Equity markets trade mixed, traders assess implications of US jobs data


general trend

– NZD pared rise as medium-term inflation expectations slowed.

– CN trade components were mixed.

– Chinese markets opened slightly lower.

– Nikkei 225 rises ahead of earnings from SoftBank Group; Other companies expected to report earnings include NTT, Tokyo Electron, Inpex, Kirin, Yamato Holdings.

– Australian companies decline after issuing earnings reports [Aurizon, Suncorp]; OZ Minerals rallies on takeover offer from BHP.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.1%.

– (NZ) New Zealand Q3 Inflation Expectation Survey (2-year outlook): 3.1% v 3.3% prior.

– (AU) Australia sells A$300M v A$300M indicated in 3.75% Apr 2037 bonds; Avg Yield: 3.3974%; bid-to-cover: 2.22x.

Japan

Nikkei 225 opened -0.5%.

– (JP) Japan June BoP Current Account: -¥132.4B v -¥706.2Be; Adj Current Account: +¥838.3B v -¥27.6Be.

– (JP) Japan July Bank Lending Y/Y: 1.8% v 1.3% prior; Bank Lending (ex-trusts) Y/Y: 2.1% v 1.5% prior.

– (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 Fin Min Suzuki: Aware of the news report of reappointment as Fin Min, denies any conversation on reshuffle.

Korea

Kospi opened -0.4%.

– (KR) South Korea sells 3-year bonds: Avg yield 3,135% v 3,360% prior.

– (KR) Bank of Korea (BOK) Sells KRW1.0T v KRW1.0T indicated in 3-month Monetary Stabilization Bonds (MSB): avg yield 2.415% v 2.350% prior.

China/Hong Kong

Hang Seng opened -0.7%; Shanghai Composite opened -0.3%.

– (CN) China Senior Diplomat Wang: China’s actions [near Taiwan] are aimed at safeguarding China’s sovereignty, Taiwan is a part of China and no other country.

(CN) China July trade balance: $101.3BV $88.1BE.

(CN) China July trade balance: (CNY-denominated): 682.7BV 600.0BE.

– (CN) China PBOC sets Yuan reference rate: 6.7695 v 6.7405 prior.

– (HK) Hong Kong Chief Exec Lee: Confirms easing quarantine restrictions for travel to 3 days. from 7 days prior.

– (HK) China names Sonny Au as the new chief for committee for safeguarding the national security of Hong Kong.

(CN) Fitch report: Multiple Sectors in China Vulnerable if Property-Market Distress is Extended.

– (CN) China Military confirms it will continue military drills near Taiwan on Aug 8th.

North America

– (US) US Senate passes ~$430B Climate Change, Tax, and Drug bill.

Europe

– (UR) Ukraine President Zelenskiy: If Russia performs referendums in occupied areas on joining Russia, there will be no talks.

– (UK) UK largest container port Felixstowe’s workers said to hold an eight-day strike on Aug 21-29th – press.

Levels as of 01:10 ET

– Nikkei 225, +0.3%, ASX 200 +0.1%, Hang Seng -0.7%; Shanghai Composite +0.2% ; Kospi +0.1%.

– Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 +0.1%.

– EUR 1.0187-1.0159 ; JPY 135.58-134.93; AUD 0.6958-0.6897 ;NZD 0.6260-0.6228.

– Gold -0.2% to $1,787/oz; Crude Oil +0.2% to $89.23/brl; Copper -0.2% to $3.5455/lb.

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