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Asia with no guidence from theUS overnight and Europe closing flat expect a weak open.
Australia Futures indicate market to open higher +14pts but expect cautious trading ahead of the RBA rate decision. Oil slightly higher overnight with no resolution to the OPEC dispute. Gold higher too.
Data Due Inflation Guage, RBA Interest Rate Decision
Japan Nikkei futures -135pts (Chicago futures -110pts), pre market data slight +VE but wider sentiment -VE. Softbank remains under pressure as China tightens on E-commerce data.
S Korea Expect markets to open lower
Taiwan Market to open flat with support from Shipping and Steel continueing
China Expect market to open lower with concerns on Ecommerce data and wider credit/default issues.
HK No ADR’s but continued concerns on E commerce and wider credit issues in China
Opened flat Dow +30pts, S&P and NDX little changed.
US Markets closed, Re-open Tuesday
Services and Composite PMI, ISM Non manufacturing (PMI, Business Activity, Prices, New Orders, Employment) IBD/TIPP Economic Optimism,
DAX +0.08%, CAC +0.22%, FTSE +0.58%
Markets opened weakly and initial dipped before working better through the day; after the PMI data. Banks saw gains but Healthcare was a laggard. Brent oil rose as the OPEC+ dispute continues.
Britain plans to scrap laws requiring face masks and social distancing later this month, PM Johnson confirmed Monday, even as he acknowledged that lifting the restrictions will drive surging coronavirus cases higher. Johnson said legal controls will be replaced by “personal responsibility” when the country moves to the final stage of its lockdown-lifting roadmap. That's scheduled to happen on July 19, though Johnson said a final decision would come on July 12.
Morrisons +11.6% on M&A speculation as third private equity firm enters the fray.
Prosus -6.1% as China escalated its crackdown on newly-listed ride hailer Didi.
Services PMI Jun 58.3 vs 55.2 May (F/cast was 58.0)
Composite PMI Jun 59.5 vs 57.1 May (F/cast was 59.2)
Services PMI Jun 57.5 vs 52.8 May (F/cast was 58.1)
Composite PMI Jun 60.1 vs 56.2 May (F/cast was 60.4)
New Car Registrations Jun 24.5% vs +37.2% May (F/cast was 25.1%)
Industrial Production May -0.3% MoM vs +0.1% Apr revised (F/cast was +0.5%)
Services PMI Jun 57.8 vs 56.6 May (F/cast was 57.4)
Composite PMI Jun 57.4 vs 57.0 May (F/cast was 57.1)
New Car Sales Jun +28% YoY vs 674.1% May
Services PMI Jun 62.4 vs 62.9 May (F/cast was 61.7)
Composite PMI Jun 62.2 vs 62.9 May (F/cast was 61.7)
EUROZONE Construction PMI, Retail Sales, ZEW Economic Sentiment
GERMANY Construction PMI, Factroy Orders,ZEW Economic Sentiment, Currrent Conditions
FRANCE Construction PMI, Retail Sales
UK Construction PMI
JAPAN Nikkei futures -135pts (Chicago futures -110pts), pre market data slight +VE but wider sentiment -VE. Softbank remains under pressure as China tightens on E-commerce data.
Yen currently 110.93
Data due pre market
Household Spending May +11.6% YoY vs +13% Apr (F/cast was +11%)
Household Spending May -2.1% MoM vs +0.1% Apr (F/cast was -3.2%)
Average Cash Earnings May +1.9% YoY vs +1.4%Apr revised (F/cast was +2.7%)
Tokyo reported 342 new covid cases Monday
Japan has logged a record amount of leftover money from the previous year’s budget due to greater than expected tax revenue, the finance ministry said on Monday, a windfall likely to fuel politicians’ calls for more coronavirus stimulus spending. +VE
The Bank of Japan offered a cautiously optimistic view on the country’s regional economies, pointing to divergent trends in areas gaining from robust exports and those still hurt by weak consumption due to the COVID-19 pandemic. In a quarterly report released on Monday, the BOJ raised its assessment for two of Japan’s nine regions including the Kinki western area that is home to big exporters such as Panasonic.
SoftBank's internet business Z Holdings Corp (4689.T) said on Monday it has agreed to pay Verizon Communications Inc (VZ.N) 178.5 billion yen ($1.61 billion) to secure the rights to Yahoo branding and technology in perpetuity in Japan.
