Asian Marco Initial Thoughts +VE open sentiment helped by Powells speech

This and previous notes can be found at asianmarketsense.com   and Substack ( Asian Market Sense )
Check out ERI-C.com for  interesting research and trading analysis

Asia Summary
Australia

Futures indicate +13pts earnings still in focus but winding down. Oil stocks higher as Hurricae Ida hits the US. Gold names also higher.
Data due Business Inventories, Company Gross Profits
Japan 
Markets to open higher following the US close pre market Retail Sales data will be watched carefully.  JPX400 rebalance on the close 
S Korea
Expect markets to open higher but key remains foreign buying
Taiwan
Expect market to open higher having held above 17,000 on Friday.
Shipping was weak on Friday but may see a re-rating as Japanese Shippers hit highs. 
China
Expect market to open lower with further concerns over ‘Common Prosperity’ as the Supreme Court of the People deems ‘996’ illegal.
HK
ADR’s -29pts at 25,378 Weakness in Chinese Financials and Ecommerce names as we get further regulation over the sector. Earnings remain in focus another big day (320 companies reporting) Banks, Shipping, Meituan andNetEase. Also with a large number out after market Friday (see list below) watch for analyst rating changes. Also worth noting the large number of Chinese companies buying their share back at these levels.
Europe
Eurozone Consumer Confidence & Inflation Expectations, Sentiment (Economic, Industrial & Services) 
Germany Inflation Rate 
UK 
Bank Holiday so expect lighter Asian flows 
US
Ahead Monday 
Pending Home Sales, Dallas Fed Manufacturing Index, 
Focus likely to be the jobs report Friday 
but there is alsoa lot of housing data this week along with Chicago PMI, Consumer Confidence, ISM Manufacturing and Non data, Exports and Factory Orders. 


JAPAN 
Markets to open higher following the US close pre market Retail Sales data will be watched carefully.  Rebalance of the JPX400 on the close.
Data due Retail Sales. Later this week Employment data, Industrial Production, Consumer Confidence, Housing Starts, Capital Spending and PMI data.
Tokyo reported 3,081 new covid cases on Sunday
A possible merger between storage hardware maker Western Digital Corp (WDC.O) with its Japanese partner and chipmaker Kioxia Holdings could create a NAND memory chipmaking giant that rivals Samsung Electronics (005930.KS). But analysts are questioning whether Kioxia's investors will accept the price and terms of the reported $20 billion all-stock offer from Western Digital, which would provide no cash to the Japanese firm and put a lower value on it than other comparable deals in the industry. Western Digital on Friday filed documents to issue more shares but did not disclose the size of the offering.  

SOUTH KOREA 
Expect markets to open higher key remains foreign buying. Banks lowering limits on consumer loans - VE
No data due. This week Industrial & Manufacturing Production, Construction Output, Retail Sales, Trade Balance, PMI data, Inflation and GDP growth.
Posco has forged a five-way partnership encompassing shipbuilders and ship registries to develop a liquid carbon dioxide carrier tanker, as part of its bid to gain an upper hand in the global transition to a net-zero economy, the firm said Sunday.
Unionized workers at Kia, South Korea's second-biggest carmaker, voted Friday to accept the company's wage proposals without a strike for the first time in a decade. +VE
South Korea’s antitrust watchdog will embark on a process of punitive action against SK Group and its chairman Chey Tae-won over an accusation that he plundered corporate profits during the group’s 2017 buyout of silicon wafer manufacturing firm LG Siltron, now SK Siltron.
+VE for shareholders
Posco is partnering with Hyundai Mipo Dockyard to develop liquefied carbon dioxide carrier to gain an upper hand in the carbon capture, utilization and storage market, the steelmaker said Friday. +VE
GM Korea Co. and its labor union have signed a wage agreement for the year amid the extended COVID-19 pandemic and sluggish sales, the company said Friday. +VE
Daewoong Pharmaceutical is under a prosecutors’ investigation, with industry sources suggesting Friday that the subject of the probe is trade secret misappropriation. -VE
Samsung’s Galaxy Z Fold 3 and Galaxy Z Flip 3 officially landed in stores worldwide Friday. +VE
South Korea on Friday saw its first public real estate investment trust debut on the domestic stock market this year, with more debutants headed for the listing soon. 

