Asian Market Update: Equity markets trade mixed after a similar session in the US; The PBOC stepped up the cash injection; The ECB refuted a press article.
– Improving US retail sales was the focus of the NY session.
– Hang Seng bounced back from the opening drop [TECH index rises; Financials trade generally lower amid drop in Ping An Insurance; Property names trade mixed, Evergrande extends decline].
– The Shanghai Composite closed its morning trading at -0.6% [Industrials index lags; Consumer Staples index rises].
– Nikkei stayed slightly higher [Topix Marine Transportation index rises after guidance from Maersk].
– S&P ASX 200 is late [Resources index declines; China ore FUTs drop over 5%; Broker downgrade weighs on Fortescue].
Titles / Economic data
Australia / New Zealand
-ASX 200 open flat.
– (AU) Australia sells AU $ 1.5 billion against AU $ 1.5 billion shown in April 2033 bonds at 4.50%, average yield 1.3394%, offer to cover 3, 88x.
– (AU) Australia is seeking a WTO dispute settlement panel on wine tariffs in China.
– (AU) Reserve Bank of Australia (RBA): Excess liquidity on exchange settlement accounts (ES) at A $ 362.6 billion compared to A $ 360.2 billion previously.
– (NZ) Reserve Bank of New Zealand (RBNZ) to release Deputy Governor Hawkesby’s speech on September 21 on ‘Least regrets’ policy [**Reminder: Aug 18th RBNZ Monetary Policy Statement said: The Committee agreed that their least regrets policy stance is to further reduce the level of monetary stimulus so as to anchor inflation expectations and continue to contribute to maximum sustainable employment.].
– (NZ) New Zealand’s August manufacturing PMI: 40.1 versus 62.2 previously (1st contraction in 8 months); The manufacturing sector has returned to contraction following another national lockdown; any move towards resuming the sector’s expansion will ultimately depend on how quickly Auckland can revert to lower alert levels as well.
– (NZ) New Zealand End Min Robertson: Extended break from the Trans-Tasman travel bubble for 8 weeks.
China / Hong Kong
-Hang Seng opened -0.3%, Shanghai Composite -0.3%.
– (CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repurchase agreements against CNY10B in 7-day reverse repurchase agreements; Sells CNY50B on 14 day reverse repurchase agreement against CNY0B previously; Net inject CNY90B v Net CNY0B before; Inject CNY50B vs. CNY0B before in 14-day reverse ratios at 2.35% vs. 2.35% before [first 14-day operation since Feb 5th].
– (CN) PBOC: The purpose of today’s transaction is to keep liquidity stable at the end of the quarter.
– (CN) Chinese Ministry of Commerce (MOFCOM): US and Chinese economic teams maintained communications; The American and Chinese sales teams are in normal contact; Will work to implement the agreements between Xi and Biden.
– (CN) China has said it is extending the tariff exemption on some 81 American products until April 16, 2022 – press.
– (CN) China August Foreign direct investment (FDI) YTD Y / Y: 22.3% against 25.5% previously.
– (CN) China submits application to join Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP) – press.
– (CN) China PBoC and Central Bank of Russia are reportedly discussing deepening banking – financial press cooperation.
– (CN) Joint statement by the United States and Australia: The countries share their concerns over China’s claims in the South China Sea and will strengthen their ties with Taiwan.
– (CN) China is determined to stabilize coal prices – Economic Daily.
– (CN) Chinese Vice Premier Liu He: China will increase the consumption of electric vehicles.
– CN) Chinese Vice Minister of Transport Wang: China will cover 80% of all highways with electric vehicles (EVs) by 2025.
– (CN) Said vaccine producers in China have started offering booster shots from this month, will start vaccinating some groups until November – Press.
– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.4527 against 6.4330 previously.
– (CN) Chinese trade-weighted CFETS yuan basket index hits highest since March 2016 – financial press.
