General trend
- Asian equity markets are mixed after opening generally higher; only modest moves have been seen.
- Nikkei has declined after opening +0.2% [Big component Fast Retailing rises amid broker comments; Topix Retail index also supported by Seven & I news; Topix Iron & Steel and Marine Transportation indices rise; Information & Communication index lags].
- S&P ASX 200 is trading slightly lower [Travel-sensitive stocks decline amid COVID restrictions; Financials also drop; Consumer Staples rise, Woolworths resumed certain purchase limits, Metcash reported FY results].
- Shanghai Composite ended the morning session flat [Financial and Property indices decline after prior gains; IT and Consumer Discretionary indices rise].
- Hang Seng morning session is canceled due to storm signal; China Gas may report results later today.
- Geely’s ADRs declined on IPO news.
- South Korea bond yields continue to rise after last week’s comments from BoK Gov.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) Australia Treasurer Frydenberg: Will only open international borders when safe to do so and based on medical advice.
- (AU) Western Australia government imposed at least 3-day COVID-related restrictions on Perth and Peel region; also imposed new border restrictions on arrivals from Queensland, the Northern territory and the ACT.
- (AU) Australia New South Wales (NSW) Premier: Preparing for coronavirus cases to rise ‘considerably’.
- (AU) Australia New South Wales (NSW): Additional coronavirus measures are possible over outbreak.
- (AU) Australia sells A$300M v A$300M indicated in 1.75% Jun 2051 bonds, avg yield 2.3718%, bid to cover 3.52x.
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr to give speech on Jun 29th (Tues at 4:10 GMT) related to the central bank’s statement of intent for 2021-24.
- (NZ) Bank of New Zealand (private bank) said the RBNZ might end QE program in the coming months as the central bank prepares to raise interest rates; Notes markets are pricing in a >50% probability that the RBNZ will hike rates in Nov 2021 – financial press.
- (NZ) New Zealand May Jobs Filled +0.4% m/m.
China/Hong Kong
- Shanghai Composite opened +0.1%.
- (HK) Hang Seng Morning session is canceled due to storm.
- (CN) China State Planner (NDRC): Begins investigations into Fertilizer [urea] market, seeking to learn more about the supply and demand situation related to urea prices.
- Huarong: Citic Group sent team to Huarong to examine finances; Huarong said to be close to release of delayed 2020 results.
- Geely [175.HK]: Board withdraws Shanghai star board listing application; When the relevant conditions are met, the Company will actively promote the listing work of Renminbi share issuance.
- Li Ning [2331.HK]: Guided H1 Net (CNY) at least 1.8B v 0.68B y/y, Rev to rise >60% y/y.
- (CN) China May Industrial Profits Y/Y: 36.4% v 57.0% prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY30B in 7-day reverse repos v CNY30B in 7-day reverse repos prior; Net inject CNY20B v Net inject CNY20B prior.
- (CN) China PBOC sets Yuan reference rate: 6.4578 v 6.4744 prior.
Japan
- Nikkei 225 opened +0.2%.
- Seven & I [3382.JP]: US FTC orders divestiture of hundreds of retail stores following Speedway deal.
- (JP) Bank of Japan (BOJ) June Summary of Opinions: Need to continue to support funding of business.
- (JP) Bank of Japan (BoJ) is expected to release Jul bond buying plan on Jun 29th (Tues at 8 GMT).
- (JP) Japan PM Suga: On high alert on the slight rise in coronavirus cases in Tokyo; To respond nimbly to coronavirus depending on situation.
Korea
- Kospi opened +0.1%.
- (KR) South Korea sells 30-year bonds: avg yield 2.225% v 2.290% prior.
- (KR) Bank of Korea sells KRW760B v KRW800B indicated 3-Month Monetary Stabilization Bonds (MSB): Avg yield 0.62% v 0.49% prior.
Other Asia
- (TW) Taiwan Central Bank (CBC): Economy is not facing ‘potential crisis’ (response to research note from Japan Broker).
North America
- (US) US President Biden withdrew his suggestion that he would veto the bipartisan infrastructure deal if Congress did not pass the Democrat ‘antipoverty package’.
- Tesla [TSLA]: China regulator says Tesla to ‘recall’ over 285K cars in China over problem with its autopilot feature.
- (US) Fed’s Rosengren: US cannot afford a housing market boom and bust [in line] – FT.
Europe
- (DE) Germany expected to attempt to ban UK travelers from the EU, regardless of whether or not they had a vaccine – UK press.
- (FR) France Regional Elections: ‘Far right’ candidate Le Pen again did not win a single region, cites exit polls – financial press.
- Binance: UK FCA orders Binance to cease UK activities, citing inability to conduct any regulated activity – press.
Levels as of 01:05 ET
- Nikkei 225, -0.2%, ASX 200 flat , Shanghai Composite flat ; Kospi -0.1%.
- Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax flat; FTSE100 -0.2%.
- EUR 1.1942-1.1920 ; JPY 110.86-110.62 ; AUD 0.7602-0.7575 ;NZD 0.7079-0.7061.
- Gold +0.2% at $1,780/oz; Crude Oil flat at $74.04/brl; Copper -0.3% at $4.2683/lb.
