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Asia Good loan data from China and a RRR cut from the PBoC likely to prompt a strong open for China and Hong Kong, although some wonder whether the recovery in China is slowing.
US starts reporting season again starting with the Banks.
G20 ministers warn that lack of vacinations covid could undermine the improving global recovery.
Australia Market to open higher but sentiment weak on news the Sydney lockdown may be extended.
Building Permits data due. Then later this week New Home Sales, Business & Consumer Confidence data. Then Thursday Employment data and Friday Inflation expectations.
Japan Market to open higher with Machinery Orders, PPI and Machine Tool Orders Monday. Later this week Tankan Index, Industrial Production & Capacity Utilisation and the BoJ Interest rate decision of Friday.
S Korea Expect markets to open higher but upside limtied as Seoul enacts highest level of social distancing rules due to the rise in covid cases.
Data this week Export & Import prices, Unemployment data, BoK Interest rate decision
Taiwan Market to open higher. No data due this week.
China Market to open higher after good loans data and RRR cut after market Friday, altough upside limited on concerns about whether the recovery is slowing. Data this week; Tuesday trade data, then Thursday House Price Index, GDP Growth, Industrial Production, Retail Sales, Unemployment, Fixed Asset Investment. Also concerns over the changing regulation over E-commerce companies.
HK ADR’s +280pts with a broad recovery, we may see some initial margin call selling but unlikely to have much impact.
Europe Expect markets to open higher. Inflation data for Eurozone, Germany, France and the UK. Also for the UK Retail Price Index, PPI and Unemployment data. Eurozone Industrial Production, New Car Registrations, Trade data.
US Earnings season starts again with the Financials in focus along with Delta Airlines. Consumer Inflation Expectations, Inflation data, NFIB Business Optimism Index, Beige Book, PPI, Import and Export Prices, Industrial & Manufacturing Production Data and Michigan Prelim data.
DOW +1.3%, NDX +0.98%, S&P +1.13%, Russel 2K +2.17%
Markets opened higher and worked higher through the day. S&P closed at a new high. With Banks rebounding strongly after Thursdays weakness along with re-opening stocks. Treasuries rebounded easing concerns about the recovery.
Banks JPMorgan Chase +3.2%, Citigroup +2.5%, Wells Fargo +3.8%, Amex +2.7%
Work from home names: Facebook +1.4%, Apple +1.3%, Amazon -0.3%, Netflix +1%, Disney +2.5%, Zoom Video -0.2%, Alphabet +0.4% and Microsoft +0.2%,
Tech NXP Semi +2.2%, Nvidia +0.7%, Micron +2.1%, AMD +1.3%, Skyworks +1.7%
Re-opening stocks Boeing +1.2%, Caterpillar +2.5%, Simon Property +3.7%, Kohl’s +5%, Nordstrom +6.6%, Gap +4.7%, United Airlines +2.9%, Carnival +2.3%, Wynn Resorts +2%, Chevron +1.4%, Exxon Mobil +1.8%,
Lock down names Campbell Soup -0.5%, General Mills +0.1%, JM Smucker +1%
Wholesale Inventories May +1.3% vs +1.1% Apr (F/cast was +1.1%)
Baker Hughes Oil Rig Count 378 vs 376 prior
Baker Hughes Total Rig Count 479 vs 475 prior
USD was slightly weaker vs Yen & Euro. Bitcoin +0.7% @ 33,627.75, VIX -14.8% @ 16.18, US T10 @ 1.361%
OIL Brent +1.9%, WTI +2.3% as US inventories fall.
Gold +0.5%, Silver +0.8%, Copper +1.8% Platinum +2.3%, Palladium +0.3%.
AHEAD Consumer Inflation Expectations, WASDE report
DAX +1.73%, CAC +2.07%, FTSE +1.3%
Markets opened higher and trended higher, covid concerns remain but eased as UK eases quarantine rules. Strong loan data and the RRR cut in China +VE for enabling the recovery. G20 Finance meeting kicking off too.
Mining stock lead the gains, Auto and Travel +VE But the Retail Sector remains weak.
