Global Market Quick Take: Asia – July 12, 2023 Global Market Quick Take: Asia – July 12, 2023 Global Market Quick Take: Asia – July 12, 2023

Global Market Quick Take: Asia – July 12, 2023

Macro 7 minutes to read
Redmond Wong

Chief China Strategist

Summary:  The S&P500 and Nasdaq 100 saw modest gains, with a 0.7% and 0.5% increase respectively, spread across all 11 S&P sectors. The energy sector emerged as the top performer with a 2.5% surge in crude oil. Activision jumped by 10% following a court ruling allowing Microsoft to proceed with its acquisition of the game developer. China's aggregate financing rose to RMB3,220 billion in June, surpassing expectations and driven by a significant increase in new RMB loans. Today, the US CPI inflation data is set to release, with forecasts indicating a slowdown to 3.1% Y/Y from May's 4.0% but a slight pickup to 0.3% M/M from 0.1%.

What’s happening in markets?

US equities (US500.I and USNAS100.I): energy sector surges, Activision jumped 10%

The S&P500 gained 0.7% and Nasdaq 100 climbed 0.5%. The modest gains spread across all 11 S&P sectors. The energy sector was the top winner as crude oil surged 2.5%. APA Corp (APA:xnys) jumped 6.3%. Activision (ATVI:xnas) soared by 10% after a federal judge ruled that Microsoft (MSFT:xnas) can proceed with its USD75 billion acquisition of the game developer. Microsoft (MSFC:xnas) trimmed initial losses to finish the day 0.2% higher. Meanwhile, the US Federal Trade Commission is reportedly leaning toward appealing the decision.

Treasuries (TLT:xnas, IEF:xnas, SHY:xnas): mixed and choppy trading ahead of CPI release

Treasuries fluctuated between small gains and losses in a thin but choppy trading session on Tuesday ahead of the PI release today. The USD 40 billion 3-year note auction saw strong demand, with a bid-to-cover ratio of 2.88 versus 2.70 in the previous auction. The 2-year yield rose 2bps to 4.87% while the 10-year yield shed 2bps to 3.97%, bringing the 2-10-year yield curve 4bps flatter to -90bps.

Hong Kong & Chinese equities (HK50.I & 02846:xhkg): markets rally as China extends financial supports to property developers

Hong Kong and Chinese equities rallied for a second day following the joint announcement by the People's Bank of China and the National Financial Regulatory Administration. The 16-point financial measures to support the property sector were extended by one year until December 2024. Banks were also instructed to extend outstanding loans to developers beyond their original maturities. The Hang Seng Index gained 1.0%, while the CSI300 Index added 0.7%.

EV makers notably outperformed, with Nio (09866:xhkg) soaring by 11.8% and XPeng (09868:xhkg) advancing by 8.9%. as June EV sales in China increased 35.2% Y/Y.

Shares of casino operators surged after Macao International Airport reported passenger volume in June reached a new high for this year and recovered to 55.3% of the level in June 2019. MGM China (02282:xhkg) jumped 5.2% while Melco (00200:xhkg), Wynn Macau (01128:xhkg), and Galaxy (00027:xhkg) advanced over 4%.

In the A-share market, semiconductors, automakers and their supply led the advance of the market. Noteworthy gains were also seen in the electronic, mechanical equipment, and communication space. Northbound flows saw a net buying of over RMB 3 billion.

FX: USDJPY slides below 140 mark as traders trim short Yen positions

USDJPY declined 0.7% overnight and an additional 0.4% this morning during early Asian hour trading, dropping below the 140 level to 139.80. Traders are said to be reducing their short Yen positions due to renewed speculation of a potential policy adjustment by the Bank of Japan and in anticipation of a moderation in US inflation, as indicated by the upcoming US CPI report.

USDCNH weakened by approximately 0.4% to 7.2025, as the yuan received support from stronger-than-expected credit data in China for the month of June.

