Equities Mixed After Similar Session On Wall Street

Sep 02 21, 06:56 GMT

General trend

Nikkei has remained slightly higher, currently trades near the opening level [Topix Banks and Information & Communication indices rise; Airlines and Steelmakers lag].
Shanghai rebounded from the opening decline, ended morning trading +0.6% [Property index extends gain; Industrials index rises over 1%; Consumer Staples and IT indices lag].
Hang Seng has pared gain [Financials trade generally lower, Ping An Insurance declines].
S&P ASX 200 has lagged and remained lower [Resources index weighed down by BHP ex-dividend].

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.4%.
(NZ) New Zealand Q2 Terms of Trade Index Q/Q: 3.3% v 0.3%e.
(AU) Australia July Home Loans Value M/M: +0.2% v -0.2%e; Investment lending M/M: 1.8% v 0.7% prior.
(AU) Australia July Trade Balance (A$): 12.1B v 10.0Be (record high); Exports to China A$19.4B , +72% y/y (record high).
(AU) ANZ expects RBA to delay plans to taper bond buying (which was planned to start in Sept) at rate decision next week.

Japan

Nikkei 225 opened +0.3%.
(JP) Bank of Japan (BOJ) Board Member Kataoka [dovish dissenter]: Need to watch downside risks to global economy; BOJ must strengthen forward guidance on interest rate targets, stronger easing needed.
(JP) Japan considering extending COVID emergency by 2 weeks past the Sept 12th planned lifting – Japan press.
(JP) Japan LDP Leadership Candidate Kishida: Must compile and economic stimulus package to get public cooperation in containing the flow of people and increasing hospital beds.
(JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0230% v 0.0090% prior; bid to cover: 3.36x v 3.33x prior.

Korea

Kospi opened -0.3%.
(KR) South Korea Aug auto sales 544.9K units, -4.5% y/y (decline attributed to chip shortages).
(KR) SOUTH KOREA Q2 FINAL GDP Q/Q: 0.8% V 0.7%E; Y/Y: 6.0% V 5.9%E (confirms fastest annual pace in 10-years).
(KR) Bank of Korea (BOK) Gov Lee: Our economy showed a faster than expected recovery in the first half thanks to aggressive policy responses and a global economic recovery.
(KR) SOUTH KOREA AUG CPI M/M: 0.6% V 0.4%E; Y/Y: 2.6% V 2.4%E (5th consecutive month above target).

China/Hong Kong

Hang Seng opened +0.7%; Shanghai Composite opened -0.2%.
388.HK CEO: IPO pipeline is still strong, have about 20 companies in the 18a biotech.
(CN) China to increase support for smaller businesses and enhance cross cyclical adjustment – regional press.
(CN) China Sec Journal: PBOC will address the Sept funding gap; Liquidity in money markets to remain ‘reasonably ample’.
(CN) Surprise contraction in the China Aug Caixin Mfg PMI has sparked talk about support for the manufacturing sector – China Daily.
(CN) China PBOC sets Yuan reference rate: 6.4594 v 6.4680 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY50B in 7-day reverse repos prior; Net drain CNY40B v Net drain CNY40B prior.

Other

OPEC+ producers confirm agree to keep production road map of 400K bpd capacity increase in Oct.
(TW) Taiwan proposed consumption vouchers of NT$5.000/person are expected to help boost GDP to as high as 6% – Taiwan press.

North America

AAPL Said that company is in talks with Japan and South Korea suppliers for new Apple Car – Press.
(US) New York, New Jersey seeing record levels of rainfall, causing flooding and power outages, tornado touchdowns in South Jersey, as remnants of Ida make their way north.
AAPL To make update to App Store that will close investigation by the Japan Fair Trade Commission.
AAPL Japan FTC: Future anti-monopoly investigation into Apple App games is possible.
PFE (US) FDA advisory panel (VRBPAC) to hold meeting about vaccine boosters on Sept 17th (HHS previously noted their preparedness to begin rolling out COVID-19 booster vaccines beginning week of September 20).
GOOGL DOJ reportedly preparing antitrust lawsuit over ad technology business; Would be a second separate antitrust suit against Google – press.
CHWY Reports Q2 Net -$16.7M v -$32.8M y/y, Rev $2.16B v $2.17Be.

Europe

(EU) US considering a quota system in an attempt to end EU dispute on steel tariffs – press.
(UK) Press notes that newly named BOE chief economist Huw Pill, is considered a “hawk” – FT.

Levels as of 01:15ET

Hang Seng +0.1%; Shanghai Composite +0.6%; Kospi -1.0%; Nikkei225 +0.3%; ASX 200 -0.8%.
Equity Futures: S&P500 -0.0%; Nasdaq100 +0.0%, Dax -0.2%; FTSE100 -0.1%.
EUR 1.1846-1.1835; JPY 110.11-109.92; AUD 0.7374-0.7355; NZD 0.7073-0.7355.
Commodity Futures: Gold -0.2% at $1,812/oz; Crude Oil -0.4% at $68.31/brl; Copper +0.3% at $4.29/lb.