General trend
- Nikkei has rebounded from the opening decline [Topix Banks index supported by rise in UST yields; Information & Communication index also outperforms; Transports lag].
- Shanghai Composite ended morning trading approx. flat [Consumer indices lagged].
- Hang Seng has pared gain.
- S&P ASX 200 has lagged [Resources index drops].
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.1%.
- PEB.NZ Denies press speculation, board did not approve capital raise (erroneously released); process for approval to dual list as a Foreign Exempt Entity on the Australian Stock Exchange (ASX) is progressing well.
- (AU) Australia sells A$1.0B v A$1.0B indicated in 0.50% Sept 2026 bonds, avg yield 0.681%, bid to cover 6.08x.
- (AU) Reserve Bank of Australia (RBA) offers to buy A$800M in Semi Govt Bonds v A$1.0B prior.
- (NZ) Reserve Bank of New Zealand (RBNZ) has undertaken a thematic review of banks’ compliance with our liquidity policy, identifying a range of system, controls and risk management weaknesses as well as areas of good practice that the industry can learn from.
Japan
- Nikkei 225 opened -0.3%.
- (JP) JAPAN Q2 FINAL GDP Q/Q: 0.5% V 0.4%E; GDP ANNUALIZED Q/Q: 1.9% V 1.6%E.
- (JP) Japan LDP Leadership Candidate Kishida: Would retain bold monetary easing as leader, would revise the neo-liberal economic policy.
- (JP) Japan govt to extend virus emergency measures to end of Sept and gradually ease Covid restrictions starting in Oct – Japan press.
- (JP) Japan Chief Cabinet Sec Kato: Govt is considering specific plans on how to ease coronavirus restrictions on citizen activities.
- 6502.JP Updates on strategic review: To focus on enhancing corporate value, continuing to explore viability of strategic alternatives, including resolving issues related to privatization.
- (JP) Japan July Current Account: ¥1.91T v ¥2.29Te prior; Adj Current Account: ¥1.43T v ¥1.85Te.
- 9984.JP Speculation that yesterday’s announcement of a swap deal with Deutsche Telekom will lead to a buyback – press.
- 7203.JP Exec: Sees investment related to development of battery supply system and R&D to be ~¥1.5T by 2030; plans to use solid-state batteries in hybrid EVs (yesterday after the close).
Korea
- Kospi opened -0.3%.
- 005380.KR Denies press report that it was seeking to sell one of its plants in China.
- (KR) According to Woori Finance Research Institute, Bank of Korea (BOK) will raise interest rates by 25bps to 1.0% in November, to deal with concerns over financial imbalances and the recovery – Yonhap.
China/Hong Kong
- Hang Seng opened +0.2%; Shanghai Composite opened -0.1%.
- (CN) Quantitative trading in China comprises ~20% of total stock market turnover – China Securities.
- (CN) China People’s Daily: China to increase transparency of policies; To crackdown to better support companies in competition.
- (CN) China PBOC sets Yuan reference rate: 6.4674 v 6.4533 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 drain CNY40B prior.
- 3333.HK Fitch cuts China Evergrande Group rating 3 notches to CC from CCC+.
- (CN) China NDRC launches green power trading pilot work plan, 17 provinces to participate in power trading.
North America
- (US) Said that Senator Joe Manchin (D-WV) would support maximum $1.5T in spending plan.
- (US) EPA: continue to follow up with ongoing air releases at Exxonmobil Baton Rouge and Shell Norco facilities, also following up on several oil spills or reports of possible ones.
- (US) Fed’s Bullard said to be pushing for a quick taper after weaker than expect jobs data.
- BLK Said to have raised CNY6.7B for its first China mutual fund.
- PYPL To acquire Paidy a leading two-sided payments platform and provider of buy now, pay later solutions in Japan for ¥300B/$2.7B cash.
- (MX) Report of 7.4 magnitude earthquake reported near Guerrero, Mexico buildings shake in Mexico City, also a 6.9 magnitude reported; Tsunami threat issued.
- (US) NHC: Hurricane Larry continues toward the northwest over central Atlantic, likely to produce dangerous swells over western Atlantic coast this week.
Europe
- (FR) Insee sees French 2021 GDP at 6.25% (prior 6.0%), on the verge over moving past impact of COVID – French press.
- (UK) PM Johnson: Need to help the NHS recover; Confirms 1.25% health and social care tax; dividend income to be taxed 8.75% starting in April 2022 (prior 7.5%) – parliament comments (late EU yesterday).
Levels as of 01:20 ET
- Nikkei 225, +0.6%, ASX 200 -0.4% , Hang Seng -0.4%; Shanghai Composite -0.2% ; Kospi -0.9%.
- Equity S&P500 Futures: flat; Nasdaq100 flat, Dax flat; FTSE100 -0.4%.
- EUR 1.1851-1.1839 ; JPY 110.33-110.25 ; AUD 0.7405-0.7382 ;NZD 0.7115-0.7092.
- Gold flat at $1,799/oz; Crude Oil +0.2% at $68.45/brl; Copper -0.1% at $4.2698/lb.