TAIWAN 
Expect market to open higher having held above 17,000 on Friday.
Shipping was weak on Friday but may see a re-rating as Japanese Shippers hit highs. 
No data due. This week we get Manufacturing PMI data
The number of incursions into Taiwanese waters by Chinese dredgers last year was 54 times greater than three years ago, a report from the National Audit Office shows. Last year, there were 3,974 incursions into Taiwanese waters by dredgers compared with 73 in 2018, with 86 percent of the incidents having occurred in Penghu County, the report shows.
The government’s business climate monitor last month flashed “red” for the sixth straight month, signaling a continued economic boom even though the overall score shrank slightly due to a local COVID-19 outbreak, the National Development Council (NDC) said yesterday.
Consumer confidence edged down this month, as a stock market rout weakened investment sentiment, but purchases of durable goods were robust, backed by pent-up demand, a survey released yesterday by National Central University showed.
Qisda Corp Friday warned about “price gouging” and its consequences as price hikes persists amid an ongoing shortage of raw materials and components. “Not all the price hikes for [electronic] parts are reasonable,” Qisda chairman Peter Chen (陳其宏) told reporters. “There are those who have been looting the store while it’s on fire.”
Chen said he has been “losing sleep” over component price spikes, as electronics price increases could lead to inflation “by the end of this year or in 2022.”

CHINA
Expect market to open lower with further concerns over ‘Common Prosperity’ as the Supreme Court of the People deems ‘996’ illegal.
No data due. Tuesday we get Official Manufacturing PMI and the Caixin data on Friday. 
China's defense ministry protested Saturday the passage of a U.S. Navy warship and Coast Guard cutter through the waters between China and Taiwan, a self-governing island claimed by China.  
Top Chinese actress Zheng Shuang was hit with a $46 million tax evasion fine Friday while references to film star Zhao Wei were wiped from video streaming sites
 as Beijing steps up its campaign against celebrity culture.A statement posted on the ministry's website called the move provocative and said it shows that the United States is the biggest threat to peace and stability and creator of security risks in the 160-kilometer (100-mile) wide Taiwan Strait.

HONG KONG
ADR’s -29pts at 25,378 Weakness in Chinese Financials and Ecommerce names as we get further regulation over the sector. Earnings remain in focus another big day (320 companies reporting) Banks, Shipping, Meituan andNetEase. Also with a large number out after market Friday (see list below) watch for analyst rating changes. Also worth noting the large number of Chinese companies buying their share back at these levels.
No data due. This week Retail sales and PMI data.

Earnings due Monday include China Merchants Ports (144), Kingboard (148), Lippo China Resources (156), Dongyue (189), Honghua (196), Lippo (226), Shun Tak (242), Guangdong Invest (270), Wing On (289), NewOcean Energy (342), Beijing Water (371), China Railway (390), Founder (418), Minth (425), GCL Energy (451), Guangshen Rail (525), China Comm Services Corp (552), Bonjour (653), China Eastern Air (670), CHina Evergrande NEV (708), Truly (732), China Rare Earth (769), Shimao (813), Glorious Property (845), China Qinfa (866), Hisense Home App (921), Lianhua Supermkt (980), Datang (991), CBanner (1028), China Water (1129), Cosco Shipping(1138), Zoomlion (1157), China Railway Const (1186), Agri Bank (1288), Nissin Foods (1475), China Re(1508), Sunvac Services (1516), Virscend Ed (1565), China Comms Const (1800), Kingboard Laminates (1888), Xingda (1899), Sunac (1918), Cosco Shipping (1919), BAIC Mtr (1958), Bank Chongqing (1963), West China Cement (2233), Weichai Pwr (2338), BoCHK(2388), Shanghai Pharm (2607), Cosco Ship Devel (2866), Waison (3393), Meituan (3690), Naga Corp (3918), BoC (3988), NetEase (9999). 

