Asian Macro Initial Thought a weak open ahead of PMI and other data.

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Asia a cautious open after a ramp up into the close yesterday and ahead of PMI data which is likely to reflect the impact to recent covid cases.

Australia 
Futures indicate market to open -33pts, Oil weak overnight but futures turning slight +VE after API report. Gold edging higher but Iron ore eased. Pre market data mixed and more data due during the morning with a number of companies going ExDiv too so expect a weak open .
ExDiv incl Bega Cheese Ltd(ASX: BGA), drinks business Endeavour Group Ltd(ASX: EDV), financial technology company IRESS Ltd(ASX: IRE), wine giant Treasury Wine Estates Ltd(ASX: TWE), and conglomerate Wesfarmers Ltd(ASX: WES).
Data out pre market
Manufacturing Index Aug 51.6 vs 60.8 Jul (F/cast was 55)
Manufacturing PMI Aug 52 vs 56.9 Jul (F/cast was 51.7)
Later GDP growth, Captial Expenditure, Final Consumption & Deflator
Japan 
Nikkei Local futures opened lower -28pts; Chicago Futures +35pts expect a cautious open with pre market data and PMI data 30 minutes into trading likely to get investors sidelined. 
S Korea 
Expect markets to open lower with caution ahead of the trade data on the open and PMI later. Key is whether foreigners continue buying after yesterday’s rally, initial flows would suggest not.
Taiwan 
Expect market to open lower following the pull back in US and Europe and caution ahead of the PMI data. Downside should be limited as Trendforce expects foundry revenue to remain strong +VE TSMC
China 
Expect market to open lower with concerns over further regulation of businesses and ahead of the Caixin PMI data.
HK 
ADR’s -70pts at  25,808 broad weakness (only CLP, Unicom, AIA and China Life closed +VE)  Watch for weakness from Evergrande and Huarong impacting the wider market. Resources in focus with Chalco (2600 HK) hitting highs along with Angang (347 HK) and Maansham (323 HK) expect more attention on non Financials and Ecommerce stocks.
US Futures 
Opened  Dow +36pts, S&P +0.1% and NDX +0.05%; Ahead ADP employment number, PMI and ISM data.

DOW -0.11%, NDX -0.04%, S&P -0.13%, Russel 2K +0.34%
Markets opened slightly lower and traded around flat all day. Zoom sold off heavily on slowing revenue. Wells Fargo weak on news it may face further sanctions due to its slow pace in compensating victims or previous mis-selling etc. Overhanging the market is Friday’s jobs report.
Banks JPMorgan Chase -0.3%, Citigroup +0.8% Wells Fargo -5.6%, Amex +1%
Work from home names: Facebook -0.3%, Apple -0.8%, Amazon +1.4%, Netflix +0.5%,  Disney +0.7%, Zoom Video -16.7%, Alphabet +0.1% and Microsoft -0.6%,
Tech NXP Semi -5.5%, Nvidia -1.3%, Micron +0.7%, AMD -0.5%, Skyworks -1.4%
Re-opening stocks  Boeing +0.9%, Caterpillar -0.3%, Simon Property +0.8%, Kohl’s -0.7%, Nordstrom +2.1%, Gap -0.04%, United Airlines +1.3%, Carnival +2.2%, Wynn Resorts +1.8%, Chevron -1.7%, Exxon Mobil -1.2%,  
Lock down names Campbell Soup +1.9% General Mills +0.4%, JM Smucker +1.1%
DATA
Redbook +18.6% vs16.6% prior
Case-Shiller Home Prices Jun +2% MoM vs 2.1% May (F/cast was +1.9%)
Case-Shiller Home Prices Jun +19.1% YoY vs 17.1% May revised (F/cast was +18%)
House Price Index Jun +1.6% MoM vs 1.8% May revised (F/cast was +1.6%)
House Price Index Jun +18.8% YoY vs 18.2% May revised (F/cast was +19%)
Chicago PMI Aug 66.8 vs 73.4 Jul (F/cast was 69)
Consumer Confidence Aug 113.8 vs 125.1 Jul revised (F/cast was 123)
After market
API Crude Oil Stock Change -4.045m vs -1.622m prior (consensus was -2.833m)
USD was weak vs Yen & Euro. Bitcoin -3% @ 47,008.00,  VIX +1.8% @ 16.48,  US T10 @ 1.307% edging lower ahead of Friday’s jobs report.
OIL Brent -0.6%, WTI -1% as US pushes OPEC to pump more oil 
Gold +0.23%, Silver -0.34%, Copper -0.28% Platinum +0.8%, Palladium -0.6%.
AHEAD MBA Mortgage Applications & 30yr Mortgage Rate, ADP Employment Rate, Manufacturing PMI, Construction Spending, ISM Manufacturing Data, EIA Oil report

