China manufacturing PMIs hit multi-month lows

Economic Data

- (CN) CHINA JULY MANUFACTURING PMI: 50.0 (5-month low) V 50.1E; NON-MANUFACTURING PMI: 53.9 (5-month high) V 53.8 PRIOR

- (CN) CHINA JULY CAIXIN/MARKIT MANUFACTURING PMI: 47.8 V 48.3E; ( 5th month of contraction and 2-year low)

- (JP) JAPAN JULY FINAL MANUFACTURING PMI: 51.2 V 51.4 PRELIM

- (KR) SOUTH KOREA JULY MANUFACTURING PMI: 47.6 V 46.1 PRIOR

- (KR) SOUTH KOREA JUNE CURRENT ACCOUNT: $12.2B V $8.6B PRIOR

- (AU) AUSTRALIA JUL ANZ JOB ADVERTISEMENTS M/M: -0.4% V +1.2% PRIOR

- (AU) AUSTRALIA JUN HIA NEW HOME SALES M/M: +0.5% V -2.3% PRIOR

- (AU) AUSTRALIA JUL TD SECURITIES INFLATION M/M: 0.2% V 0.1% PRIOR; Y/Y: 1.6% (8-month high) V 1.5% PRIOR

- (AU) AUSTRALIA JULY CORELOGIC RPDATA HOUSE PRICES M/M: +2.8% V +2.1% PRIOR

- (AU) AUSTRALIA JUL AIG MANUFACTURING INDEX: 50.4 V 44.2 PRIOR

- (ID) INDONESIA JULY MANUFACTURING PMI: 47.3 V 47.8 PRIOR

Index Snapshot (as of 02:30 GMT)

- Nikkei225 -0.5%, S&P/ASX -0.4%, Kospi -0.8%, Shanghai Composite -1.4%, Hang Seng -0.8%, Sept S&P500 -0.1% at 2,097

Commodities/Fixed Income

- Dec gold -0.2% at $1,092/oz, Sept crude oil -0.7% at $46.81/brl, Sept copper -0.4% at $2.35/lb

- (JP) BOJ offers to buy ¥70B in JGBs with maturity less than 1-yr, ¥240B in 10-25yr JGBs, and ¥140B in JGBs with maturity over 25-yr

Market Focal Points/FX

- Asian markets are tracking the selloff in US markets on Friday to the downside, though the soft economic data in the month-turning PMI-filled session are also weighing on sentiment. China markets are seeing particularly steep losses, entering midday break with down nearly 2.5%. Over the weekend the official manufacturing PMI hit 5-month lows, with notable deterioration in Output, Backlog, and Input Prices components. Official non-manufacturing PMI rose a decimal to a 5-month high, however the SME-centril Caixin out on Monday was also a disappointment at a 2-year low. Markit economist said the data "signalled that both domestic and foreign demand had softened in the latest survey period, as highlighted by new export work also falling in July after a slight pick up in June (as) employment fell due to company down-sizing policies that were implemented in light of softer client demand (and) average input costs faced by Chinese manufacturing companies declined again and the rate of reduction accelerated to the sharpest seen since April." Over the weekend, PBoC research director warned that China economy would remain under pressure in H2, while regulators announced an inquiry for some of the China-owned brokers' trading records in Hong Kong and Singapore to seek out the culprits behind "malicious" short selling.

- In other key economic datapoints Japan PMI remained in expansion, albeit slightly lower than the preliminary levels. Economists noted growth in new orders resumed, supporting further increases in both output and employment with "stronger demand conditions and the securing of new clients leading to the latest expansion." In Australia, TD inflation gauge hit a 8-month high and home sales bounced while labor market tightened amid sequential decline of jobs advertisements. Reserve Bank of Australia is on tap with a rate decision upcoming in tomorrow's session and widely expected to keep rates unchanged at 2.00%.

- With Greek bourses set to reopen, there was more backlash against German hardliners pushing Athens to the brink of euro exit. France Fin Min Sapin said Germany was wrong to propose a Grexit, and even Bundesbank member Buch said the discussion of Grexit was "tiring". Separate report in Greek press indicating the govt will seek €24B in the first tranche of the bailout aid as part of the €86B program, as negotiations are expected to conclude later this month.

Equities

- Consumer discretionary: Huafu Top Dyed Melange Yarn Co 002042.CN +1.7% (H1 result)

- Financials: Xiandai Investment Co 000900.CN +0.6% (H1 result); Mizuho Financial Group 8411.JP -1.6% (Q1 result); Mitsubishi UFJ Financial Group 8306.JP -1.9% (Q1 result); Sumitomo Mitsui Financial Group 8316.JP -1.2% (Q1 result)

- Industrials: Hebei Sailhero Environmental Protection High-tech Co 300137.CN +5.2%, Beijing SDL Technology Co 002658.CN +10.0% (Beijing selected to host 2022 winter Olympics); Xi'an Tian He Defense Technology Co 300397.CN -10.0% (H1 result); Fuji Heavy Industries 7270.JP -3.7% (Q1 result); Aisin Seiki Co 7259.JP -3.8% (Q1 result); Mitsubishi Heavy Industries 7011.JP +0.6% (Q1 result); Honda Motor Co 7267.JP +8.3% (Q1 result); Sumitomo Chemical Co 4005.JP -6.1% (Q1 result)

- Energy: Tap Oil TAP.AU -5.6% (strategic review); JX Holdings 5020.JP -3.8% (Q1 result)

- Materials: Citic Resources 1205.HK -3.3% (H1 result); Atlas Iron AGO.AU +5.7% (Q4 result)

- Healthcare: Jiangzhong Pharmaceutical Co. 600750.CN -7.2% (H1 result); Zhejiang NHU Co Ltd 002001.CN -1.0% (H1 result)

- Technology: Sharp Corp 6753.JP +1.2% (Q1 result, to exit TV business in Americas)