Equities Mostly Drop After US Declines

Sep 09 21, 06:10 GMT

General trend

US equity FUTS extend declines.
Nikkei has remained lower [Topix Securities, Air Transportation and Information & Communication indices decline; Utilities rise amid the focus on the LDP elections].
Hang Seng has extended decline [TECH index drops over 2% amid continued regulatory concerns; Ping An Insurance also declines]; Property developers’ bonds remain in focus [Evergrande, Central China Real Estate].
Shanghai Composite ended morning trading fractionally higher [IT and Financial indices lag; Property index rises].
S&P ASX 200 has extended declines [Resources and Financial indices weigh].
Taiwan Semi may release Aug sales later today.
China may release Aug banking statistics later today.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened 0.0%.
(NZ) New Zealand Aug ANZ Truckometer Heavy M/M: -18.1% v -1.0% prior.
(NZ) New Zealand Q2 Manufacturing Activity Q/Q: 3.9% v 2.7% prior; Volume Y/Y: -0.1% v +0.6% prior.
OBL.AU Updates on Brisbane Floods class action: Court finds Seqwater is not liable to class action, will consider appeal.
(AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$2.0B prior.
(AU) Australia total weekly payroll jobs change from July 31 to Aug 14th: -0.7% v -2.0% prior; Wages -1.0% v -2.7% prior.

Japan

Nikkei 225 opened -0.7%.
(JP) Japan Auto Lobby Chair Toyoda: Coronavirus pandemic could further squeeze production for carmakers in Oct.
(JP) Japan Vaccine Min Kono said to be announcing run for LDP Leadership on Friday (Sept 10th).
(JP) Japan Econ Min Nishimura: Confirms seeking to extend state of emergency restrictions in Tokyo and certain other areas through Sept 30th.
(JP) LDP leadership contender Takaichi: Will seek to achieve the 2% inflation target (yesterday after the close).
(JP) Japan Investors Net Buying of Foreign Bonds: +¥1.04T v -¥545.5B prior; Foreign Net Buying of Japan Stocks: ¥421.6B v ¥25.3B prior.
(JP) Japan Aug M2 Money Supply Y/Y: 4.7% v 4.1%e; M3 Money Supply Y/Y: 4.2% v 4.1%e.
(JP) Japan govt said to consider easing virus restrictions around Nov period – press.
(JP) Japan Health Official Omi: Calls on Govt to consider third coronavirus booster shots.
(JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.005% 5-year JGBs; avg yield -0.1030% v -0.1200% prior, bid to cover 4.42x v 3.76x prior.

Korea

Kospi opened -0.5%.
005380.KR Halted Asan Plant due to chip shortages, To resume ops on Sept 13th (Monday).
(KR) North Korea confirms held military parade to mark anniversary of country’s founding, unclear if it displayed new weapons or Leader Kim made a speech – Yonhap.
(KR) Bank of Korea (BOK): Raising policy interest rates will help trim household debt; Will gradually adjust monetary policy amid inflationary pressures – Quarterly Monetary Policy Report.
(KR) Bank of Korea (BOK) to expand special lending program to small businesses impacted by pandemic to KRW6.0T to March 2022.
(KR) South Korea sells 50-year bonds: avg yield 1.990% v 1.960% prior.

China/Hong Kong

Hang Seng opened -0.9%; Shanghai Composite opened -0.2%.
(CN) CHINA AUG CPI M/M: 0.1% V 0.5%E; Y/Y: 0.8% V 1.0%E; PPI Y/Y: 9.5% v 9.0%e.
(CN) Smaller cities in China including eastern city of Jiangyin’s housing bureau issued notice to ban developers from resorting to price war and selling properties below costs – China press.
(CN) China Vice Premier Hu Chunhua: China is seeking foreign investments in more areas; China Govt to continue opening up at a wider range and deeper level – Xinhua.
(CN) China Government regulators summon gaming firms including Tencent and Netease; Meeting will include including China cyberspace regulator.
(Cn)China NDRC Official Liu Xiaonan: An updated negative list will be published by year-end, which will include cuts to the number of items and will provide greater clarity on restrictions.
(CN) China Tinyan Capital Quantitative Hedge Fund halts fundraising after China CSRC Chairman says quant trading can cause problems.
(CN) China PBOC sets Yuan reference rate: 6.4615 v 6.4674 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 CNY0B prior.

North America

(US) Weekly API Crude Oil Inventories: -2.9M v -4.0M prior.
LULU Reports Q2 $1.65 v $1.21e, Rev $1.45B v $1.33Be; raises FY guidance.
(US) Fed’s Kaplan (non-voter; hawkish): Sees 2021 GDP 6.0% (prior 6.5%), will be revising Q3 GDP downward due to COVID; expect slower job growth moving forward; is no major change to outlook would support starting taper in Oct.
(US) US Treasury rejects debt prioritization on its borrowing limits.
TSN To increase beef prices; Rejects conclusions drawn by Whitehouse.

Europe

Levels as of 01:20 ET

Nikkei 225, -0.8%, ASX 200 -1.9% , Hang Seng -1.8%; Shanghai Composite +0.1%; Kospi -1.3%.
Equity S&P500 Futures: -0.4%; Nasdaq100 -0.3%, Dax -0.4%; FTSE100 -0.7%.
EUR 1.1825-1.1811 ; JPY 110.28-110.09 ; AUD 0.7370-0.7347 ;NZD 0.7108-0.7083.
Gold -0.2% at $1,789/oz; Crude Oil flat at $69.28/brl; Copper +0.2% at $4.243/lb.

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