>> welcome to "daybreak asia." collects we are counting down to the asian market open. >> our top stories this hour, the fed's tapered timeline set for a delay after the latest u.s. jobs report signals a drop in hiring. japanese futures pointing higher after the decision to step down. a look at the succession race.

plus beijing's government set to seek control of the world's biggest ride-hailer. >> as we continue to watch the surge of delta and the rollout of vaccines, it has become apparent in the latest data that we are collecting that perhaps the surge in global growth and the recovery story is coming to a standstill. we see that in china with the august pmi numbers portending that this push into the holiday season alongside price pressures, labor shortages, factory shutdowns, not to mention the high cost of shipping, then staggered returned to work, the return to office campaign not coming out as much as we wanted, we are talking about boosters being needed. all of this is not shaping up to be the end of 2021 that we were expecting. i'm speaking as sydney goes into week 11 or 13 of lockdown?

some parts of the state? >> i'm asking you how that felt, 11 weeks under lockdown is quite something. in the u.s. we continue to see that that weakness in the economic data is being felt here. we saw jobless numbers for the month of august, the weakest reading since january, perhaps we could see more uncertainty because those emergency unemployment benefits for millions of americans will be expiring this labor day weekend, and this could perhaps bring more economic challenges for people here in the u.s.. >> of course we are watching the start of trading in japan. stocks rally into an incredible high. this is a three decade high despite the turbulence of the prime minister's exit. analysts are split, some saying you could see 36,000 for the nikkei, some saying you can see a return to a general malaise it

depends what the next leader does, but you were in japan at the time of the rotating door period for japanese leadership. it feels like we are back in that stage, which is a strange feeling, given we had stability under abe. >> i feel like i saw four prime ministers in a five-year period. it was really a turbulent time. we will see where we are headed over there. >> let's take a look at how we are setting up when it comes to the market open, including that in tokyo, the start of a new trading week. what are you up to? >> we are seeing the nikkei just a touch softer after the pop we saw friday over at jeffrey's. they remain modestly bullish on japan. they don't see any chance of a policy tweak given the new leadership. pulling up the next board, s&p e minis after we saw the cash

session falter for the s&p 500 friday, a big mess in the g ups -- the u.s. jobs report. bitcoin trading $51,000. crypto markets are looking frothy yet again. head of the rba policy decision, the aussie dollar softer while the aussie 10 year has jumped to a july 16 hi. the offshore yuan holding below 644 ahead of chinese trade and credit data due this week. >> let's get you to vonnie quinn with the first word headlines. >> new guinea's military has seized power and suspended the constitution. destabilizing the west african nation that is a key source of bauxite needed to make aluminum. the current -- the colonel accused the president of financial mismanagement and corruption. the uae says it plans to expand

its trade ties with fast-growing economies in asia and africa, including south korea, indonesia, and kenya. officials say they will seek to draw $150 billion of foreign investment to reposition the emirates as a global hub. commercial capital for more than a decade, but faces mounting competition from saudi arabia. the top white house medical advisors has pfizer and beyond tech vaccine -- says pfizer and biontech is the only shot likely to be approved for a booster shot for the time being. the white house has faced criticism of political interference in the review process. the white house says it is confident joe manchin will back president biden's 3.5 trillion dollar tax and spending package. the chief of staff told cnn the plan adds no debt, so mansion

should be persuadable. his vote would be key in an evenly divided senate. last week he said rising inflation and soaring national debt should mean a smaller plan. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> disappointment over the u.s. august jobs report is all but certain to push the fed to delay any taper plans at the september meeting and complicate the start by the end of the year. let's get more from our chief asia economics correspondent and current -- and a current. the leisure and hospitality jobs stay flat. restaurant and bars seeing fewer workers as well. the spread of the delta variant not going to help with this one. what are the implications for policy makers? >> you saw that big miss on u.s.

jobs. there is no doubt it could complicate the fed's plans to start tapering emergency support. fed chairman jerome powell has been costly talking about the need for substantial progress on the job story. we would have to say at the very least november would be the soonest before the fed does start debating moving the tapering. >> when you look at global growth prospects in this stage of the recovery, we are seeing so many headwinds. people not going back to the office, vaccine efficacy waning, supply chain disruptions, inflationary pressures. does this mean we have peaked? >> really a does. at this stage, the idea was we would be pulling out of the acute phase of the pandemic, hoping vaccines were working, they were effective enough, every country was getting them, that is known another story. we might need booster shots. our many parts of the world that

cannot get access to the vaccine. all of that is driving the ongoing disruption to everything from office work to schooling to transportation. it is showing up around the world. the germany manufacturing sector is slowing down. china's service sector crumbling. we have seen what is happening in the u.s.. economists are saying, wait a minute, this global growth rebound is as good as it gets until we get more vaccines, until we are confident we are pulling out of the acute stage of the pandemic. >> our chief asia economics correspondent there. the leadership races and japan heats up after the shock announcement prime ministers hugo will step down. -- prime minister suga will step down. continuity is key, but obviously the new leader needs to do something different when it comes to handling the pandemic. what is the race shaping up to look like?

>> it is going to be a three horse race. we still have a little more than three weeks until the leadership vote, and then ahead of late november -- by the end of november, the general election. the three horse race is essentially three men in their late 50's, early 60's, and there are two outsiders, but the three men, on the one hand you have the former foreign minister, a party stalwart, has his own faction, but does not have much popular support in the nation. you have a party heavyweight, but he -- and he is very popular within the population and the voting populace, however he is not very popular within the party itself because he rankles feathers and was a critic of abe. the centrist candidate is probably tauro kono.

went to georgetown university, the youngest of the three, 58 years old, and all polls indicate him, the former defense minister and currently the vaccines are, is the freight runner -- vaccine czar, is the front runner. >> how is the covid situation shaping the race? >> it is going to be the backdrop of just about everything. we have seen interviews and a press conference last week. one candidate wants to see the government spent trillions of dollars for pandemic relief. we can seek balancing of fiscal and monetary policy later once they are through the crisis. keep in mind, opinion polls show more than 70% of the population depend -- of japan blame the government from is handling this crisis and there are states of emergency in 21 prefectures. that is the most since the pandemic began. japan is in a serious bind.

with more than 2300 cases in tokyo on saturday, according to the -- it will likely continue at least for another two weeks beyond the current expiration of september 12. >> china's move terrain-in the private sector -- move to re in-in the private sector continues. this could come just three months after they actually went public here in new york. can this be seen as anything other than blatant nationalization of a private company? >> we don't know the exact specifics of this plan. we understand the city of beijing municipal government has proposed to more senior officials that it have some of its -- invested in didi.

