Samsung falls after Q2 final results

Economic Data

- (AU) AUSTRALIA Q2 IMPORT PRICE INDEX Q/Q: 1.4% (1-year high) V 1.5%E; EXPORT PRICE INDEX Q/Q: -4.4% (1-year low) V -4.0%E

- (AU) AUSTRALIA JUNE BUILDING APPROVALS M/M: -8.2% (biggest decline in 9 months) V -1.0%E; Y/Y: 8.6% (8-month low) V 19.5%E

- (NZ) NEW ZEALAND JUN BUILDING PERMITS M/M: -4.1% V 0% PRIOR; biggest decline in 4 months

- (JP) JAPAN JUN PRELIMINARY INDUSTRIAL PRODUCTION M/M: 0.8% (first rise in 3 months) V 0.3%E; Y/Y: 2.0% (1-year high) V 1.3%E

- (JP) JAPAN JUN VEHICLE PRODUCTION Y/Y: -5.3% V -16.6% PRIOR

- (SG) SINGAPORE Q2 PRELIMINARY UNEMPLOYMENT RATE: 2.0% V 1.9%E

Index Snapshot (as of 04:00 GMT)

- Nikkei225 +1.1%, S&P/ASX +0.8%, Kospi -0.5%, Shanghai Composite flat, Hang Seng -0.1%, Sept S&P500 -0.1% at 2,099

Commodities/Fixed Income

- Aug gold -0.1% at $1,091/oz, Sept crude oil +0.3% at $48.93/brl, Sept copper -0.1% at $2.40/lb

- (CN) PBoC to inject CNY40B in 7-day reverse repos (11th consecutive injection); Injects net CNY20B this week v injected CNY30B prior (2nd week of injection)

- (JP) Japan investors sold net ¥21.7B in foreign bonds V bought ¥574.5B in prior week; Foreign investors sold net ¥82.1B in Japan stocks v bought ¥632.2B in prior week

Market Focal Points/FX

- Asian indices are mixed as traders digest the implications of marginal changes in the latest FOMC statement. While the Fed clearly upgraded its view of US employment, inflation outlook remains subdued and thus the baseline scenario is for rate liftoff to be beyond the next September meeting. US stocks were higher into the close, but the bond market is in retreat with the 10-year note yield back above 2.3% for the first time in a week. Two more jobs reports and GDP data (first estimate is on Thursday) should continue to solidify market bias for the Fed timing.

- After yesterday's strong late-session push higher, Shanghai Composite trading was significantly less volatile as traders also await the official PMI figures due Friday evening. PBoC did inject another CNY40B of liquidity through 7-day repos, but the offering yield remained unchanged at 2.5%.

- Samsung Electronics fell over 3% after final Q2 results. Although the headline figures were largely in line with preliminary data, this marked the 5th straight decline in profits as smartphone sales continued to underperform. Investors were also disappointed by expectations of an overall challenging outlook, uncertainty related to CAPEX, and warning that ASP for smartphones may drop despite the announcement of next month's launch of the next flagship smartphone model. Memory unit performed better, as the company also noted expectations for higher supply.

- Among notable regional central bank speak, RBA Gov Stevens said capital flow due to China liberalization could rise to as high as $400B/year. BOJ Gov Ishida was fairly upbeat after a strong set of industrial data, noting inflation is accelerating toward 2% target but also calling for close monitoring of wage price trends. Brazil central bank hiked SELIC rate by 50bps as expected in a unanimous decision.

Equities

US equities/ADRs:

- WDC: Reports Q4 $1.51 v $1.46e, R$3.19B v $3.32Be; Guides Q1 $1.50-1.60 v $1.80e; Rev $3.2-3.3B v $3.61Be; +5.5% afterhours

- FB: Reports Q2 $0.50 v $0.47e, R$4.04B v $4.01Be; +1.4% afterhours

- ORLY: Reports Q2 $2.29 v $2.26e, R$2.04B v $1.99Be; +1.4% afterhours

- WYNN: Reports Q2 $0.74 v $0.97e, R$1.04B v $1.07Be; +1.1% afterhours

- MAR: Reports Q2 $0.82 v $0.81e, R$3.69B v $3.72Be; -0.8% afterhours

- WFM: Reports Q3 $0.44 (adj) v $0.45e, R$3.63B v $3.70Be; -11.3% afterhours

Notable movers by sector:

- Consumer discretionary: Panasonic Corporation 6752.JP -5.0% (Q1 result)?Wynn Macau Ltd 1128.HK -1.5% (Q2 result); Nanjing Gaoke Co Ltd 600064.CN -2.2% (H1 result); Shanghai Lujiazui Finance & Trade Zone Development Co 600663.CN -0.3% (H1 result); Wanxiang Qiaochao Co 000559.CN +2.6% (investment)

- Financials: Nomura Holdings 8604.JP +4.7% (Q1 result); China Life Insurance 2628.HK +0.5% (H1 guidance); Future Land Development Holdings 1030.HK +1.6% (approval for restructuring)

- Energy: China Shenhua Energy 601088.CN -1.7% (H1 result)

- Industrials: Doosan Heavy 034020.KR +2.0% (Q2 result); Samsung Heavy Industries 010140.KR -1.8% (Q2 result); Hyundai Mipo Dockyard Co 010620.KR +1.4% (Q2 result); Daewoo Shipbuilding & Marine 042660.KR -4.8% (Q2 result); Nissan Motor Co 7201.JP +0.2% (Q1 result); GUD Holdings GUD.AU +9.0% (FY15 result)

- Technology: LG Electronics Inc 066570.KR -5.7% (Q2 result); NHN 035420.KR -12.8% (Q2 result); Samsung Electronics 005930.KR -2.7% (Q2 result); Hitachi Ltd 6501.JP +7.1% (Q1 result); TPK Holding Co 3673.TW +1.9% (Q2 result); MediaTek Inc 2454.TW +3.0% (Q3 result speculation); HTC Corp 2498.TW +2.3% (denies speculation about talks with Qihoo 360); Yonyou Software Co Ltd 600588.CN +3.9% (strategic agreement with Alibaba)

- Materials: Nippon Steel & Sumitomo Metal Corp 5401.JP % (Q1 result)?CITIC Dameng Holdings 1094.HK -2.7% (H1 result)

- Telecom: SK Telecom 017670.KR +5.4% (Q2 result); LG Uplus Corp: 032640.KR +1.9% (Q2 result); NTT DoCoMo Inc 9437.JP +4.7% (Q1 result)

- Utilities: Tokyo Electric Power Co 9501.JP +5.9% (Q1 result)