In contrast to the retreat of Yahoo in the United States, the brand remains a core part of SoftBank's domestic internet business where the name adorns a web portal and services like shopping and weather.
Nomura has paused coverage of 29 companies including Nintendo and Rakuten Group following the departure of two top-rated stock analysts in Tokyo, reported Bloomberg. The brokerage has also suspended coverage of several REITs covered by Tomohiro Araki.
SOUTH KOREA Expect markets to open lower.
No data due
Government is in talks with mRNA vaccine makers including Pfizer (PFE.N) and Moderna (MRNA.O) to produce COVID-19 shots in the country and is ready to offer the capacity to make up to 1 billion doses immediately, a senior government official said. The plan, if agreed, would help ease tight global supply of COVID-19 vaccines, particularly in Asia which lags North America and Europe in vaccine rollouts, and put South Korea a step closer to its ambition to become a major vaccine manufacturing centre.
The labor union of Samsung Display has reached a wage agreement with management and will end its two-week partial strike soon, union officials said Monday. +VE
South Korea and Israel said Monday they plan to speed up joint research and development projects to cope with the changing business environment amid the COVID-19 pandemic. +VE
Samsung Electronics said Monday it had joined hands with South Korea’s leading solar cell and module maker Hanwha Q Cells to tap the home energy solution market. +VE
Samsung Electronics will unveil a lineup of new mobile devices, including foldable phones, next month, according to industry sources on Monday. Industry watchers say that Samsung will be holding a Galaxy Unpacked event at 11 p.m. on Aug. 11, Korea time, which will be livestreamed from Seoul.
TAIWAN Expect market to open flat with support from Shipping and Steel continueing
Data due Unemployment Rate.
After Market Monday
Foreign Exchange Reserves Jun $543.282bvs 542.978b May (F/cast was 544b)
The second-highest figure in the nation’s history; increasing for a third consecutive month and retaining the fifth-largest position globally, the central bank said yesterday.
MediaTek Inc yesterday retained its upbeat forecast for this year and next year due to 5G’s rising uptake, shrugging off a brief disruption to production linked to COVID-19 infections at its local chip testing and packaging partner. MediaTek’s remarks came after a shareholder at the company’s annual general meeting voiced concern about a ripple effect caused by the infections at King Yuan Electronics Co.
Wisdom Marine Lines Co yesterday reported a pretax profit of NT$1.56 billion (US$55.88 million) for last quarter, compared with a net loss of NT$301 million a year earlier, attributing it to higher freight rates and more demand for bulk cargo amid a global economic recovery. Its second-quarter pretax profits were 74 percent higher than the NT$896 million it reported in the first quarter, company data showed. +VE
Hon Hai Precision Industry Co yesterday reported revenue of NT$401.62 billion (US$14.39 billion) for last month, down 11.74 percent month-on-month, but up 11.40 percent year-on-year.
Last month’s figure marked a record-high June for Hon Hai, which the company attributed to a strong showing from its consumer electronics business, followed by its components and cloud network segments. +VE
CHINA Expect market to open lower with concerns on Ecommerce data and wider credit/default issues.
No data due
The leaders of China, France and Germany threw their support behind an EU-China investment agreement on Monday, despite the deal’s failure to gain widespread backing in Europe, according to a Chinese summary of a video call between the three countries’ leaders.