Industrial Production May +20.6% YoY vs +27.2% Apr revised (F/cast was 26.2%)
Industrial Production May +0.8% MoM vs -1% Apr revised (F/cast was +1.2%)
Manufacturing Production May +27.7% YoY vs +39.1% Apr revised (F/cast was +30.6%)
Manufacturing Production May -0.1% MoM vs 0 Apr revised (F/cast was +1.1%)
Construction Output May +56.5% YoY vs +79.4% Apr (F/cast was +64%
GDP May +24.6% YoY vs +27.4% Apr revised (F/cast was +25.1%)
GDP May +0.8% MoM vs +2% Apr revised (F/cast was +1.5%)
GDP 3 Mth ave May +3.6% vs +1.5% Apr (F/cast was +3.7%)
Balance of Trade May £0.9B vs £-1.6B Apr (F/cast was £-1.4B)
Goods Trade Balance May £-8.481B vs £-10.95B Apr (F/cast was £-12B)
NIESR Monthly GDP Q2 +4.8% vs +3.6% Q1 revised (F/cast was +5.1%)
EUROZONE No data due
GERMANY No data due
FRANCE No data due
UK No data due
Expect markets to open higher following the rebound in the US. Contruction names +VE as heavy rains have caused significant damage across the country. Yen currently 110.14
Data due pre market
Machine Tool Orders
Tokyo reported 950 new covid cases highest in 2 months -VE
Fukushima follows Tokyo’s lead and will ban spectators from Olympic events reversing an earlier decision.
Softbank in talks to take a 10% stake in Yanolja a S Korean hotel booking platform.
Expect markets to open higher although upside limited as covid concerns remain; Seoul will be subject to the strictest social distancing restrictions.
No data due Monday but Unemployment data out Wednesday and a Bank of Korea meeting Thursday.
KDCA reported 1,324 new covid cases on Sunday, above 1,300 for a third day.
SsangYong Motor, decided to sell the site of its plant in Pyeongtaek as part of self-rescue efforts, the local government said Saturday. Slight +VE
Hyundai Motor Co. said Friday it will suspend Asan one of its seven domestic plants for four weeks to prepare for the production of its Ioniq 6 electric vehicle. +VE
Unionized workers at Hyundai Heavy Industries have decided to extend their ongoing walkout for another week to up the ante in their wage negotiations with the management as the company urged them to return to work, the labor union said Friday. +VE
Samsung Electronics Co. is considering launching the upcoming budget model of the Galaxy S21 smartphone in the United States and Europe only, industry sources said Friday, due to global semiconductor shortages. +VE
Major business lobbies in South Korea on Friday expressed concern over a new law that would allow CEOs to be punished, even by imprisonment, for serious workplace disasters.
Expect market to open higher following the US rebound on Friday
No data due this week
Nanya Technology Corp Friday posted its highest quarterly net profit in about two-and-a-half years as strong demand and an improved product lineup boosted prices by 30 percent. Net profit NT$6.16 billion (US$219.33 million) in the three-month period to last month from NT$2.7 billion in the first quarter, the highest since the fourth quarter of 2018. +VE
Acer Inc said Friday the supply of laptops has outstripped demand since March last year, with no end in sight, adding that it is creating a more diverse businesses portfolio to boost revenue. Acer reported revenue of NT$30.02 billion (US$1.07 billion) last month, the highest in seven years, up 16.9 percent year-on-year and 21 percent month-on-month +VE.
Formosa Plastics Group said its four major subsidiaries of Friday posted combined profit of NT$69.26 billion (US$2.47 billion) for last quarter, up 9.2 percent quarter-on-quarter in stark contrast to last year, when the group was NT$6.02 billion in the red. +VE
Expect market to open higher but concerns over debt defaults and covid remain.
No data due but after market Friday
New Loans Jun CNY 2120B vs 1500B May (F/cast was 1800B)
Outstanding Loan Growth Jun +12.3% vs +12.2% May (F/cast was +12.1%)
Total Social Financing Jun CNY 3670B vs 1920B May (F/cast was 2900B)
Money Supply Jun +8.6% vs +8.3% May (F/cast was +8.5%)
PBOC announced a RRR cut of 0.5ppt; and said the move did not translate into a policy U-turn, according to Xinhua's article. China's stable monetary policy orientation remained unchanged.
Tuesday we get Balance of Trade data
The Cyberspace Administration of China published a notice to solicit public opinions on amending the Measures for Cybersecurity Review. It is stipulated that operators with personal information of over a million users must report to the CAC's Cybersecurity Review Office before overseas listings.
China's National Health Commission reported 26 COVID-19 cases, including seven local infections (all from Yunnan).
The leaders of North Korea and China traded messages vowing to strengthen cooperation on the anniversary of their treaty of friendship, cooperation and mutual assistance between the two countries, North Korea's KCNA news agency reported on Sunday. In a message to China's Xi Jinping, North Korean leader Kim Jong Un said their relationship is vital in the face of hostile foreign forces, while Xi promised to bring cooperation "to a new stage", KCNA said.
African swine fever in China's top hog-producing province is increasing, say farmers and analysts, raising concerns it could spread further across the south and slow China's pork production recovery. The deadly African swine fever virus wiped out around half of China's huge pig herd during 2018 and 2019 but the country rapidly rebuilt much of the lost stock last year. But there have been fresh outbreaks in northern China this year, and there are more strains of the virus circulating. -VE
HONG KONG ADR’s +281pts at 27,625 with all sectors +VE and likely to see recent shorts squeezed.
