Thu, Sep 23, 2021 @ 05:49 GMT
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Mixed Equity Trading In Asia

General trend

  • 10-yr government bond yields move generally lower [particularly NZ and China].
  • US equity FUTs trade mixed, S&P 500 lags.
  • Nikkei outperforms following 2 day holiday [TOPIX Iron & Steel index outperforms amid guidance from Tokyo Steel, news related to JFE; Electric Appliances, Transport and Banks indices also rise].
  • Hang Seng has extended decline; Tech, Education and Property firms drop amid regulatory concerns.
  • Shanghai Composite has also extended decline [Consumer Staples, Property and Financial indices are among the decliners].
  • China CSI300 Real Estate index declines >3% (lowest since Sept 2015).
  • S&P ASX 200 has traded fractionally higher [Resources index rises; Energy index lags]; GPT Group news weighs on REIT index.
  • Companies due to report during the NY morning include Check Point Software, Hasbro, Lennox International, Lockheed Martin, Otis Worldwide, PetMed Express, RPM International.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened flat.
  • GPT Group [GPT.AU]: Withdraws FY21 FFO and distribution guidance citing lockdowns in Melbourne and Sydney.
  • (AU) New South Wales Premier: Denies reports that Sydney will be under lockdown until Sept – Press.
  • (NZ) Markets are now pricing in ~70% chance of Reserve Bank of New Zealand (RBNZ) rate hike in Aug 2021 [down a few bps]; notes impact of Delta COVID variant – US financial press.
  • (NZ) New Zealand Jun Trade Balance (NZD): 261M v 489M prior.

China/Hong Kong

  • Seng opened -1.8%, Shanghai Composite -0.4%.
  • (CN) China reportedly considering barring Foreign investment in after-school tutoring; Considering asking after-school tutors to go non-profit [from Jul 23rd].
  • (US) Deputy Sec of State Sherman to meet with China’s Wang Yi; the talks are expected to be held on Sun and Mon (Jul 25-26th) – financial press [from Jul 21st].
  • (CN) China Vice Foreign Min Feng: Willing to deal with US on equal footing; Relationship with the US is in a ‘stalemate’, now faces difficulties.
  • (CN) China issuing notice to regulate property market order.
  • (CN) Shanghai (China) revised rule related to home donations, effective from Jul 24th; move seen as an attempt to lower property market speculation – press.
  • (CN) PBOC Said to have asked Shanghai lenders to increase mortgage rates to 5.00% from 4.60% for first time home buyers.
  • (CN) China Industry Ministry (MIIT): To begin a crackdown on illegal internet activities.
  • (CN) China FX Regulator SAFE: Reiterates stance to keep CNY currency (Yuan) basically stable in 2021.
  • (CN) China Foreign Ministry: China will counter sanction certain former US officials, including former Commerce Sec Ross.
  • (CN) China said to have urged banks to not stop lending to ‘high carbon’ sectors of the economy – Press.
  • (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: 6.4763 v 6.4650 prior.


  • (JP) Nikkei 225 opened +1.6% at 27,990 (Returned from 2 day holiday).
  • (JP) JAPAN JUL PRELIMINARY PMI MANUFACTURING: 52.2 V 52.4 PRIOR (6th straight expansion); PMI Services: 46.4 v 48.0 prior (18th month of contraction).


  • Kopsi opened +0.4%.
  • (KR) Bank of Korea sells KRW840B v KRW700B indicated in 1-year Monetary Stabilization Bonds (MSB): Avg yield 0.88% v 0.88% prior.

Other Asia

  • (SG) Singapore Jun Industrial Production M/M: -3.0% v +0.5%e; Y/Y: 27.5% v 27.2%e.

North America

  • (US) Reportedly Democrats may remove $20B in funding for a new infrastructure bank after Republicans opposed a provision aimed at boosting workers’ wages – press.


  • (FR) Said that the UK may end quarantine imposition on France visitors – UK press.

Levels as of 01:20 ET

  • Nikkei 225, +1%, ASX 200 flat , Hang Seng -3.1%; Shanghai Composite -2.7% ; Kospi -0.6%.
  • Equity S&P500 Futures: -0.3%; Nasdaq100 -0.1%, Dax -0.4%; FTSE100 -0.4%.
  • EUR 1.1779-1.1763 ; JPY 110.58-110.31 ; AUD 0.7372-0.7345 ;NZD 0.6986-0.6960.
  • Gold +0.3% at $1,807/oz; Crude Oil -0.6% at $71.64/brl; Copper flat at $4.4555/lb.


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