Things to know before trading Asia on Monday; expect a muted open

This and previous notes can be found at asianmarketsense.com   
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Asia to see a muted open; whilst the US jobs data +VE for the strength of the recovery but could mean tapering and rate rises start earlier. For Asia expect the markets to open slightly positive but with caution ahead of PMI and other data and with US markets open T/O is likely to be light.
OIL in flux but likely to trade lower as OPEC+ meeting ended without agreement on Friday

Australia closed flat Friday expect a flat open as investors watch for the data.
Data due Pre market Construction Index, Services & Composite PMI. Later Building Permits, Retail Sales, Job Adverts
Japan expect a flat open following the US with caution ahead of the PMI data due out after the open
S Korea Expect markets to open slightly higher with hopes on the recovery and a renewed interest in Tech, Auto +VE on good sales. 
Taiwan Market to open higher with shipping and steel still drivers but with additional interest in tech.
China Market to open lower ahead of PMI data which may give more insight into the slowing economy. E-Commerce weak as Didi being investigated.
HK ADR’s +117pts @ 28,427 with weakness in Chinese financials.
Europe expect a cautious open; watching for the PMI data  
US Closed re-opens Tuesday 


DOW +0.44%, NDX +0.81%, S&P +0.75%, Russel 2K -1.01%
Markets opened slightly higher and worked higher after the good jobs number but the unemployment rate rose and trading volumes were light. The data also indicated less people now working from home; was 33% now 14% +VE for CBD offices and of a return to a more pre pandemic life style. Lots of chatter about implications for Fed policy; interesting Tech moved higher with Salesforce +1.3% and Amazon rebounding but IBM -4.6% on news CEO standing down and value names were weak.
Didi -5.3% on news the Chinese Cyberspace Administration were launching an investgation into the company’s ‘cyber security risks’ its guidance and supervision and that it must stop registering new users.
Tesla +0.1% says it delivered 201,250 electric vehicles in Q2 as it overcame a global computer chip shortage. The sales figures missed estimates of 207,000 vehicles, according to data provider FactSet. But it was better than Q1.

Banks JPMorgan Chase -0.1%, Citigroup -0.8%, Wells Fargo -0.8%, Amex +0.9%
Work from home names: Facebook +0.1%, Apple +2%, Amazon +2.3%, Netflix +0.1%,  Disney -0.1%, Zoom Video +0.6%, Alphabet +2.3% and Microsoft +2.2%,
Tech NXP Semi +0.4%, Nvidia +1.4%, Micron +0.3%, AMD +1.5%, Skyworks +1.2%
Re-opening stocks  Boeing +1.3% on news of a cargo plane emergency landing in the sea with engine trouble, Caterpillar +0.5%, Simon Property -1.5%, Kohl’s -0.5%, Nordstrom +1.1%, Gap -0.4% to close all of its UK stores by end 2021 as it moves to exclusively online. United Airlines -0.6%, Carnival -1.1%, Wynn Resorts -0.7%, Chevron -0.1%, Exxon Mobil -0.1%,  
Lock down names Campbell Soup -0.1% General Mills unch, JM Smucker -0.3%

DATA
Balance of Trade May $-71.2B vs -69.1B Apr (F/cast was -71.6B)
Non Farm Payrolls Jun 850k vs 583k May revised (F/cast was 650k)
Unemployment Rate Jun 5.9% vs 5.8% May (F/cast was 5.7%)
Ave Hourly Earnings Jun +3.6% YoY vs +1.9% May revised (F/cast was +2.1%)
Ave Hourly Earnings Jun +0.3% MoM vs +0.4% May revised (F/cast was +0.4%)
Participation Rate Jun 61.6% vs 61.6% May (F/cast was 61.7%)
Ave Weekly Hours Jun 34.7 vs 34.8 May revised (F/cast was 34.9)
Government Payroll Jun 188k vs 67k May (F/cast was 80k)
Manufacturing Payrolls Jun 15k vs 39k May revised (F/cast was 25k)
Exports May $206.0b vs 204.7b Apr revised (F/cast was 204.4b)
Imports May $277.3b vs 273.8b Apr revised (F/cast was 276.0b)
Factory Orders May +1.7% MoM vs -0.1% Apr revised (F/cast was +0.3%)
Factory Orders Ex Transport May +0.7% MoM vs +1% Apr revised (F/cast was +1.2%)
Baker Hughes Total Rig Count 475 vs 470 prior
Baker Hughes Oil Rig Count  376 vs 372 prior

USD was slightly weaker vs Yen & Euro. Bitcoin +2.4% @ 33,800.00,  VIX -2.65% @ 15.07,  US T10 @ 1.431% falls as unemployment rate moves higher
OIL Brent unch, WTI -0.05%  closed as OPEC talks were ongoing but they ended without an agreement.
Gold +0.6%, Silver +1.9%, Copper +1.02%, Platinum +0.8%, Palladium +0.73%.
AHEAD Markets closed for 4 July

