HomeContributorsFundamental AnalysisAsia Trades Mixed Amid US Holiday, US Equity FUTs Pare Losses

Asia Trades Mixed Amid US Holiday, US Equity FUTs Pare Losses

General Trend:

  • Large-cap tech names and property firms trade generally lower in HK, Financial index rises
  • Hang Seng index changes take effect from today [originally announced on Aug 14th]
  • Decliners in Japan include Information/Communication and auto firms; Iron/Steel, Transportation and Financial firms gain
  • Nikkei-weighted Softbank drops over 6% after recent FT article
  • Shanghai Composite declined by less than 0.2% during morning session; decliners included IT and Consumer firms, financials traded generally higher
  • Australian equities opened flat as Victoria released its coronavirus-related roadmap; Consumer related firms trade generally lower, Aged-care firms continue to trade generally lower; Financial and Resource names rise
  • Samsung rises after receiving over $6.0B network equipment order from Verizon
  • LARGAN Precision (Taiwanese Apple supplier) declines by over 2%, Aug revenues -22% y/y
  • Oil prices decline amid reported price cut by Saudi Arabia
  • Pound (GBP) declines, various press articles focused on the Brexit talks
  • CME Globex equity products will be halted between 13:00 ET/17:00 GMT until 18:00 ET/22:00 GMT, Interest Rate products will be halted between 13:00 ET/17:00 GMT until 18:00 ET/22:00 GMT

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) Victoria (Australia) government released roadmap for easing coronavirus lockdown restrictions (as expected), stage 4 restrictions will remain in Melbourne for at least 2 more weeks [until Sept 28th]; The stage 4 restrictions were initially expected to end by Sept 13th
  • (AU) Victoria state (Australia) reports 41 additional coronavirus cases (Lowest daily total since June); 9 additional deaths
  • (AU) Australia Aug AiG Performance of Services Index: 42.5 v 44.0 prior
  • (AU) Australia Aug ANZ Job Advertisements M/M: +1.6% v +19.1% prior
  • CSL Limited [CSL.AU]: Announces agreement with multiple entities (Univ of Queensland and AstraZeneca/Oxford Univ) to manufacture COVID-19 vaccines; Vaccines to be distributed in Australia in early 2021
  • (AU) Australia reported to extend its bankruptcy protection rules and regulations until the end of 2020 due to the coronavirus impact on the economy – Press
  • (AU) Australia sells A$2.0B v A$2.0B indicated in 2.75% Nov 2029 bonds, avg yield 0.9238%, bid to cover 4.8x

China/Hong Kong

  • Hang Seng opened -0.3%, Shanghai Composite -0.2%
  • Semiconductor Manufacturing International (SMIC) [981.HK]: Trump administration considers adding China’s SMIC to trade blacklist – press
  • SMIC [981.HK]: Says it has no ties with China People’s liberation Army (PLA); Any reports of ties with the military are false; Open to communications with the US Govt to resolve misunderstandings
  • (CN) CHINA AUG TRADE BALANCE: $58.9B V $49.4BE; Exports Y/Y: 9.5% v 7.5%e; Imports Y/Y: -2.1% v +0.2%e; Aug Iron Ore imports 104Mt v 112.7Mt m/m
  • (CN) Hangzhou (China) tightened rules for homebuyers -SCMP
  • (CN) China PBOC sets Yuan reference rate: 6.8386 v 6.8359 prior
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v Injects CNY100B in 7-day prior; Net Inject CNY20B v Net inject CNY0B prior
  • Ant Financial: China reported to put a cap on interest rates that can be charged by consumer lending companies following a China Supreme Court ruling – Financial Press
  • (CN) China President XI: Nations face tough tasks of stabilizing economies (from Sept 4th)
  • (HK) Hong Kong Police arrest ~300 protesters on the delay to the Hong Kong Elections – Nikkei
  • Goldman Sachs: Reportedly Goldman tapped as joint lead manager for Ant Group’s Hong Kong IPO which is expected at up to $30B (press from Sept 5th)

Japan

  • Nikkei225 opened -0.3%
  • Softbank [9984.JP]: Reportedly Softbank has been buying options in tech stocks over the last month – FT (from Sept 4th)
  • Nikkei 225 contract rolled over to the Dec 2020 contract
  • (JP) Japan Chief Cabinet Secretary Suga: I highly approve of BoJ governor Kuroda; would like to see a continuation of easing policies – Nikkei interview (from Sept 5th)
  • (JP) Japan Aug Official Reserve Assets: $1.40T v $1.40T prior
  • (JP) Japan has urged people in the southern islands to exercise caution due to Typhoon Haishen – press
  • (JP) Japan July Preliminary Leading Index Ci: 86.9 V 84.4 prior; Coincident Index: 76.2 v 76.6 prior

Korea

  • Kospi opened flat
  • Samsung Electronics [005930.KR]: Awarded KRW7.9T (~$6.6B) order from Verizon for wireless communications solutions (including 5G); The 5 year agreement will last until Dec 2025 [agreement is said to be Samsung’s largest network equipment supply deal ever]
  • (KR) South Korea extends social distancing level 2.5 for 1 additional week in Seoul (capital) – Yonhap
  • (KR) South Korea confirms 119 additional coronavirus cases v 167 prior; 2 additional deaths
  • Shinhan Financial [055550.KR]: To raise KRW1.16T through rights offering

North America

  • (US) Fed’s Powell: today’s jobs reports was a good one; jobs are growing faster than many had expected; the economy will need low interest rates for years – NPR interview (from Sept 4th)
  • Etsy, Teradyne and Catalent Set to Join S&P 500 (Tesla NOT included in S&P500 additions) [from Sept 4th]
  • (US) US Treasury Sec Mnuchin said he expects a government funding bill to cover US agencies through the beginning of Dec, expected details to be ‘firmed up’ by the end of the week – US press

Europe

  • UK PM Johnson expected to warn the EU that if there is no breakthrough Brexit deal by Oct 15th, Britain will accept no deal and ‘move on’, according to the UK press; FT says the UK government is planning new legislation that will override parts of the Brexit withdrawal agreement, risking the collapse of trade negotiations with Brussels
  • Saudi Arabia cuts Oct official selling price for Arab light crude exported to Asia by $1.40/barrel

Levels as of 1:20 ET

  • Nikkei 225, -0.4%, ASX 200 flat , Hang Seng -0.2%; Shanghai Composite -0.4% ; Kospi +0.6%
  • Equity S&P500 Futures: -0.3%; Nasdaq100 -1.1%, Dax -0.2%; FTSE100 +0.4%
  • EUR 1.1847-1.1830 ; JPY 106.38-106.21 ; AUD 0.7299-0.7272 ;NZD 0.6724-0.6703
  • Gold +0.4% at $1,940/oz; Crude Oil -1.5% at $39.19/brl; Copper -0.4% at $3.0660/lb

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading