General Trend:
- Asian equity markets trade mostly higher amid focus on trade and Jackson Hole
- Australia’s Westpac declines, noted the impact of higher funding costs on net interest margin
- Kiwi (NZD) declines, RBNZ Gov Orr did not rule out a cut in interest rates; Currency later pares decline
- China PBoC conducts its second MLF operation this month
- In early Asia, the US yield curve trades at the flattest level since 2007
- Fed Chair Powell expected to make Jackson Hole speech at 10 AM EDT
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- ASX 200 Consumer Discretionary index +1.4%, Utilities +1.3%, REIT +0.5%, Financials flat; Telecom -2.3%
- (AU) Australia Treasurer Morrison to replace Turnbull as PM – Australia Media
- (AU) Moody’s: Australia leadership change has no implications for Aaa sovereign rating (Outlook Stable)
- (NZ) RBNZ Gov Orr: Reiterates evenly balanced on rate outlook; We don’t rule out a cut in interest rates.
*(NZ) NEW ZEALAND JUL TRADE BALANCE (NZ$): -143M V -400ME
China/Hong Kong
- Shanghai Composite opened -0.3%, Hang Seng -0.8%
- Hang Seng Materials index -1.7%, Info Tech -1.7%, Consumer Goods -0.9%, Financials -0.9%, Industrial Goods -0.7%, Property/Construction index -0.4%; Energy +1.3%
- (CN) China Commerce Min (MOFCOM) China and the US had ‘constructive’ and ‘candid’ exchange over trade issues; both countries to keep communication on trade
- (CN) White House official: US-China trade talks in Washington DC have concluded; talks included structural issues in China
- (CN) CHINA PBOC CONDUCTS CNY149B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) V CNY383B PRIOR AT 3.30% V 3.30% PRIOR (2nd MLF operation this month)
- (CN) China PBoC Open Market Operation (OMO) Skips OMO v skipped prior
- (CN) China PBoC set yuan reference rate: 6.8710 v 6.8367 prior
- (CN) China Bond Connect has implemented delivery vs payment settlement system for transactions through China’s primary bond clearinghouse – financial press
Japan
- Nikkei 225 opened +0.3%
- TOPIX Info & Communications index +1.3%, Retail Trade +0.8%; Iron & Steel -1.5%
- Toyota Motor: Said to plan to maintain supplied steel prices for H2 2018 (Japanese Press)
- (JP) JAPAN JUL NATIONAL CPI Y/Y: 0.9% V 1.0%E; CPI EX FRESH FOOD (CORE): 0.8% V 0.9%E
- (JP) Japan Jul PPI Services Y/Y: 1.1% v 1.2%e
- (JP) Japan Finance Ministry (MOF): Confirms to hold China-Japan dialogue on Aug 31st in Beijing
- (JP) Government bodies in Japan said to seek ~¥102T budget for FY2019 – Japanese Press
- (JP) BoJ Gov Kuroda to speak in Osaka on Tuesday Sept 25th
Korea
- Kospi opened -0.3%
- (KR) US Secretary of State Pompeo said to plan to visit North Korea on Aug 27th – US financial press
- Samsung Electronics: Apple said to place order with the company for additional iPhone X panels (Press)
Other
- (ID) Indonesia Finance Min: Currently the government is reviewing 900 items for the possible imposition of an import tax
- (MY) Malaysia July CPI Y/Y: 0.9% v 0.9%e (5th straight month below target)
- (SG) Singapore July Industrial Production M/M: -1.7% v -1.0%e; Y/Y: 6.0% v 6.0%e
North America
- US equity markets ended lower: Dow -0.3%, S&P500 -0.2%, Nasdaq -0.1%, Russell 2000 -0.3%
- S&P500 Materials -0.7%
- (US) SEMI: July North America Billings $2.36B, -4.9% m/m and +4.1% y/y
- (US) Fed Kaplan says comfortable with 4 rate hikes in 2018
- (US) Weekly Fed Balance Sheet Total Assets for the week ending Aug 22: $4.28T, -$27.1B w/w, -$234.5B y/y; Reserve Bank Credit: $4.19T, -$27.2B w/w, -$234.7B y/y
Levels as of 01:30ET
- Nikkei 225, +0.8%, ASX 200 +0.3%, Hang Seng -0.4%; Shanghai Composite +0.1%; Kospi +0.4%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.2%; FTSE100 +0.2%
- EUR 1.1564-1.1534 ; JPY 111.50-111.23 ; AUD 0.7291-0.7236 ;NZD 0.6653-0.6620
- Aug Gold +0.1% at $1,195/oz; Sept Crude Oil +0.8% at $68.36/brl; Sept Copper +1% at $2.670/lb
