TradeTheNews.com Staff
TradeTheNews.com
Asia Market Update: Chinese property and bank indices extend declines; CN property market and growth concerns remain in focus; China data was mixed.
General trend
- China traded metals move sharply lower on growth and property market worries.
- USD trades mixed ahead of upcoming US data [including retail sales].
- Equity markets trade mixed; Chinese and Australian indices lag.
- Financials decline amid US bank earnings, China concerns.
- Shanghai Property index drops over 4% amid mortgage payment boycott concerns; China’s new home prices also continue to fall.
- Chinese Consumer indices supported by better retail sales.
- Hang Seng Tech index again weighed down by regulatory concerns [Alibaba].
- Nikkei 225 outperforms after results from Fast Retailing.
- Australian Resources index drops on China concerns; Rio Tinto declines after issuing quarterly production update.
- US equity FUTs rise.
- Taiwan Semi and Fast Retailing rise following earnings reports.
- Companies due to report during the NY morning include UnitedHealth, Wells Fargo, BlackRock, Citigroup, Bank of NY.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.4%.
- (NZ) New Zealand Jun Manufacturing PMI: 49.7 v 52.6 prior (1st contraction in 10 months).
- (AU) Australia sells A$700M v A$700M indicated in 4.75% Apr 2027 bonds; Avg Yield: 3.1454% v 2.9758% prior; bid-to-cover: 3.99x v 3.29x prior [from May 20th].
Japan
- Nikkei 225 opened +0.3%.
- Toyota Motors 7203.JP Said to have delayed launch of Crown Sedan due to parts shortages - Nikkei.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan Industry Minister: Aiming to have 9 nuclear reactors ready by winter due to adjusting construction and inspection time frames.
Korea
- Kospi opened +0.3%.
- Hynix 000660.KR Said to consider cutting CAPEX by up to 25% to KRW16.0T for 2023; notes slower demand for electronics - Press.
- (KR) South Korea President Yoon: Calling for pre emptive measures against spreading financial risks.
- (KR) South Korea President Yoon approval rating 32% v 37% prior - Gallup poll.
China/Hong Kong
- Hang Seng opened -1.1%; Shanghai Composite opened -0.6%.
- (CN) China Q2 GDP Q/Q: -2.6% V -2.0%E (Slowest since Q1 2020); Y/Y: 0.4% V 1.2%E.
- (CN) China Jun YTD Residential Property Sales Y/Y: -31.8% v -34.5% prior.
- (CN) China Jun industrial production Y/Y: 3.9% V 4.1%E; YTD Y/Y: 3.4% V 3.5%E.
- (CN) China Jun Surveyed Jobless Rate: 5.5% v 5.7%e.
- (CN) China Jun Retail Sales Y/Y: 3.1% V 0.3%E; YTD Y/Y: -0.7% V -1.2%E.
- (CN) China Jun YTD property investment Y/Y: -5.4% V -4.2%E.
- (CN) China Jun fixed urban assets YTD Y/Y: 6.1% V 6.0%E.
- (CN) China June electricty consumption 745.1B KWh, +4.7% y/y; Production 709.0B KWh, +1.5% y/y.
- (CN) China Securities Daily expects foreign purchases of A-shares to increase during H2; notes economic recovery in China, market liquidity conditions - China Press.
- (CN) China National Bureau of Statistics (NBS): Downward pressure on the domestic economy rose substantially during Q2; Foundation for sustained economic recovery is 'not solid'; Challenges in achieving full year GDP target.
- (CN) China conducts CNY100B VS. CNY100B maturing in 1-year medium-term lending facility (MLF) AT 2.85% VS. 2.85% prior.
- (CN) China Jun NEW HOME PRICES M/M: -0.1% V -0.2% PRIOR (10TH STRAIGHT DECLINE); Y/Y: -0.5% V -0.1% PRIOR.
- (CN) Shanghai reports 45 coronavirus cases v 47 prior, 0 outside of quarantine; Adds 30 high to Mid risk areas to lockdown.
- (HK) Hong Kong buys HK$5.3B to defend currency peg.
- (CN) China PBOC sets Yuan reference rate: 6.7503 v 6.7265 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY3.0B in 7-day reverse repos v CNY3.0B prior; Net CNY0B v Net CNY0B prior.
- (CN) China Foreign Min Wang Yi: Relations with Australia face challenges and opportunities, China willing to re calibrate relations in spirit of mutual respect.
- (CN) Zhuhai has halted quarantine hotel bookings for visitors from Macau - Press.
North America
- (US) Senator Manchin (D-WV): Will not support any new climate spending or tax increases - WaPo.
- Amazon [AMZN]: Said to be considering closing private label business due to regulatory and weak sales reasons - Financial Press.
Europe
- (EU) Reportedly EU readying to raise Ukraine weapons financing to €2.5B - press.
- (IT) Italy president rejects PM Draghi's resignation; Asks Draghi to address parliament to 'gauge political situation' - Italian press.
- *(IT) Italy PM Draghi to resign; Five Star Party's non-participation in confidence vote 'was very significant from a political point of view' - statement.
Levels as of 01:20 ET
- Nikkei 225, +0.6%, ASX 200 -0.8% , Hang Seng -1.7%; Shanghai Composite -0.5% ; Kospi +0.1%.
- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 +0.2%.
- EUR 1.0041-1.0011 ; JPY 139.12-138.76 ; AUD 0.6765-0.6726 ;NZD 0.6144-0.6083.
- Gold +0.1% at $1,706/oz; Crude Oil +0.5% at $96.25/brl; Copper -1.5% at $3.1795/lb.
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Recommended Content
Editors’ Picks
EUR/USD holds steady above 1.0550 on modest USD weakness
EUR/USD struggles to gather recovery momentum but clings to modest daily gains above 1.0550 in the second half of the day on Monday. Although the US Dollar corrects lower following the previous week's rally, the cautious market mood makes it hard for the pair to push higher.
GBP/USD stabilizes above 1.2600 following previous week's drop
GBP/USD defends minor bids above 1.2600 in the American session on Monday, while the negative shift seen in risk sentiment caps the pair's upside. The Bank of England Monetary Policy Hearings and UK inflation data this week could influence Pound Sterling's valuation.
Gold gives signs of life and reclaims $2,600/oz
After suffering large losses in the previous week, Gold gathers recovery momentum and trades in positive territory above $2,600 on Monday. In the absence of high-tier data releases, escalating geopolitical tensions help XAU/USD hold its ground.
Bonk holds near record-high as traders cheer hefty token burn
Bonk (BONK) price extends its gains on Monday after surging more than 100% last week and reaching a new all-time high on Sunday. This rally was fueled by the announcement on Friday that BONK would burn 1 trillion tokens by Christmas.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.