HomeContributorsFundamental AnalysisAsian Indices Rise After Comments From China's Commerce Ministry

Asian Indices Rise After Comments From China’s Commerce Ministry

General Trend:

  • South Korea Kospi outperforms in early trade as chipmakers gain, BoK held rate decision; Japan said to allow the first exports of hydrogen fluoride to South Korea since Japan tightened export controls on SK in early July [follows move by Japan to resume exports of resist polymers to Korea]
  • Technology, Iron/Steel and financial firms are among the gainers in Japan
  • Japanese brokerage firms continue to cut trading fees for Nikkei 225 Futures
  • Hang Seng underperforms amid reports that multiple activists have been arrested; Hong Kong police are expected to ban the mass rally and march expected to be held on Saturday Aug 31st (press article from Aug 29th)
  • ICBC rises in Hong Kong post earnings ; Agricultural Bank of China and Bank of China may report earnings later today
  • Two Bank of Korea board members voted for rate cut at today’s meeting; BOK Gov said hard to predict degree of further rate cuts
  • BoJ again cut offer to buy 5-10 yr JGBs at daily operation; The central bank may announce Sept bond purchase schedule later today
  • Japan and South Korea report better than expected industrial production data in July; Singapore released better July IP data earlier in Aug
  • AUD/JPY declines on weaker Australian building approvals data Offshore yuan (CNH) declines after gains on Thursday
  • Tariff deadlines in focus: China announced plans to levy 5-10% retaliatory tariffs on $75B of US goods, effective on Sept 1st and Dec 15th (from Aug 23rd); The US is expected to start collecting 15% tariffs on over $125B in Chinese goods on Sept 1st (Sunday)
  • US markets are closed on Monday (Sept 2nd) for the Labor Day holiday

Headlines/Economic Data

Australia/New Zealand

  • (AU) AUSTRALIA JULY BUILDING APPROVALS M/M: -9.7% V 0.0%E; Y/Y: -28.5% V -22.2%E
  • ASX 200 opened +0.7%
  • (AU) Australia July Private Sector Credit M/M +0.2% v 0.2%e; Y/Y: +3.1% v 3.2%e
  • (AU) RBA releases 2019/20 corporate plan: Household debt could make economy less resilient to shocks; household debt impact could complicate future rate decisions
  • (NZ) New Zealand Aug Consumer Confidence Index: 118.2 v 116.4 prior; M/M: +1.5% v -5.1% prior
  • (NZ) New Zealand July Building Permits m/m: -1.3% v -4.0% prior

China/Hong Kong

  • Shanghai Composite opened +0.6%, Hang Seng +1.2%
  • (CN) China Commerce Ministry (MOFCOM) spokesperson Gao Feng: China and US are in effective contact; China and US are discussing about the Sept trade talks; reiterates that its necessary to create conditions for talks (comments from Aug 29th)
  • (CN) Pres Trump: reiterates China wants to make a deal; it ‘sort of has to’ make one, US-China trade talks scheduled for today on China at a different level – Fox News Radio interview
  • (HK) Hong Kong activist Agnes Chow arrested (third activist leader reported arrested today) – US Financial Press
  • (HK) Hong Kong activist Andy Chan arrested – Local Press
  • (HK) Hong Kong activist Joshua Wong said to have been arrested – US Financial Press
  • (CN) China troops in Hong Kong won’t “sit on hands” if situation worsens – China Daily
  • (CN) China PBoC Open Market Operation (OMO): Skips for second consecutive session; Net CNY80B v drain CNY60B prior
  • (CN) China PBOC sets Yuan Reference Rate: 7.0879 v 7.0858 prior (weakest since March 2008)

Japan

  • Nikkei 225 opened +0.9%
  • (JP) Japan said to allow the first exports of hydrogen fluoride to South Korea since Japan tightened export controls on SK in early July [follows move by Japan to resume exports of resist polymers to Korea] – financial press
  • (JP) JAPAN JULY JOBLESS RATE: 2.2% V 2.3%E (matches 27-year low)
  • (JP) Japan July Preliminary Industrial Production M/M: 1.3% v +0.3%e; Y/Y: +0.7% v -0.6%e
  • (JP) Japan July Retail Sales M/M: -2.3% v -0.9%e; Y/Y: -2.0% v -0.7%e
  • (JP) Bank of Japan (BOJ) operation related to daily bond buying operation: Cuts 5-10 year JGB purchases to ÂĄ400B v ÂĄ450B prior (as speculated, BoJ has revised bond purchases for 3rd time this month)

Korea

  • Kospi opened +0.9%
  • *(KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 1.50%; AS EXPECTED; Vote was not unanimous (Cho Dong-Chul and Shin In-Seok both voted for rate cut)
  • (KR) South Korea July Industrial Production M/M: 2.6% v 0.5%e ; Y/Y: 0.6% v -3.2%e
  • (KR) South Korea July semiconductor inventory M/M: +10.9% v-3.3% prior – Stats agency

North America

  • (US) National Hurricane Center (NHC): Says Hurricane Dorian found to be strengthening, maximum sustained winds rise to 105 mph; there are no coastal watches or warnings in effect; Dorian is still expected to become a major hurricane on Friday

Levels as of 1:20 ET

  • Nikkei 225, +1.2%, ASX 200 +1.4%, Hang Seng +0.6%; Shanghai Composite +0.4%; Kospi +1.7%
  • Equity Futures: S&P500 flat; Nasdaq100 flat, Dax +0.1%; FTSE100 +0.2%
  • EUR 1.1062-1.1041; JPY 106.54- 106.38; AUD 0.6737-0.6706 ;NZD 0.6319-0.6289
  • Gold -0.2% at $1,534/oz; Crude Oil -0.1% at $56.65/brl; Copper +0.1% at $2.579/lb
Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading