HomeContributorsFundamental AnalysisAsian Markets Trade Mixed After Similar Session In The US

Asian Markets Trade Mixed After Similar Session In The US

General Trend:

  • Financials trade generally weaker in Asia after US declines
  • Australian equities underperform as Energy and Financial firms decline
  • Tech shares trade mixed in HK, Property names decline
  • Shanghai Composite traded flat during morning session; Consumer Discretionary shares rise, while property cos. decline
  • Financial-related firms trade generally lower in Japan, Air Transportation and Pharma cos. outperform
  • Australia Q2 GDP data is due to be released on Sept 2nd (Wed), expected to confirm first recession since the 1990s
  • RBNZ Gov Orr is expected to speak on Wed (Sept 2nd)

Headlines/Economic Data

Australia/New Zealand

  • ASX200 opened -0.3%
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 0.25%; AS EXPECTED; To increase term lending facility to A$200B (Prior A$90B)
  • (AU) Australia Q2 Net Exports of GDP Q/Q: 1.0% v 1.0%e
  • (AU) Australia Q2 Current Account Balance (A$): 17.7B v 13.0Be
  • (AU) Australia Aug Final PMI Manufacturing: 53.6 v 53.9 prelim (Confirms 3rd month of expansion)
  • (AU) Australia Aug AiG Performance of Manufacturing Index: 49.3 v 53.5 prior (1st contraction in 3 months)
  • (AU) Australia July Building Approvals M/M: 12.0% V 8.0%E
  • (AU) Australia Aug Corelogic House Price Index M/M: -0.5% v -0.8% prior
  • (AU) Victoria state (Australia) reports 70 additional coronavirus cases v 73 prior; 5 additional deaths
  • (NZ) New Zealand July Building Permits M/M: -4.5% v +0.5% prior

China/Hong Kong

  • Hang Seng opened -0.4%, Shanghai Composite -0.2%
  • (CN) CHINA AUG CAIXIN PMI MANUFACTURING: 53.1 V 52.5E (4TH STRAIGHT EXPANSION, HIGHEST LEVEL SINCE JAN 2011)
  • (CN) China PBOC sets Yuan reference rate: 6.8498 v 6.8605 prior (Strongest since Jun 21st 2019)
  • (HK) Macau Aug Casino Rev (MOP): 1.3B; Y/Y: -94.5% v -93.0%e
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY20B in 7-day reverse repos v Injects CNY20B in 7-day prior; Net drain CNY230B v Net drain CNY80B prior
  • (CN) Chinese-born Australian CCTV journalist Cheng Lei detained in China – financial press (from Aug 31st)
  • (CN) China: Load factors on international flights from ‘high risk’ areas will be capped at 75%

Japan

  • Nikkei225 opened -0.2%
  • (JP) Largest faction of LDP party reported to back Japan Chief Cabinet Sec Suga in the bid for leader of the LDP Party- Japan Media
  • (JP) Japan Chief Cabinet Sec Suga: To meet with Press on Wednesday evening (Sept 2nd) and declare candidacy for leader of ruling LDP Party
  • (JP) Japan Defense Min Kono: Still undecided on whether or not to run for LDP leadership position
  • (JP) Japan Foreign Min Motegi: Will decide on running for LDP leader in next 24 hours
  • (JP) Japan Ruling Party official Ishiba: No need to radically change Abenomics stimulus policy – including monetary easing; Do not think that a weak JPY currency (yen) is better (from Aug 31st)
  • (JP) Japan LDP Sec General Nikai: Proposed simplified election process for the leadership race of the LDP Ruling party; To choose new LDP leader via format allowing vote by LDP lawmakers and heads of local chambers
  • (JP) Follow Up: Japan LDP General Assembly decides leadership race to take ‘slimmed-down’ version; there are views that a full-scale leadership vote would take 2 months to prepare, placing a heavy burden on PM Abe – Japanese media
  • (JP) Japan Fin Min Aso: Good chance Tax revs will miss estimates
  • (JP) Japan Aug Final PMI Manufacturing: 47.2 v 46.6 prelim (Confirms 16 months of contraction)
  • (JP) JAPAN Q2 CAPITAL SPENDING (CAPEX) Y/Y: -11.3% V -4.0%E; CAPITAL SPENDING EX-SOFTWARE: -10.4% V -4.0%E
  • (JP) JAPAN JULY JOBLESS RATE: 2.9% V 3.0%E
  • (JP) Japan MoF sells ÂĄ2.6T v ÂĄ2.6T indicated in 0.1% 10-year JGBs, avg yield 0.034% v 0.018% prior; bid to cover 3.15x v 3.64x prior

Korea

  • Kospi opened +0.6%
  • (KR) South Korea Vice Fin Min Kim: Reveals 2021 budget with record high KRW555.8T in spending (8.5% increase y/y); To sell up to KRW172.9T in bonds to fund the 2021 budget v KRW167T y/y
  • (KR) SOUTH KOREA Q2 FINAL GDP Q/Q: -3.2% V -3.3% PRELIM; Y/Y: -2.7% V -2.9% PRELIM
  • (KR) South Korea Aug Trade Balance: $4.1B v $3.7Be
  • (KR) South Korea Aug PMI Manufacturing: 48.5 v 46.9 prior (8th straight contraction)
  • (KR) South Korea confirms 235 additional coronavirus cases v 248 prior; 0 additional deaths
  • (KR) South Korea sells 30-year bonds at 1.685% v 1.530% prior

North America

  • Apple [AAPL]: Reportedly Apple has asked suppliers to make 75-80M 5G compatible iPhones this year

Levels as of 1:20 ET

  • Nikkei 225, flat, ASX 200 -1.7% , Hang Seng +0.2%; Shanghai Composite flat ; Kospi +1%
  • Equity S&P500 Futures: +0.1%; Nasdaq100 +0.4%, Dax +0.6%; FTSE100 -0.6%
  • EUR 1.1997-1.1935 ; JPY 106.03-105.59 ; AUD 0.7413-0.7367 ;NZD 0.6767-0.6728
  • Gold +0.8% at $1,994/oz; Crude Oil +1% at $43.02/brl; Copper +0.6% at $3.0488/lb

 

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