it can be is an the form of a small stick, but a golden share that would give the city government and its state owned companies the right to veto some business decisions and a seat on the board. this is early days yet, nothing has been decided, but the city of beijing would like to propose that the broader government support this. >> we are seeing chinese regulators tighten the position. >> we had a financial forum in beijing. we had a deputy central bank governor say they would continue to tighten restrictions, scrutiny of the financial technology industry. that has been an ongoing issue since probably most notably the shelving of the ipo last year. we have a deputy head of securities regulator saying they would continue to improve the

regulatory system for ipo's overseas. and continue to expand the channels for overseas investors to come into china. >> are greater china executive editor there. coming up next we get more on japan's succession race. it is a close call between the top contenders. coming up next, we get the market outlook after the u.s. jobs data.

>> this was a materially lower number. >> the first reason is this has some delta variant on it. >> this is the long game coming out of a worldwide pandemic. >> one huge red flag for me in

this report. >> the hospitality number, the restaurant number. we had almost zero gain in that area. >> we will get bounced back in september. the market is looking through this, seeing if it is temporary. >> the fed is going to taper. >> the market is pushing back any fed taper to november, maybe december. >> the most important thing is the emphasis that tapering is not tightening. >> that earlier guest relaxing -- reacting to that shocker of a weak u.s. jobs report. does this change anything when it comes to fed expectations? >> good morning. not really. i would say on the downside, a delta variant on current economic conditions and policymakers pivot.

this reinforces that some form of stimulus will remain in the system for the foreseeable future. the fed is going to have it clarified with consistency. there are other tools they can use as well. the taper could be in one or two months but it is a separate issue to interest rate hikes. the market will look through and see even though conditions are slowing, they are at a reasonable pulse. >> you say conditions remain ripe for risk assets to rally further. is that because you expect as a result of delta or as a result of the confluence of events, that this recovery is not as strong as we would have thought going into this year? that we are going to see looser

policy measures staying alongside with us for longer? >> in part, yes. look at what is happening in japan. it has impacted the countdown to a variant getting out of control. looking at economic conditions, the rate of expansion increasing or decreasing, one year forward, we are trying to predict when, earnings will be long-run historical benchmarks one year forward. looking where we are at the moment, this adjustment to delta and the complications mean some form of stimulus needs to remain for longer. otherwise there's going to be an interest rate for the fed pushed until there's clarity around it. therefore, risk assets will remain the beneficiary of it notwithstanding the volatility.

the language is very bullish in trying to start interest rate hikes and talk about stagflation . >> you mentioned japan. we have a huge rally on expectations that there will be more fiscal stimulus. how much potential change in the government and monetary and fiscal policy has been priced into the markets? could we see more upside from here? >> a little bit more upside. most of it was priced in friday afternoon. another blend and wave of abenomics. it will be targeted, more fiscal stimulus targeted. there is still some upside depending how they go, but the thing we need to also take out

of it from a noneconomic and nonmarket point of view is what is happening with the pandemic. this has in part led to that. that's happening for a lot of economies around the world and that needs to be noted. policymakers understand this. there are more policy tools they can use. notwithstanding the volatility. >> definitely we are worried, not seeing any changes that the top is china. president xi jinping seems to be in place for quite some time. we are going to see more with didi potentially being taken under state patrol -- state control. i have heard analysts talk about winners and losers. is that the right way to put it?

is there any chance the changes brought on by xi jinping are not really oriented towards reform, but may signal just a very sharp veering away from free markets? >> exactly that. beijing's version of economics is redistribute profits, take ownership of certain sectors. they think it very pragmatic. they are trying to control economic activity, giving a really good attempt to do this. there is inconsistency for the west.

it remains in the supply chain for the rest of the world. obviously there's a lot of the listings and the government getting into the technology sector. it will continue for some time. >> let me end on the rba on tuesday. taking a look at the yield on november 2020 four paper rising on expectations of that taper. that does not seem so certain. people saying potentially they will have to delay. what are the implications of equities given we have seen 11 straight months of gains for australian stocks? >> if they taper in the current quarter and go through with it, it will be a challenge for equity markets going forward because we cannot be in a

negative quarter because of what is happening with lockdowns. one way of thinking would be to delay the taper and understand that will be that recovery. coming off a v-shaped eps recovery, but we are going to slow down economic activity. delaying the taper is good for equities in the long run but it would be a challenge in september. >> a good to have you with us. getting around up of the stories you need to get your day going, bloomberg some scrubbers go to dayb on your terminal -- subscribers go to dayb on your terminal. this is bloomberg. ♪

>> we are getting an alert. china's bond details may be unveiled this week. we have seen a record bond connect usage before the expected southbound connect. we will wait for more details on that. let's get you a quick check of the latest headlines. beijing's municipal government is set to propose a new investment, giving state-run firms control over a ride-hailer. didi will give up a stake to a group that operates the service and is part of the influential beijing tourism group. didi denies the reports. binance will stop offering some

products in singapore after regulators said it may be in violation of the payment services act. it will remove the app from google play stores, but the move only affects binance.org not binance.sg. the all-time record for a film opening over labor day. this movie made an estimated $71.4 million in u.s. and canadian theaters, blowing past the estimates. >> these are some of the stories we are watching today as we count down for the start of trading. korea is a key target for the uae's announced $150 billion pushed to grow trade ties across asia and africa. we will keep an eye on whether it leads to new deals between the countries. the new bank of korea regulator

-- before leaving the central bank board last month. the government is set to announce whether to extend a current social distancing measure. we will also be watching the open in japan. this is bloomberg. is is bloomberg. it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.

>> well, i'm not going to run, but you are right. he was really unpopular. he dropped to about 25% in public opinion polls. >> we used to have a revolving door at prime minister. the current prime minister is walking out because he is sick and tired of pressure from this corona-related issues. >> this is extraordinary. we did not think -- we thought

he was on the path to getting reelected in his own right. and well, obviously we have a different game today. as of mere minutes ago. this is part of the ongoing transformation we are seeing in japan. >> he decided he is a liability for the upcoming elections and they need somebody else. if you are going to dump suga, it seems highly unlikely they would decide their candidate is fumio kishida, who has been in the news a lot recently. i would say it is highly likely taro kono will be the man they will pick. >> the race is too close to call between the top candidates right now according to our next guest. the associate professor of political science at --

university. how much traction is the next leader going to have, or are we risking a return to the revolving door leadership? we had something like seven different prime ministers, including shinzo abe twice. >> it depends on who is elected. if it is fumio kishida, there is a risk we will return to revolving door politics. he represents the mainstream. his policy platform does not seem to show anything particularly different from suga . however, mr. kono, someone more in the mode of the prime minister who served five years before this revolving door problem emerged, might be somebody who can stay in office a longer period of time certainly kono has a strong support base. the problem is he does not have a strong support base in the party.

