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Asia expect a mixed start but protest in China a concern as investors watch for government action. The stand off with the US remains a concerns along with understanding Dual Circulation and Common Prosperity. Japan LDP leader election in focus along with results.
Scientist writing in the Lancet saying that most people will not need boosters -VE for Pharma stocks
Australia Futures indicate market to open -20pts with miners weak as Iron Ore prices fell overnight. Also a number of stocks going ExDiv (inc Breville Group Ltd (ASX: BRG), poultry company Inghams Group Ltd (ASX: IGO), media giant News Corp (ASX: NWS), and telco TPG Telecom Ltd (ASX: TPG).) On the positive side Oil higher as another storm builds in the Gulf of Mexico. Gold also slightly +VE
Data Business Confidence, House Price Index
Japan Nikkei local futures +13pts, Chicago Futures +100pts, Singapore futures +175pts; investors watching the LDP party election as Ishiba pulls out and looking to accumulate shares likely to benefit. Earnings back in focus.
S Korea Expect markets to open higher futures +1.5pts expect more upside after two days of consolidation; platforms to remain weak but Cyclicals likely to benefit. With Chusok holiday next week investors may look to safe havens.
Taiwan Expect market to open after good employment data and with Tech back in focus ahead of Apple launch event tonight in US.
China Expect market to open lower, Golden Dragon Index -1.1% overnight. Investors will also be looking to Govt for guidance over the worsening Evergrande situation. Wild card remains ‘Team China’ coming in to support the market. Mid Autumn festival next Monday and Tuesday so some interest in liquor but others may look to take their money out and wait on the sidelines.
HK ADR’s +5pts at 25,818 with weakness in Tencent and some Chinese Banks expect some initial margin call selling but with an increase in shorting on Monday downside likely to be muted. Protest at Evergrande on runours of bankruptcy from various sectors; employees, wealth managers and home buyers likely to put the stock and sector under pressure.
Opened Dow +75pts, S&P +0.2% and NDX +0.13% but expect caution ahead of the US inflation reading.
DOW +0.76%, NDX -0.07%, S&P +0.23%, Russel 2K +0.59%
Markets mixed; Dow opened higher trading slightly better, dipped in the PM but with a bounce into the close. S&P opened higher but trended to flat then sideways with an uptick into the close. NDX opened higher sold down into the red and bounced to flat but failed to break into the green. Energy names and re-opening names saw renewed interest. Nike weak on broker downgrade citing supply issues that could impact holiday sales; there is obviously a cross read for a number of other brands too. “Supply bottlenecks, inventory shortages, higher commodity prices, and higher shipping rates have all contributed to higher input costs”
Democrats release tax plans -VE for sentiment.
Covid cases on a 7 day average dropped and the its expected Pfizer’s vaccine for children could be approved by the end of October.
Banks JPMorgan Chase +1.6%, Citigroup -0.6% Wells Fargo +3.2%, Amex +1.7%
Work from home names: Facebook -0.6%, Apple +0.4%, Amazon -0.4%, Netflix -1.6%, Disney +0.5%, Zoom Video -3.7%, Alphabet +1% and Microsoft +0.4%,
Tech NXP Semi +1.3%, Nvidia -1.5%, Micron +1.2%, AMD -0.4%, Skyworks +2.2%
Re-opening stocks Boeing +2%, Caterpillar +0.6%, Simon Property +2.5%, Kohl’s +0.8%, Nordstrom +1.9%, Gap +2.1%, United Airlines +1.1%, Carnival +2.5%, Wynn Resorts +1.9%, Chevron +2%, Exxon Mobil +2.6%,
Lock down names Campbell Soup +1.6% General Mills +0.3%, JM Smucker +1.4%
Oracle traded lower on disappointing earnings
Consumer Inflation Expectations Aug +5.2% vs +4.8% Jul (F/cast was +4.9%)
Monthly Budget Statement Aug $-171b vs -302b Jul (F/cast was -200b)
USD was slightly stronger vs most currencies, Bitcoin -2% @ 44,953.41; volatile with a story that Walmart would accepting Litecoin as payment; later denied. VIX -7.5% @ 19.37, US T10 @ 1.326%
OIL Brent +0.97%, WTI +1.33%
Gold +0.17%, Silver -0.59%, Copper -1.93% Platinum +0.02%, Palladium -2.25%.
AHEAD NFIB Business Optimism Index, Inflation Rate, Core Inflation, Redbook, API Crude Oil Stock Change
Apple Product Launch.
DAX +0.6%, CAC +0.2%, FTSE +0.56%
Markets opened slightly higher and traded sideways but dipped into the close. Oil and Gas rallied but Retail fell. Caution ahead of US inflation data on Tuesday.
Wholesale Prices Aug +12.3% YoY vs 11.3% Jul (F/cast was 12.5%)
Wholesale Prices Aug +0.5% MoM vs +1.1% Jul (F/cast was +0.7%)
EUROZONE No data due
GERMANY No data due
FRANCE IEA Oil Market Report
UK Claimant Count, Employment Change, Ave Earnings, Unemployment Rate.
