Little Initial Impact Seen From NZ Inflation Expectations Data

Aug 12 21, 05:59 GMT

General trend

Nikkei has pared gain [Topix Marine Transportation index outperforms]; Companies expected to report earnings include Toshiba, JFE Holdings, McDonald’s Japan, Yamato Holdings, Trend Micro, Recruit Holdings].
Equity markets in China have remained modestly lower; Shanghai Consumer Staples index drops.
Li Auto declines in HK debut.
Hong Kong earnings remain in focus [Li Ning, Baidu, China Mobile, Galaxy Entertainment, WH Group, Swire Pacific, MTR, Hua Hong Semi].
S&P ASX 200 is flat amid earnings; Telecom index rises on earnings from Telstra; Consumer Staples supported by Graincorp’s guidance; Rio Tinto weighed down by ex-dividend.
Hon Hai expected to report earnings.
Companies due to report during the NY morning include Broadridge Financial, Canadian Solar, CyberArk, National Vision Holdings, iQiyi, Palantir, Carrols Restaurant,
China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
(NZ) New Zealand Q3 Inflation Expectation Survey: 2-year Outlook: 2.3% v 2.1% prior; 1-year inflation expectations: 3.0% v 1.9% prior.
QBE.AU Reports H1 Cash profit $467M v -$682M y/y; Rev $9.13B v $7.99B y/y.
TLS.AU Reports FY21 (A$) Net 1.86B v 1.82B y/y; Underlying EBITDA 6.7B v 7.4B y/y; Rev 23.1B v 26.2B y/y, To begin A$1.35B on market buyback.
NAB.AU Reports Q3 (A$) Cash profit 1.70B v 1.55B y/y.
(AU) Australia Aug Consumer Inflation Expectations: 3.3% v 3.7% prior.
(AU) Sydney (New South Wales) to strengthen lockdown for an additional 3 areas.
(NZ) Reserve Bank of New Zealand (RBNZ) sells NZ$265M in LGFA bonds in QE auctions v NZ$270M sought.

Japan

Nikkei 225 opened +0.4%.
(JP) Japan July PPI (CGPI) M/M: 1.1% v 0.5%e; Y/Y: 5.6% v 5.0%e.
(JP) Japan govt reportedly considering expanding areas that are under a virus state of emergency; May extend current Covid emergency measures to the end of Sept – press.
(JP) Fitch affirms Japan sovereign rating at A; outlook negative.

Korea

Kospi opened -0.2%.
(KR) Foreign investors remained net sellers of South Korea equities in July – Yonhap.

China/Hong Kong

Hang Seng opened -0.1%; Shanghai Composite opened -0.3%.
(CN) China said to be urging local authorities to buy Chinese products under procurement guidelines for high-tech items – Nikkei.
(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: 6.4754 v 6.4831 prior.
(CN) China Industry Ministry (MIIT): Automakers should strengthen data protection in autos; Issues guidelines on Smart Vehicle Management.
(CN) CHINA JULY NEW YUAN LOANS (CNY): 1.080T V 1.200TE.
(CN) CHINA JULY AGGREGATE FINANCING (CNY): 1.060T V 1.70TE.
(CN) CHINA JULY M2 MONEY SUPPLY Y/Y: 8.3% V 8.7%E.

Other

ST.SG Reports Q1 (S$) Net 451M v 345M y/y; EBTIDA 997M v 897M y/y; Rev 3.80B v 3.54B y/y.

North America

NIO Reports Q2 (CNY) ADS -0.21 v -1.08 y/y, Rev 8.45B v 3.72B y/y, Total deliveries 21.9K v 20.1K q/q v 10.3K y/y.
(US) Treasury Sec Yellen said to be considering a trip to China in the coming months – press.
(US) Fed’s Daly (non-voter, dove): Reiterates may start asset purchase tapering by end of year – FT.

Europe

Levels as of 01:15ET

Hang Seng -0.4%; Shanghai Composite -0.2%; Kospi -0.2%; Nikkei225 -0.1%; ASX 200 -0.1%.
Equity Futures: S&P500 -0.0%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 +0.1%.
EUR 1.1746-1.1734; JPY 110.46-110.32; AUD 0.7377-0.7362; NZD 0.7048-0.7030.
Commodity Futures: Gold +0.0% at $1,753/oz; Crude Oil +0.0% at $69.28/brl; Copper +0.9% at $4.41/lb.