Thu, Sep 23, 2021 @ 07:05 GMT
HomeContributorsFundamental AnalysisAsia Trades Generally Lower, HK And CN Markets Remain Volatile

Asia Trades Generally Lower, HK And CN Markets Remain Volatile

General trend

  • Australia core CPI remains below RBA’s target range (2-3%); Aussie yields track decline in UST yields.
  • US equity FUTs pared declines amid Tech earnings (Apple, Alphabet, Microsoft).
  • Hang Seng has moved between gains and losses after the higher open [TECH index pared over 2% rise; Education firms trade generally higher after the prior losses; Property firms also trade generally higher].
  • Shanghai Composite pared decline after dropping 2% [Consumer Staples, IT and Industrial indices pared losses; Financials rise].
  • Nikkei has remained lower [Decliners included TOPIX Information & Communication index; Iron & Steel index rises]; Mitsubishi Motors rises after results/guidance.
  • S&P ASX 200 has also declined [Decliners include Energy, Resources and Financial indices].
  • Taiex declines amid focus on earnings (Apple, MediaTek); UMC is due to report later today.
  • Samsung is due to release final Q2 results on Thursday (Jul 29th).
  • Companies due to report during the NY morning include ADP, Amphenol, Avery Dennison, Boeing, Bunge, Bristol-Myers, Cameco, CME, Evercore, General Dynamics, Generac, Garmin, Hess, Humana, McDonald’s, Moody’s, Norfolk Southern, Owens Corning, Penske Auto, Pfizer, Ryder System, Radware, Steven Madden, Shopify, Six Flags, Silicon Labs, Silgan Holdings, Spotify, TE Connectivity, Teva, Tilray, Thermo Fisher, Wingstop , Yandex.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • (AU) AUSTRALIA Q2 CPI Q/Q: 0.8% V 0.7%E; Y/Y: 3.8% V 3.7%E; CPI Trimmed Mean (core) Q/Q: 0.5% v 0.5%e; Y/Y: 1.6% v 1.6%e.
  • SKI.AU Receives revised proposal to acquire company at implied A$2.95/shr from Ontario Teachers’ Pension Plan Board and Kohlberg Kravis Roberts ; To further engage with offerors.
  • (AU) Lockdown in Sydney to be extended by 4-weeks through August 28th (as expected).
  • (AU) CBA: Sees the RBA rate hike pushed back until May 2023 (prior late 2022) due to Sydney lockdown.

Japan

  • Nikkei 225 opened -1.1%.
  • (JP) Bank of Japan (BOJ) Jul Summary of Opinions: Japan’s economy has picked up as a trend, although it has remained in a severe situation due to the impact of COVID.
  • (JP) Bank of Japan Gov Kuroda: Buying Green bonds with FX reserves is not monetary policy; BOJ targeting 2% inflation resulted in Japan’s economy no longer being in deflation (yesterday after the close).

Korea

  • Kospi opened -0.2%.
  • (KR) South Korea July Consumer Confidence: 103.2 v 110.3 prior (1st decline this year).
  • 034220.KR Reports Q2 (KRW) Net +424B v -504B y/y, Op 701B v -517B y/y; Rev 7.0T v 5.3T y/y.
  • (KR) South Korea Fin Min Hong: Govt to monitor speculative actions in the property market; To try to increase supplies in market.
  • (KR) South Korea reports record 1,896 additional coronavirus cases (record high).

China/Hong Kong

  • Hang Seng opened +1.1%; Shanghai Composite opened -0.8%.
  • (HK) China could impose an anti-sanctions law on Hong Kong, expected to start process in August, which will create complications for multinationals – SCMP.
  • (CN) Said that China may expand domestic demand with newly proposed policies in H2 – Press.
  • (CN) Said that China is preparing fiscal spending during Q3 in order to support the economy – Press.
  • (CN) China government reportedly digging a new field for ‘what appears to be 110 silos for launching nuclear missiles’ – NYT.
  • 522.HK Reports Q2 (HK$) Net 730.6M v 365.8M y/y; Rev 5.18B v 4.32B y/y.
  • (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: 6.4929 v 6.4734 prior.

North America

  • MSFT Guides Q1 Rev $43.3-44.3B (implied) v $42.2Be – earnings call comments.
  • AAPL Reports Q3 $1.30 v $1.00e, Rev $81.4B v $73.1Be; Guides Q4 strong double digit y/y Rev growth, but lower than June quarters’ 36%, citing stronger dollar and more significant supply constraints for iPhone and iPad – earnings call.
  • AMD Reports Q2 $0.63 v $0.54e, Rev $3.85B v $3.60Be; Says growing significantly faster than the market with strong demand across all of our businesses.
  • GOOGL Reports Q2 $27.26 v $19.89e, Rev $51.0B v $46.1Be, Operating Margin 31% v 17% y/y.
  • SBUX Reports Q3 $1.01 v $0.77e, Rev $7.5B v $7.23Be.

Europe

  • CSGN.CH Details of Archegos investigation could be released as soon as Thursday (also scheduled to report earnings this day), expected to focus on risk management problems and human errors – press.

Levels as of 01:15ET

  • Hang Seng +0.1%; Shanghai Composite -0.5%; Kospi -0.6%; Nikkei225 -1.7%; ASX 200 -0.7%.
  • Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.3%; FTSE100 -0.2%.
  • EUR 1.1828-1.1813; JPY 109.92-109.75; AUD 0.7376-0.7352; NZD 0.6970-0.6949.
  • Commodity Futures: Gold +0.3% at $1,804/oz; Crude Oil +0.5% at $71.97/brl; Copper +0.3% at $4.57/lb.
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