Asia Summary
Asian equity markets opened broadly stronger, with a 3rd consecutive day of gains, again tracking US markets. Hong Kong shares fell for the first time in 3 days, weighed down by Chinese developers. China’s MSCI Index fell 0.4% after closing at the highest level since January 1st, 2008. The HK$ surged 0.16% against the USD to 7.8045; which prompted the HKMA to add HK$40B in additional exchange fund bills to meet demand from banks. RBA meeting minutes were relatively unchanged from prior, again saying that A$ is more a product of USD weakness and noting improvement in the domestic economy. USD was broadly weaker against G7 currencies ahead of Fed meeting, where it is expected they will announce details on a balance sheet wind down.
Key economic data
(AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: 1.9% V 1.3%E; Y/Y: 10.2% V 9.2%E
(AU) RESERVE BANK OF AUSTRALIA (RBA) MEETING MINUTES: Recent domestic data is consistent with gradual pick up in growth, labour market conditions had continued to improve, although spare capacity remains
(KR) SOUTH KOREA AUG PPI M/M: 0.3% V 0.1% PRIOR; Y/Y:3.2% V 3.0% PRIOR
(NZ) NEW ZEALAND Q3 WESTPAC CONSUMER CONFIDENCE: 112.4 V 113.4 PRIOR
Speakers and Press
China/Hong Kong
(CN) China Securities Journal: China should study yuan pricing for commodities
(CN) Communist Party of China (CPC) will amend its constitution at the upcoming national congress for the first time since 2012 – Xinhua
(CN) China should adopt ‘sovereign digital currency’ as soon as possible – China Financial News
(CN) China said to be planning to draft scheme to open the financial sector – press
Korea
(KR) China Foreign Min: North Korea nuclear issue must be resolved peacefully with talks
Japan
(JP) Japan investors sold a net $4.36B of US corporate bonds in July (fresh record high) v $2.15B m/m – press
(JP) Japan Fin Min Aso: Need to protect gains toward fiscal consolidation (comments in response to sales tax increase)
(JP) Japan PM Abe said to call snap election as soon as Sept 25th – Japanese Press
Asian Equity Indices/Futures (00:00ET)
Nikkei 1.5%, Hang Seng -0.2%; Shanghai Composite -0.3%, ASX200 +0.1%, Kospi -0.1%
Equity Futures: S&P500 0.0%; Nasdaq100 0.0%, Dax -0.1%, FTSE100 -0.0%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1975-1.1951; JPY 111.60-111.37; AUD 0.7993-0.7958;NZD 0.7380-0.7256
Dec Gold +0.1% at $1,312/oz; Nov Crude Oil -0.1% at $50.31/brl; Dec Copper +0.0% at $2.97/lb
(CN) PBoC OMO: injects CNY150B in 7 and 28-day reverse repos v injected combined CNY300B in 7 and 28 day reverse repos prior
USD/CNY (CN) China PBOC sets yuan reference rate at 6.5530 v 6.5419 prior
(HK) Hong Kong 1-month HIBOR +5bps to 0.47250% (most since Dec)
Equities notable movers
Australia/New Zealand
WLD.AU Reports 1st shipment of beef cattle to China; +12%
TPM.AU Reports underlying FY17 (A$) Net 413.8M v 409Me; EBITDA 835M v 839Me; Rev 2.48B v 2.5Be; Cuts dividend to A$0.10 v A$0.145 y/y; +9.4%
LYC.AU Reports FY17 (A$) net -45.0M v -122.2M y/y; adj EBITDA 31.9M v 30Me; Rev 257M v 264Me; -5%
Japan
6502.JP Bain consortium to offer ¥50B in provision for litigation damages in Western Digital lawsuit – Japanese press; -0.3%
5423.JP To raise Oct hot-rolled coil and H-beam prices by approx 3.8-4.7%; +3.5%
Korea
009540.KR Could win orders for very large iron ore carriers; Vale is said to have awarded contracts to shipping companies to haul iron ore under a long-term contract – financial press; +8.5%