DAX -0.33%, CAC -0.11%, FTSE -0.4%
Dax opened higher FTSE and CAC trading in the green but flat, most sectors in the green but turned -VE late morning. Eurozone inflation running higher than the ECB’s target rate adding to inflation concerns.
Galapagos, +7% after it said its CEO would step down.
GSK -1% after the company and SK Bioscience said they have begun a late-stage trial of their Covid-19 vaccine candidate.
Bunzl -1.6% after it said it was facing supply chain challenges and labor and materials shortages in some markets as it presented its earnings from the first half of the year.
Airline shares weak as EU looks to place restrictions on travellers from the US.
Data 
Eurozone 
Core Inflation Rate Aug 1.6% YoY vs +0.7% Jul (F/cast was +1.4%) 
Inflation Aug +3% YoY vs +2.2% Jul (F/cast was +2.7%) 
Inflation Aug +0.4% MoM vs -0.1% Jul (F/cast was +0.1%) 
Germany 
Unemployment Rate Harmonised Jul +3.6% vs +3.7% Jun (F/cast was +3.7%)
Unemployment Rate Aug +5.5% vs +5.6% Jul (F/cast was +5.6%)
France

Inflation Rate Aug +1.9% YoY vs +1.2% Jul (F/cast was +1.6%)
Inflation Rate Aug +0.6% MoM vs +0.1% Jul (F/cast was +0.3%)
GDP Growth Rate Q2 +1.1% QoQ vs 0% Q1 (F/cast was +0.9%)
Household Consumption Jul -2.2% vs +0.3% Jun (F/cast was +0.7%)
PPI Jul +1.3% MoM vs +1.1% Jun (F/cast was +0.6%)  
PPI Jul +8.6% YoY vs +7.6% Jun revised (F/cast was +7.7%)  
UK
BoE Consumer Credit Jul £-0.042B vs 0.308b Jun revised from 0.3b (F/cast was +0.5b)
Mortgage Approvals Jul 75.2k vs 80.3k Jun revised from 81.3k (F/cast was 79.1k)
Mortgage Lending Jul £-1.4B vs 17.7bJun revised from 17.9b (F/cast was 3b)
Net Lending to Individuals  Jul £-1.4B vs 18bJun revised from 18.2b (F/cast was 3.2b)
AHEAD
EUROZONE Manufacturing PMI, Unemployment Rate 
GERMANY Retail Sales, Manufacturing PMI 
FRANCE Manufacturing PMI, New Car Registrations 
UK  Nationwide Housing Prices, Manufacturing PMI

JAPAN 
Nikkei Local futures opened lower -28pts; Chicago Futures have eased back to +10pts; expect a cautious open with pre market data and PMI data 30 minutes into trading likely to get investors sidelined. 
Yen currently 110.00
Data due pre market
Capital Spending Q2 (Q1 was -7.8% F/cast is +4%)
Later Manufacturing PMI  Aug (Jul was 53.0 F/cast is 52.4)
Tokyo reported 2,909 new covid cases Tuesday with the 17,713 nationwide and a new mutation discovered in Japan -VE
PM Suga intends to dissolve the lower house of parliament in mid-September after a reshuffle of the ruling party executive and his cabinet next week, Mainichi newspaper said late on Tuesday, citing senior government sources.
Japan's defence ministry is seeking an annual budget of $50bn an increase that will add to past hikes to expand military spending over a decade by almost a sixth, as it looks to counter the growing strength of neighbouring China.
Honda Motor Co. unveiled details of the final edition of the NSX luxury sports car on Monday, with deliveries starting in Japan in July 2022. Honda said earlier in the month that it plans to sell only 30 units of the NSX Type S in Japan — out of 350 units to be available worldwide — as the automaker ends the model’s production at the end of next year. It is not yet known when deliveries will start in overseas markets.