SHORT SELLING Friday 18.4% vs 21.4% Thursday
Top shorts 
Bank Comm (3328) 64%, Country Garden (2007) 51%, HSBC (5) 47%, Ali Health (241) 46%, Hengan (1044) 43%, Bank of China (3988) 40%, CLP (2) 40%, CK Assets (1113) 37%, Sino Biopharm (1177) 35%, Wharf REIC (1997) 35%, AAC Tech (2018) 35%, Petrochina (857) 32%, Hang Seng Bank (11) 32%, AIA (1299) 32%, Baba (9988) 31%, CCB (939) 31%, New World Development (17) 30%, SHKP (16) 28%, BYD (1211) 28%, Galaxy (27) 27%, Sunny Optical (2382) 27%, Longfor (960) 26%, MTRC (66) 26%, HKEX (388) 25%, CSPC Pharma (1093) 25%.  

WATCH

TENCENT (00700.HK) announced that it repurchased 220,000 shares of the company on the Stock Exchange on August 27 at a price ranging from $462.6 to $478.2 per share, involving about $104 million. YTD, TENCENT has repurchased a total of 892,600 shares, accounting for 0.0093% of the company's share capital.

XIAOMI-W (01810.HK) +0.400 (+1.636%) Short selling $504.00M; Ratio 20.694% announced that it repurchased 4 million shares of the company through the Stock Exchange on August 27, at a price of $24.75-24.9 per share, involving $99.3444 million. YTD, the company has repurchased 27.4 million shares, which is equivalent to approximately 0.11% of the issued share capital.

HENGAN INT'L (01044.HK) +0.450 (+1.049%) Short selling $31.80M; Ratio 43.171% announced that it repurchased 500,000 shares of the company through the Stock Exchange on August 27, at the price per share of $43-44, involving $21.743 million.

NEW WORLD DEV (00017.HK) 0.000 (0.000%) Short selling $22.68M; Ratio 29.624%   announced that it has repurchased 405,000 shares on 27 August, at a price of $37 per share, involving $14.985 million. Year to date, the company has repurchased a total of 35.873 million shares, accounting for approximately 1.407% of its share capital.

SUNSHINE 100 (02608.HK) issued a Profit Warning,
 announcing that the group is expected to record a loss of no more than RMB300 million for the six months ended 30 June 2021, as compared to a profit of approximately RMB260 million for the six months ended 30 June 2020.

POP MART (09992.HK) Short selling Ratio 26.165% had 215 retail stores and 1,477 roboshops as of the end of June. 
The blind box seller will strengthen its layout in tier-1, tier-2 and some major tier-3 Mainland Chinese cities going ahead to boost its brand appeal, said COO Si De.

Information from Macao's Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) rebounded by 69.5% year-on-year in real terms in the second quarter of 2021. The economy of Macao resumed positive growth on account of a relatively low base of comparison in the same quarter last year when local economic activities were limited due to the entry restrictions for visitors amid the COVID-19 pandemic. Exports of services ballooned by 555.6% year-on-year over 2Q21, of which exports of gaming services and other tourism services rocketed by 1,089.7% and 1,328.3% respectively.

GEELY AUTO (00175.HK) +0.650 (+2.584%) Short selling $399.81M; Ratio 24.210% announced that on 27 August, the Share Purchase Agreement was entered into among ZEEKR Intelligent Technology and five investors, pursuant to which ZEEKR Intelligent Technology agreed to place to such investors, in aggregate, 126 million Series Pre-A Preferred Shares, at the total consideration of US$500 million. The investors are namely a subsidiary of Intel Corporation (INTC.US), CATL (300750.SZ), CMOC (03993.HK) 's controlling shareholder CFC, Bilibili Inc. (BILI.US) (09626.HK) Related Investor, and Boyu Capital.
The Securities and Futures Commission (SFC) and Commercial Crime Bureau of the Police today conducted a joint operation against a Hong Kong-listed company and its former senior executives
 suspected of a series of corporate fraud related offences involving a total of $450 million.  