China’s cybersecurity watchdog suggested Didi Global Inc delay its initial public offering and urged it to review its network security, weeks before the Chinese ride-hailing giant went public, the Wall Street Journal reported on Monday, citing people familiar with the matter. -VE
General Motors Co said on Monday it expanded its design studio in China, which will focus only on developing electric and connected cars and no longer design petrol vehicles. The move comes as the largest U.S. automaker prepares to cut out petrol and diesel vehicles from its fleet by 2035 and underscores its efforts to gain a bigger foothold in China, the world’s largest electric car market. +VE
China's antitrust regulator is set to formally block Tencent Holdings Ltd's (0700.HK) plan to merge the country's top two videogame streaming sites, Huya (HUYA.N) and DouYu , three people familiar with the matter told Reuters. Tencent has failed to come up with sufficient remedies to meet the State Administration of Market Regulation's (SAMR) requirements on giving up exclusive rights, said two of the people. -VE
HONG KONG No ADR’s but continued concerns on E commerce and wider credit issues in China
Data due Pre Market PMI
SHORT SELLING Monday 11.2% vs 16.8% Friday
TopShorts Country Garden (2007) 57%, Hengan (1044) 42%, Bank of China (3988) 42%, CK Asset (1113) 34%, Shenzhou (2313) 32%, BankComm (3328) 29%, Petrochina (857) 27%, Ali Health (241) 26%, Sunny Optical (2382) 25%
AGILE GROUP (03383.HK) announced that for the six months ended 30 June 2021, the aggregated pre-sale value of the group is RMB75.33 billion, up 36.7% year-over-year, with corresponding GFA of 4.848 million sq.m.. The average selling price is RMB15,539 per sq.m..
HKEX (00388.HK) announced that it enhanced product offering with XPENG-W (09868.HK) debut, offering investors more options on the company's shares after its debut, including XPeng
Futures and Options to be introduced on 7 July; and XPeng shares to be included in Designated Securities Eligible for
Short Selling on 7 July. Issuers can list derivative warrants on XPeng shares on the same date.
Far East Consortium International (0035) revealed the sales brochure of its luxury project Mount Arcadia in Sha Tin.
The project provides 62 flats, measuring between 1,018 square feet and 1,548 sq ft, four houses measuring 2,814 sq ft to 3,448 sq ft, and 68 car parking spaces. The developer said last month that it intended to sell the flats by tender.
L & M CHEMICAL (00746.HK) Positive Profit Alert announced that the net profit of the company for the six months ended 30 June 2021 is expected to increase by approximately 260%–280% as compared to the six months ended 30 June 2020, due to an increase in the
volume and selling prices of the products sold by the group.
Vitasoy's Facebook official page received a message today (5 July) containing sentences of proclaiming to detonate a bomb in Vitasoy Company in Hong Kong, reported Oriental Daily. The police arrived at Vitasoy's headquarter located in Tuen Mun for preliminary investigation and has temporarily listed the case as "bomb hoaxes" with no arrests made at the moment. VITASOY INT'L (00345.HK)'s shares closed -11.7% today to close at $25.95 after its Chinese brand spokesmen severed cooperation with the company earlier.
SHIMAO GROUP (00813.HK) announced that the group’s aggregated contracted sales for the six months ended 30 June 2021 amounted to RMB152.795 billion, up 38% year-over-year; and the group’s aggregated contracted sold area amounted to 8.6099 million sq.m., up 37% year-over-year, at an average selling price of RMB17,746 per sq.m.
Delivery Hero's takeaway delivery platform Foodpanda has grown into the largest delivery application in Asia (China excluded), and will continue to expand its venture into areas like groceries, said the company's head of Asian-Pacific region Jakob Angele.
Angele expressed that the company has seen multiplying growth rates over the years in pre-COVID era and expects the revenue to record substantial growth this year as the company ventures into new Asian markets and groceries and house goods delivery service.
Beijing Xiaomi Mobile Software secured a patent license (CN306654732S) for its clamshell-like folding phone, Chinese media citing market information. The license application was made in April 2020.
Hangzhou Tuo Shu Pai Technology Development included Guangxi Tencent Startup Investment as its third largest shareholder, with approximately 11.76% shares, reported Sina, citing market's materials. The former's register capital also stretched from the original RMB1 million to RMB1.1333 million, up about 13.33%.
China's domestic tourist arrivals plunged 52.1% year-on-year to 2.879 billion in 2020, according to Ministry of Culture and Tourism (MoCT)'s statistics. Domestic tourism revenue receded 61.1% annually to RMB2.23 trillion.
Hang Seng Indexes Company announced that due to the prolonged suspension of its shares on the Stock Exchange of Hong Kong, BRILLIANCE CHI (01114.HK), CHINA HUARONG (02799.HK) and GCL-POLY ENERGY (03800.HK) will be removed from relevant indexes at the lowest system price, with effect from 12 July 2021. Relevant indexes include Hang Seng Composite Index (HSCI) and Hang Seng Stock Connect Hong Kong Index (HSHKI), etc.