Asian Macro Initial Thoughts Muted open ahead of Asian PMI's and US jobs report and long weekend.

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Asia expect muted trading ahead of Asian PMI’s and the US jobs report and labour day weekend in the States. President Xi’s out lining of a new board to help SME’s lacks detail so of little impact and concerns over more regulatory changes remain.


Australia Futures indicate market to open +17 pts, Oil higher but Miners weak. Pre market data missed -VE for sentiment and shows the impact of the covid outbreaks -VE.
Data out
Group Construction Index Aug 38.4 vs 48.7 Jul (F/cast was 44)
Services PMI Aug 42.9 vs 44.2 Jul (F/cast was 43.3)
Composite PMI Aug 43.3 vs 45.2 Jul (F/cast was 43.5)
Later Retail Sales
Japan Nikkei local futures opened -12pts but Chicago futures +18pts, expect a flat open with caution ahead of the PMI data. Toyota in focus on talk its been selected to build the Apple car.
S Korea Expect markets to open flat premarket reserves data +VE but expect caution ahead of US jobs report and the long US weekend.
Taiwan Expect market to open higher but upside muted ahead of US jobs and long weekend in the US.
China Expect market to open lower with caution ahead of the Caixin data, the US jobs report and the weekend. President Xi announces a new board to help SME’s but no detail and did not give any insight into the current crackdown so slight -VE for sentiment
HK ADR’s -33pts at  26,057 with weakness in Chinese Financials and Ecommerce weak.  Developers +VE with good interest in new projects to be released this weekend. T/O likely to be lighter ahead of US long weekend.
US Futures 
Opened Dow +6pts S&P+0.05% and NDX flat ahead of the Jobs report tonight and long weekend in the US.

DOW +0.4%, NDX +0.14%, S&P +0.3%, Russel 2K +0.74%
Markets opened higher and traded sideways in the green dipping in the afternoon but seeing an uptick into the close. S&P hit another new high but lead by the cyclical sectors rather than financials and consumer discretionary. Initial claims disappointed some but the focus is on today’s jobs number.
Earnings remain in focus with companies whose earnings missed being sold down like; Five Below -10% after Q2 revenue missed.
Chewy -9% as earnings missed and issued weak guidance. C3ai reported a bigger than expected loss.
Conversely ChargePoint +7% as earnings beat and strong guidance and Signet Jewelers +6%
Lands End -8% earnings beat but guided lower margins due to supply chain challenges.
Banks JPMorgan Chase -0.5%, Citigroup -0.6% Wells Fargo -2.6%, Amex -1.5%
Work from home names: Facebook -1.8%, Apple +0.8%, Amazon -0.5%, Netflix 1.1%,  Disney -0.9%, Zoom Video +1.5%, Alphabet -1.3% and Microsoft -0.2%,
Tech NXP Semi +0.2%, Nvidia -0.2%, Micron +0.4%, AMD -0.7%, Skyworks +0.9%
Re-opening stocks  Boeing +1.2%, Caterpillar +1.8%, Simon Property +0.5%, Kohl’s -0.2%, Nordstrom -0.1%, Gap -2.9%, United Airlines +1.2%, Carnival +2.2%, Wynn Resorts -1%, Chevron +2.1%, Exxon Mobil +2.4%,  
Lock down names Campbell Soup +0.5% General Mills +0.4%, JM Smucker -0.3%
DATA
Challenger Job Cuts Aug 15.723k vs 18.942k Jul (F/cast was 19k)
Balance of Trade Jul $-70b vs -73.2b Jun revised (F/cast was -70b)
Exports Jul $212.8b vs 210.1b Jun (F/cast was 210.3b)
Imports Jul $282.9 vs 283.3 Jun (F/cast was 280.1b)
Unit Labour Costs Final Q2 +1.3% QoQ vs -2.8% Q1 (F/cast was +1%)
Non Farm Productivity Final Q2 +2.1% QoQ vs +4.3% Q1 (F/cast was +2.3%)
Initial Jobless Claims 340k vs 354k prior revised (F/cast was 340k)
Jobless Claims 4 week Ave 355k vs 366.75k prior revised (F/cast was 354.75k)
Continuing Claims 2.748m vs 2.908m prior (F/cast was 2.815k)
Factory Orders Jul +0.4% MoM vs +1.5% Jun (F/cast was +0.2%)
Factory Orders Ex Trans Jul +0.8% MoM vs +1.5% Jun revised (F/cast was +0.5%)
EIA Natural Gas Stocks Change 20 Bcf vs 29Bcf prior (Consensus was 25Bcf)
USD was weaker vs Yen & Euro. Bitcoin +3.2% @ 49,784.49,  VIX +1.9% @ 16.41,  US T10 @ 1.285%
OIL Brent +1.82%, WTI +1.75% on weaker dollar and recovery hopes 
Gold -0.24%, Silver -1.16%, Copper +0.43%, Platinum -0.4%, Palladium -1.72%.
AHEAD Non Farm Payrolls, Unemployment Rate, Ave Weekly Hours, Ave Hourly Earnings, Participation Rate, Government Payrolls, Manufacturing Payrolls, Services & Composite PMI’s, ISM Non Manufacturing Data (PMI, Business Activity, Prices, New Orders, Employment), LMI Logistics Managers Index, Baker Hughes Rig Count.