Centa-City Leading Index (CCL) last posted 189.52, down 0.46% WoW. The index has lost a total of 0.95% over the last two weeks.

CCL Mass rose 0.14% WoW to post at 192.77. 
CCL (small-and-medium units) last stood at 190.28, down 0.01% WoW. CCL (large units) dropped 2.81% WoW; last posted 185.47.
CCL Mass for the New Territories West hiked 2.27% WoW to post another record new high at 178.56. The index gained 1.02% over the past four weeks.

Guangzhou Futures Exchange and HKEX (00388.HK) signed a memorandum, signifying the future collaboration of the two parties on strengthening connection between Mainland China and Hong Kong markets while developing new business models that support a green and low-carbon economy, reported Chinese media. The two parties will explore the possibility of product collaboration in both Chinese and overseas markets, while sharing resources and experience in terms of exchange clearing, technologies, market advertising and investor education.

RESULTS after market Friday
FULLSUN INT'L (00627.HK) announced the interim results for the six months ended 30 June 2021.
 The revenue for the period declined by 10.2% YoY to RMB615 million. The loss narrowed to RMB169 million from the loss of RMB372 million for the corresponding period of previous year. LPS was RMB1.48 cents. No interim dividend was declared.

DONGFANG ELEC (01072.HK) announced the interim results for the six months ended 30 June 2021.  Operating revenue for the period amounted to RMB22.737 billion, up 28.1% YoY. Net profit grew 41.3% to RMB1.348 billion. EPS was RMB43 fen. No interim dividend was declared.

MINSHENG BANK (01988.HK) +0.030 (+0.915%) Short selling $14.50M; Ratio 26.616% announced its interim results. Net profit fell 6.7% YoY to RMB26.556 billion, and EPS was RMB0.56. No interim dividend was declared.

AIR CHINA (00753.HK) announced interim result ended June 2021. The loss narrowed from RMB9.44 billion in the corresponding period of previous year to RMB6.781 billion. LPS was RMB49.37 fen. No dividend was declared.

BYD ELECTRONIC(00285.HK) announced interim result ended June 2021. The net profit amounted to RMB1.643 billion, down 33.6% YoY.
EPS was RMB0.73. No dividend was declared.

BYD COMPANY (01211.HK) +6.000 (+2.340%) Short selling $516.01M; Ratio 27.576% unveiled the interim results. The net profit fell 29.4% YoY to RMB1.174 billion, with an EPS of RMB0.41. No interim dividend was declared. During the period, revenue increased 53.6% YoY to RMB89.131 billion, and gross profit fell 5.3% YoY to RMB9.921 billion.

JW THERAP-B(02126.HK) announced interim result ended June 2021. The loss narrowed from RMB650 million in the corresponding period of previous year to RMB281 million. LPS was RMB0.71. No dividend was declared.

CHINA SOUTH AIR(01055.HK) -0.080 (-1.798%) Short selling $15.47M; Ratio 42.151% announced interim result ended June 2021. The loss narrowed from RMB8.179 billion in the corresponding period of previous year to RMB4.69 billion. LPS was RMB0.3. No dividend was declared.

CHINA LONGYUAN(00916.HK) announced interim result ended June 2021. The net profit amounted to RMB4.42 billion, up 37.7% YoY.
EPS was RMB55 fen. No dividend was declared.

CRRC (01766.HK) announced its interim results. Net profit increased by 8% YoY to RMB3.988 billion, and EPS was RMB0.14. No interim dividend was declared.

ZTE (00763.HK) announced interim result ended June 2021. The net profit amounted to RMB4.079 billion, up 119.6% YoY. EPS was RMB0.88. No dividend was declared.

GREATWALL MOTOR (02333.HK) +1.450 (+4.524%) Short selling $184.76M; Ratio 18.214% announced the interim results. Net profit increased 2.08 times YoY to RMB3.529 billion, and earnings per share
were RMB0.39. An interim dividend of RMB0.3 per share was declared.

