Asia Summary
Asian equity markets opened mixed again with quiet trade in equities and FX. The USD firmed up slightly against regional currencies, on avg ~0.1% with a little economic catalyst to push things further. Traders remain focused on Jackson Hole and any indication from world leaders on their plans for fiscal policy. Growth concerns re-enter the peripheral as Trump indicates at yesterday rally that he is fine shutting down the government to get what he wants. The PBOC had its 4th consecutive drain, though skipped OMO; while setting the yuan at an 11-month high of 6.6525.
Key economic data
(NZ) NEW ZEALAND JULY TRADE BALANCE (NZD): +85M V -200ME; YTD: B V -3.51BE; Exports: 4.63B v 4.42Be; Imports4.55 B v 4.60Be
(KR) South Korea Q2 Short Term External Debt: $117.3B v $115.4B prior
Speakers and Press
China/Hong Kong
(CN) FX Regulator SAFE Capital Account Dep Head Guo Song: Proposes stable outbound direct investment policy; work on promoting yuan convertibility under capital account – Chinese Press
(CN) China Premier Li Keqiang: China will further reduce leverage at central State-owned enterprises (SOE) by establishing multiple channels to reduce corporate debts – State Council executive meeting
(CN) China MOFCOM: US probe into China, sabotages international trade system; will use necessary ways to defend legitimate right
(CN) Analysts note that PBOC efforts to deleverage have resulted in a noticeable decline in CODs in August – Chinese press
Korea
(KR) South Korea Fin Min Kim: To announce ‘comprehensive’ measures on household debt in Sept; Domestic consumption low and employment weak
Asian Equity Indices/Futures (00:00ET)
Nikkei -0.2%, Hang Seng +0.5%; Shanghai Composite -0.0%, ASX200 +0.3%, Kospi +0.4%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.0%, Dax +0.1%, FTSE100 +0.1%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1766-1.1748; JPY 109.83-109.37; AUD 0.7918-0.7883; NZD 0.7283-0.7232
Dec Gold -0.1% at $1,293/oz; Oct Crude Oil -0.04% at $48.38/brl; Sept Copper +0.3% at $2.99/lb
(CN) China PBOC skips OMO v CNY180B in 7 and 14-day reverse reports prior: net drains CNY100B v drains CNY40B prior
USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT 6.6525 V 6.6633 PRIOR
(CN) PBoC auctions CNY80B in 3-month MoF deposits at 4.51% v 4.46% prior
(NZ) New Zealand sells NZ$150M v NZ$150M indicated in 3.5% 2033 Bonds; avg yield 3.2883%; bid-to-cover 2.23x
(CN) China sells CNY36B in 3-yr bonds
(JP) Japan MoF sells ¥3.59B in 3-month bills; avg yield -0.1463%
Equities notable movers
Australia/New Zealand
FLT.AU Reports FY17 (A$) Net profit 230.8M v 225Me; EBITDA 402.1M v 399Me; Rev 2.68B v 2.64B y/y; +11%
BLY.AU Reports H1 (A$) Adj Net loss 41.8M v loss 52.1M y/y; adj EBITDA 21.4M v 13.5M y/y; Rev 356.2M v 310.5M y/y; +22%
MPG.NZ Chairman: 4-month Rev flat y/y; sees H1 flat y/y – AGM; -11.5%