DAX +0.1%, CAC +0.07%, FTSE +0.2%
Markets opened flat and traded around flat all day following a weak Asia and ahead of today’s US Initial Claims which was the lowest since March and Payrolls tomorrow.
Oil & Gas lead the gains.
Swedish Orphan Biovitrum +26% after investment firms Advent International and Aurora Investment offered to buy it for 235 Swedish krone ($27.30) per share.
IG Group -11%. Mining giant BHP -5.6% as it traded ex-dividend.
Data 
Eurozone 
PPI Jul +2.3% MoM vs +1.4% Jun (F/cast was +1.4%)
PPI Jul +12.1% YoY vs +10.2% Jun (F/cast was +11%)
AHEAD
Eurozone Services & Composite PMI’s, Retail Sales
Germany Services & Composite PMI’s
France Budget Balance, Services & Composite PMI’s, Retail Sales
UK Services & Composite PMI’s

JAPAN 
Nikkei local futures opened -12pts but Chicago futures +18pts, expect a flat open with caution ahead of the PMI data. Toyota in focus on talk its been selected to build the Apple car.
Yen currently 109.94
Data due after the open
Services PMI Aug vs 47.4 Jul (F/cast was 43.5)
Composite PMI Aug vs 48.8 Jul (F/cast was 45.9)
Tokyo reported 3,099 new covid cases (-69 DoD) with the national tally reaching 18,228.
Japan confirmed its first cases of the new mu variant of the coronavirus in two people arriving from abroad through airport screenings. -VE
Japan is investigating an Amazon Web Services outage that caused disruptions at major online brokerages, a leading mobile phone carrier and the country's biggest airline, a government spokesperson said on Thursday.
Fast Retail’s Uniglo sales -38.9% YoY as cool temperatures and heavy rain hurts sales -VE August retail SSS were all weak -VE for the sector.
Japanese supermarket operator OK Corp will launch a counter bid for Kansai Super Market Ltd., which has already agreed to integrate with H2O Retailing, the Nikkei reported on Thursday. OK Corp will attempt to win support from shareholders to oppose the integration at a shareholders meeting scheduled for Oct. 29, when a share exchange between Kansai Super Market and H2O Retailing will be subject to approval, the report said. OK Corp now owns 7% of Kansai Super Market’s shares.
The operator of the Uber Eats food delivery service in Japan has stopped hiring new overseas students, a company official said Thursday, after facing allegations that it illegally employed overstayers last year. Slight -VE
Apple concedes that it will allow media apps to steer customers directly to their Web sites without paying commission Slight +VE for App makers. Also rumoured that Apple will tie up with Toyota for mass production of Apple Car.


