Asian Equities Trade Generally Lower After Mixed Session Wall Street

Jun 08 21, 07:08 GMT

General Trend

Nikkei has declined after the modestly higher open [Softbank Group weighs on Topix Information & Communication index; Pharma index outperforms on Eisai news].
Hang Seng has reversed the opening gain [TECH index drops over 1%; Geely and BYD rise following monthly sales figures].
Shanghai Composite ended the morning session lower after flat open [Consumer Staples and Financials drop].
S&P ASX 200 has traded generally flat [Resources index drop amid lower Chinese ore prices; Financials also decline].
China May inflation data is due on Wed (Jun 9th).
RBA Assist Gov (Financial Markets) Kent is due to speak at The KangaNews Debt Capital Markets Summit (Jun 9th at 11:30 PM GMT).
Companies due to report during the NY morning include Chico’s, J. Jill Group, Momo Inc, Navistar, Thor Industries.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
(AU) Australia AOFM (debt agency) CEO Nicholl: To offer less detail on issuance plans; 2021-22 forecast net financing task is ~A$100B.
MQG.AU Macquarie and Nuix said to be facing possible ASIC investigation over Nuix IPO – SMH.
(AU) Australia May NAB Business Confidence: 20 v 23 prior; Business Conditions: 37 v 32 prior.
(AU) Australia Treasurer Frydenberg said iron ore prices >$150/ton would add A$12.0B to budget; notes government has taken a conservative approach with regards to assumptions for iron ore prices – Comments from Fitch Webinar.

Japan

Nikkei 225 opened +0.1%.
(JP) JAPAN Q1 FINAL GDP Q/Q: -1.0% V -1.2%E; GDP ANNUALIZED Q/Q: -3.9% V -4.8%E.
(JP) In May the Bank of Japan (BOJ) did not buy any ETFs (1st time since Gov Kuroda started easing in 2013) – press.
(JP) Japan Apr Labor Cash Earnings Y/Y: 1.6% v +0.2% prior; Real Cash Earnings Y/Y: 2.1% v 0.5% prior (Highest since July 2010).
4523.JP Impact of FDA approval of Adhelm was already included in forecasts; reminder: BIIB Alzheimer’s drug Aduhelm (aducanumab) with Eisai wins FDA approval (first new treatment for Alzheimer’s disease in nearly two decades).
(JP) Japan May Eco Watchers Current Survey: 38.1 v 34.0e; Outlook Survey: 47.6 v 38.0e.

Korea

Kospi opened 0.0%.
000660.KR Confirms found defects in a few DRAM products; too early to estimate potential losses, in talks with the customers impacted by the defect [comments on press report].
(KR) South Korea Apr Current Account (BOP): $1.9B v $7.8B prior (12th consecutive surplus); Balance of Goods (BOP): $4.6B v $7.9B prior.
005930.KR Samsung Electronics, LG Display to delay exit from LCD to 2022 [in line] due to surge in demand – Nikkei.

China/Hong Kong

Hang Seng opened +0.4%; Shanghai Composite opened 0.0%.
(CN) Analysts note that the China PBOC may inject liquidity at the appropriate time – China Securities Journal.
(CN) China Resources and a state fund to set up a JV for semiconductor chips, total investment of CNY7.55B – filing.
(CN) China is expected to comply with the global minimum on corporate tax, especially since it doesn’t rely on tax incentives to attract investment like it used to – SCMP.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
(CN) China PBOC sets Yuan reference rate: 6.3909 v 6.3963 prior.
(CN) China PBOC has been adopting a ‘prudent stance’ on liquidity injections since Mar 2021, notes the central bank’s daily OMO liquidity injections of CNY10.0B; cites analysts – PBOC-backed Financial News.
(CN) Said that Guangdong province (China) will allow tighter spreads in bond auctions; the lower end of the spread said to be 15bps/comparable China government bond.
(CN) CHINA MAY FOREIGN RESERVES: $3.222T V $3.215TE (2nd straight increase) (yesterday after the close).

North America

HOOK Phase 1 HB-200 data show unprecedented T cell response, favorable tolerability, and preliminary efficacy as monotherapy for advanced HPV16+ cancers.
(US) Commerce Sec Raimondo: Chip shortage will pose a daily challenge for the next year or so – CNBC.

Europe

Levels as of 01:15ET

Hang Seng -0.4%; Shanghai Composite -0.6%; Kospi -0.1%; Nikkei225 +0.1%; ASX 200 +0.2%.
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -0.2%; FTSE100 -0.0%.
EUR 1.2195-1.2178; JPY 109.45-109.20; AUD 0.7766-0.7727; NZD 0.7235-0.7215.
Commodity Futures: Gold +0.1% at $1,900/oz; Crude Oil -0.7% at $68.72/brl; Copper -0.6% at $4.49/lb.

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