CCB (00939.HK) +0.050 (+0.894%) Short selling $186.17M; Ratio 30.613% announced the interim results. The net profit for the period stretched 11.4% YoY to RMB153.3 billion. EPS was RMB0.61. No interim dividend was declared. According to the forecast of five brokers as compiled by us, the bank was expected to record a net profit of between RMB145.6-152.55 billion in the first half of 2021.

YANZHOU COAL (01171.HK) announced its interim results. Net profit increased by 38% YoY to RMB6.278 billion, and earnings per share were RMB1.29. No interim dividend was declared.

SHENZHEN INVEST(00604.HK) -0.010 (-0.429%) Short selling $2.01M; Ratio 26.739% announced interim result ended June 2021. The net profit amounted to HK$1.393 billion, up 331.8% YoY. EPS
was HK15.65 cents. An interim dividend of HK7 cents was declared.

CNBM(03323.HK) announced interim result ended June 2021. The net profit amounted to RMB7.959 billion, up 47.9% YoY. EPS was RMB0.944. No dividend was declared.

SMIC (00981.HK) unveiled the interim results. Net profit leaped 3.2 times YoY to US$847 million, and EPS was US$0.11. No dividend was declared. During the period, revenue increased 32.8% YoY to US$2.448 billion, and gross profit hiked 35.9% YoY to US$655 million.

CONCH CEMENT(00914.HK) -0.350 (-0.845%) Short selling $91.91M; Ratio 32.691%   announced interim result ended June 2021. The revenue rose 8.7% year on year to RMB80.433 billion. The net profit amounted to RMB14.968 billion, down 7% year on year. EPS was RMB2.82. No dividend was declared.

CNT GROUP (00701.HK) announced the interim results for the six months ended 30 June 2021.
 The revenue for the period hiked 47.2% YoY to HK$433 million. Net profit amounted to HK$4.29 million, compared to a loss of HK$63.45 million for the corresponding period of previous year. EPS was HK0.23 cents. No interim dividend was declared.

PSBC (01658.HK) +0.130 (+2.434%) Short selling $107.49M; Ratio 42.260% announced interim result ended June 2021. 
The net profit amounted to RMB41.01 billion, up 21.8% year-on-year. EPS was RMB0.4. No interim dividend was declared.

SHANGRI-LA ASIA (00069.HK) announced interim result ended June 2021. 
The loss narrowed to US$59.77 million from US$283 million in the corresponding period of previous year. LPS was US1.673 cents. No dividend was declared.

ICBC (01398.HK) +0.020 (+0.463%) Short selling $112.17M; Ratio 22.655% announced the interim results. 
Net profit for the period soared 9.9% YoY to RMB163.473 billion, close to the upper end
of the forecasts. EPS was RMB0.46. No interim dividend was declared.
Management expressed on a call meeting that the impact from the COVID-19 outbreak on the bank is expected to normalize soon and that the bank will improve the overall risk management. The management added that ICBC will strive to maintain high-quality development over 2H, aiming to achieve stable loan growth, to optimize the credit structure and to support the real economy. 

BANKCOMM (03328.HK) +0.020 (+0.457%) Short selling $54.97M; Ratio 63.959% announced the interim results for the six months ended 30 June 2021. Net profit stretched 15.1% YoY to RMB42.019 billion. EPS was RMB0.54. No dividend was declared. The bank will not convert any capital reserve into share capital for the period. Vice President Guo Mang forecast that the 2H21 NIM will maintain the sturdiness overall, whilst the national policies such as RRR cut and optimized pricing are favorable to the company. Yet, fierce deposit competition and loan yield decline are posing risks on the company, which will therefore roll out multiple measures to stabilize NIM. 

AEON STORES(00984.HK) -0.020 (-1.266%) announced interim result ended June 2021.
 The revenue declined 6.8% year on year to HK$4.807 billion. The loss widened to HK$245 million from HK$72.029 million in the corresponding period of the previous year. LPS was HK94.38 cents. An interim dividend of HK3 cents was declared against a dividend of HK5 cents in the corresponding period of the previous year.


