China Gains After Partial MLF Rollover

Equity markets are mixed in the Asia-Pac region; in China markets are higher, the PBOC rolled over CNY 100bn of MLF funds, even after the 0.5ppt RRR cut last week. Elsewhere data slowed from last month and while GDP missed estimates retail sales and industrial production were both above consensus. Following the release the NBS said it saw the economy to keep recovering steadily in the second half of the year. In Japan markets are lower, local press reports have pointed to the BoJ adopting a lower GDP outlook for the current FY come the end of its 2-day meeting (which runs across today & tomorrow), which isn't a surprise given the local COVID situation. In South Korea markets are higher, the BoK kept rates on hold as expected and remained upbeat on the economy despite a surge in coronavirus cases. The Bank did note that next month would be time to start discussing removal of monetary accommodation. In the US futures are mixed again, e-mini Dow and e-mini S&P are lower, while e-mini Nasdaq is higher boosted by gains in the tech sector.