Markets Pare Some Of Losses Amid Action From Turkey

Aug 13 18, 07:50 GMT

General Trend:

Asian equity markets trade generally lower amid continued declines in the Turkish Lira (TRY)
Shanghai Composite Property index drops over 1%
Yen (JPY) trades broadly firmer as equities decline
South African Rand (ZAR) hits 2-year low, EM and Asian currencies trade broadly weaker
Emerging market bond yields rise
China PBoC continues to elect not to drain liquidity, skips open market operation for 17th straight session
Singapore revised Q2 GDP growth lower

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
ASX 200 Resources index -1%, REIT -0.9%, Consumer Discretionary -0.7%, Financials -0.5%
(AU) Australia sells A$400M v A$400M indicated in 2037 bonds, avg yield 2.867%, bid to cover 2.2x
(NZ) New Zealand Jul Performance of Services Index: 55.1 v 52.8 prior

China/Hong Kong

Shanghai Composite opened -0.9%, Hang Seng -1.4%
Hang Seng Services index -3.7%, Materials -3%, Property/Construction -2.6%, Industrial Goods -2.6%, Info Tech -2.6%, Energy -2.2%, Telecom -1.9%, Financials -1.7%
(CN) China July New Yuan Loans (CNY): 1.45T v 1.225Te
(CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.8629 V 6.8395 PRIOR (weakest CNY fix since May 2017)
(CN) China PBoC Open Market Operation (OMO): Skips open market operation (17th straight skip)
(CN) China PBOC Q2 monetary policy report: reiterates PBOC has maintained a ‘prudent’ and ‘neutral’ monetary policy (released on Aug 10th)

Japan

Nikkei 225 opened -0.8%
TOPIX Marine Transportation index -3.4%, Electric Appliances -2.5%, Iron & Steel -2.4%, Securities -2.2%, Info & Communications -1.6%, Real Estate -1.3%, Retail Trade -1%
Automakers trade broadly lower as yen strengthens
Megabanks track recent declines in European financials
(JP) Japan confirmed plan to raise the minimum wage by ¥26 to ¥874/hour, approx. 3% increase; cites labor shortage – Japanese Press

Korea

Kospi opened -0.7%
(KR) South Korea End-July Foreign Net Investment in Local Bonds (KRW): +1.44T v +2.1T m/m
(KR) Bank of Korea (BoK) sells KRW1.22T in 1-year monetary stabilization bonds (MSBs); yield 1.83%

Other

North America

Europe

(TR) TURKEY CENTRAL BANK (CBRT) CUTS RESERVE REQUIREMENT RATIO (RRR) BY 250BPS FOR ALL MATURITIES
(TR) Turkey Finance Min Berat Albayrak said government has ‘action plan’ on currency – Local Media
(TR) Turkey Banking Regulator: Limits swap transactions
(TR) Turkey Presidency Communication Head: Reiterates President Erdogan did not talk about potential foreign FX deposits seizure
(RU) On Sunday, Russia Fin Min Siluanov said Russia will further cut its holdings of US securities in response to new sanctions; has no plans to shut down US companies – RIA
(GR) Fitch raises Greece sovereign rating two notches to BB- from B; outlook Stable (from Aug 10th)

Levels as of 01:30ET

Nikkei 225, -1.5%, ASX 200 -0.4%, Hang Seng -1.4%; Shanghai Composite -1.3%; Kospi -1.4%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.4%, Dax -0.7%; FTSE100 -0.5%
EUR 1.1412-1.1365 ; JPY 110.76-110.10 ; AUD 0.7301-0.7262 ;NZD 0.6595-0.6562
Aug Gold -0.3% at $1,215/oz; Sept Crude Oil flat at $67.62/brl; Sept Copper -0.5% at $2.732/lb