC) have completed the drafting of capital monitoring and financing management rules for property companies – US financial press
- (CN) Over 24 cos. that made their debuts on the ChiNext market rose on Monday – Nikkei
Japan
- Nikkei225 opened flat
- (JP) Japan PM Abe reported to be getting treatment for a chronic illness, not a check up – Press
Korea
- Kospi opened +0.2%
- (KR) North Korea leader Kim Jong Un reportedly in a coma, Chang Song-min (former aide to South Korea President Kim Dae-jung) has alleged that Kim has become seriously ill – NY Post (update)
- (KR) South Korea confirms 266 additional coronavirus cases v 397 prior
- (KR) Reported that Bank of Korea (BOK) could cut its 2020 GDP outlook to -1.0% from -0.2% – local press
- (KR) Bank of Korea Gov (BOK) Lee: Confirms tougher social distancing rules to hurt consumption, Growth forecast revision may be considerable; can employ non interest rate tools if needed
- (KR) South Korea requires facemasks and social distancing while outside of ones residence as a response to rising coronavirus cases in the country – Yonhap
- (KR) South Korea Govt: Monitoring economic situation for a second cash handout – Yonhap
- (KR) South Korea reported to be considering extending short selling ban by 6-months
- (KR) South Korea sells 20-year bonds: avg yield 1.565% v 1.560% prior
Other Asia
- (PH) Philippines Central Bank (BSP) Gov Diokno: No need to further cut RRR as too much liquidity in system
North America
- (US) US President Trump: Confirms convalescent plasma has been approved to treat COVID-19
Europe
- (US) US President Trump said to consider fast-tracking UK Covid-19 vaccine before the Nov US election – FT
Levels as of 1:20 ET
- Nikkei 225, +0.2%, ASX 200 +0.2% , Hang Seng +1.5%; Shanghai Composite +0.1% ; Kospi +0.7%
- Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.2%
- EUR 1.1806-1.1784 ; JPY 105.94-105.58 ; AUD 0.7178-0.7150 ;NZD 0.6548-0.6525
- Gold -0.4% at $1,939/oz; Crude Oil -0.2% at $42.25/brl; Copper +0.3% at $2.9312/lb