SOUTH KOREA 
Expect markets to open flat premarket reserves data +VE but expect caution ahead of US jobs report and the long US weekend.
Data out
Foreign Exchange Reserves Aug $463.93 vs 458.68b Jul
Labor unions of South Korea’s largest shipping company HMM on Thursday scrapped a strike plan after reaching a new wage deal with management. HMM officials and representatives of the two unions, separately representing land-based and longshore workers, agreed to a 7.9 percent increase in wages, a bonus payment amounting to 650 percent of their monthly salary and a 2.7 percent increase in welfare benefits. +VE
Samsung Electronics is making a stronger push into the midsize range alongside the highest-end foldable smartphone series Galaxy Z, by launching an upgraded version of the Galaxy A52 model. On Thursday it announced the release of the Galaxy A52s 5G in the domestic market at 599,500 won ($513) on Friday +VE.
Genesis, the luxury auto brand of Hyundai Motor Group, will completely phase out internal combustion cars by 2025, it said Thursday, becoming the first Hyundai-owned car brand to announce a full transition to electric vehicles. +VE
South Korea will take a new approach to trade on five core sectors in a bid to maximize its national interests, the country’s trade minister said Thursday. Under his leadership, Korea will seek to benchmark the US and bolster supply chains on chips, batteries, critical minerals and pharmaceuticals -- four key items mentioned in the Biden administration’s 100-day supply chain assessment report released in February, the Trade Ministry said in a press release. +VE
Japanese cosmetics firm DHC announced on Thursday that it was withdrawing its business from South Korea later this month amid growing criticism over the company’s racially discriminatory stance against Koreans. -VE
Talk Apple will SK Group and LGE as part’s suppliers for Apple car +VE but SEMCO likely to be dropped from folded zoom camera supply chain and use LG Inno and Jawha Elec

TAIWAN 
Expect market to open higher but upside muted ahead of US jobs and long weekend in the US.
No data due
Winbond Electronics Corp is ramping up recruitment efforts to meet increasing demand as its new fab in Kaohsiung is set to increase production next year, the Taichung-based firm said yesterday.
The chipmaker is planning to hire more than 400 engineers with various specializations for its fabs in Kaohsiung, Taichung, Hsinchu and Taipei, Winbond said in a statement. The Kaohsiung fab is set to produce a small volume of DRAM chips in July next year in preparation for regular production in October, Winbond said. +VE
Housing transactions in the nation’s six special municipalities totaled 16,748 units last month, a 4.8 percent fall from one month earlier, as a lingering local COVID-19 outbreak dampened buying interest, government data showed. The figure marked a 22.8 percent slump from the same period last year, highlighting the negative impact of the public health crisis and social distancing restrictions, market watchers said on Wednesday. -VE
Makalot Industrial Co yesterday reported its revenue contracted 11.61 percent year-on-year to NT$2.75 billion (US$99.16 million) last month, as production at its Vietnamese factories was disrupted by COVID-19-related restrictions. On a monthly basis, revenue slumped 9.84 percent from NT$3.95 billion in July, which was an all-time high, company data showed. Slight -VE
Genius Electronic Optical Co, is planning to invest NT$126 million (US$4.54 million) in setting up a new subsidiary in China’s Xiamen, the company said in a statement to the Taiwan Stock Exchange on Wednesday, as it is seeking approval from the Ministry of Economic Affairs’ Investment Commission. The supplier of handset camera lenses for Apple Inc’s iPhones said that the subsidiary would focus on “the production of optical lenses and related components.”
Genius would prioritize buying existing plants over constructing new facilities, it said +VE

