Asia Summary
Asian equity markets opened mixed, trade was quiet with the Hang Seng being the stand out. It was again a quiet economic data day, giving little direction to the currencies, though a stronger dollar trend has emerged as the session entered its second half. The offshore yuan is poised for the highest close since September (5th day of gains), boosted by a stronger central bank reference rate after a dollar weakness overnight. According to an un-named senior PBOC adviser, the yuan advance may continue this year. Markets continue to shrug off North Korea threats, KCNA said that the US will face revenge for ignoring North Korea warning.
Key economic data
(AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 109.2 v 111.7 prior
Speakers and Press
China/Hong Kong
(CN) China should shift more financial resources to high-tech and emerging industries and away from loss-making or highly leveraged ‘zombie’ firms – People’s Daily Commentary
Korea
(KR) North Korea KCNA reiterates South Korea and US drill heighten tensions; US will face revenge for ignoring North Korea warning
(KR) South Korea Fin Min Kim: Govt debt to be managed at lower than KRW700T; Hard to increase Govt spending by 7%/yr
Japan
(JP) Japan to seek ¥5.25T defense budget for FY18 – Japanese Press
Australia
(AU) Analysts comment that China restrictions on overseas property development will hurt Australia’s land sales and residential property development – AFR
(AU) S&P: Australia And New Zealand ABS Performed Well In Q2 2017
Other
(PH) Philippines Finance Chief Dominguez: Rate of change in dollar/Peso (PHP) is of ‘concern’, but we are ‘not uncomfortable’ with it
(US) US House Majority Leader Ryan: Reiterates committed to tax overhaul in 2017
(US) President Trump: Announces will make drastic changes to strategy in Afghanistan as he believed withdrawing troops from the country would have unacceptable effects on the region; "wont say when we will attack but attack we will "
Asian Equity Indices/Futures (00:00ET)
Nikkei 0.0%, Hang Seng +1.1%, Shanghai Composite +0.1%, ASX200 +0.3%, Kospi +0.4%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.4%, Dax +0.1%, FTSE100 +0.2%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1824-1.1803; JPY 109.33-108.89; AUD 0.7951-0.7932; NZD 0.7335-0.7318
Dec Gold -0.2% at $1,294/oz; Oct Crude Oil +0.4% at $47.73/brl; Sept Copper +0.2% at $2.98/lb
(CN) China PBOC OMO injects CNY60B v CNY180B in 7 and 14-day reverse reports prior: net drains CNY10B v drains CNY50B prior
USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.6597 V 6.6709 PRIOR
(TH) Thailand sells combined THB60B in 3-month and 6-month bonds
(JP) Japan MoF sells ¥813.3B v ¥1.0T indicated in 0.60% (0.60% prior) 20-yr JGBS; avg yield 0.5500%; bid-to-cover 4.51x (strongest demand since Jan 2014)
Equities notable movers
Hong Kong/China
207.HK COFCO Property Group to acquire stake in Joy City; +19%
Australia/New Zealand
BHP.AU Reports FY17 underlying Net $6.73B v $7.3Be; Rev $38.3B v $38.3Be; to exit US onshore assets; Announces US and Euro bond buyback plan, subject to a $2.5B cap; +1.3%
ACX.AU Reports FY17 Net loss A$9.97M v profit A$5.7M y/y; Rev A$161.2M v A$123.4M y/y; -10%
CVT.NZ Reports FY17 (NZ$) NPAT 9.8M v 18.1M y/y, EBITDA 19.8M v 37.0M y/y, Rev 156M v 192M y/y; +11%
Taiwan
2498.TW Cuts price of Vive VR headset by $200 to $599; +8.8%