Nikkei local futures +13pts, Chicago Futures +100pts, Singapore futures +175pts; investors watching the LDP party election as Ishiba pulls out and looking to accumulate shares likely to benefit. Earnings back in focus.
Yen currently 110.00
Data due later Industrial Production and Capacity Utilisation.
Earnings today see list below
The government’s state of emergency over the novel coronavirus pandemic was extended in Tokyo and 18 other prefectures Monday. The emergency, based on the special law for the fight against the virus, is now slated to run until Sept. 30.
Tokyo reported 611 new cases; falling below 700 for the first time in two months +VE for sentiment. Govt reported 50.9% of the population have now been vaccinated +VE
U.S. President Joe Biden will host a first in-person summit of leaders of the "Quad" countries - Australia, India, Japan and the United States - on 24 Sept, the White House said on Monday.
Japan must counter neighbouring China's assertiveness by beefing up the coast guard and improving its coordination with the military, Fumio Kishida, a contender to head the ruling party and become the next prime minister, said on Monday.
Japan's stock investors have raised bets Taro Kono will become the country's next prime minister, snatching up renewable energy and office technology shares that are expected to benefit under his economic policies.
Tokio Marine announces another buyback similar to the one they just completed. +VE
Nintendo lower the price of its Switch in Europe to account for FX changes +VE
Aeon REIT Investment Corp. (3292 JP)
Enigmo Inc. (3665 JP)
GA Technologies Co. (3491 JP)
Health Care & Medical Investment (3455 JP)
Japan Logistics Fund Inc. (8967 JP)
Kenedix Residential Next Investment (3278 JP)
Management Solutions Co. (7033 JP)
Mitsui Fudosan Logistics Park (3471 JP)
Mori Hills REIT Investment (3234 JP)
Park24 Co. (4666 JP)
Premier Anti-Aging Co. (4934 JP)
Samty Residential Investment C (3459 JP)
SanBio Co. (4592 JP)
Smaregi Inc. (4431 JP)
Star Asia Investment Corp. (3468 JP)
Ya-Man Ltd. (6630 JP)
Expect markets to open higher futures +1.5pts expect more upside after two days of consolidation; platforms to remain weak but Cyclicals likely to benefit. With Chusok holiday next week investors may look to safe havens.
Export Prices Aug +21.6% YoY vs +19.5% Jul revised
Import Prices Aug +18.6% YoY vs +17.4% Jul revised
KDCA reported 1,433 new covid cases (-322 DoD)
General Motors Co is taking a more direct role with South Korea’s LG Corp, its longtime electric vehicle partner, in tracking down and fixing problems linked to battery fires in Chevrolet Bolts that threaten the strategic plans of both companies +VE.
Hyosung Group Chairman Cho Hyun-joon called for an aggressive, preemptive approach to increase its business foothold in the US during his recent visit there, the group said Monday.
“The US holds the key to new market dynamics in the post-pandemic era,” the chief was quoted as saying by Hyosung officials in Seoul. “With thorough localization and attention to the customers’ needs, we must increase our market presence here.” +VE
According to data from the Korea Automobile Importers & Distributors Association on Monday, total sales of imported cars with a retail price exceeding 100 million won ($85,156) as of August jumped 65.5 percent on-year. Slight -VE for Hyundai; Kai etc.
South Korea’s Fair Trade Commission is probing Kakao Group founder Kim Beom-su for alleged misreporting of the company’s de facto holding company in violation of the country’s fair trade act. The FTC recently conducted site investigations at Kakao Corp. and K Cube Holdings, after finding that the group has left out necessary information or falsely reported about K Cube Holdings, an investment firm fully owned by Kim, over the past five years. -VE
Samsung Heavy Industries Co. said Monday that it has been in talks with contractors to build liquefied natural gas (LNG) carriers to transport the LNG to be produced in northern Siberia of Russia. But "nothing has yet to be determined in the talks," Samsung Heavy said in a regulatory filing. Comes after local press reported it was likely to win orders estimated at 3tn won. Slight -VE
Korea Development Bank’s Chairman Lee Dong-gull called on the government to take down the antitrust hurdles standing in the way of proposed mergers, which he said are crucial for businesses to survive.
Expect market to open after good employment data and with Tech back in focus ahead of Apple launch event tonight in US.
No data due
CECC reported 19 new covid cases linked to a preschool and apartment complex in New Taipei was reported Monday, bringing the number of infections in the cluster to 30.
