China July Industrial Production Data Due For Release On Wed

Aug 13 19, 07:06 GMT

General Trend:

Hang Seng underperforms due to protests; decliners include airlines, financials and gaming companies
Financials decline in Shanghai as monthly M2 and bank lending data missed ests; Property index also drops
ZTE declines in Shanghai on lingering concerns related to Huawei
Chinese airport companies rise amid HK protests (FT)
Nikkei declines after returning from holiday , trade sensitive sectors decline on TOPIX (Marine/Transportation, Iron/Steel)
Yen declines after gains seen on Monday’s session, Nikkei 225 Futures pare losses
Offshore yuan (CNH) rises as Chinese currency again fixed stronger than expected
China PBoC is due to sell 3-month and 1-year bills in Hong Kong on Wed (Aug 14th)
RBA Assist Gov Kent echoes recent remarks by Gov Lowe
NAB plays down improvement in Aussie July business confidence
Australia Q2 wage data due on Wed
Singapore cuts 2019 GDP and export growth forecasts
Gold Futures rise amid equity declines and protests in HK

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.1%
(NZ) New Zealand July REINZ House Sales y/y: +3.7% v -3.8% prior
(AU) AUSTRALIA JULY NAB CONFIDENCE: 4 V 2 PRIOR; BUSINESS CONDITIONS: 2 V 4 PRIOR
(AU) Australia RBA Assistant Gov Kent: Need for unconventional policies unlikely but remains possible, not all policies used overseas are correct for Australia – “The Usual Transmission, Monetary Policy and Financial Conditions’: – at the Finance & Treasury Association Breakfast Event
(AU) Australia sells A$150M v A$150M indicated in Nov 2027 indexed bonds, avg yield -0.2072% v 0.27% prior, bid to cover 1.83x v 3.7x prior
MFG.AU Reports FY19 (A$) adj Net 364.2M v 268.9M y/y (355Me); Rev 617.4M v 452.6M y/y; Announces launch of the Magellan High Conviction Trust , A$275M institutional share placement at A$55.20/share

Japan

Nikkei 225 opened -1.2%
6740.JP Capital injection talks with Suwa, INCJ proceeding ‘well’ with a little delay, plans to return to health in financials and return to profitability in H2 of FY2019
(JP) Japan July PPI (CGPI) M/M: 0.0% v +0.1%e Y/Y: -0.6% v -0.5%e (second consecutive decline)
(JP) South Korea PM Lee said to attend coronation of new Japan emperor Naruhito on Oct. 22 instead of the president – Korean press

Korea

Kospi opened -0.7%
(KR) South Korea President Moon: Economic fundamentals are strong despite uncertainty – Cabinet Meeting
005930.KR According to IHS Markit in Q2 Samsung was the world number 2 chip maker behind Intel – Yonhap
(KR) South Korea July shipbuilding orders 270K compensated gross tons (CGTs); China 200K compensated gross tons (CGTs); Japan 30K compensated gross tons (CGTs) – Yonhap

China/Hong Kong

Hang Seng opened -1.1%; Shanghai Composite opened -0.6%
293.HK Reports more than 210 flights cancelled on Tuesday due to sit-in at Hong Kong Airport
(HK) Hong Kong Spokesperson: will resume flights starting 6AM local time Tuesday, flights will still have some delays/cancellations to deal with capacity and airport operations
(CN) China PBoC Open Market Operation (OMO): Injects CNY60B in 7-day reverse repos v Injects CNY30B prior; Net CNY60B injected v Net CNY30B injected prior
(CN) China PBoC sets yuan reference rate: 7.0326 v 7.0211 prior (9th consecutive weaker setting, weakest setting since March 25, 2008)
(HK) Hong Kong Chief Exec Lam: Non-cooperative events affected airport and traffic; HK society in ‘chaotic’ situation; dialogue could resume after violence stops; economy could suffer further
(CN) China July Foreign Direct Investment (FDI) y/y: 8.7% v 8.5% prior
Yesterday after the close
(CN) China PBOC Dep Gov Pan Gongsheng: China will neither devalue the yuan nor change the way it manages the yuan; FX market to return to fundamentals after fluctuations
(CN) Hong Kong and Macau Affairs Office: Situation in Hong Kong has come to a critical juncture
(CN) CHINA JULY AGGREGATE FINANCING (CNY): 1.010T V 1.625TE
(CN) CHINA JULY NEW YUAN LOANS (CNY): 1.060T V 1.275TE; Outstanding Loan Growth Y/Y: 12.6% v 13.0% prior v 12.8%e
(CN) CHINA JULY M2 MONEY SUPPLY Y/Y: 8.1% V 8.4%E

Other Asia

(SG) Singapore Q2 Final GDP Q/Q: -3.3% v -2.9%e; Y/Y: 0.1% v 0.2%e; Cuts 2019 GDP growth forecast to 0-1% (prior 1.5-2.5%)
(SG) Singapore Central Bank (MAS) Deputy MD Robinson: Monetary policy remains unchanged, not considering an off cycle policy meeting
(ID) Indonesia Central Bank (BI) Hendarsah: Will respond if risk off led by Argentina and Hong Kong; committed to guard rupiah stability; ready to intervene in FX and bond markets

North America

(CN) US Nat Sec Adviser Bolton: it’s incumbent upon China to live up to obligations under joint Sino-UK handover agreement
SPTN Reports prelim Q2 $0.34 v $0.35e, Rev $1.90B v $2.00Be; CEO Dave Staples resigns; Names Dennis Eidson interim CEO
CBS Reportedly CBS and Viacom are discussing an exchange ratio of 0.59-0.60, giving a slight premium to CBS shareholders – press

Europe

(IT) Italy PM Conte to address Senate on Aug 20 regarding the govt crisis – Italian press
(UK) UK PM Johnson spokesperson: To speak to more EU leaders in the coming weeks, believes Brexit deal in UK and EU interests

Levels as of 1:20 ET

Nikkei 225, -1.3%, ASX 200 -0.4%, Hang Seng -1.8%; Shanghai Composite -0.8%; Kospi -0.7%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.5%; FTSE100 flat
EUR 1.1221-1.1181; JPY 105.58-105.15 ; AUD 0.6765-0.6747 ;NZD 0.6457-0.6440
Gold +0.6% at $1,526/oz; Crude Oil -0.2% at $54.83/brl; Copper flat at $2.582/lb