DOW +0.69%, NDX +1.23%, S&P +0.88%, Russel 2K +2.85%
Markets opened higher rose initially and then traded sideways, as Powell outlined the timing for the pull back of the tapering programme but that it would not impact the interest rate policy as the 2% inflation target is maintained. Energy names rebounded strongly; Autos +VE along with Travel names. Workday +9% on good earnings but Peloton -8.5% after weak earnings
Banks JPMorgan Chase +0.8%, Citigroup +2.7% Wells Fargo +1.6%, Amex +1.9%
Work from home names: Facebook +2.3%, Apple +0.7%, Amazon +1%, Netflix +1.6%,  Disney +2%, Zoom Video flat, Alphabet +1.8% and Microsoft +0.2%,
Tech NXP Semi +1.9%, Nvidia +2.6%, Micron +1.7%, AMD +3.9%, Skyworks +1.4%
Re-opening stocks  Boeing +2.4%, Caterpillar +0.8%, Simon Property +2%, Kohl’s +1%, Nordstrom +2.5%, Gap +0.6%, United Airlines +1.5%, Carnival +3.8%, Wynn Resorts +1.5%, Chevron +1.5%, Exxon Mobil +1.9%,  
Lock down names Campbell Soup +2.4% General Mills +0.8%, JM Smucker -0.3%
DATA
Personal Income Jul +1.1% MoM vs +0.2% Jun revised (F/cast was +0.2%)
Personal Spending Jul +0.3% MoM vs +1.1% Jun revised (F/cast was +0.5%)
Goods Trade Balance Jul $-86.38b vs -92.05b Jun (F/cast was -89b)
Wholesale Inventories Adv Jul +0.6% MoM vs +1.2% Jun revised (F/cast was +0.3%)
PCE Price Index Jul +4.2% YoY vs +4% Jun (F/cast was +4.1%)
PCE Price Index Jul +0.4% MoM vs +0.5% Jun (F/cast was +0.4%)
Core PCE Price Index Jul +3.6% YoY vs +3.6% Jun revised (F/cast was +3.5%)
Core PCE Price Index Jul +0.3% MoM vs +0.5% Jun revised (F/cast was +0.3%)
Michigan Data Final 
Inflation Expectations Aug +4.6% vs +4.7% Jul (F/cast was +4.6%)
Consumer Sentiment Aug 70.3 vs 81.2 Jul (F/cast was 70.2)
5 yr Inflation Expectation Aug 2.9% vs 2.8% Jul (F/cast was 3%)
Consumer Expectations Aug 65.1 vs 79 Jul (F/cast was 65.2)
Current Conditions Aug 78.5 vs 84.5 Jul (F/cast was 77.9)
Baker Hughes Total Rig Count 508 vs 503 prior
Baker Hughes Oil Rig Count 410 vs 405 prior
Jackson Hole symposium
USD was weaker vs Yen & Euro. Bitcoin +4.4% @ 48,938.01,  VIX -13% @ 16.4,  US T10 @ 1.3% as Powell sees tapering to start this year but not rate rises. 
OIL Brent +2.3%, WTI +2% 
Gold +1.4%, Silver +2%, Copper +1.7% Platinum +3.2%, Palladium +1.1%.
AHEAD Pending Home Sales, Dallas Fed Manufacturing Index. 

DAX +0.37%, CAC +0.24%, FTSE +0.32%
Markets opened flat/lower and trading sideways around flat; Miners +VE and Utilities weak. Most investors sidelines watching for comments out of the Fed Jackson Hole symposium, as Powell preps investors for an earlier than expected start to tapering but no change to the mantra on interest rates. Concerns about violence in Afghanistan -VE for sentiment. German and French data was concerning.
DATA
Germany
Import Prices Jul +15% YoY vs +12.9% Jun (F/cast was +13.2%)
Import Prices Jul +2.2% MoM vs +1.6% Jun (F/cast was +0.6%)
France 
Consumer Confidence Aug 99 vs 100 Jul (F/cast was 100) 
AHEAD
Eurozone Consumer Confidence & Inflation Expectations, Sentiment (Economic, Industrial & Services) 
Germany Inflation Rate 
France No data due  
UK  No data due