Asian Market Update: Sentiment brightens as manufacturing figures from China, US, Japan recover



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Article content Asian Market Update: Sentiment brightens as manufacturing figures from China, US, Japan recover

24.06.2014 09:03 Tuesday
***Economic Data***
- (VN) Vietnam June Consumer Price Index (CPI) Y/Y: 5.0% v 4.9%e
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 105.7 v 103.2 prior

Market Snapshot (as of 03:30 GMT):
- Nikkei225 -0.4%, S&P/ASX -0.4%, Kospi +1.0%, Shanghai Composite +0.1%, Hang Seng +0.2%, Jun S&P500 -0.2% at 1,950, Aug gold -0.1% at $1,316, Aug crude oil -0.5% at $105.65/brl

Market Focal Points/Key Themes:
- Oil prices retreat as pro-Russia rebels agree to ceasefire in Ukraine and Iraqi military claims small gains vs ISIS.
- China liquidity drain slows to a trickle with CNY18B - smallest in a month.
- China Conference Board economic index growth slows.
- Japan awaits more detail on the "trajectory" of 3rd arrow of Abenomics.

***Speakers/Political/In the Papers***
- (CN) China Academy of Social Sciences (CASS) researcher Yin Jianfeng: China should cut RRR for time deposits - Chinese press
- (NZ) RBNZ Dep Gov Bascand: House price inflation is moderating - financial press
- (NZ) Magnitude 7.2 reported approx 105 mi SE of Raoul Island, New Zealand - USGS
- (IQ) Sunni rebels (ISIS) capture Iraq's main oil refinery located at Baiji, north of Baghdad - financial press
- USGS reports magnitude 8.0 quake near Little Sitkin Island, in the Bering Sea off the coast of Alaska
- (IQ) Kurdish Region President Barzani: The time is here for the Kurds to determine their own future - CNN interview

***Fixed Income/Commodities/Currencies***
- (CN) PBoC to drain CNY18B in 28-day repos (36th consecutive drain)
- (AU) Australia MoF (AOFM) sells A$100M in 2.0% indexed bonds maturing in 2035; Avg yield: 1.6138%; Bid-to-cover: 5.77x (highest coverage ratio in 11 months)
- GLD: SPDR Gold Trust ETF daily holdings rise 2.4 tonnes to 785.0 tonnes (first rise since June 3rd)

US markets:
- RRMS: Guides FY14 EBITDA higher $115-120M ($92-97M prior); Semgroup also guides higher; Completes Acquisition of Additional Interest in White Cliffs Pipeline From SemGroup Corporation; +1.0% afterhours
- GPS: Exec: To increase hourly pay to $9 by 2014, $10 by 2015 - financial press interview; flat afterhours
- MU: Reports Q3 $0.79 v $0.72e, R$3.98B v $3.88Be; -0.7% afterhours
- DF: Follow up: Deans Foods, Clorox said to have been subpoenaed in Icahn insider trading case - financial press; -0.9% afterhours

- AAPL: Said to prepare to introduce two iPhone models with larger-screen; May start production in July - financial press

Notable movers by sector:
- Consumer Discretionary: Kathmandu Holdings KMD.AU -10.8% (provides disappointing guidance); Chinese Universe Publishing and Media 600373.CN +10.0% (acquisition)
- Materials: Panoramic Resources PAN.AU +3.4% (analyst action); Atlas Iron AGO.AU -4.8% (analyst action); Arrium Ltd ARI.AU -5.2% (analyst action)
- Energy: Guanghui Energy 600256.CN +2.3% (H1 guidance); Liquefied Natural Gas LNG.AU +8.2% (shareholder raises stake)
- Technology: Toshiba Corp 6502.JP -1.1% (drops bid of Alstom's power grid business)
- Telecom: Coolpad 2369.HK +6.7% (positive profit alert)