General Trend:
- Japanese steel makers rise on plan by Toyota to raise specialty steel prices
- Some focus remains on HK earnings as more protests said to be planned: Retail sourcing company Li & Fung rises over 5% after earnings report , CITIC Securities drops after financial results
- Apple supplier AAC Technologies declines over 3% in HK post earnings
- Banks are among the outperformers in Shanghai after being weighed down earlier this week by the PBOC’s interest rate reform
- Little initial impact seen on NZD from weaker retail sales, currency supported by RBNZ Gov comments
- USD/CNH trades above 7.10 amid weaker yuan fixing
- Fed Chairman Powell expected to deliver Jackson Hole speech on Friday morning at 10 a.m. ET (Aug 23rd)
- G7 meeting due to be held in France on Aug 24-26 (Sat-Monday)
Headlines/Economic Data
Australia/New Zealand
- ASX200 opened -0.1%
- (NZ) NEW ZEALAND Q2 RETAIL SALES (EX-INFLATION) Q/Q: 0.2% V 0.3%E
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Reiterates rate cut reduces probability of having to do more later; can afford to wait and observe what is happening – Jackson Hole comments
- (NZ) RBNZ Assist Gov: If monetary policy is to be successful for another 30 years we nee to confront challenges of stubbornly low inflation and interest rates
China/Hong Kong
- Shanghai Composite opened +0.1%, Hang Seng flat
- (US) White House Econ Adviser Kudlow: Deputy trade negotiators had constructive talks on conf calls with China this week; expect another call in next few days; still looking toward face-to-face meeting in Sept
- (CN) China PBoC sets yuan reference rate: 7.0572 v 7.0490 prior (weakest CNY fixing since March 21 2008)-(CN) China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repos v Injects CNY60B prior; Net drain CNY0B v drain CNY30B prior
- (HK) Multiple protests are said to be planned for Friday (Aug 23rd) in Hong Kong – financial press
Japan
- Nikkei 225 opened -0.2%
- (JP) Japan Econ Min Motegi: Plans to resume ministerial level trade talks with US tomorrow as talks have been extended for 1 day; getting close to a conclusion; US Pres Trump and Japan PM Abe may discuss trade talk results on sidelines at G7 on Aug 23-27
- (JP) JAPAN JULY NATIONAL CPI Y/Y: 0.5% V 0.6%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.6% V 0.6%E
Korea
- Kospi opened -0.4%
- (KR) South Korea Fin Min: It has become more difficult to meet GDP forecast, but will maintain 2019 GDP target of 2.4-2.5% despite increased downside risks
North America
- (US) Fed’s Kaplan (dove, non-voter): would like to avoid cutting again in Sept, but will have an open mind about taking further action in next few months; Sees potential for rate cut at Sept meeting; notes risk from global growth and trade uncertainty
- (US) White House Econ Adviser Kudlow: We are still looking at “tax cuts 2.0” to improve long term growth of economy – FOX Business interview
- (US) SEMI: July North America Manufacture Billings: $2.03B, +0.4% m/m, -14.5% y/y
Levels as of 1:20 ET
- Nikkei 225, +0.3%, ASX 200 +0.2%, Hang Seng +0.3%; Shanghai Composite +0.4%; Kospi -0.1%
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.5%, Dax +0.5%; FTSE100 +0.6%
- EUR 1.1087-1.1070 ; JPY 106.62-106.37 ; AUD 0.6765-0.6745 ;NZD 0.6397-0.6364
- Gold -0.3% at $1,504/oz; Crude Oil +0.2% at $55.47/brl; Copper +0.1% at $2.561/lb
