General trend
- NZ 2-yr yield rose ahead of RBNZ meeting, later reversed rise amid COVID news and decline in rate hike probability.
- NZD declines as NZ reported first COVID case since Feb.
- Little initial bond market impact seen from RBA minutes.
- S&P ASX 200 lags amid focus on earnings and ex-dividends [Ex-dividends weigh on Financials index, BHP declines ahead of earnings report; Travel-sensitive firms decline amid NZ COVID news].
- Nikkei pared the opening gain [TOPIX Marine Transportation index rises over 3%, Iron & Steel and Air Transportation indices lag].
- Shanghai Composite ended morning trading lower by ~0.5% [Consumer and IT indices decline]; the index extended drop during the afternoon session.
- Hang Seng has remained lower [TECH index drops over 2%].
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%.
- (AU) RESERVE BANK OF AUSTRALIA (RBA) JULY MEETING MINUTES: Delta variant has interrupted the recovery, prepared to act in response to further bad news, reiterates don’t expect rate hike conditions to be met util 2024.
- STO.AU Reports H1 Net +$354M v -$289M y/y; EBITDAX $1.2B v $995M y/y; $2.04B v $1.67B y/y; Affirms FY production.
- SGM.AU Reports FY21 (A$) underlying Net 284.1M v -58.1M y/y; underlying EBITDA 579.9M v 144.9M y/y; Rev 5.92B v 4.91B y/y.
- (NZ) New Zealand to investigate COVID case in Auckland (1st case since Feb).
Japan
- Nikkei 225 opened +0.5%.
- (JP) Japan Govt confirms to seek an extension of coronavirus emergency in Tokyo through Sept 12th, to extend state of emergency to 7 additional prefectures.
- (JP) Japan Econ Min Nishimura: COVID spreading at a pace not seen before, will ask shopping malls to restrict entry.
Korea
- Kospi opened -0.0%.
- (KR) Bank of Korea (BOK) sells KRW210B v KRW300B indicated in 6-month Monetary Stabilization Bonds (MSB) avg yield: 0.85% v 0.76% prior.
- 034220.KR To invest KRW3.3T on small-midsize OLED facilities between Aug 2021 and Mar 2024.
China/Hong Kong
- Hang Seng opened -0.2%; Shanghai Composite opened -0.2%.
- (CN) China Market Regulator (SAMR) Has issued draft rules on banning unfair competition in the internet sector of the economy.
- (CN) China PBOC sets Yuan reference rate: 6.4765 v 6.4717 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 Sec Journal: Analysts believe that China PBOC is likely to cut RRR during Q4.
- (CN) Beijing Municipal Education Commission reiterated target to double its reduction policy.
Other
- (SG) SINGAPORE JULY NON-OIL DOMESTIC EXPORTS M/M: -0.9% V -1.7%E; Y/Y: 12.7% V 12.0%E; Electronic Exports Y/Y: 15.0% v 25.5% prior.
North America
- (US) Fed’s Rosengren (non-voter): I believe substantial further progress standard on inflation has been met – CNBC interview.
- UMC Said to be increasing prices by ~10% in Nov, would mark the 4th increase in prices during 2021 – Press.
- (CN) US SEC chairman Gensler issues most direct warning to date about risks of investing in China companies.
- (US) Said that the US will advise coronavirus vaccine boosters to be taken 8 months after vaccination, could offer boosters to nonimmune compromised individuals in mid-Sept. – NYT.
Levels as of 01:15ET
- Hang Seng -1.0%; Shanghai Composite -0.9%; Kospi -0.7%; Nikkei225 -0.0%; ASX 200 -1.1%.
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.1%, Dax -0.3%; FTSE100 -0.2%.
- EUR 1.1781-1.1767; JPY 109.36-109.21; AUD 0.7341-0.7304; NZD 0.7031-0.6944.
- Commodity Futures: Gold -0.1% at $1,788/oz; Crude Oil 0.00% at $67.05/brl; Copper -0.0% at $4.33/lb.
