General trend
- Nikkei has remained near the opening level.
- Hang Seng has remained modestly lower; TECH index drops over 2%.
- Shanghai Composite ended morning trading slightly lower (-0.3%), IT and Property indices lagged.
- Samsung weighs on Kospi.
- S&P ASX 200 has outperformed [Consumer and Utilities indices rise; Financials drop amid ex-dividends; Lower iron ore prices weigh on Resources index].
- China July data (including Industrial Production, Retail Sales and Fixed Asset Investment) is due to be released on Monday, Aug 16th [Sunday night in the US].
- China PBOC generally conducts MLF operations around the 15th of the month.
Headlines/Economic Data
Australia/New Zealand.
- ASX 200 opened flat.
- (AU) Australia sells A$1.2B v A$1.2B indicated in 4.75% Apr 2027 bonds, avg yield 0.7038%, bid to cover 3.93x.
- (AU) Australia AOFM (debt agency): To sell new Nov 2032 Indexed bond via syndication during week of Aug 23rd.
- (NZ) New Zealand July Manufacturing PMI: 62.6 v 60.7 prior (7th month of expansion).
China/Hong Kong
- Hang Seng opened -0.8%, Shanghai Composite -0.3%.
- (CN) Shanghai Sec News: China July data [due on Monday Aug 16th] will show slowdown due to curbs on debt and coronavirus cases, cites market analysts.
- (CN) China targets to cut steel production by 63Mt during H2 2021, also seeking to stabilize iron ore prices – Shanghai Securities News.
- (CN) China said to have halted private equity funding for residential property developments – press.
- (CN) US Sec of State Deputy Sherman met with the new China Ambassador Qin Gang on Aug 12th (as expected); Sherman said remains committed to continuing talks – financial press.
- (CN) China National People’s Congress (NPC) Standing Committee is reviewing a draft law that regulates data collection by apps [3rd review] – Press.
- (CN) China PBOC has suspended mandatory credit ratings for interbank market bond issuers as part of pilot program [relates to all non-financial cos.] – Chinese pres.
- (CN) China People’s Daily: Urging to refrain from vulgar comments online.
- (CN) China Ministry of Finance (MOF) sells 30-year bonds: avg yield 3.315% v 3.5736% prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
- (CN) China PBOC sets Yuan reference rate: 6.4799 v 6.4754 prior.
Japan
- Nikkei 225 opened +0.1%.
- (JP) Japan Econ Min Nishimura: Will respond on expanding the State of Emergency as needed.
- (JP) Japan PM Suga: On highest alert on rains impacting western Japan.
Korea
- Kospi opened -0.1%.
- (KR) South Korea July Export Price Index Y/Y: 16.9% v 12.7% prior; Import Price Index Y/Y: 19.2% v 14.0% prior.
- (KR) South Korea sells 50-year bonds: avg yield 1.960% v 2.060% prior.
Other Asia
- (MY) Malaysia Q2 GDP Q/Q: -2.0% v -1.9%e; Y/Y: 16.1% v 14.1%e; cuts 2021 GDP growth outlook.
North America
- (US) JULY PPI FINAL DEMAND M/M: 1.0% V 0.6%E; Y/Y: 7.8% V 7.2%E.
- (US) US FDA has authorized a 3rd coronavirus shot for immunocompromised individuals (as expected).
- (US) US Supreme Court has blocked key part of New York State’s Eviction moratorium, grants emergency request by landlord group – press.
Levels as of 01:20 ET
- Nikkei 225, flat, ASX 200 +0.5% , Hang Seng -1%; Shanghai Composite -0.4% ; Kospi -1.4%.
- Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 +0.1%.
- EUR 1.1742-1.1729 ; JPY 110.46-110.36 ; AUD 0.7352-0.7332 ;NZD 0.7015-0.6994.
- Gold +0.3% at $1,757/oz; Crude Oil -0.8% at $68.55/brl; Copper +0.3% at $4.3745/lb.