>> the factional politics really weigh heavy. when you look at taro kono, he is the vaccine czar, the former foreign minister. does the former part of that experience lend itself well given that we know it was the vaccine rollout as well as the handling of the pandemic that ended this current prime minister? >> the fact he took on this sort of poisoned chalice actually gives him some credibility among the japanese public. and within the party. it is a difficult job to take on, this position of vaccine czar given japan was slow to roll out the vaccine in the first place. the public will appreciate he has been open in his communications about the problems japan has experienced. i don't think necessarily that will be a huge hurdle for him. he is currently the favorite candidate among japanese public.

ironically, it may have helped raise his profile a difficult time and probably has not really undermined his chances, i don't think. >> the latest polls really showing taro kono in the lead when it comes to the public. nearly 32% of respondents cited taro kono as the favorite, followed by 26.6% for -- and then fumio kishida. we are talking about a parliamentary them. at the same time you are headed toward a general election. >> you are headed toward a general election and mr. suga's approval rating, actually the entire cabinet, are higher than disapproval. the ldp is facing down a general election where they command a substantial number of seats. recently they lost the mayoral

election in yokohama, which was quite a big upset. taro kono represents a quite different style of politics popular with younger voters who don't usually vote for the ldp. have a big following on social media. he's a good communicator. he speaks in a way that resonates with average japanese citizens. with all this sort of momentum with the public, the fact there is a general election coming, that might be a factor. >> you mentioned -- i lived in japan for five years and i remember four new prime ministers, but i cannot remember their names because of that revolving door of changing prime ministers. koizumi is one we remember, and shinzo abe of course. what cements them as leaders of japan that other prime minister did not have? >> koizumi, it was charisma.

also a different agenda. he was willing to introduce reform -- neoliberal style reforms, something we have not seen significantly in japan. he had a reform agenda that was clear. and he had a charismatic way of presenting that to the japanese public. for him, it was his own leadership style and the fact he was very committed to a clear policy. shinzo abe the circumstances were important. the opposition party, or the party that has been is an opposition for most of the postwar period, has not done particularly well, lost power after a number of difficult catastrophes, including the nuclear and earthquake disasters. shinzo abe came into office facing literal -- little political opposition. none of the reasons he has

stayed in power was the lack of alternative. >> koizumi, we know, was -- was a charismatic maverick leader, had his own brand when it comes to economic policy. how does that fit with what we know as the demographic challenges facing japan. >> there are a lot of similarities. both of them are committed to more dear regularization -- more deregulation. i think one of the things that is different is that taro kono has talked about the need for more immigration in japan, quite unusual from conservative politician's. he's also quite committed to a green agenda. partly that is because we are living in different times, but he has been outspoken. something mr. koizumi has also joined in on in more recent

years. i think we will see more of a green agenda under a kono premiership. >> thank you very much for your insight into japanese politics as we continue to head toward the market open. the topix at a 1991 hi. it's get to vonnie quinn. >> chinese officials have pledged to tighten supervision in the financial services industry. the pboc deputy governor says the central bank will close loopholes in the fintech regulation department and include all types of financial institutions, services, and products in the framework. he also told the forum in beijing that authorities will boost foreign. exchange markets provisions. australia's treasurer is expected at a teleconference later -- two teleconference that the economy has shown resilience.

diplomatic tensions flared last year. while exports of targeted products have job -- have dropped by $4 billion, other markets have grown. the u.s. chief climate advisor will tell a conference in canberra that australia should join is g20 counterparts in committing to a net zero omissions target. prepared remarks say a failure to act would see australia suffer more frequent and severe climate events. pressure is growing on the government to act ahead of the glasgow summit. a u.s. republik and lawmaker says americans and afghan interpreters are above several planes prevented from leaving -- aboard several planes prevented from leaving afghanistan. the taliban effectively holding the passengers hostage. and afghan official told the associated press the people on

board were afghans, many of whom do not have passports or visas. iran's president says negotiations to revive the 2015 nuclear deal must lead to the removal of sanctions. he told french president emmanuel macron on a phone call that iran is not interested in negotiations for the sake of negotiations. talks have been on hold and tehran has given no indication when they may resume. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> we are headed toward the open in japan, south korea, and australia. >> nikkei futures in singapore bouncing more than 1%. a narrow trading range scene. limited impact from political development in japan with no

change to fiscal and monetary policy under the next from your. we are seeing treasury futures lower after the tightening on u.s. jobs report. jp morgan staying bearish on benchmark treasuries as they see above trend growth of this year as well. and switching out the board, checking on aussie bonds, we are seeing a drop after the prime minister pledged to stick to reopening plans and the aussie dollar is off by nearly 2/10 of a percent. ahead of the rba decision tuesday. opinions decided on how the bank will act. morgan stanley delaying tapering until november. jp morgan expects the rba will stick to its plan. westech say they could boost qe purchases and the bank has downgraded its forecast for australia's growth this year, up 2.4%. >> taking a look at the commodities space, the military

has seized power and suspended the constitution in guinea, destabilizing the west african nation. that is a key source of bauxite, the key raw material used to make aluminum. joining us for the latest, this is going to have a huge impact on the market because this country is the biggest exporter of bauxite. >> that's right. it is key for africa and asia, it is a key supporter for bauxite into china, the largest maker of aluminum. more broadly across aluminum, we are seeing a supply shortage in china. smelters have been seeing power crunch issues. obviously there is the broader pers terrain-in the industry -- the broader push to rain-in the

industry. it has the potential to drive prices quite high. >> what companies will be impacted? >> people like rio tinto, a major aluminum company. we had some chinese companies who invested in bauxite operations in guinea with the attempt to secure the supply chain through to the finished product. we might also see share reactions as well as the raw material price reaction today. >> another one to watch. and or mispriced pressures in the commodities -- enormous

price pressures in the commodities index. the china national holiday is in october. the hong kong wealth management connect might be launched the monday after that. details are expected as soon as this friday. we have heard earlier from hong kong authorities that the wealth connect is in the home stretch according to the deputy chief executive officer speaking earlier in july. we heard earlier about potentially getting a start when it comes to the southbound bond connect given we have seen the usage when it comes to the bond connect close to the highest on record amid that fourth anniversary day. next, the biggest landlord in hong kong and the most expensive office market sing robust demand.

