US Jobs Report Due Later Today

Sep 03 21, 06:10 GMT

General trend

Nikkei has extended gain amid the Suga news.
S&P ASX 200 has risen following drop during prior session [Energy, Financial and Resources indices rise].
Shanghai Composite ended morning trading slightly lower (-0.2%); Brokerage firms rise amid news related to Beijing Stock Exchange.
Hang Seng has remained modestly lower; Property developer bonds in focus [Evergrande, Oceanwide Holdings, Central China Real Estate].

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2027 bonds, avg yield: 0.7875%, bid to cover 5.67x.
(AU) Australia Aug Final PMI Services: 42.9 v 43.3 prelim (lowest since June 2020).
(AU) Australia Aug AIG Construction Index: 38.4 v 48.7 prior.
(NZ) Reserve Bank of New Zealand (RBNZ): Seeking comments on proposal to reduce risky mortgage lending via additional reduction of high loan to value (LVR) ratio lending to owner occupied properties.

China/Hong Kong

Hang Seng opened -0.3%, Shanghai Composite +0.2%.
(CN) CHINA AUG CAIXIN PMI SERVICES: 46.7 V 52.0E (First contraction in 16 months).
(HK) Hong Kong Aug PMI (Whole Economy): 53.3 v 51.3 prior (7th consecutive expansion, highest since Feb 2014).
(CN) China President Xi: To set up Beijing Stock Exchange to support innovative SMEs – Trade summit comments.
(CN) China Cabinet: To establish International CNY Denominated Commodity futures market and shipping futures contracts.
Alibaba: To invest CNY100B to support common prosperity initiatives – Chinese press.
(CN) China Sec Journal: China Banks have cut property loan exposures due to new caps.
(CN) China said to strengthen review of game content, following play time limits last week – press.
(CN) Follow Up: Publicity Dept of Communist Party of China Central Committee issued a circular noting plans to take comprehensive and targeted measures to rectify irregularities related to the entertainment industry – Xinhua.
(CN) China Fiscal Balance faces pressure due to slowing income growth – China Press.
(CN) China PBOC sets Yuan reference rate: 6.4577 v 6.4594 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY40B v Net drain CNY40B prior.

Japan

Nikkei 225 opened +0.3%.
(JP) Said that Japan PM Suga will not stand for election in leadership election; Has indicated intent to resign; will not conduct cabinet reshuffle next week – Press [Note: Attention may now shift to LDP Leader candidate Kishida (former Foreign Min); Kishida came in 2nd place in the Sept 2020 LDP leadership election (after Suga)].
(JP) Japan LDP Official Nikai: Confirms Suga has said he will not run for LDP leadership, Will no longer reshuffle cabinet.
(JP) Japan Aug Final PMI Services: 42.9 v 43.5 prelim (confirms 19th month of contraction, lowest since May 2020).
(JP) Japan Fin Min Aso: PM Suga has not yet directed to compile extra budget; Declines to comment on supporting Suga in LDP elections.
(JP) Japan said to be drafting roadmap to easing coronavirus restrictions in the country – Press.

Korea

Kospi opened +0.4%.
(KR) South Korea to extend social distancing measures through Oct 3rd – Yonhap.
(KR) South Korea Health Min Kwon: Coronavirus cases expected to peak at 2.0-2.3K cases during Sept 5th-20th, then to decline.
(KR) South Korea Aug Foreign Reserves: $463.9B v $458.7B prior (new record high).

Other Asia

(ID) Indonesia imposes 10% tax on bond earnings for domestic investors.
(SG) Singapore Aug PMI (whole economy): 52.1 v 56.7 prior (9th consecutive expansion).

North America

Amazon [AMZN] Said to be close to launching own label TV in the US as soon as Oct; TCL is expected to be one of the manufacturers of the TVs – Press.
Apple [AAPL]: Said that US National Labor Relations board is investigating company on 2 complaints – Press.

Europe

(UK) Prime Minister Johnson expected to announce manifesto-breaking tax increase to fund largest overhaul in social care – Telegraph.

Levels as of 01:20 ET

Nikkei 225, +1.9%, ASX 200 +0.4% , Hang Seng -0.8%; Shanghai Composite -0.2%% ; Kospi +0.7%.
Equity S&P500 Futures: +0.2%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 flat.
EUR 1.1884-1.1871 ; JPY 110.07-109.79 ; AUD 0.7410-0.7394 ;NZD 0.7120-0.7103.
Gold +0.2% at $1,813/oz; Crude Oil -0.2% at $69.84/brl; Copper +0.3% at $4.3195/lb.