Asia-pacific Shares Pullback After Wall Street Weekly Loss

13/09/2021 Stocks sank in China and Hong Kong on Monday on Beijing regulatory crackdown, while slightly down in Japan and steady in Australia. China’s online platforms have been told to protect the rights of workers in the “gig economy”, furthermore, regulatory officials are seeking to break up Ant Group Co.’s Alipay. U.S futures remained steady, while European counterparts retreated. The is week packed with major U.S. and Chinese economic data and the launch of Apple’s latest iPhones. China will be releasing expansive data on Wednesday – retail sales, industrial output and urban investment – that analysts fear will show a further slowdown in the world’s second biggest economy. The MSCI’s broadest index of Asia-Pacific shares ex. Japan eased 1.02%, at the time of writing, after bouncing on Friday.

Aluminium powered toward $3,000 a ton amid expectations that supply disruptions are here to stay, while demand keeps rising. The metal notched yet another 13-year high on Monday after rising 15% over the last three weeks.

Gold steadied as a faster-than-expected increase in U.S. producer prices last month added to signs the Federal Reserve could soon start reducing stimulus. The bullion is hovering at $1792.24, 0.24% firm this morning.

Oil up as continuous concerns about U.S. supplies with the recovery from Hurricane Ida’s damage dragging into a second week gave the black liquid a boost. Brent oil futures was up 31 cents, or 0.41%, to $73.23, while WTI futures gained 0.43% to $70.02. Both Brent and WTI futures were at their highest levels since Sep. 3 earlier in the session.

Here are some events to watch this week:
• OPEC monthly oil market report, Monday
• U.S. consumer-price index, Tuesday
• Apple product-launch event, Tuesday
• China retail sales, property prices, industrial production, Wednesday
• Quadruple witching day for U.S. markets, Friday

Local Market
The local bourse firmed up 0.19% to 64,296 points and the blue-chip Top-40 bagged 0.27% at the close on Friday. Positive sentiments, across global markets, had been driven by reports of both the US and Chinese Presidents holding their first direct conversations since February 2020 – after Donald Trump strained relations between the two global economic giants during his tenure. Mining rose 1.35%, resources 0.62% and industrials 0.27%. Precious metals and mining fell 1.26%, retailers 1.01, with banks and financials both 0.72% lower. Steinhoff share price rose almost 6% on Friday, to close R3.22 after the group said the last vote for the settlement that aims to end most litigation against it, and save it from bankruptcy, garnered sufficient support. Rand flat 0.06% to R14.21/$, while Yield on 10-year govt rand bonds rose 0.50 bps to 9.20%. Tencent 3.70% on the backfoot in Hong Kong this morning , Top-40 futures -330points below the watermark – IG markets. South Africa’s move to ease its coronavirus lockdown to adjusted alert level 2 from adjusted alert level 3 came as Covid-19 infections declined and will allow for greater economic activity.

NEWS:
• South Africa Eases Lockdown as Covid-19 Infections Decline
• South Africa Approves Pfizer Vaccine for Children Aged 12 Plus
• South Africa’s Eskom Reports Fire at Kendal Generator Transformer
• China’s Tech Crackdown Is Clobbering Stocks in South Africa
• Global Sinovac Vaccine Trial in Children Starts in South Africa
• Rand Set for Third Week of Gains, Leads Peers: Inside S. Africa
• Citi Downgrades Shoprite, Sees Growth Story Discounted in Price
• Pandemic Risks Worsening on Africa Variants, Scientists Say

EQUITY PREVIEW:
• Growthpoint Properties Sees Full-Year DPS at Least 15% Lower
• Steinhoff’s Settlement Moves Step Closer as Third Group Votes
• MANDATE: Bidvest $Benchmark 5NC2 Bond Investor Calls
• Truworths Cut at Avior as Revenue Growth Seen Under Pressure
• Resilient REIT Cut to Hold at SBG Securities; PT 57.50 rand
MEDIA SUMMARIES:
• News24: Dirco DG fired amid probe into botched R118m New York land deal
• SABC News: ‘Digital vaccine certificates will soon be issued to fully vaccinated South Africans’
• Daily Maverick: ANC fires Carl Niehaus from Luthuli House after ‘false statements’ fiasco
• Business Day.za: Most parties ignore donation disclosure rules
• Daily Maverick: Exclusive: Harmony Gold makes final wage offer, NUM likely to accept: source
• News24: Cyril gave green light for Zuma parole

EU/UK/US
Equities markets in Europe inched lower on Friday at the close, traders weighing risks from tighter monetary policies after the ECB signalled a slowdown of pandemic-era bond purchases. The pan-European STOXX 600 index fell 0.31%. London’s FTSE100 closed flat 0.07%, UK GDP growth slowed in July to 0.1%, against expectations of a rise of 0.5% as disruptions to supply chains, staff shortages and rising Covid-19 case numbers hit the economy. Germany’s Dax slid 0.09% at the close. BioNTech rose 2.5% after executives at the German biotech firm told the media the company is set to request approval across the globe for use of its COVID-19 vaccine in children as young as five. France’s LVMH rose 0.8% after HSBC recommended buying the stock. FTSE100 futures retreated -10 points, Germany’s -18 points.

The Dow opened 58.03 points lower on Friday, setting the index firmly on course for a day of losses. Apple Inc. closed down 3.3% after the iPhone maker was ordered to make a major change to the way it generates money from its App Store. The company was the biggest decliner in the Dow Jones Industrial Average, the benchmark gauge slid 272 points (0.78%) at the close. S&P500 gave up 0.77% on Friday, declining 1.73% for the week; alongside Nasdaq retreating 0.87%, with shares of Novavax slipping 3.8% lower on Friday after reports revealed that the Indian government could take longer than expected to grant emergency use authorization for Novavax’s COVID-19 vaccine. U.S futures are roughly 0.10% across the board, in the green. The Fed’s next meeting is on Sept. 21-22, tensions are only set to mount ahead.

ASIA
Hong Kong and China shares slipped on Monday, dragged by internet giants following a slew of moves by Beijing to crack down on the country’s technology sector. Chinese blue-chips were also pressured after new bank loans in August missed forecasts. The Hang Seng index dropped 2.0%, The CSI300 index fell 0.44%p, Japan’s Nikkei shed 0.25%, while Australia’s ASX200 remained steady 0.07%. Japan’s biggest automaker, Toyota, slumped 2.87%, while Honda fell 1.77% and Nissan declined 1.15%.