we get our exclusive conversation with raymond chow next. ♪

>> the single largest landlord in hong kong central business district has properties that

spanned more than 450 thousand square meters of prime real estate. in what is a unique ecosystem that is home some of the world's most high-profile tenants of the company has begun a new megaproject. it says the space addresses needs for more agile, wellness focused, and digital enabled workspaces. bloomberg markets' coanchor yvonne man spoke to raymond chow about the project. >> it is more than a co-working space. it is an extension to our clients. we see customer experience and what customers require moving forward as a key piece to what we do. what we found is the changing dynamics of how people work and live and shop is a very important piece. we see our clients wanting a lot more space available for them to

work their business that much better. >> the timing of course is not ideal. when you opened, it was right around the protests. covid happened as well. looking back, do you think that space has been paying off for you? >> absolutely. we have been in hong kong for 130 years. we see business models change and evolve over time. what we saw was that this was a very important requirement to move business forward. we took the opportunity, even though we were in the height of covid, the height of social unrest in hong kong at the time. we take a longer-term view and take this opportunity to put this in place. it is paying off substantively. we are the first landowner in hong kong to have this.

>> we have seen properties going into this space. you have iwg operating those brands in hong kong and the broader area. his flexible workspace nice to have or is it a must have in a post-covid world? >> it is important we have these amenities for the portfolio. we have a portfolio that has 12 buildings interconnected. we are there to cater for the long term. we see this as a long-term client. it is important to have this flexibility. what is required to meet the demands of clients moving forward? this space is a very important piece. it is very different than a co-working space. this gives existing clients an opportunity to get flexible opportunities, including the

core space where they rent from us. >> you are building an ecosystem, as you said. kind of explain how that works. >> we bring together the whole ecosystem of hong kong finance. it is about the profits components, the retail, and the hotels altogether. we try to cure a space and an ecosystem that caters to a very specific audience. this ecosystem we provide is a space whereby people find the top-tier interest of what they do is workspace. >> raymond chow speaking with yvonne man. we talk about heading into the end of the year, the recovery is supposed to be on, we should be back in offices. that did not happen. i'm sitting in a pretty much empty office in sydney. the only people you see around

here are construction workers were still allowed to work on these construction sites. i'm just wondering, going into the return to normal, how much change what we see in global rental and tendencies -- tenantcy. >> you see on the chart we have seen is a vergence in those prices when it comes to hong kong topping the most expensive office space at $240. the occupancy cost there. a 26% more than london's west end. and new york is sort of in the middle. i was walking down the streets of manhattan, down madison avenue just yesterday, and so many offices were empty. retail space empty. people not coming back, not as of yet. a big change when it comes to

the landscape of what these financial and business investors will look like. >> we will have more on hong kong's property sector coming up, so do stick around.

>> a quick check of the latest

headlines. philippine airlines files for chapter 11 bankruptcy with a lender supported plan that helps it recover after the pandemic decimated global travel. it aims to cut $2 billion in borrowing. the carrier will also get $505 million in equity and debt financing. deliveries of boeing 787 dreamliner's are expected to be delayed until late october according to the wall street journal. the report says the faa rejected boeing's latest inspection proposal. >> japan's markets will be in sharp focus when trading begins in a few minutes. stocks hit a three decade high after prime minister suga's decision to quit and futures are pointing to more gains on monday. very interesting, because a leadership reshuffle will mean political uncertainty, yet we saw that surge in equity

markets. what are investors watching? >> like you said, it could mean lyrical uncertainty, but based on the reaction we saw friday, people are betting that whoever becomes the next prime minister will be better than the current, suga, because a new leader will help to boost support ratings for the party, leading to political stability. >> what are we expecting in terms of what could be the out performers? why are investors optimistic? >> one of the biggest reasons was the possibility of the party losing its ground in the upcoming elections. with a different leader, although we don't know who it's going to be, people are hoping the ruling party will kind of

regain its support, leading to better decisions in policy. >> let's take a look at some of the specific stocks we should be watching. >> we are keeping an eye on the japanese company positioning its coronavirus vaccine with as a booster with clearance expected next year. we are keeping a nine on stocks related to naomi osaka. sponsors dipped after the tennis star said she is going to take a break. switching out the board once more, keeping and ion asian crypto stocks, bitcoin continuing to climb, above $50,000 for the first time since may 12. >> plenty to watch out for. the market open next. this is bloomberg. ♪ ♪

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shery: hello and welcome. >> i'm in hong kong. haidi: and i'm here in sydney. take a look at the major markets across asia. our top stories. apec traders disappointed in the u.s. jobs and threads edition of the japanese prime minister.

plus, the biggest commercial landlord in the world's most excessive market, hear our exclusive interview with hong kong land's raymond chow. japan, south korea, australia coming online. >> let's get to sydney. we are seeing the asx 200 open with little change. bonds are under pressure as morrison ledges to contain the reopening plan. check out what is going on in commodity markets. oil is extending losses after saudi cut prices for asian buyers. we're seeing aluminum prices gained some ground. switching out the board, checking out the open insole -- in seoul, we of the prime minister attending a parliamentary session to review government spending. the kospi is under pressure. the korean won is firmer against the greenback which fell on

friday. shery, we stocks bouncing more than 1.5% on nikkei, extending games to a 30 year high. the end, little change. we see little impact expected from the political development. shery: our next guest says japan's change leadership traits a degree is uncertainty -- a degree of uncertainty but little is pricing for men -- for any positive shift. the senior portfolio manager for asia-pacific equities. castro, great to have you with us. this mean there is more room for upside in japan? where are you seeing the opportunities? guest: we think there is been a very interesting change in japan. from the perspective of the market, taken as a positive. in our perspective we think this is showing that the negative

attitude we have had towards japan, from our perspective this is a market where we see improving fundamentals, earnings distribution picking up. that is a positive and that is what we are seeing reflected in the market. we think there are a number of interesting opportunities in the market, from the industrial automation, even from the traditional names like steel. shery: japan has always had a cyclical tilt. we continue just to the downside on the economy over in japan, given the delta variant two. where do you see the sectors that are more appealing she right now? it seems joshua does not hear us right now, but let's turn to the first word news with vonnie quinn with those headlines. >> shery, thank you.