– (CN) The Chinese Ministry of Finance (MOF) sells 3-month bills and 30-year bonds.
– (HK) China PBOC will sell CNY5B in 6 month bills in Hong Kong on September 24 (Friday).
– (CN) Wanjia Enhanced Income Bond Fund [161911.CN] said stop trading in Shenzhen – US financial press.
-Fantasia Holdings [property co., 1777.HK]: Fitch lowers the grade from B + to B; Negative outlook.
– (HK) Hearing, various names of HK properties have been downgraded by an American broker (including Times China and China Aoyuan).
-Nikkei 225 opened + 0.2%.
– (JP) BOJ: Japan End of June (Q2) Household assets: 1.992Q, + 6.3% y / y; BoJ’s holdings in JGB: 44.1% vs. 44.5% previously – Quarterly report on fund flows.
– (JP) Candidates Kono, Kishida, Noda and Takaichi have registered for the LDP leadership race [in line].
– (JP) Japan LDP Candidate for the Takaichi leadership: Nuclear energy is necessary to achieve the zero carbon objective – Press.
– (JP) Japan has decided to offer a third vaccine against the coronavirus (booster) – Press.
– (JP) Japan Econ Min Nishimura: Need to determine whether China meets the standards to enter CPTPP.
-Kospi opened -0.1%.
– (KR) Said North Korea could increase nuclear weapons capacity at uranium factory – Press.
– * (SG) SINGAPORE AOT DOMESTIC NON-OIL EXPORTS M / M: -3.6% V + 2.4% E; Y / Y: 2.7% V 8.5% E; NODX to China and the EU 27 has declined.
– (US) AOT ADVANCE RETAIL SALES M / M: + 0.7% V -0.7% E; RETAIL SALES (EX-AUTO) M / M: 1.8% V 0.0% E.
– (US) President Biden spoke with House Speaker Pelosi (D) and Senate Division Chief Schumer (D): Agreed on the need to repeal the tax cuts from the Trump era – US financial press.
– (US) Said Senator Manchin (D-WV) was not persuaded to vote for a $ 3.5T infrastructure bill [in line] – Hurry.
– (BR) Brazil has said it is considering increasing the IOF tax (financial transaction) to finance Auxilio Brasil (new social program) – Local press.
– (EU) The ECB notes that FT’s story regarding a potential rate hike is not accurate; The conclusion on rates is not consistent with the forward guidance.
– (EU) The inflation estimate not published by the ECB increases the chances of a rate hike in just over 2 years; Plans to reach 2% inflation target by 2025 – Financial Times.
– (United Kingdom) Dutch Prime Minister Rutte reportedly invited the United Kingdom to join the [defense] dealing with the EU – UK’s Times.
– (UK) Chancellor Rishi Sunak plans to use next month’s budget to set new rules to rule government borrowing – FT.
– (EU) The European Commission has announced the renewal of a series of anti-dumping duties on Chinese and Taiwanese exporters of flat-rolled stainless steel products.
-Invesco [IVZ.UK]: Invesco reportedly in talks to merge with State Street’s asset management division – press.
-Maersk [MAERSKB.DK]: Guides Q3 adj EBIT close to $ 6.0B, adj EBITDA close to $ 7B versus $ 2.3B y / y; Identifies prospects FY21.
Levels at 1:20 ET
– Nikkei 225, + 0.6%, ASX 200 -0.8%, Hang Seng + 0.7%; Shanghai Composite -0.6%; Kospi + 0.3%.
– S & P500 equity futures: + 0.1%; Nasdaq100 + 0.1%, Dax + 0.1%; FTSE100 flat.
– 1.1773-1.1758 euros; 109.91-109.66 JPY; AUD 0.7302-0.7280; NZD 0.7083-0.7059.
– Gold + 0.2% at $ 1,759 / oz; Crude oil -0.2% to $ 72.47 / brl; Copper + 0.5% at $ 4.305 / lb.