Asia Summary
Asian equity markets opened mixed. Trading in HIBOR and the Hang Seng was suspended with a level 10 typhoon in Hong Kong. China markets remain under pressure, mostly related to commodity price (Dalian iron ore -5%) and China’s largest banks earnings reports starting tomorrow. At a rally President Trump commented on NAFTA, saying “Personally I dont think we can make a deal” and will probably end up terminating it at some point. He also alluded to allowing the government to shutdown if a deal if not reached on Mexico wall.
NZD fell 0.4% to 0.7250 after New Zealand Treasury released its pre-election economic and fiscal update that cuts 2018 GDP to 3.5% from prior view of 3.7%, it also cut expected surpluses for the coming years. In Indonesia the central bank decision to cuts rates sent shares of property developer, banks and automotive stocks and sends the benchmark stock index to a near record high. PBOC drained funds through OMO for the 3rd consecutive session.
Key economic data
(AU) AUSTRALIA JUL SKILLED VACANCIES M/M: 0.8% V 0.9% PRIOR
(JP) JAPAN AUG PRELIM PMI MANUFACTURING: 52.8 V 52.1 PRIOR FINAL
Speakers and Press
China/Hong Kong
(CN) China State Council Development Research Center deputy director Yiming: Economic growth in 2017 may exceed target set at the beginning of this year as major indicators in 1H were better than expected
(CN) China Finance Ministry confirms plan to roll over CNY600B ($90B) in special bonds issued 10 years ago to launch the country’s sovereign wealth fund – US financial press
(CN) China Rare Earth Association has suggested releasing state stockpiles
Korea
(KR) US Sec of State Tillerson: North Korea is demonstrating some level of restraint; hopes there can be dialogue with North Korea – comments in DC
Australia/New Zealand
(NZ) New Zealand Treasury (DMO) affirms Govt bond program NZ$7B in year to June 2018; adjusts surplus and GDP outlooks
Other
(US) President Trump comments on NAFTA: Personally I dont think we can make a deal, will probably end up terminating it at some point
Asian Equity Indices/Futures (00:30ET)
Nikkei +0.3%, Hang Seng closed; Shanghai Composite -0.2%, ASX200 -0.2%, Kospi -0.03%
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.1%, Dax -0.2%, FTSE100 -0.3%
FX ranges/Commodities/Fixed Income (00:30ET)
EUR 1.1766-1.1748; JPY 109.83-109.37; AUD 0.7918-0.7883; NZD 0.7283-0.7232
Dec Gold -0.0% at $1,290/oz; Oct Crude Oil -0.2% at $47.73/brl; Sept Copper -0.4% at $2.98/lb
(CN) China PBOC OMO injects CNY180B v CNY60B in 7 and 14-day reverse reports prior: net drains CNY40B v drains CNY10B prior
USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT 6.6633 V 6.6597 PRIOR
(NZ) New Zealand Local Government Funding Agency sells combined NZ$50M v NZ$50M indicated in 2023 and 2027 bonds
(CN) China MoF sells 3-yr bonds; avg yield 3.4865%; bid-to-cover 2.25x
Equities notable movers
Hong Kong/China
728.HK Reports H1 (CNY) Net 12.6B v 11.7B y/y; EBITDA 52.4B, +3.7% y/y; Op Rev 184.1B v 176.8B y/y
Australia/New Zealand
WOR.AU Reports FY17 (A$) underlying net 123.3M v 128Me, underlying EBIT 257.8M v 257Me; Rev 5.22B v 7.79B y/y; -0.3%
IAG.AU Reports FY17 (A$) Net profit 929M v 927Me, Gross Written Premiums 11.8B v 11.4B y/y; -7%
TGR.AU Reports FY17 (A$) Net 58.1M v 48.5M y/y, Op EBITDA 114.6M v 90Me; Rev 451M v 431M y/y; +5.3%
HSO.AU Reports FY17 (A$) Net 180M v 184Me; EBITDA 411.4M v 429Me; Rev 2.32B v 2.4Be; -13%