SOUTH KOREA 
Expect markets to open lower with caution ahead of the trade data on the open and PMI later. Key is whether foreigners continue buying after yesterday’s rally, initial flows would suggest not. Games and Apps in focus on the China limitations and the Govt move to limit Google and Apple charges. Watch the KRW; trading at a 3 week low.
Data
Balance of Trade Aug (Jul was $1.76b F/cast is 3b)
Exports Aug (Jul was 29.6% F/cast is 35.7%)
ImportsAug (Jul was 38.2% F/cast is 46.4%)
Manufacturing PMI Aug (Jul was 53 F/cast is 52.6)
KDCA reported 3,128 new covid cases (+1,372 DoD)
South Korea's parliament on Tuesday approved a bill that bans major app store operators such as Google and Apple from forcing software developers to use their payment systems, effectively stopping them from charging commissions on in-app purchases. +VE for game and app makers.
Moody's Investors Service on Tuesday revised up South Korea's growth forecast for this year to 4 percent on strong exports +VE
Kakao Pay has revised down its target offer price range for the initial public offering of its stocks as its plan to go public underwent a two-month delay, a prospectus showed Tuesday. Slight -VE.
South Korean lawmakers voted on Tuesday to require hospitals to place surveillance cameras in operating rooms after a series of medical accidents involving unqualified staff who stood in for surgeons. +VE for camera makers.
New South Wales's planning regulator on Tuesday rejected a plan by a unit of South Korea's POSCO to develop a coking coal mine and rail line in the Australian state, saying that the environmental and social impacts would be too great. -VE
Netmarble on Tuesday announced the launch of Metaverse Entertainment to explore business opportunities with virtual idols.
According to South Korean game company, the new entity is wholly owned by Netmarble F&C, Netmarble’s development arm.
F&C co-head Seo Woo-won will double as the inaugural CEO of the entertainment unit.
SK Global Chemical on Tuesday rebranded as SK Geo Centric to transform into an urban plastic recycling company with plans to invest 5 trillion won ($4.3 billion) by 2025. +VE
Renault Group set up a joint venture with China’s Geely Automobile Holdings earlier this month and plans to unveil a Renault brand hybrid passenger car in China and have Renault Samsung Motors develop an eco-friendly vehicle. +VE

TAIWAN 
Expect market to open lower following the pull back in US and Europe and caution ahead of the PMI data. Downside should be limited as Trendforce expects foundry revenue to remain strong +VE TSMC
Data due Manufacturing PMI  Aug (Jul was 59.7 F/cast is 59)
The Ministry of National Defense has assessed China’s ability to land on Taiwan and deny areas, as well as the effectiveness of its gray-zone tactics and determined the capabilities of China’s People’s Liberation Army (PLA) against the US would improve with the delivery of a Type 003 aircraft carrier in 2025. Slight -VE
The manufacturing industry continued to pick up in July, although the pace of expansion slowed as a resurgence of COVID-19 infections abroad raised uncertainty, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business index compiled by the Taipei-based think tank shed 1.16 points to 16.52, signaling a “yellow-red” light again as it stayed in the expansion zone. +VE
Kwang Yang Motor Co yesterday said it has invested more than NT$40 million (US$1.44 million) into its battery subscription service to boost availability as electric scooters gain popularity in Taiwan. +VE
The world’s top 10 foundries, led by TSMC, are expected to see accelerated revenue growth this quarter, as a persistent chip crunch drives prices even higher, market researcher TrendForce Corp forecast yesterday. The Taipei-based researcher expects the top 10 foundries’ sequential revenue growth this quarter would outpace the 6.2 percent growth they posted last quarter. +VE

CHINA
Expect market to open lower with concerns over further regulation of businesses and ahead of the Caixin PMI data.
Data due Caixin Manufacturing PMI  Aug (Jul was 50.2 F/cast is 50.2)
The Politburo announced that the sixth – and final – plenary session of the 19th Central Committee will be held in November after their meeting on Tuesday, according to state broadcaster CCTV. An exact date was not given for the plenum, which is usually held in October.
China stepped up its reform of healthcare service pricing at public medical institutions on Tuesday with the announcement of a pilot programme aimed at controlling costs for consumers, ensuring service quality and incentivising providers.
China's state insurance fund, which helps patients cover their medical costs, is facing the combined pressures of a growing elderly population and a falling birth rate, prompting it to explore more efficient medical services.

