Equities track gains on Wall St. amid Japanese holiday, US CPI was softer

11 Aug 2022, 15:03 · Views 132

Asia Market Update: Equities track gains on Wall St. amid Japanese holiday, US CPI was softer; Fed officials comment on the data; USD rebounds in Asia; US PPI due later today.

General trend

- Longfor Group [Chinese property developer] denied rumor related to overdue commercial paper.

- Ex-dividend weighs on Rio Tinto.

- Australian Telecom index rises following results from Telstra.

- US equity FUTs extend gains.

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs. [Note: US White House has reportedly for now set aside any plans to scrap certain China tariffs or to look into adding more; Biden yet to make any final decision – press].

- China may release bank lending data this week.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened +0.2%.

- (AU) Australia Aug consumer inflation expectation: 5.9% V 6.3% PRIOR.

- QBE.AU Reports H1 Cash profit $169M v $467M y/y; Rev $11.54B v $9.13B y/y.

- TLS.AU Reports FY22 (A$) Net 1.69B v 1.86B y/y; Underlying EBITDA 7.3B v 6.7B y/y; Rev 22.05B v 23.1B y/y.

- AMP.AU Reports H1 (A$) underlying net 117M v 181M y/y; Rev 1.11B v 1.30B y/y, to return A$1.1B in capital through FY23.

- (AU) Australia Trade Min Farrell to meet with US Trade Rep Tai on Thursday.

Japan

- Nikkei 225 closed for holiday.

- (JP) Japan PM Kishida: Did carry out a Cabinet reshuffle; Open to dialogue with China (yesterday after the close).

- 7267.JP Reports Q1 Net ¥149.2B v ¥222.5B y/y, Op ¥222.2B v ¥243.2B y/y, Rev ¥3.83T v ¥3.58T y/y; To buy back up to ¥100B in shares (1.9% of market cap); Raises outlook for Op profit and Revenues; Exec: Expects chip shortage to last though this fiscal year; May consider Japan price hikes, watching competitors - post earnings comments (yesterday after the close).

Korea

- Kospi opened +1.1%.

- (KR) South Korea Aug 1-10 Exports Y/Y: 23.2% v 4.7% prior; Imports Y/Y: 34.1% v 14.1% prior; Chip exports Y/Y: -5.1% v +10.4% prior.

China/Hong Kong

- Hang Seng opened +1.2%; Shanghai Composite opened %.

- 960.HK Denies overdue commercial paper rumor, confirmed it settled the commercial paper without deferring payment.

- (CN) Economic Daily: China will diffuse property risks as well as protect consumers.

- (CN) China PBOC sets Yuan reference rate: 6.7324 v 6.7612 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v Net CNY0B prior.

Other

- (SG) Singapore Q2 FINAL GDP Q/Q: -0.2% V +0.2%E; Y/Y: 4.4% V 4.8%E; Narrows 2022 GDP outlook to 3-4% (prior 3-5%).

- (SG) Singapore Central Bank (MAS) Deputy MD Robinson: Current policy stance remains appropriate; Core CPI to rise a bit in Q3.

- (SG) Singapore Ministry of Trade and Industry (MTI) Yong Yik Wei: Do not expect a technical recession in 2022; Expect slight positive GDP in Q3 and Q4.

North America

- (CN) White House has reportedly for now set aside any plans to scrap certain China tariffs or to look into adding more; Biden yet to make any final decision – press.

- (US) JULY CPI M/M: 0.0% V 0.2%E; Y/Y: 8.5% V 8.7%E (annual pace matches lower end of all analysts' estimates).

- (US) Treasury Sec Yellen: New funds for the IRS should not increase audits for those who make less than $400K/year.

- (MX) Mexico authorizes emergency measures to transport certain products via train to help against higher cargo costs and inflation.

- (US) Fed's Daly: Too early to declare victory on inflation, CPI is still far too high; 50bps rate hike in Sept 'baseline'; Expresses initial support on slower rate increase pace - FT.

Europe

- (UK) July RICS House Price Balance: 63% v 60%e (lowest since Feb 2021).

Levels as of 00:15ET

- Hang Seng +1.9%; Shanghai Composite +1.2%; Kospi +1.3%; Nikkei225 closed for holiday; ASX 200 +0.9%.

- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.4%; FTSE100 +0.2%.

- EUR 1.0305-1.0281; JPY 133.32-132.62; AUD 0.7088-0.7063; NZD 0.6413-0.6385.

- Commodity Futures: Gold -0.7% at $1,800/oz; Crude Oil -0.4% at $91.53/brl; Copper +0.4% at $3.65/lb.

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