CHINA
Expect market to open lower with caution ahead of the Caixin data, the US jobs report and the weekend. President Xi announces a new board to help SME’s but no detail and did not give any insight into the current crackdown so slight -VE for sentiment
Data due after the open
Caixin Services PMI Aug vs 54.9 Jul (F/cast is 54)
Caixin Composite PMI Aug vs 53.1 Jul (F/cast is 52.9)
President Xi outlines new projects like a new stock market in Beijing for SME’s and pledges other support for a more innovative financial system that is less reliant on the State Banks. But no timing or detail at this stage. Key was that he did not mention the current regulatory drive. Slight +VE
China ordered broadcasters on Thursday to shun artists with "incorrect political positions" and "effeminate" styles, and said a patriotic atmosphere needed to be cultivated, widening a crackdown on its booming entertainment industry. After years of runaway growth in the world's second largest economy, regulators have been to trying to strengthen control over Chinese society by tightening oversight over a broad swathe of industries ranging from technology to education and culture. -VE
China’s aviation regulator is likely to keep the current tight caps on international flights throughout the first half of 2022, analysts cited Air China as saying this week. The move has broad implications for tourism in the Asia-Pacific region, where Chinese outbound travellers normally play an outsized role, though other countries have also been slow to open borders because of relatively low vaccination rates and rising COVID-19 cases. -VE
Chinese state-backed tabloid the Global Times called US efforts to block cross-border acquisitions of tech companies a "red flag" that impedes China's tech sector and disrupts the growth of the global tech sector. It refers to a recent attempt to block China-based private equity group Wise Road Capital’s purchase of Korea's Magnachip Semiconductor Corp for US$1.4 billion (HK$10.92 billion); "represents a dangerous precedent for the industry as a whole." "If the US succeeds in blocking the deal this time, it could set a very bad precedent for global high-tech mergers and acquisitions, further consolidating the industrial concentration in the US," the op-ed read.

HONG KONG  
ADR’s -33pts at  26,057 with weakness in Chinese Financials and Ecommerce weak.  Developers +VE with good interest in new projects to be released this weekend. T/O likely to be lighter ahead of US long weekend.
Data due pre market
PMI Aug (July was 51.3 F/cast is 51)

SHORT SELLING Thursday 14.7% vs 15% Wednesday
Top shorts
Bank Comm (3328) 70%,MTRC (66) 38%, CLP (2) 38%, Bank of China (3988) 34%, Country Garden (2007) 34%, ICBC (1398) 33%, Haidilao (6862) 33%, CCB (939) 31%, Henderson Land (12) 31%, Bud Apac (1876) 30%, AAC Tech (2018) 29%, Galaxy (27) 29%, Hengan (1044) 28%, Techtronics (669) 28%, Shenzhou (2313) 27%, Sunny Optical (2382) 27%, CKH (1) 27%, SHKP (16) 26%, Hang Seng Bank (11) 26%, Power Assets (6) 26%, China Res Land (1109) 26%, Wharf REIC (1997) 25%, New World Dev (17) 24%,

WATCH
BABA-SW (09988.HK)  (BABA.US)   has launched ten key initiatives to facilitate common prosperity,
striving to pour an aggregate of RMB100 billion by 2025, according to Chinese media sources. The ten initiatives will be centered on technology and innovation, economic buildout, high-quality employment, care for the disadvantaged, and a common prosperity development fund. Slight -VE

SINO BIOPHARM (01177.HK) 0.000 (0.000%) Short selling $51.43M; Ratio 13.752% announced that the Senior Vice Chairman Tse Ping increased 319,000 shares of the company on market Thursday (2nd) again at $6.66 per share on average following the stake hike yesterday (1st), involving $2.1245 million. +VE

SHK PPT (00016.HK) 0.000 (0.000%) Short selling $56.12M; Ratio 26.251% is set to sell 300 flats of its residential project "Wetland Seasons Bay" in the third round this Saturday (4th). As of Thursday (2nd), the developer has grossed over 5,000 intended registrations +VE

BOC HONG KONG (02388.HK) and Sino Group's listed firm SINO LAND (00083.HK) 0.000 (0.000%) Short selling $10.04M; Ratio 28.442% rolled out Hong Kong's first green mortgage plan.
Equally, Sino sold a total of 86 units in August, pocketing more than $1.5 billion. +VE

In accordance with the Cyberspace Administration of China's special campaign, Sina Weibo started rectifying non-compliant financial we-media contents and handled the first batch of 52 accounts under relevant rules and requirements. These accounts have been banned forever for gathering, editing and publishing financial information in a non-compliant way, as well as malicious marketing. +VE