a unit of guineas military has seized control. the head of their special forces announce the state takeover and urge the arm forces to back him. the colonel accuse the president of financial mismanagement and corruption. a u.s. republican lawmakers said americans and afghan interpreters are aboard several planes, being prevented from leaving afghanistan. he told foxnews the taliban will not let's the chartered aircraft apart. effectively holding the passengers hostage rid and afghan official told the associated press that people on board were afghans who did not have fat -- who did not have passports or visas. the uae says it plans to expand its trade ties with asia and africa, including south korea, indonesia, and kenya. officials say they will seek to draw 150 billion dollars in

foreign investment to reposition the emirates as a global hub for business and finance. it has been the middle east's commercial capital for more than a decade. it faces mounting competition from saudi arabia. chinese officials have pledged to tighten supervision of the financial services industry. pboc's deputy government -- governor says it will close loopholes and include all types of financial institutions, services, and products into its credential supervision framework. he also told the board in beijing the authorities will boost market exchange supervision. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: let's head back to joshua crabb. hope you can hear us right now. first, we are talking about the japanese markets.

they rallied during the first few months of prime minister suga's premiership, but given all the latest challenges in japan, how vulnerable are japanese stocks to political risk, especially as we head to the general election? guest: from our perspective it is not a huge part of how we look at our investment. i think politics comes and goes, and so does the impact. we come back to looking at where the valuations sit. we think of it -- we think the japanese market is offering reasonable values. lots of companies have strong ip backings and we are seeing earnings distribution start to pick up for the first time in a number of months. another result of that -- as a result of that, we think it is quite attractive. clearly political change always introduces uncertainty and the fact we are seeing the market react reasonably positively at least in the short-term shows you that that underlying positive fundamentals are sitting in the japanese economy. haidi: when it comes to the

broader asian markets, how much will we see continued from the likes of the rba? will we see a delay to the taper plan, given there are data points which suggest we are seeing a key -- a peak the recovery story? guest: i think the whole debate around what is going to happen on the interest rates will continue to go on for some time. we think the focus is probably a little too much on that. the question is, are we seeing it peaking in the economy, and then people clearly have to adjust that going forward. from the perspective of asia, asia has lagged the u.s. market quite significantly. the valuations are quite positive. think for a number of select markets where we have not necessarily seen, places like asean, still being hit by covid, still have the potential upside. when we see reopening in those economies and the rebound start

to occur. i think it is about being more selective, where you are looking for that opportunity. haidi: is the chip story in japan still one that has further upside? guest: i guess for us, obviously, there is a lot of debate around double booking, whether there are shortages. we have seen commentaries from some ceos, for example of the auto companies, saying they are still seeing shortages. we think is interesting is if we look at maybe some of the players who have been overlooked because they have not been the headline winners, and again, markets like japan, we think there are a number of second-tier players who are starting to see their businesses pick up quite dramatically because of this demand. we are thinking through our opportunities for a number of headline companies. we are getting later -- later in the cycle. shery: where you stand on chinese equities, given we hear more news on scrutiny in all

sectors of the chinese economy? didi could be becoming -- could be coming under state control sometime soon. what happens to those stock levels there? guest: i think what we are seeing is obviously a lot of change occur in these markets. leadership has changed. that's very clear. we look at a number of the value names in some of these markets. this is actually throwing up quite a few opportunities. clearly the focus has been on the highflying internet names for a number of years and we are starting to see that open up in these markets. we have seen a number, particularly the renewable utility companies, quite a decent turn. again, a number of the commodity companies with a turn starting to happen there. they have been improving and earnings for some time but it has been overshadowed by other parts of the market -- it doesn't reduce a level of change, but we think it is

creating up -- it does create a level of change, but we think it is creating opportunities. haidi: coming up next, we get more on china's regulatory environment. we tell you why beijing is looking to do this, to put some fillet take the world's largest ride-hailing company -- to potentially take the world's largest ridesharing company under state control. and we look asia's largest eco week ahead. andrew tilden is with us. this is bloomberg. ♪

shery: china's moves to rein in the private sector continue. sources say beijing's municipal government has proposed an investment in didi global, giving state-run firms control over the ride-hailer. john, didi has denied the reports, but at the same time the fact that they could be

talking about this -- how significant is that? reporter: good morning. so, what we have understood is happening is the city of beijing is proposing to more senior officials in the proper cash in the chinese government that some of the state owned enterprises be allowed to take a stake in didi. it is unclear how big a stake it would be but the intention would be for the state-owned enterprises to gain control of the company either deer -- either through a large steak or a golden share which would give those right to veto certain business decisions. it would also give them a seat on the board. we understand -- as far as we understand it is not clear whether dd itself has been involved in these conversations. so far this is just a provoked -- a proposal the city government of beijing has floated. haidi: we are also hearing about tighter supervision and rules over the financial services industry. reporter: that's right. over the weekend we had a

financial forum here in beijing. we had a central bank governor there's -- they are speaking about the need to tighten scrutiny over the fintech space. making sure any loopholes in that area are plugged up. obviously fintech has been in the targets of regulators for some time, since late last year. most notably with the showing of the aunt ipo. we also at a deputy securities regular saying they would try to enhance, improve the system for overseas ipos by chinese companies. also he said they would try to hundred -- to expand the number of channels for foreign investors to invest here in china. haidi: the clock is ticking for china evergrande group to raise cash and pay back billions of dollars of bonds share. they cluster record lows after the warning of them defaulting on their debt. our china credit editor joins us now.

how worrying is the drop in august sales eco we know they cannot sell enough to stay afloat at the moment. reporter: absolutely. a 26% drop in august sales. i think it really underlies this fear that emerged that evergr ande's key property unit is struggling to produce profit. it will kind of heighten concern that they will struggle to raise cash. and of course raise cash fast enough to allay some of these very severe investor concerns weighing on the shares. shery: what do the maturities tell us about the payment pressures? reporter: in some ways we do not have a maturity until march or later next year. that will buy evergrande a little bit of time. it does have its sort of stretch. on the other hand, of course, it means for investors it is very attractive. you see the bonds trading around