After market Taiwan's employment numbers and average monthly regular salary both saw an increase in July from a month earlier amid the improving domestic COVID-19 situation, according to data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) on Monday. +VE
The central bank is expected to keep key interest rates unchanged at its quarterly policymaking meeting on Thursday next week, as cases of the Delta variant of SARS-CoV-2 have caused uncertainty regarding the local economy, Wu Meng-tao, director of the sixth research division at the Taiwan Institute of Economic Research, said on Sunday. +VE
Expect market to open lower, Golden Dragon Index -1.1% overnight. Investors will also be looking to Govt for guidance over the worsening Evergrande situation. Wild card remains ‘Team China’ coming in to support the market. Mid Autumn festival next Monday and Tuesday so some interest in liquor but others may look to take their money out and wait on the sidelines.
Chinese Mid Autumn festival 21 Sept so may see additional selling pressure later this week. Market to be closed Monday & Tuesday next week.
No data due
Concerns rising over the Fujian covid outbreak with mass testing be instigated. -VE
Chaotic scenes erupted at the Shenzhen headquarters of cash-strapped developer China Evergrande Group on Monday, as roughly 100 disgruntled investors crowded its lobby to demand repayment of loans and financial products. China Evergrande (3333) offered a three-option plan to appease investors concerned about overdue payments for its high-yield wealth management products when a local authority in Foshan banned buyers from obtaining mortgage loans for buying units in Evergrande projects. The three options the embattled mainland developer provided include repayment through cash installments, properties or investors' payables on residential units already purchased, Caixin reported.
Volkswagen is in talks to tighten its grip on a majority-owned joint venture in China, which is worrying its other Chinese partners, SAIC Motor and FAW, which want the German group to commit more models to their own ventures, sources at Volkswagen, the Chinese firms and joint ventures -VE
ADR’s +5pts at 25,818 with weakness in Tencent and some Chinese Banks expect some initial margin call selling but with an increase in shorting on Monday downside likely to be muted. Protest at Evergrande on runours of bankruptcy from various sectors; employees, wealth managers and home buyers likely to put the stock and sector under pressure.
No data due
SHORT SELLING HSI Monday 17.2% vs 13.5% Friday
Top shorts Bud Apac (1876) 54%, Haidilao (6862) 42%, CK Assets (1113) 39%, Henderson Land (12) 37%, Country Garden (2007) 36%, Bank of China (3988) 35%, Wharf REIC (1997) 34%, MTR (66) 34%, Xiaomi (1819) 33%, Citic (267) 33%, Hang Seng Bank (11) 32%, China Res Land (1109) 32%, CM Bank (3968) 32%, Galaxy (27) 32%, Sino Biopharm (1177) 31%, AIA (1299) 31%, CLP(2) 30%, Ali Health (241) 29%, PetroChina (857) 29%, HK & China Gas (3) 28%, Mengniu Dairy (2319) 27%, Shenzhou (2313) 27%, BYD (1211) 26%, Anta Sports (2020)25%, PowerAssets (6) 25%.
The Urban Renewal Authority (URA) will invite interested developers/ consortia to submit Expressions of Interest (EOI) for the development of the Hung Fook Street / Ngan Hon Street Development Project in To Kwa Wan tomorrow (14 September).
The Project, which covers a site area of 4,581 square metres, was commenced in June 2016. Upon completion, it will provide a maximum total gross floor area of 41,229 square metres.
Ministry of Industry and Information Technology (MIIT)'s spokesperson Zhao Zhiguo expressed during the State Council's press conference that the web link block on Chinese platforms is one of the prime issues which the Internet industry rectification works initiated in July aim to address, reported The Beijing News. BABA-SW (09988.HK), in reply, said interconnection is the initial aspiration of Internet firms with opening-up being the vital foundation for a digital ecology. It said the company will actively establish linkage and connection with other platforms to achieve even greater growth for the entire sector.
YIDA CHINA (03639.HK) announced that, in August 2021, the group’s contracted sales amounted to RMB315 million, down 3.67% YoY. The gross floor area sold was 24,800 sq.m., down 12.55%. The group’s average selling price was approximately RMB12,726 per sq.m..
BOSATECH (08140.HK) expected that a substantial increase of not less than 180% in net profit after tax will be recorded in the year ended 30 June 2021 as compared to the year ended 30 June 2020.
CHINA LIFE (02628.HK) +0.020 (+0.149%) Short selling $56.96M; Ratio 24.289% announced that the accumulated premium income of the Company for the period from 1 January 2021 to 31 August 2021 was about RMB504.3 billion, up 2.33% yearly.
According to the provisional results of a survey released by the Census and Statistics Department (C&SD), the index of industrial production for manufacturing industries as a whole increased by 5.6% in the second quarter of 2021 compared with a year earlier, following a year-on-year increase of 2.6% in the first quarter of 2021. The corresponding producer price index increased by 2.7% in the second quarter of 2021 compared with a year earlier, following a year-on-year increase of 1.9% in the first quarter of 2021.
CHINA RES LAND (01109.HK) 0.000 (0.000%) Short selling $76.10M; Ratio 32.054% announced that the group achieved gross contracted sales of approximately RMB20.23 billion in August with contracted GFA of approximately 1.062 million square meters, down by 25.7% and 15.2% YoY respectively.