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Equities Generally Pare Gains

General trend

  • Nikkei has remained modestly higher; Topix Iron & Steel, Electric Appliances, and Transport indices outperform.
  • HK/CN corporate earnings remain in focus; Financials lag after recently reported earnings (including ICBC and China Huarong) and press reports related to margin trading.
  • Shanghai Property index drops amid headline related to land auction rules, Vanke drops on profit decline; Industrial and Telecom Services indices outperform.
  • Hang Seng has moved slightly higher after the flat open; Meituan is expected to report results later today.
  • S&P ASX 200 Resources index rises on earnings from Fortescue; Financials lag amid lower 10-yr yields.

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.2%.
  • FMG.AU Reports FY21 Net $10.30B v $4.74B y/y; Underlying EBITDA $16.4B v $8.38B y/y; Rev $22.3B v $12.8B y/y.
  • PBH.AU Issues update on Arizona market access – Cliff Castle did not get sports betting license.
  • (NZ) Reserve Bank of New Zealand (RBNZ): Mortgage rates move with the OCR but it takes time.
  • (AU) AUSTRALIA Q2 CORP OP PROFIT Q/Q: 7.1% V 2.5%E; INVENTORIES Q/Q: 0.2% V 1.2%E.
  • (NZ) New Zealand PM Ardern: Confirms all areas outside of Auckland will leave coronavirus alert level 4 on Sept 1st, and move to level 3 on Sept 2nd.

Japan

  • Nikkei 225 opened +0.8%.
  • (JP) JAPAN JULY RETAIL SALES M/M: 1.1% V 0.4%E; Y/Y: 2.4% V 2.1%E.
  • 6502.JP Said that Western Digital’s proposal to acquire Kioxia has faced certain hurdles – press.
  • (JP) Japan Chief Cabinet Sec Kato: Not enough data to promote mixed-use of coronavirus vaccines.
  • (JP) Japan PM candidate Kishida will launch a large new economic stimulus package worth “several tens of trillion yen” if elected – press.

Korea

  • Kospi opened +0.9%.
  • (KR) South Korea is set to become the first country that will pass a law that will mandate free choice of app payment provider and end dominance of Apple and Google – press.
  • (KR) North Korea appears to have resumed operations at its Yongbyon nuclear reactor that produces plutonium – press.
  • (KR) South Korea said to set aside KRW6.3T in funds for new industries in next budget – Yonhap.

China/Hong Kong

  • Hang Seng opened 0.0%; Shanghai Composite opened +0.4%.
  • (CN) China Sec Daily: Certain cities in China have made changes to land auction rules in order to slow price gains.
  • 000002.CN Reports H1 (CNY) Net 11.1B v 12.5B y/y; Rev 167.1B v 146.4B y/y.
  • 9988.HK Tianjin SASAC has asked SOEs to move their data out of cloud systems belonging to Alibaba and Tencent to state-owned clouds within 2 months of their service expiring – Chinese press.
  • (CN) China PBOC sets Yuan reference rate: 6.4677 v 6.4863 prior.
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v CNY50B in 7-day reverse repos prior; Net inject CNY40B v Net Inject CNY40B prior.
  • (CN) China issues new guidelines on regulating the “chaotic” celebrity “fan-based economy”; platforms cannot publish popularity lists and sales of fan merchandise to be regulated.
  • (CN) China State Council announces plan targeting 55M urban jobs by 2025, capping unemployment rate at 5.5%; seeking stronger rights for workers and increase training – press.
  • (CN) China State Planner (NDRC) Official Gao: Confident in ability to achieve this year’s employment target, will be some challenges and difficulties in employment plan.

Other

  • (TW) Said that chipmakers in Taiwan are looking to sign long term agreements to secure profits – press.
  • (KW) Kuwait Oil Min al-Fares: OPEC+ could reconsider output increase – financial press.

North America

  • AAPL Reportedly CEO Cook plans to retire only after launching at least one more major Apple’s product – press.
  • PFE New Zealand reports first death of a woman related to getting her COVID vaccine – press.
  • (US) Hurricane Ida impacting state of Louisiana expected to see damages exceeding $40B according to some analysts – press.

Europe

  • (DE) Germany Social Democrats with 24% surpass Merkel’s CDU’s 21% in latest election poll – press.
  • (DE) GERMANY AUG CPI NORTH RHINE WESTPHALIA M/M: 0.1% V 0.8% PRIOR; Y/Y: 4.2% V 4.1% PRIOR.

Levels as of 01:15ET

  • Hang Seng +0.2%; Shanghai Composite +0.3%; Kospi +0.2%; Nikkei225 +0.5%; ASX 200 +0.2%.
  • Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.0%; FTSE100 market closed for holiday.
  • EUR 1.1810-1.1793; JPY 109.89-109.71 ;AUD 0.7319-0.7297; NZD 0.7015-0.6994.
  • Commodity Futures: Gold -0.0% at $1,819/oz; Crude Oil -0.3% at $69.56/brl; Copper +0.7% at $4.36/lb.

 

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