Thu, Sep 23, 2021 @ 06:39 GMT
HomeContributorsFundamental AnalysisHK Tech And Education Stocks Extend Declines

HK Tech And Education Stocks Extend Declines

General trend

  • Nikkei has remained modestly higher[Topix Air Transportation and Banks indices outperform]; Mitsubishi Motors is due to report financial results.
  • Hang Seng continues to decline [HK TECH index extended drop; Banks trade generally higher]; Evergrande drops on special dividend news.
  • Shanghai Composite also pared decline [IT index rises over 4%; Property and Financial indices extend declines].
  • S&P ASX 200 has moved higher [Resources index outperforms after rise in copper prices, Bluescope Steel and OZ Minerals rise after corporate updates; Consumer indices decline].
  • Hynix trimmed gain amid Q2 results and outlook.
  • Companies due to report during the NY morning include Asbury Automotive, Archer-Daniels-Midland, Arch Resources, Armstrong World Industries, Boston Scientific, CIT Group, Centene, Ecolab, Fiserv, GE, Corning, Graphic Packaging, IQVIA, JetBlue, Lincoln Electric, Melco Resorts, 3M, MSCI, Paccar, PulteGroup, Polaris, Pentair, Rockwell Automation, Raytheon, Sherwin-Williams, Sirius XM, Sensata Technologies, Stanley Black & Decker, Teck Resources, TransUnion, UPS, Waste Management, Xerox.
  • RBA Dep Gov Debelle is due to speak on the FX Global Code at 12:35 PM GMT.
  • Australia Q2 CPI data is due on Wed (Jul 28th).

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened +0.2%.
  • (AU) Australia Treasurer Frydenberg is being ‘pushed’ to increase the federal government’s welfare support measures for those impacted by lockdowns – Australian press.
  • OZL.AU Reports Q2 Gold Production 57.9K oz v 68.7K oz y/y; Copper Production 32.7Kt v 24.6Kt y/y; Raises FY21 Gold Production 205-228K oz (prior 190-215K oz), Maintains Copper Production 120-145Kt, affirms AISC $1.30-1.45/lb.
  • BSL.AU Guides FY21 (A$) underlying EBIT ~1.72B, all operating results had significantly better results than FY20.
  • (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 100.7 v 104.3 prior (lowest since Nov 2020).

Japan

  • Nikkei 225 opened +0.3%.
  • 7203.JP Press notes that Toyota has turned into the lone voice quietly opposing a full shift to only electric vehicles (EV).
  • (JP) Japan MoF sells ¥500B v ¥500B indicated in 0.70% (prior 0.50%) 40-year JGBs, Yield at lowest accepted price 0.7350% v 0.710% prior, bid to cover: 2.72x v 2.80x prior.

Korea

  • Kospi opened +0.6%.
  • (KR) SOUTH KOREA Q2 PRELIMINARY GDP Q/Q: 0.7% V 0.8%E; Y/Y: 5.9% V 6.0%E (fastest pace in 10-years).
  • (KR) Bank Of Korea (BOK) Official Park: Domestic economy on track to grow in line with projections, outlook dependent on how coronavirus wave unfolds.
  • 000660.KR Reports Q2 (KRW) Net 2.0T v 1.26T y/y (2.0Te); Op 2.7T v 1.95T y/y (2.7Te); Rev 10.3T v 8.61T y/y (10.0Te).
  • (KR) South Korea extended the highest distancing measures of Level 4 in the Seoul metropolitan area for another two weeks through Aug 8th, as COVID cases continue to rise.
  • (KR) South Korea Fin Min Hong: To expand tax credits on research for microchips, batteries, and vaccine developments (yesterday after the close).
  • (KR) Said that Inter Korea communication lines have reopened [first time in 14 months] – Press.
  • (KR) South Korea Jun Retail Sales Y/Y: 11.4% v 12.9% prior.

China/Hong Kong

  • Hang Seng opened -0.7%; Shanghai Composite opened 0.0%.
  • 3333.HK Cancels special dividend proposal after taking into consideration the current market environment, the rights of the shareholders and creditors, and the long-term development of the various businesses under the Group.
  • (CN) China Vice Premier Liu: Calling for support for Small and Medium Business Development.
  • (CN) China Jun Industrial Profits Y/Y: 20.0% v 36.4% 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.
  • (CN) China PBOC sets Yuan reference rate: 6.4734 v 6.4763 prior.
  • (CN) China Securities Times: Fall in China stocks is temporary, overall fundamentals are unchanged.
  • (CN) China NDRC to cut retail fuel prices, effective Tues, July 27th.
  • (CN) China Foreign Min Wang Yi: China is opposed to Biden administration’s increased oppression of China; Call on US to remove all unilateral sanction and tariffs, up to US to make right choice for Sino-US relations.
  • (HK) Banks in Hong Kong have reduced margin loans related to China education stocks – press.

North America

  • TSLA Reports Q2 $1.45 adj v $0.90e, Rev $12.0B v $11.4Be; While we saw ongoing semiconductor supply challenges in Q2, we were able to further grow our production.
  • AMZN Denies they will accept Bitcoin this year, also denies it plans to launch a crypto coin in 2022 – press.
  • (US) June Port of Los Angeles 478K loaded inbound TEUs, +26.7% y/y, -12.7% m/m; Port of Long Beach 357K loaded inbound TEUs, +18.8% y/y, -19.7% m/m.
  • (US) SEMI June North America-based Manufacturers of Semi Equipment Billings: $3.67B, +2.3% m/m and +58.4% y/y.
  • (US) Follow up: Fed Chair Powell has gained support among senior Senate Democrats for re-election, though not Warren and Brown yet – US financial press.
  • LOGI Reports Q1 $1.22 v $0.64 y/y, Rev $1.31B v $791.9M y/y; Affirms FY22 guidance.

Europe

  • (CN) China Spokesperson: Hopes UK Can offer a fair environment for China companies.
  • (UK) UK said to consider easing rules for entry into country from EU and the US – FT.

Levels as of 01:15ET

  • Hang Seng -1.6%; Shanghai Composite -0.0%; Kospi +0.6%; Nikkei225 +0.5%; ASX 200 +0.5%.
  • Equity Futures: S&P500 -0.2%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 -0.1%.
  • EUR 1.1812-1.1799; JPY 110.41-110.18; AUD 0.7389-0.7370; NZD 0.7007-0.6986.
  • Commodity Futures: Gold -0.1% at $1,796/oz; Crude Oil +0.2% at $72.08/brl; Copper +0.0% at $4.59/lb.

 

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