HONG KONG  
ADR’s -70pts at  25,808 broad weakness (only CLP, Unicom, AIA and China Life closed +VE)  Watch for weakness from Evergrande and Huarong impacting the wider market. Resources in focus with Chalco (2600 HK) hitting highs along with Angang (347 HK) and Maansham (323 HK) expect more attention on non Financials and Ecommerce stocks.

No data due after market Tuesday
Retail sales Jul +0.9% YoY vs +2.9% Jun revised (F/cast was +3%)
A government spokesman said that retail sales continued to increase in July over a year earlier as the local epidemic remained stable and labour market situations improved further, although the growth pace moderated somewhat as compared to the preceding month.  Looking ahead, the spokesman pointed out that the electronic consumption vouchers that the Government began to disburse in August have helped stimulate consumption sentiment and will render support to the retail business in the rest of the year. Yet, it is essential for the community to keep the epidemic under control and strive towards more widespread vaccination, so as to strengthen the foundation for continued recovery of the retail sector and the overall economy.

EARNINGS mainly complete on Wednesday just SmarTone (315).
Earnings season effectively over. 


SHORT SELLING Tuesday 17.3% vs 19.6% Monday
Top shorts 
Bank Comm (3328) 44%, Country Garden (2007) 38%, CCB (939) 34%, Sands China (1928) 33%, Haidilao (6862) 32%, Shenzhou (2313) 31%, Baba (9988) 30%, China Life (2628) 30%, Bank of China (3988) 29%, Wuxi Bio (2269) 27%, ICBC (1398) 27%, Geely (175) 25%. 


WATCH

Henderson Land Development (0012) announced the first round of sales of The Henley III in Kai Tak will offer 100 units ahead of the launch of its third price list.
The sale will be on Saturday and will provide 38 studio, 50 one-bedroom, eight two-bedroom and four three-room flats, with sellable areas ranging from 238 sq ft to 778 sq ft.
The discounted prices are between HK$6.25 million and HK$24.99 million.

NetEase (9999) saw its first-half net profit slide 1.35 percent to 7.98 billion yuan (HK$ 9.61 billion) amid tightening mainland regulation on the online gaming industry.
Net revenue at the game provider still rose 16.4 percent to 41.04 billion yuan while its online game service recorded a slight 8 percent growth to 29.51 billion. Youdao, NetEase's online-learning business, posted a 120 percent rise in revenue to 2.63 billion yuan. However, it warned in an exchange filing that Youdao's business, financial condition and corporate structure are expected to be affected by the changing regulatory environment, primarily in China's K-12 education industry, although the magnitude of the impact remains uncertain at this time.

SINO BIOPHARM (01177.HK) +0.160 (+2.520%) Short selling $86.58M; Ratio 16.904% announced the interim results. Net profit was RMB8.48 billion, an increase of 580% over the same period last year.
EPS was RMB45.15 cents. The Company has declared the payment of a quarterly dividend of HK2 cents per share. Together with the first quarterly dividend of HK2 cents per share paid, the total dividend of 1H21 amounted to HK4 cents per share.

EVERGRANDE (03333.HK) -0.030 (-0.683%) Short selling $35.28M; Ratio 17.448% announced the interim results for the six months ended 30 June 2021. Revenue was RMB222.69 billion, down 16.5% YoY. Net profit surged 119.9% YoY to RMB14.383 billion. EPS was RMB1.085. No interim dividend was declared.

EVERG SERVICES(06666.HK) 0.000 (0.000%) Short selling $4.51M; Ratio 3.089% announced interim result ended June 2021. 
The revenue rose 68.3% year on year to RMB7.873 billion. The net profit amounted to RMB1.935 billion, up 68.6% year on year. EPS was RMB0.18. No dividend was declared.