Asian Equity Markets Trade Lower Amid Continued Trade Uncertainty

Sep 07 18, 07:11 GMT

General Trend:

Markets are cautious following the end of the public comment period released to the US’ proposed tariffs on $200B in China goods
Asian chip names decline amid earlier losses in the US
China PBoC again skips daily open market operation in favor of a medium-term lending facility (MLF)
Japan continues work to restore power after the recent Hokkaido earthquake
Japan July household spending rises for the first time since Jan
South Korea President Moon’s approval rating moves below 50% for the first time (Gallup)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.8%
Elders and Bingo Industries to be added to the S&P ASX 200 index; GMA Australia and Greencross to be removed, effective at the open of trading on Sept 24th
(AU) Australia Jul Home Loans: +0.4% v -0.1%e; Investment Lending: -1.3% v -2.7% prior
(AU) Australia sells A$1.0B v A$1.0B indicated in May 21 2030 bonds, avg yield 2.5859%, bid to cover 3.3x
(AU) Australia hires banks for planned sale of new Feb 21 2050 index bonds through syndication; expected to be priced in the week of Sept 17th
(AU) Australia Aug AiG Performance of Construction Index: 51.8 v 52.0 prior
(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Economic outlook is ‘not that bad’ due to terms of trade, supportive NZD and low interest rates
(NZ) New Zealand PM Ardern: Minister for Broadcasting, Communications and Digital Media Clare Curran has resigned as a minister; says government is ‘stable’

China/Hong Kong

Shanghai Composite opened +0.2%, Hang Seng -0.3%
(CN) CHINA PBOC CONDUCTS CNY176.5B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) VS CNY149B PRIOR AT 3.30% V 3.30% PRIOR; confirms skip of OMO (13th straight skip)
(CN) China PBoC set yuan reference rate: 6.8212 v 6.8217 prior
(JP) China and Japan to hold talks related to infrastructure on Sept 25th – Japanese Press

Japan

Nikkei 225 opened -0.6%
Sumco [3436.JP]: Says its Chitose silicon wafer plant has been halted following earthquake due to ongoing power reductions; to check inside of the plant once the power returns
There is speculation that the recent Hokkaido earthquake in Japan could lead to higher prices for silicon wafers (Taiwanese Press)
(JP) Pres Trump reportedly hinted in press interview that trade fight with Japan may be next on agenda – CNBC
(JP) Japan Finance Min Aso: Declines comment on remarks by US President Trump regarding US/Japan trade
(JP) JAPAN JUL HOUSEHOLD SPENDING Y/Y: +0.1% V -0.9%E (first rise since Jan)
(JP) Japan Jul Labor Cash Earnings Y/Y: 1.5% v 2.4%e; Real Cash Earnings: 0.4% v 1.1%e
(JP) Japan Aug Official Reserve Assets: $1.26T v $1.26T prior

Korea

Kospi opened -0.4%
(KR) Gallup Poll: The approval rating for South Korea President Moon declines to 49% v 53% prior (first time below 50%)
(KR) South Korea is planning to sell KRW600B in 50-yr bonds on Sept 12th; Planning to also sell an indeterminate amount of 50-yr bonds in Q4

North America

US equity markets ended mostly lower: Dow +0.1%, S&P500 -0.4%, Nasdaq -0.9%, Russell 2000 -0.8%
S&P500 Energy -1.8%, Tech -0.7%
(BR) Brazil Hospital gives update on earlier stabbing of President Candidate Bolsonaro (PSL party): The candidate is said to be recuperating ‘well’ after surgery and he is expected to recover quickly, it could take two months for Bolsonaro to fully recover
(CA) Canada Foreign Min Freeland: Continues to work ‘very intensely’ on talks with US officials; briefed PM Trudeau on the state of the talks; Talks to continue on Friday
(CA) Canada Gov’t Official: NAFTA talks are unlikely to reach deal this week
(US) US President Trump: Believes Canada will end up as part of a ‘new NAFTA’; US will get ‘great’ deal with China for farmers
(US) DOE CRUDE: -4.3M V -2ME

Levels as of 01:30ET

Nikkei 225, -0.8%, ASX 200 -0.5%, Hang Seng -0.4%; Shanghai Composite +0.3%; Kospi -0.6%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 -0.1%
EUR 1.1632-1.1614 ; JPY 110.76-110.38 ; AUD 0.7205-0.7154 ;NZD 0.6595-0.6565
Aug Gold +0.2% at $1,206/oz; Sept Crude Oil +0.1% at $67.81/brl; Dec Copper -0.9% at $2.612/lb