General Trend:
- Asian equity markets trade mostly higher, Shanghai Composite rises over 1.3% in early trade
- Australia ASX 200 underperforms , BHP declines following earnings report
- USD/JPY trades below ¥110 for the first time since late June amid broad USD weakness
- US President Trump criticized the Fed’s policy
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- ASX 200 Energy index -1.6%, Resources -1.3%, Financials -1.2%
- BHP [BHP.AU]: Reports FY18 Underlying Net $9.6B (continuing ops) v $9.2Be, Underlying EBITDA $24.1B (includes Onshore US business) v $24.3Be, Rev $45.8B v $45.5Be
- (AU) RBA AUG MINUTES: REITERATES NO STRONG CASE FOR NEAR-TERM POLICY ADJUSTMENT
- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Reiterates likely next move in rates will be up and not down
- (AU) Australia PM Turnbull wins leadership vote for ruling Liberal Party by a vote of 48 to 35; Following the leadership vote, Peter Dutton will step down from his position as Home Affairs Minister.
- (NZ) New Zealand Jul Credit Card Spending M/M: -1.1% v 2.1% prior; Y/Y: 3.2% v 5.7% prior
- (NZ) New Zealand Jul Net Migration: 4.7K v 4.8K prior
China/Hong Kong
- Shanghai Composite opened +0.1%, Hang Seng +0.3%
- Hang Seng Consumer Goods index +3.2%, Materials +3.2%, Industrial Goods +3%, Services +1.9%, Energy +1.3%, Property/Construction +1.2%, Info Tech +0.9%, Financials +0.6%
- (CN) Insurance companies in China said to have increased their purchases of A-shares – Chinese Press
- (CN) China PBoC said to plan to revamp local management system by the end of 2018 – Chinese Press
- (US) President Trump: does not anticipate much coming out of meeting with Chinese delegation regarding trade talks this week – press interview
Japan
- Nikkei 225 opened -0.4%
- TOPIX Iron & Steel index +0.6%, Securities +0.4%; Marine Transportation -0.6%, Electric Appliances -0.6%, Retail Trade -0.3%, Real Estate -0.3%
- (JP) Japan Chief Cabinet Sec Suga said mobile phone bills have room to be cut by ~40% – Japanese Press
- (JP) Japan Finance Ministry (MOF) sells ¥1.0T v ¥1.0T indicated in 0.50% 20-year JGBs, avg yield v 0.6070% 0.4920% prior, bid to cover 4.66x v 4.54x prior
Korea
- Kospi opened flat
- (KR) South Korea Aug 1-20 Exports Y/Y: +14.9%; Imports Y/Y: +6.0% – Customs Agency
- (KR) South Korea Jul PPI Y/Y: 2.9% v 2.6% prior
- (KR) South Korea said to plan to tighten rules related to internal transactions by Chaebol companies – South Korea Press
- (KR) South Korea said to plan to sell 50-year government bonds in Sept – Local Press
North America
- US equity markets ended mixed: Dow +0.4%, S&P500 +0.2%, Nasdaq -0.1%, Russell 2000 +0.3%
- S&P500 Materials +0.7%
- (US) President Trump: not thrilled with what Fed Chief Powell is doing so far, should be more accommodating – press interview
Europe
- (RU) UK Foreign Minister Hunt said to call for additional sanctions on Russia – UK Media
Levels as of 01:30ET
- Nikkei 225 +0.2%, ASX 200 -1.1%, Hang Seng +0.5%; Shanghai Composite +1.3%; Kospi +0.9%
- Equity Futures: S&P500 flat, Nasdaq100 flat, Dax +0.1%; FTSE100 -0.2%
- EUR 1.1542-1.1480 ; JPY 110.12-109.76 ; AUD 0.7361-0.7331 ;NZD 0.6668-0.6636
- Aug Gold +0.6% at $1,201/oz; Sept Crude Oil +0.2% at $65.53/brl; Sept Copper +0.5% at $2.679 /lb
