Thu, Sep 23, 2021 @ 05:51 GMT
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Asian Markets See Modest Losses After Declines On Wall Street

General trend

  • Asian gov’t bond yields generally track Monday’s decline in UST yields.
  • Commodity currencies (AUD, NZD) extend declines.
  • US equity FUTs have remained higher in Asia, currently off of the best levels; Apple said to delay office return.
  • Asian equity markets opened modestly lower, in general.
  • Nikkei 225 has remained lower [Topix Banks index drops after declines in US financials; Canon rises on guidance].
  • Shanghai Composite ended morning trading lower by 0.5% [Decliners include Bank, Property and Consumer Discretionary indices].
  • Hang Seng has extended declines [Property names trade generally weaker amid focus on Evergrande; Financials also decline].
  • S&P ASX 200 has pared decline after dropping over 1% [Resources index has pared decline amid production update from BHP; Financials have also trimmed losses].
  • Companies due to report during the NY morning include Ally Financial, Halliburton, HCA, Manpower, Omnicom, Synovus Financial, Travelers.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • OSH.AU Recently received a confidential non-binding and indicative change of control proposal and rejected it.
  • BHP.AU Reports Q4 Waio Iron Ore Production: 72.8Mt v 75.6Mt y/y, Attributable Iron Ore Production: 65.2Mt v 66.7Mt y/y.
  • JBH.AU Reports Prelim FY21 (A$) EBIT 743.2M v 483.2M y/y, Rev 8.9B v 7.9B y/y.
  • OSH.AU Santos confirms all share merger proposal of A$4.25/shr.
  • (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$337.4B v A$335.7B prior (record high).
  • (AU) South Australia to go into lockdown from today 18:00 for the next 7 days – local press.
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) JULY MEETING MINUTES: Reiterates central scenario remained one where wages growth and underlying inflation were expected to increase only gradually over the subsequent 2 years, need to have flexibility to adjust weekly bond purchases.

Japan

  • Nikkei 225 opened -1.1%.
  • (JP) JAPAN JUN NATIONAL CPI Y/Y: 0.2% V 0.2%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.2% V 0.2%E; CPI Ex-fresh food/energy (Core-Core) Y/Y: -0.2% v -0.2%e.
  • (JP) Japan PM Suga: Will implement thorough COVID measures for safe and secure games.
  • (CN) Japan private school pension fund might purchase bonds from China – US financial press.
  • (JP) Japan government: On Aug 6th to release CPI data for Jan 2020 to Jun 2021 calculated under the new base year.
  • (JP) Japan Chief Cabinet Sec Kato: Japanese companies were targeted by cyberhacking group, Apt40, which is highly connected to China Govt.
  • (JP) Japan Jr Coalition Partner Komeito’s leader Yamaguchi: Want the Govt to offer quick aid to restaurants under lockdown and prevent any hospital bed shortage.
  • 7751.JP Raises FY21 guidance Net to ¥201B; Op ¥283B; Rev ¥3.6T (Prior ¥140B; Op ¥198B; Rev ¥3.5T) (yesterday after the close).

Korea

  • Kospi opened -0.6%.
  • (KR) Unit of South Korea sailors recently sent to address pirating in Africa had 247 sailors of the 301 sent get infected with COVID.
  • (KR) South Korea Vice Foreign Min Choi: recent remarks by a senior Japan diplomats disparaging President Moon’s efforts to improve ties with Tokyo acted as a “significant obstacle” to Moon’s potential trip to Tokyo – Yonhap.

China/Hong Kong

  • Hang Seng opened -0.3%; Shanghai Composite opened -0.7%.
  • (CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: LEAVES BOTH 1-YEAR AND 5-YEAR RATES UNCHANGED (15TH CONSECUTIVE MONTH OF STEADY RATES).
  • (CN) China may start relending policy for sectors related to carbon-reduction, other policies could include a ‘favorable’ reserve ratio (RRR) – Chinese press.
  • (CN) China PBOC sets Yuan reference rate: 6.4855 v 6.4700 prior.
  • (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.
  • JIA Said to have halted plans for US IPO due to increased China Govt requirements for overseas IPOs – press.
  • (CN) China Agriculture Ministry: End-Jun pig herd at 99.4% of levels at end of 2017; sow herd at 102% of end of 2017 levels.

North America

  • AAPL To postpone return to office until earliest October, due to COVID, will give 1 month notice before return – press.
  • (CN) US and a coalition of allies said to accuse China’s Ministry of State Security of a global cyber hacking campaign – press (US session).
  • (US) Sen Maj Leader Schumer: To have procedural vote on Wednesday on bipartisan $1.2T infrastructure bill, do not have to have every detail of bill worked out by Wednesday.
  • CMCSA CEO said to have met with ViacomCBS Chairwoman in late Jun in relation to international streaming partnership – US financial press.

Europe

  • (UK) PM Johnson to announce increase to national insurance premiums – UK press.
  • UBSG.CH Reports Q2 Net $2.0B v $1.2B y/y, Adj PBT $2.6B v $1.6B y/y, Rev $8.98B v $7.4B y/y, to buyback $600M in shares in Q3 (under existing buyback program).
  • (UK) BOE’s Mann: UK recovery is more fragile than it appears; Do not see inflation becoming a spiral, we should not be premature on tightening (US session).

Levels as of 01:15ET

  • Hang Seng -0.9%; Shanghai Composite -0.4%; Kospi -0.6%; Nikkei225 -0.8%; ASX 200 -0.6%.
  • Equity Futures: S&P500 +0.3%; Nasdaq100 +0.5%, Dax +0.2%; FTSE100 +0.1%.
  • EUR 1.1803-1.1787; JPY 109.61-109.38 ;AUD 0.7358-0.7317; NZD 0.6955-0.6902.
  • Commodity Futures: Gold +0.5% at $1,818/oz; Crude Oil +0.4% at $66.61/brl; Copper +0.6% at $4.22/lb.

 

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