No data due
Short Selling Friday 13.8% vs 14.4% Thursday
Top Shorts HSBC (5) 51%, Sunny Optical (2382) 46%, Henderson Land (12) 42%, Country Garden (2007) 40%, Bank of China (3988) 38%, China Life (2628) 37%, Mengniu Dairy (2319) 37%, Citic (267) 37%, CLP (2) 35%, Bud Apac (1876) 32%,ICBC (1398) 32%, ICBC (1398) 32%, AliHealth (241) 31%, BoC HK (2388) 30%, Hang Seng Bank (11) 29%, Hengan (1044) 29%, Anta (2020) 29%, BankComm (3328) 28%, AIA (1299) 28%, China Overseas (688) 27%, CK Asset (1113) 27%, Wuxi Bio (2269) 26%,
GREENLAND HK (00337.HK) announced that for the first six months of 2021, the contracted sales of the Group amounted to approximately RMB18.811 billion, up 41.7% YoY +VE.
RSUN PPT (01996.HK) announced that the aggregated contracted sales of the Group was RMB49.15 billion for the first half of 2021, up 55.7% YoY. +VE
LONGFOR GROUP (00960.HK) announced that the Group achieved aggregated contracted sales of RMB142.63 billion for the first half of 2021, up 28.4% YoY. +VE
CHINFMINING (01258.HK) Positive Profit Alert for the six months ended 30 June 2021 is expected to increase substantially to approximately USD204 million, representing an increase of 769% as compared to the corresponding period in 2020 +VE.
ZTE (00763.HK) Positive Profit Alert is expected to record a 104.6%-131.5% year-on-year growth of net profit attributable to shareholders for the first half of 2021. +VE
GAC GROUP (02238.HK) announced that the accumulated car production
volume and sales volume were 1.0014 million units and 1.0265 million units for the first half of 2021, representing a year-on-year increase of 25.6% and 24.5%. +VE
YIDA CHINA (03639.HK) announced that for the first half of 2021, the Group’s contracted sales amounted to RMB2.605 billion, up 1.9% YoY.
C.P. POKPHAND (00043.HK) Profit Warning; is expected to record a profit attributable to Shareholders of US$160 million for the six months ended 30 June 2021, down about 50.3% YoY. -VE
China's State Administration for Market Regulation announced to launch an antitrust scrutiny into the merger between TENCENT (00700.HK)'s Huya with DouYu according to the law. Based on Article 28 of the Anti-Monopoly Law and Article 35 of the Interim Provisions on the Examination of Concentration of Business Operators, SAMR forbade the merger as it will constitute the concentration of business operators. -VE
SUNNY OPTICAL (02382.HK) announced that the shipment
volume of handset lens sets decreased by 27.1% YoY and 13.7% MoM to 85.816 million units in June, which was mainly due to the impact of overseas pandemic and the slowing down of domestic smartphone market demand. -VE
YUEXIU PPT-NEW (00123.HK) announced that the aggregate contracted sales of the company for the period from January to June 2021 amounted to approximately RMB47.383 billion, representing a year-on-year increase of approximately 26%. The corresponding GFA of the accumulated contracted sales amounted to approximately 1.7916 million sq.m., representing a year-on-year increase of approximately 18%. The value of the accumulated contracted sales accounted for approximately 42% of the 2021 contracted sales target of RMB112.2 billion.
BYD COMPANY (01211.HK) announced that during 6-9 July, its Director Xia Zuo had dumped more than 9.5483 million A-shares through Centralized Bidding Trading at RMB241.66-261.5 each.
BAUHAUS INT'L (00483.HK) announced that for the three months ended 30 June 2021, the same store sales (SSS) of the group’s self-managed offline shops dropped 17% year-over-year, with those in Hong Kong recording a 19% decrease and those in Macau recording a 11% decrease. As of 30 June this year, the number of shops in operation of the group amounted to 51, with 41 in Hong Kong and 10 in Macau.
SHUI ON LAND (00272.HK) announced that the accumulated contracted property sales amounted to RMB12.115 billion for the first six months of 2021, an increase of 95% compared to the same period of 2020. The aggregated GFA sold for contracted property sales reached 235,800 sq. m. with the average selling price of RMB51,400 per sq. m.
Centa-City Leading Index (CCL) last stood at 186.68, -0.9% WoW.
CCL Mass last stood at 189.63, -0.72% WoW.
CCL (small-and-medium units) last reported at 187.11, -0.74% WoW.
CCL (large units) last posted at 184.42, -1.76% WoW