General Trend:

  • With China on holiday, Asian equity indices track Thursday’s US gains
  • Trump said he would rather get a ‘whole deal’ with China rather than an interim deal, guess I’d consider an interim trade deal with China (comments from Thursday)
  • Lower-level China/US officials are expected to meet next week in Washington D.C. [date unknown], talks are expected to lay groundwork for the higher-level negotiations expected in early Oct
  • Hang Seng rises as China said to ask Chinese state firms to increase investments in HK
  • Geely leads gains in HK, Chinese city announces removal of car purchase limits
  • Sun Hung Kai Properties declines in HK on weaker than expected earnings
  • Nikkei supported by recent yen weakness; REITs outperform, US real estate stocks also rose on Thursday
  • New Zealand Manufacturing PMI contracts for the 2nd straight month in Aug [July reading was the first contraction since 2012]
  • EUR trades flat in Asia after recent ECB decision
  • Offshore yuan (CNH) rises amid trade speculation and holiday trading conditions
  • US Treasury Futures extend declines during Asia as traders focus on the ECB’s easing measures, US/China trade speculation and upcoming central bank decisions
  • US Fed is due to hold policy meeting on Sept 17-18th (Tues-Wed), BoJ to meet Sept 18-19th (Wed-Thursday)
  • Various Japanese officials reiterate monetary policy is for the BoJ to decide ahead of next week’s meeting; Japan’s new Economy Min said’ ‘our hope on BoJ is not about additional monetary easing’
  • Japan Fin Min Aso: Not thinking of more economic measures at the moment, tax measures have proven effective so far; economic fundamentals remain ‘solid’
  • Mnuchin commented on 50 and 100-year bonds
  • Philippines Central Bank Chief commented on the prospects for near-term policy easing
  • Japan closed on Monday (Sept 16th) for holiday

Headlines/Economic Data

Australia/New Zealand

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  • ASX 200 opened +0.2%
  • (AU) Australia APRA: Allocates A$223B to committed liquidity facility (CLF) for 2020 v A$243B y/y [Since January 2015, the Reserve Bank of Australia has provided the CLF as part of Australia’s implementation of the Basel III liquidity reforms]
  • (NZ) New Zealand Aug Business Manufacturing PMI: 48.4 v 48.1 prior (2nd consecutive contraction)

China/Hong Kong

  • Shanghai closed for holiday, Hang Seng opened +0.3%
  • (CN) China reportedly asking Chinese state firms to boost Hong Kong investments; These state-owned enterprises (SOEs) pledged that they would invest more in key Hong Kong industries, such as real estate and tourism. – press
  • (CN) China Commerce Ministry (MOFCOM) spokesperson Gao Feng: Chinese companies have started inquiring prices on US agricultural goods; possible purchases include soybeans, pork, others; does not respond to question on date of possible talks (comments from Sept 12th)
  • (CN) China Vice Premier Liu He: Reiterates China and US working-level officials will meet next week (comments from Sept 12th)
  • (CN) China said to be looking to narrow the scope of trade negotiations to only trade matters
  • (CN) Chinese importers said to buy 600K tons of US soybeans in Oct-Dec shipment from Pacific Northwest – press


  • Nikkei opened +0.7%
  • (JP) Nikkei 225 Sept Futures and Options said to settle at ~21,981
  • (JP) Japan Econ Min Nishimura: Our hope on BoJ is not about additional monetary easing; up to BOJ to decide on monetary policy
  • (JP) Japan Fin Min Aso: Not thinking of more economic measures at the moment, economic fundamentals remain solid; No comment on ECB’s easing


  • Kospi closed for holiday
  • (KR) South Korea President Moon to meet president Trump during his trip to the US from Sept 22-26, to give speech to UN on Sept 24th

Other Asia

  • (PH) Philippines Central Bank Chief Diokono: 25 bps rate cut and RRR cut may come sooner rather than later and may come at the same time; may see key rate cut in Sept or Oct; inflation picture is improving

North America

  • (US) Pres Trump says he will announce a tax cut for middle-income Americans sometime next year
  • (US) Treasury Sec Mnuchin: looking at 50-year bonds; if there is proper demand, will consider 100-year bonds; confirms meeting with Chinese officials next week; hopes for meaningful progress in US, China trade talks in next few weeks


  • (EU) ECB CUTS DEPOSIT RATE BY 10BPS TO -0.50%; AS EXPECTED; Relaunching QE at €20B/month; revises forward guidance (both with no specific end date) – from Sept 12th
  • (EU) French, German, Dutch, Austrian, and Estonian governors all opposed ECB QE resumption; ECB QE motion passed with relatively narrow majority – press
  • (UK) EU reportedly ready to grant a third Brexit extension to the UK in Oct in order to avoid ‘no deal’ Brexit – press
  • (UK) DUP reportedly could agree to Northern Ireland accepting some EU rules after Brexit as part of deal to replace backstop – UK’s Times

Levels as of 1:20 ET

  • Nikkei 225, +0.9%, ASX 200 +0.1%, Hang Seng +0.5%; Shanghai Composite closed; Kospi closed
  • Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.2%; FTSE100 +0.3%
  • EUR 1.1074-1.1055 ; JPY 108.26-108.02 ; AUD 0.6876-0.6856 ;NZD 0.6410-0.6397
  • Gold -0.2% at $1,504/oz; Crude Oil +0.1% at $55.13/brl; Copper +0.5% at $2.656/lb
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