25% on the dollar. investors are not asking if they will default but when they will. haidi: and of course, regulators still kind of saint -- staying silent on the idea of a potential they -- a potential bailout, as well. are we seeing signs of systemic risk at this point? reporter: absolutely and that is what regulators will be looking at. the risk of contagion here. i think so far it has been relatively contained. what we have seen in the credit markets for example is a small group of weaker rated, be property names. there is a cohort of three or four names moving along with it. however, the broader credit market is showing these sort of signs of resilience so far. shery: our china credit editor

looking at all things fixed income in china. coming up next, the latest in the race to be japan's next leader after prime minister suga's surprise resignation. we take a look at the front runners, next. this is bloomberg. ♪

>> the times have changed a great deal. china has also changed. china is now a big presence in international society and i have various concerns about its authoritarian attitude. >> [speaking foreign language] given the covid situation i think he has done his best on foreign policy but he could have done more to indicate the direction of japan's policies. >> [speaking foreign language] we need to have the necessary

preparedness considering the geopolitical risks around japan, including north korea. we need to have proper finance for it and as a result i imagine defense spending will advance towards expansion. haidi: that's the foreign japanese minister and ldp leadership candidate speaking exclusively to bloomberg about his policy views. the leadership race is heating up after a shock announcement that p.m. suga would step down. let's get over to see -- to stephen engle. how is there a shaping up given that we know there is a lot of factional politics at play here? reporter: we can bring up the kyoto poll which shows the front runners. that is the popular support. but this election on september 29 for the ldp leadership is not going to be a popularity vote for the general populace. it will be those factional infighting. and what we are seeing here is of the three main candidates, between kishida, kono, and

ishida, he is trading. the foreign former minister -- the foreign -- the former foreign minister who just heard in the interview on friday, he is dovish on the geopolitical front. however, we just heard his comments. he is saying the taiwan issue is probably asia's next big problem. of course, any of these leaders will have to deal with the china question. the leader by far in the polls is k -- in the polls is kono. he has a lot of experience with china. he is considered in asia centrist and a proponent of working with south korea as an ally against china. it will be interesting to see how these weeks play out. shery: i'm afraid to ask, and i guess, it being japan i can really guess the answer to this,

but any chance at all that a woman could make history? reporter: well, if there are factional splits and they cannibalize the votes internally, there is always the chance that an outsider could come in, and one particular female has risen up the ranks. and that is the former foreign affairs minister under shinzo abe. there's another one, as well, who has been more of a critic oceans abe. where is the other has been a protege of shinzo abe. in fact, we are learning from local media in japan that shinzo abe is throwing his support behind our. that is a huge -- behind her. that is a huge endorsement. we -- we will see how that goes among the financial -- the factional place. because the finance minister was number two behind abe and he is backing kono.

a lot of people would say, about time japan is run by a female. haidi: you know how we feel about that, steve, but when it comes to china, will this be a tough issue going into the race? reporter: absolutely it is. it's all going to be about covid and the covid response. that's what will play to the populace. but of course china will always be that threat there, and as we heard from ishida-san, the taiwan issue will play very large. but will play large for this internal vote for the ldp? maybe not. it will be the factional politics. again, there must be a general election by the end of november. and all these issues, covid response, fiscal response to covid, geopolitics, and china, will all come to play strongly. shery: we have breaking news. jd.com has appointed a new

president. jd.com also naming a retail ceo and a health ceo. this coming at a time when we continue to see more scrutiny on chinese companies. jd.com appointing the president. he was the chief executive officer for jd retail responsible and the strategy of the retail business. he has been appointed president of jd.com while the company is also named the jd retail ceo and they jd health ceo. haidi: here's a quick check of the latest business/headlines. the base landlord in hong kong -- hong kong lands executive director raymond chow, says, business has not been affected by the introduction of the national security law or

tightened quarantine rules. >> what we have seen is the actual hong kong as business anchor. but we've not seen anybody make a big move to move offices into other jurisdictions. shery: hong kong media group next to digital says it is aiming to go into liquidation and all its directors have resigned to facilitate the process. the company owned by jailed pro-democracy activists had its assets frozen as part of a national security investigation and its shares have been suspended since june 17. next digital says the next stash says they hope they will approve payments to former staff and creditors. philippine airlines cfo says the carrier hopes to exit chapter 11 bankruptcy in a few months. the carrier has filed a lender supported restructuring to help it recover from the pandemic downturn, aiming to cut $2 billion in borrowing.

they are also seeking $505 million in equity and debt financing and to reduce fleet capacity by 25%. deliveries of boeing 787 dreamliner are expected to be delayed until at least late october according to the wall street journal. the report says the favors -- the faa rejected boeing's latest rejection of -- latest opposable -- latest proposal. and the london metal exchange will reopen its iconic ring trading floor after closing 18 months ago during the pandemic. the ring is the last spot in europe where traders set encz my prices shouting out orders at one another but many fear the vines will be sharply lower before the closure. haidi: coming up next, to taper or not to taper.

andrew tilden joins us to talk about whether australia's central bank will hold off from scaling back qe at the tuesday meeting this week. this is bloomberg. ♪

clicks i do not think it should come as any surprise that there is expecting inflation right now . >> we are not concerned by the current level of inflation and the eu or everywhere in the world. >> inflation is very much influenced by energy prices and food prices. >> all the institutions continue to feel it will be a transitory bill. -- feature. >> we think they and chris is a temporary one. we are monitoring it and we

should be monitoring it very accurately, but without going to conclusions too soon, we remain vigilant that we are not concerned. >> these are a natural feature of a strong recovery that we are witnessing. haidi: the latest weigh in on these -- on the implications for the policy. week will see of policymakers dared to make similar vows on thursday. in the meantime, the rba will be one of the other big central banks in focus this week. the governor for low will have to confront rather he wants to -- phil lowe will have to confront whether he wants to taper amid lockdown. but, we are hearing that goldman sachs is expecting that the plan will remain unchanged, let's bring in their chief apec economist.