Crude oil surges 2.5%

NYMEX WTI crude oil futures (CLQ3) rose by 2.5% to USD74.83 per barrel as vessel tracking data showed signs of decline in Russian oil exports.

What to consider?

US CPI expected to decelerate

US CPI is scheduled to release today. The median forecasts in Bloomberg’s survey of economists point to a slowing of the CPI inflation in June to 3.1% Y/Y from 4.0% in May but a pick-up to 0.3% M/M from 0.1%. As prices of used vehicles, lodging, and airfares have softened in June, the median forecast for core CPI is a fall to 5.0% Y/Y and 0.3% M/M in June from 5.3% and 0.4% respectively in May. This data point probably will not change the Fed’s well-communicated intention to resume hiking at the July FOMC meeting. However, if the core CPI decelerates as anticipated, investors may continue to keep the odds for September and November rate hikes low.

China's June loan growth steady at 11.3% Y/Y

China’s new aggregate financing increased to RMB3,220 billion in June, up from RMB1,556 billion in May and higher than the RMB3,100 billion median forecast. The strong performance was primarily driven by a steep increase in new RMB loans to RMB3,50 billion in June above the median forecast of RMB2,319 billion and RMB 1,363 billion in May. The growth of the outstanding stock of aggregate financing slowed to 9.0% Y/Y in June, down from 9.5% in May mainly due to a high base in government bond issuance last year when local governments were told by the central government to front-load bond issuance. The growth of outstanding RMB loans slid modestly to 11.3% Y/Y from 11.4% in May.

New loans to the corporate sector rose to RMB2,280 billion in June from RMB856 billion in May and slightly above RMB2,212bn last June. New loans to households increased to RMB964 billion in June from RMB367 billion in May and RMB848 billion in June last year. Meanwhile, M2 money supply growth slowed to 11.3% Y/Y in June, compared to 11.6% in May.

UK unemployment rate rises but average earnings growth surpasses expectations

In the UK, the unemployment rate unexpectedly rose to 4.0% in May, compared to 3.8% in April and the median forecast of 3.8%. On the other hand, the growth in average weekly earnings increased to 6.9% Y/Y in May, up from 6.7% in April (revised up from 6.7%), surpassing the expected 6.8%.

Reserve Bank of New Zealand set to hold rates unchanged

The Reserve Bank of New Zealand (RBNZ) is holding a policy meeting on Wednesday. Market participants are expecting the RBNZ to stay put, leaving its policy rates unchanged. Back in May when the RBNZ’s Monetary Policy Committee met and raised the policy rate by 25bps to 5.5%, the voting result was 5-2 with two dissenting votes in favor of a pause. The subsequent communication from the RBNZ indicated a terminal rate of 5.5%.

China's new energy vehicle sales surge 35.2% Y/Y in June

According to the China Association of Automobile Manufacturers, vehicle sales in June reached 2.6 million units, rising 4.8% Y/Y. For the first six months of the year, vehicle sales totaled 13.2 million units, increasing 9.8% Y/Y. In June, the sales of new energy vehicles (NEV) reached 806,000 units, marking a 35.2% Y/Y increase. The market share of NEV relative to the overall passenger vehicle market reached 30.7%. In the first half of this year, cumulative sales of NEV amounted to 3.747 million units, increasing 44.1% Y/Y and reaching a market share of 28.3%. Although the growth rate has slowed down compared to previous periods, it remains significantly higher than the overall growth rate of the passenger vehicle market.

Macao airport reports strong passenger growth

Macao International Airport reported second-quarter passenger volume of 1.197 million, up 58.12% from the previous quarter and reaching 50.2% of the pre-pandemic 2019's second-quarter levels. Despite traditionally being a slower season, monthly passenger volume in June reached a new high for this year, standing at 431,000 individuals and recovering to 55.3% of the corresponding period in 2019.


For a detailed look at what to watch in markets this week – read our Saxo Spotlight.

For a global look at markets – tune into our Podcast.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.