TradeTheNews.com Asian Market Update: Japan employment continues to brighten while household spending sags

Forex

Article

Articles menu

Article content

TradeTheNews.com Asian Market Update: Japan employment continues to brighten while household spending sags

27.06.2014 08:01 Friday
***Notable Economic Data***
- (CN) CHINA MAY INDUSTRIAL PROFITS Y/Y: 8.9% V 9.6% PRIOR; YTD Y/Y: 9.8% V 10.0% PRIOR
- (JP) JAPAN MAY OVERALL HOUSEHOLD SPENDING Y/Y: -8.0% (2nd consecutive decline) V -2.3%E
- (JP) JAPAN JUNE TOKYO CPI Y/Y: 3.0%V 3.1%E; CPI CORE Y/Y: 2.8% V 2.8%E
- (JP) JAPAN MAY NATIONAL CPI Y/Y: 3.7% V 3.7%E; CPI CORE Y/Y: 3.4% (fastest pace since Apr 1982) V 3.4%E
- (JP) JAPAN MAY JOBLESS RATE: 3.5% (6-year low) V 3.6%E; JOB-TO-APPLICANT RATIO: 1.09 (20-year high) V 1.08E
- (JP) JAPAN MAY RETAIL SALES M/M: 4.6% V 2.9%E; RETAIL TRADE Y/Y: -0.4 % V -2.0%E
- (NZ) NEW ZEALAND MAY TRADE BALANCE (NZ$): 285M (7th consecutive month of surplus) V 250ME
- (KR) SOUTH KOREA MAY INDUSTRIAL PRODUCTION M/M: -2.7% V % -0.1%E; Y/Y: -2.1% V 1.0%E
- (KR) SOUTH KOREA MAY CURRENT ACCOUNT BALANCE: $9.3B V $7.1B PRIOR; GOODS BALANCE: $9.4B V $10.6B PRIOR
- (UK) UK JUN HOMETRACK HOUSING SURVEY M/M: 0.3% V 0.5% PRIOR; Y/Y: 6.0% V 6.1% PRIOR

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 -0.5%, S&P/ASX flat, Kospi -0.2%, Shanghai Composite -0.4%, Hang Seng flat, Sept S&P500 flat at 1,948

***Commodities/Fixed Income/Currencies***
- Aug gold +0.1% at $1,318, Aug crude oil -0.1% at $105.70/brl, Sept copper flat at $3.17/lb
- SLV: Spot silver rises above $21.15; 3-month high
- (JP) BOJ offers to buy ¥300B in 1-3yr JGB, ¥200B in 3-5yr JGB, ¥100B in 10-25yr JGB, ¥30B in JGB with maturity over 25-yr as well as ¥1.5T in T-bills
- (US) Weekly Fed Balance Sheet Total Assets Week ending June 25th: $4.37T v $4.37T prior; Reserve Bank Credit: $4.33T v $4.33T prior; M1: -$3.0B (first decline in 3 weeks) v +$3.3B prior; M2: +$4.3B v -$9.3B prior; M1 y/y change: 10.5% v 10.3% w/w; M2 y/y change: 6.3% v 6.3% w/w

***Market Focal Points/Key Themes***
- Nike shares are up 3% afterhours following impressive Q4 numbers, beating on the top and bottom line. Futures orders were up 11%, while gross margins rose 170bps to 45.6%. Even China - previously a soft spot - appears to have made a fully recover from its inventory adjustment with a 4% rise in sales.

- A set of economic data from Japan came in mixed. Household spending is down sharply, even though finance min Aso said the decline was within expectations and still reflects adjustment from higher sales tax. Moreover, the y/y drop in retail sales was not nearly as bad as expected. Jobless rate hit a 6-year low however, and job-to-applicant ratio expanded to a 20-year high. National CPI continued its steady climb to 3.7%, while core rate hit its highest since 1982, potentially further diminishing the outlook for more BOJ easing. USD/JPY hit a 1-month low below 101.40, also helped by the falling US yields.

- NZD hit a 3-year high above $0.8790, with a slightly higher than expected trade surplus serving as catalyst. Later in the day, RBNZ Gov Wheeler released the 2014-17 central bank outlook, claiming RBNZ will steer policy to avoid damage of high inflation.

- China industrial profits growth slowed but not sufficiently to signal a pronounced retreat. In the property sector, local press reported Shanghai developer "Yuehe Real Estate" halted construction, entering a technical default. Developer was said to have run up about NY240M in debt, requiring CNY300-400M in funding to continue construction.

***Equities***
US markets:
- MTW: Activist investor Relational said to have taken an over 8% stake; urging Manitowoc to split off its food service equipment business - press; +12.1% afterhours
- NKE: Reports Q4 $0.78 v $0.76e, R$7.43B v $7.35Be; FY15 outlook largely unchanged from guidance given last quarter; Able to continue raising prices; +3.0% afterhours
- GM: House Committee release new document indicating VP of products Doug Parks knew of ignition switch issues in 2005 - financial press; -0.2% afterhours
- DD: Guides FY14 lower to $4.00-4.10 v $4.30e ($4.20-4.45 prior); updates redesign and restructuring initiative, sees restructuring charge of $0.20; -2.1% afterhours

Notable movers by sector:
- Consumer Discretionary: Tabcorp TAH.AU -5.8% (court rules against company); Bosideng International Holdings 3998.HK -6.1% (FY14 results)
- Materials: Paladin Energy Limited PDN.AU +6.8% (provides updates)
- Industrials: NARI Technology Development 600406.CN +% (awarded contract)
- Technology: Sony Corp 6758.JP -1.3% (cuts jobs in VAIO unit); Alco Holdings 328.HK +6.8% (FY14 results)

TradeTheNews.com

EmediateAd










Notowania

Ads

Sonda

Reklama