DAX +0.3%, CAC -0.02%, FTSE -0.03%
Markets opened slightly higher after a mixed Asian session but drifted lower to trade around flat for the day with caution ahead of the US jobs data which beat expectations but unemployment rate rose. Eurozone PPI higher on rising energy costs. Travel & Leisure leading but Financials were a laggard.
Deliveroo +6.7% on news its agreed to extend the partnership with Casino supermarket.
Caixabank -2% announced laying off 6,452 employees in the biggest staff overhaul in the history of the Spanish banking sector.
Meanwhile U.S. activist hedge fun Elliott is urging GlaxoSmithKline +0.4% on news Elliott is urging it to review its leadership and consider selling some of its consumer healthcare business.
Kindred Group +6.2% after announcing the acquisition of Relax Gaming.
Ambu -9.2% after revising down its full-year profit guidance.
Data 
Eurozone 

PPI  May +1.3% MoM vs +1% Apr (F/cast was +1.2%)
PPI  May +9.6% YoY vs +7.6% Apr (F/cast was +9.5%)
France
Budget Balance  May €-118.79B vs €-91.37B (F/cast was €-104B
New Car Registration Jun -14.7% YoY vs +46.4% May (F/cast was +16.5%)
AHEAD
EUROZONE Services & Composite PMI
GERMANY Services & Composite PMI, New Car Registrations
FRANCE Services & Composite PMI
UK  New Car Sales, Services & Composite PMI

JAPAN Nikkei expect a cautious open ahead of the PMI data and worries about a fifth wave hitting Japan.
Yen closed 111.04
Data due Metropolitan Assmebly Seat election results,  Services & Composite PMI.
Tokyo Friday reported 660 new covid cases (-13 DoD) and nationwide the total was 1,763.
The U.S. goods trade deficit with Japan narrowed 17.5% in May from the previous month to $5.03 billion, the Commerce Department said Friday +VE.
Household spending likely slowed in May, a Reuters poll showed on Friday, as a new wave of coronavirus infections and a slow vaccination rollout weigh on consumer confidence. Offical data out at 8:30 a.m. on Tuesday is expected to show all household spending jumped 10.9% year-on-year in May, slowing from a 13.0% gain in the prior month, according to a Reuters poll of 16 economists. Slight -VE for sentiment
Government Pension Investment Fund (GPIF) on Friday declared a record investment return of 37.8 trillion yen ($338.8 billion) for the year ended March 31, raking in the benefits of a robust rally in global stock markets. +VE and good cross read to other funds.
Mitsubishi Electric’s CEO said he will step down to take responsibility for “three decades of systematic deceit” during which the Japanese firm falsified inspection data for air conditioners and brake compressors used in trains. -VE as it reflects a core issue in corporate Japan.
Fast Retailing -VE as French prosecutors have opened an investigation into four fashion retailers suspected of concealing "crimes against humanity" in China's Xinjiang region, a judicial source said on Thursday and included it along with Inditex, SMCP, and Skechers.
Local Govt finances in focus as Kyoto faces bankruptcy by fiscal 2028 unless it figures out how to come up with another ¥160 billion over the next five years, Mayor Daisaku Kadokawa says. Shows the reliance on Tourism -VE for sentiment.


SOUTH KOREA Expect market to open higher following the US but upside limited by the spike in covid cases.  LG Electronics earnings due this week will put the focus on Tech.
Data due pre market Foreign Exchange Reserves.
KDCA reported 826 cases, (+ 64 DoD) the highest since Jan. 7 when the country was grappling with a third wave of COVID-19. An estimates 80% in Seoul.
Samsung Electronics and SK hynix are likely to be subject to a global minimum tax rate that multinational companies will have to pay regardless of where their headquarters are.
LG Corp. on Friday inked a 100 bn-won ($88 mn) investment deal with Kakao Mobility as part of efforts to discover new opportunities in future mobility. But didn’t reveal the stake size it would acquire. +VE
SK Energy and Korea Electric Power Corp. agreed to jointly develop automotive services to promote the use of electric vehicles in the country, SK said Friday. +VE
SK Biopharmaceuticals CEO Cho Jeong-woo vowed to help the firm attain a value of 50 trillion won ($44.02 billion) by 2030 and make the list of the world’s top 10 health care firms. Slight +VE
Hyundai Motor and Kia hit all-time high sales in the US in the first half of this year. They sold a combined 804,944 vehicles +48.1% YoY. +VE


TAIWAN Expect market to open higher following the US; Steel and Shiping likely to see interest after Friday’s sell off.
Data due Foreign Exchange Reserves
CECC reported 58 new covid cases Friday; the eighth day under 100 +VE for sentiment.
The government yesterday reiterated that it welcomes plans by Lithuania to open a trade office in Taiwan, as the European nation reviews its policy on East Asia.
Powerchip Semiconductor Manufacturing Corp expects to debut on the Taiwan Stock Exchange by the end of this year after shareholders yesterday approved the initial public offering. +VE
Housing transactions last month totaled 25,027 units in the nation’s six special municipalities, +1.1% MoM as the market showed resilience, despite a nationwide level 3 COVID-19 alert +VE for sentiment.
Far EasTone Telecom is on track to reach a 5G penetration rate of 30% by the end of this year after about 800,000 people upgraded to its ultra-high-speed mobile service within a year of its launch. The use of 5G services has been picking up rapidly since they debuted last summer, with Internet traffic growing 18 percent since then, Far EasTone said. That did not factor in the effects of the COVID-19 situation, it said. +VE