we are seeing the yield bond rise little bit on a sweet stations they will stay the course. will it be more like how the rbn and bank of korea are proposing to move ahead with policy normalization despite delta, or will we see consideration of the fact that this quarter's growth is likely to be so bad for australia? guest: you framed it well. in the very short run, we have seen a pickup in covid cases and that will impact economic activity negatively. we recently devised -- revised down our numbers for growth. but looking out six to eight months, things should be significantly better. government is expecting to see 80% of the population with at least one ghost by the end of november. so at some point late this year, early next year we should look at lower restrictions, higher levels of economic activity. if this monetary policy operates

with a leg and the rba has emphasized that in some of its recent communications, we think it is more likely than not. they will go ahead with a taper at this meeting. although it is certainly a close call. haidi: we've heard they are cutting 22 new one gdp estimates 20 from 2.2%. also a lot of expectations from some banks that there will be a boost of bond buying. when it comes to the broader impacts of delta, the more data we get, whether it be the china pmi numbers, the fact people aren't returning to the office as planned, supply chain issues, labor market duplications, the u.s. jobs report -- is it also adjusting we have seen the peak of the recovery? guest: we are having a double-dip or at least a slowdown in the pace of recovery in a number of asian economies, particularly southeast asia and australia and new zealand where lockdowns are pretty severe. ultimately we will be in a better place and 6012 months

from now. with higher levels of vaccinations, lower levels of restrictions, and therefore likely higher levels of economic activity. so i would not say that recovery is over, but certainly the very fast pace of the recovery out of the initial lockdown is behind us. insofar as we get very strong growth going forward, it will be because we had the second, smaller debt and we need to recover from that. the big risk as we get new variants even less susceptible to vaccination that require a new vaccine or boosters. that is clearly a big concern. but most evidence suggests vaccines are pretty effective against very severe disease and ultimately that should allow most of the regions to move from trying to focus on zero cases to focusing on keeping severe's a disease -- keeping severe disease very low while reopening the economy.

shery: we are checking trade numbers out of china to slow. we are expecting the numbers to ease again in august. what does it mean for economies that are so dependent on china across asia? not to mention china's link to global inflation. guest: well, in the short run, this renewed covid wave, or the delta wave, may ironically boost chinese exports and things like -- on things like work from home equipment and health care goods, and certainly that has been an important driver of regional activity. china is seeing a very strong export over the last year. that probably is near a peak. ultimately, what will matter for a lot of the rest of the region is, those economies themselves being able to reopen. and the supply side fully come back, both in terms of good

production and the rest of the region, but also as china reopens to international travel and tourism. seen people moving again throughout the region, boosting tourism levels in southeast asia in particular. that is really probably more of a 2022 prospect than something we will see this year, however. shery: also tell us about the link between china and global inflation. we continue to see shipping rates continue to soar. guest: piercing bottlenecks -- we are seeing bottlenecks in shipping for sure. huge increase in prices there particularly for china and the west coast of the u.s., but also on other outs and that has caused some delays. it is because to some air shipping in some cases and has been very negative for the current account balances of countries that do not have their own shipping industries. so we wrote a note last week in thailand where this is actually been a significant factor in the cure ration of silence current account balance.

in terms of the inflation outlook you asked about, it is exacerbating the short-term upside inflation pressures we are seeing across the region. a pretty big split between elevated headline inflation, that in most cases seems to be picking, and lower but rising core inflation pressures. ultimately, most of the inflation pressure appears concentrated in commodities and if you -- a few of the reopening related categories are categories where we see supply-side bottlenecks, so we do think a lot of that will be transitory. but there are clearly, you know, if you economies mostly outside of asia, but in asia, india, where inflation is already well above acceptable levels and that will push policymakers to start to normalize. shery: japan has lacked inflation for decades. before you go, what's the goldman sachs take on the leadership reshuffle and its impact on the economy? guest: on the margin it probably

makes fiscal support a bit more likely, that we will see package of some kind. certainly that was already the plan. on the margin may be a little bit more risk for a larger package, but probably we think that the biggest changes about more clarity on the outlook going forward. we think most of the broad policy agenda will remain very similar. it will likely help the chances in the upcoming election on the margin and the market seems to have reacted positively to that likelihood. big picture, we are still looking at something like 3% growth in japan this year, next year. and very good progress in vaccinations. declining covid cases. the worst part of this recent wave is likely behind us and we are headed for a better. of growth in the coming quarters. shery: andrew tilton in hong

kong. goldman sachs chief asian economist. thank you so much. we conceived to see a rally in the japanese market with the 99 high. >> we're seeing gains of more than 1%. data for the nikkei 225 which could see a crack at 30,000 yet again this week. i sees the biggest boost. we are seeing's -- we are seeing shipping sots -- shipping stocks gain as well. they are bullish on japanese shipping companies because of these ongoing supply chain disruptions. we see less enthusiasm elsewhere in the region, with the kospi fall -- falling after cupping two weeks of gain. also dragging on the asx 200 despite the pickup on aussie bond yields. we also tracking oil prices, with brent testing at $72 after saudi cut prices for asian buyers by more than expected. keep in mind, stock is trading

at dividend. also trading ex-dividend today, its stock jumping the most in about 16 months. we are focusing broadly on aluminum markets here in light of the situation in guinea, which could seriously shape up the market, given 20% of global aluminum production uses a material from this african nation. shery: now we get to vonnie quinn with the first word headlines. reporter: white house medical advisor says the pfizer vaccine is the only one likely to be approved for u.s. booster shots against covid-19 initially. the missouri shot may be delayed. dr. anthony fauci's comments to cvs they provide more clarity on the administration's stance or the white house has faced criticism of political interference in the review process. the white house says it is confident joe manchin will back

president biden $3.5 trillion tax and spending package. chief of staff ron klain told cnn, the plan adds no debt. his oh could be key in an evenly divided senate. last week he said inflation and soaring national debt should mean a significantly smaller plan. australia's treasurer is expected your teleconference later monday that the nation's economy is resilient in the face of china's trade curve. band imports, including seafood, mine -- wine, and coal after tensions last year. exports in the targeted products have dropped by three trillion. -- arts, but sales to other markets have brown. -- have grown. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: coming up, the biggest

landlord in hong kong's most expensive hawk -- most excessive office market sees robust demand despite the pandemic and political clamp down. an exclusive interview with raymond's chow is next. this is bloomberg. -- with raymond chow is next. this is bloomberg. ♪

haidi: the single largest landlord in hong kong's business district manages more than 450,000 square meters of prime property in one of the world's most expensive markets per we spoke exclusively to the executive director about the impacts of political risks and pandemic retractions on the city's commercial -- commercial real estate demand. guest: obviously the macro environment is something we deal with on a regular basis. in reality, we do not see any demand subsiding at all. what we see is a lot of -- elevating, going back to quality. so they are removing and going back to quality premises, which is what we offer to them. >> but a lot of travel has been restrictive right now. people cannot just travel around the world. how difficult is it for you to strike these new contracts and get more people to lease your properties right now? guest: like you said, we found that the market is still quite