CHINA Expect market to open lower with caution ahead of the PMI data and concerns over debt defaults and international relations. E-Commerce weak as Didi being investigated.
Data due after the market open; Services & Composite PMI.
The U.S. goods trade deficit with China widened 1.9% to $26.32 billion slight -VE for Trade talks.
US House of Representatives Foreign Affairs Committee will resume work later this month on Democratic-led legislation intended to boost competitiveness with China and push Beijing on human rights, after two days of debate on the measure. Slight +VE for China.
China’s market regulator issued draft rules on Friday to punish illegal pricing activities, including heavy subsidies and the practice by online platforms of charging different prices based on customers’ purchasing behaviour. Among the practices banned in the rules proposed on Friday are subsidies that cut the price of a product to below cost. -VE for Ecommerce names; violation of the rules could incur a fine of 0.1% to 0.5% of a business’ annual sales or even suspension of operations, SAMR said.
China’s home rental prices rose by their fastest for at least 2-1/2 years, according to a private survey, as record numbers of college graduates flocked to big cities in search of jobs as the economy recovers from the coronavirus pandemic. Slight -VE as could lead to more tightening rules.
H&M's China sales hit as boycott bites; with its products wiped from e-commerce platform Tmall and its store locations from mobile phone maps in China, while its app has vanished from local app stores -VE. Comes as France probes fashion retailers for concealing 'crimes against humanity' in Xinjiang; Uniqlo France, a unit of Japan's Fast Retailing (9983.T), Zara owner Inditex (ITX.MC), France's SMCP (SMCP.PA) and Skechers (SKX.N).

HONG KONG  ADR’s 117pts at 28,427 with weakness in Chinese Financials, Baba weak but Tencent & Meituan +VE Most US listed China concepts closed lower many at 5 and 10 day lows.  
No data due

IPO
ZYLOXTB-B (02190.HK) scheduled to be listed next Monday (5 July), opened high at $50 in gray market PhillipMart data showed. It closed at $55.6 in gray market, up 30.2% against the listing price of $42.7, on volume of 8.31 million shares and turnover of $477mn, PhillipMart data showed. Excluding handling fee, the book gain was $6,450 per board lot size of 500 shares.

Short Selling Friday 16.8% vs 13.8% Wednesday 
Top Shorts  
Country Garden (2007) 46%, Hengan (1044) 41%, Hang Seng Bank (11) 38%, CLP (2) 36%, BankComm (3328) 31%, Bank of China (3988) 31%, MTRC (66) 30%, ICBC (1398) 30%, HSBC (5) 30%, Ping An (2318) 30%, Henderson Land (12) 29%, CKI (1038) 26%, Wuxi Bio (2269) 26%, BaBa (9988) 25%, CK Asset (1113) 25%

WATCH
XIAOMI-W (01810.HK) announced that on July 2, the Company awarded a total of 70.2317 million Award Shares to 3,904 Selected Participants
 under the Share Award Scheme. The closing price of the Shares on the date of grant of the Awards was HK$26.2.

CK ASSET (01113.HK) announced that Li Ka Shing Foundation Limited acquired a total of 1.685 million of the company's shares
 at the average price of HK$53.2654, HK$53.32, HK$53.6003 and HK$53.7711 per share on 25 June, 28 June, 29 June and 30 June 2021 respectively. As a result, the deemed interests of Li Ka-shing, Victor T K Li and Li Ka Shing Foundation Limited in CK Asset under the Securities and Futures Ordinance, based on the existing total number of issued shares of nearly 3.647 billion CK Asset shares, are as follows: Li Ka-shing's increased from 45.57% to 45.61%; Victor T K Li's increased from 45.63% to 45.68% and Li Ka Shing Foundation Limited's increased from 10.88% to 10.93%.

SOUND GLOBAL (00967.HK) announced the further delay in publication of annual results and despatch of the annual report for the year ended 31 December 2019; publication of interim results and despatch of the interim report for the six months ended 30 June 2020; and publication of annual results and despatch of the annual report for the year ended 31 December 2020. Trading in the shares of the Company has been suspended with effect from 13 April 2016 and will remain suspended until further notice.

Internet names -VE after Guangdong announced further restrictions on large-scale Internet platforms,

Centa-City Leading Index (CCL) last stood at 188.38, up 0.15% weekly 
to a 97-week high, said the research department of Centaline Property.
For the first half of 2021, 
CCL +6.9%  
CCL Mass +6.53%
CCL (large units) +8.01% 
CCL (small-and-medium flats) +6.69%. 
The luxury home index outran the small-and-medium flat index, meaning luxury home prices had been chasing laggard in the first half of year.