resilient in the central portfolio. we see a lot of clients upgrading, coming to us in terms of facilities. so we, like i said, it is proven by the numbers. our vacancy has dropped since the end of this year. >> i know you talked about people looking for quality, re-central's asian you could call it, i guess. but there will still be nine development outside of central that are also set to open up as well. you hear the likes of goldman, they are moving at least the back office staff to cheaper locations, as well. do you still believe there will be a decentralization, or is it the office it -- is it the opposite going on? guest: i have not seen that in my portfolio at all. in fact, what i've seen going forward is that people want to come back into central. >> even with this office space that is about to be booming? guest: absolutely. >> why do you think that is? guest: i think what we offer in

the central district is a unique ecosystem. i have said it before many times. this is probably one or two places where you can do 12 meetings a day without leaving within a one-mile radius. you can go from one building to another and do 12 proper meetings in a single day. i do not think any place in the world could do that, not new york, not london, not tokyo. we all go to meetings, the maximum you can do there is 45. -- four or five. the efficiency we provide as you can do 12 meetings are day -- 12 meetings a day and that is very unique. >> you feel like you still have a couple of years before these buildings open in central for you to try to take up as much market share as you can in the coming years? guest: isaac it's more the other way around. i think we have a very strong position here. over the last two years we have done a great deal in terms of the amenities we provide. the flexibilities.

the fnb ecosystem we have. again, i do not believe -- yes the infrastructure is competitive, but having these new buildings in central is actually very good and valuable. it brings all central district -- the whole central district into a stronger position. >> you mention singapore, shanghai, hong kong. these are abe hubbs. you mentioned there are not a lot of people willing to leave hong kong at this point. racing anyone at least recalibrating -- are you seeing anyone recalibrating how they move these markets? and where they put their offices now? guest: i think everyone puts satellite offices in these core markets. but in what we ac, hong kong -- but what we have seen is hong kong manages to stay the anchor of all the head offices. we're not seen anyone make a big move to move the head offices into other jurisdictions.

for hong kong, it is very simple. you has a low tax rate, you have the free flow of money, you have the rule of law. you have a very good regulatory system here that is internationally recognized. give a strong hr pool. and you have the proximity into china, one of the biggest markets in the world. so geographically, hong kong is a very unique place to thrive in this new business arena, in the current partial array -- arena. shery: raymond chow speaking exclusively with our markets coanchor yvonne man. we delve deeper into the hong kong property market. our next guest says the worst fear has passed and the market is at a turning point. rosanna, great to have you with us. where you seeing a turnaround in the property market? are we talking about leasing? are we talking about office space? investment markets?

guest: thank you. as we mentioned, we do believe the worst has passed here in hong kong, at least in the last year. it was demonstrated by a very solid economic growth in the first half. we are seeing a 7.8% year on year strong growth in the first six months for the gdp. it also, long way in the trading performance which is rebounded by 30% in the first six months. overall, we do see that sentiment has improved in both leaving and investment markets. which is the cross difference and key commercial sectors as well. the industrial sector already being bounded. retail -- we also see the market being out. shery: yet we continue to see a remote work, not to mention the spread of the delta variant. what does this mean for

vacancies in the office spaces, especially echo guest: i think for office specter -- sector, the outlook will remain tenants -- it will remain a tenants market in the next 12 months. of course, there is a correction in the office sector. before started to recover in 2022 onwards. so what does it need -- mean for the second half of the year? we still believe the delta variant -- the uncertainties of the pandemic will continue to affect the market. but maybe to less of an extent in terms of the rate of corrections. we have already started to see some buildings, the rent has been recovering, especially in prime quality buildings.

>> what are you seeing when it comes to retailers, given the big adjustments we've seen in rental costs? >> on the retail side, i would say they are to local consumption and in terms of the brands, it is been adjusted by over 70% from its last peak in 2013 already. nowadays we kind of have seen some differences happening because of the pandemic. people are go -- are more going out to eat. certainly more related to international -- these are kind of the things that will drive demand going forward in the next 12 months. haidi: rosanna, great to have

you with us. well, coming up next, the greatest -- the latest crackdown on cryptocurrencies. singapore regulators says they may be breaching the country's law. more not coming up, this is bloomberg. -- more on that, coming up. this is bloomberg. ♪

haidi: a crypto currency

exchange says it will stop offering some products in singapore after regulators say they could be in breach of the payment services act. let's get over to our cross asset reporter eric lam. what are we seeing as these downside pressures on the company? reporter: it is another action against binance. it is related to binance.com, separate from the local entity. the entity is operating locally under an exemption. they have applied for a license, but that is still under review. as far binance.com, they are telling consumers to make sure they are finishing all the peer-to-peer trade and advertisements by thursday. they will remove the apps from the google and apple stores by friday. so this is kind of the latest in a number of investigations into binance and its operations

around the world. shery: we continue to see bitcoin rallying, above $51,000. let's take a look at other parts of the market with sophie. what are you watching? reporter: we are keeping on chinese fintech stocks after the pboc vowed to tighten regular jean the industry. it would appear foreign investors have not been entirely deterred from buying china via trading. but cautioning against buying any in the china index, saying it is no longer the cheap mobile cyclical trade of the past. haidi: coming up next, we get more on the outlook for growth is the surgeon delta variant cases drags on the global recovery. sean fennell joins us in the next hour, plus we get more on china's credit numbers, as well. andrew collier will be joining us.

all eyes of course in this new trading week firmly set on japanese markets after that huge surge we saw on friday. we've seen further gains of one .5% for the nikkei 225. it looks like we could hit ¥30,000 within this week and optimism continues despite a lot of tension within this leadership race. we see the kospi lagging, a pretty mediocre session, trading pretty flat. here in australia, when it comes to rba decisions, the asx 200 is seeing downsides of about 1%. this is a market that is seen about 11 straight months of gains, soy little bit of a fallback as we wait for more certainty about what the taper schedule looks like. new zealand also off by about 4/10 of a percent. shery: that's it from "daybreak: asia."

standby for "bloomberg markets: china open." this is bloomberg. ♪

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david: good morning from hong kong. it is not a.m. here. welcome to "bloomberg markets china: open." we are counting down to the start of trade. china vowing tighter supervision of financial services, hinting this regulatory onslaught is far from over. japanese stocks are rising,

tr