Japan household consumption unexpectedly falls

Economic Data

- (JP) JAPAN JUN OVERALL HOUSEHOLD SPENDING Y/Y: -2.0% V +1.9%E; 3-month low

- (JP) JAPAN JUN NATIONAL CPI Y/Y: 0.4% V 0.3%E; CPI EX FRESH FOOD Y/Y: 0.1% V 0%E

- (JP) JAPAN JUN JOBLESS RATE: 3.4% V 3.3%E; 3-month high

- (JP) JAPAN JULY TOKYO CPI Y/Y: 0.2% V 0.2%E; CPI EX FRESH FOOD Y/Y: -0.1% (2-year low) V 0.0%E

- (AU) AUSTRALIA JUN PRIVATE SECTOR CREDIT M/M: 0.4% V 0.5%E; Y/Y: 5.9% (6-month low) V 6.0%E

- (AU) AUSTRALIA Q2 PPI Q/Q: 0.3% V 0.5% PRIOR; Y/Y: 1.1% V 0.7% PRIOR

- (NZ) NEW ZEALAND JUL ANZ ACTIVITY OUTLOOK: 19.0 V 23.6 PRIOR; BUSINESS CONFIDENCE: -15.3 V -2.3 PRIOR; 6-year low

- (TW) TAIWAN Q2 PRELIMINARY GDP Y/Y:0.64% V 2.55%E

- (KR) SOUTH KOREA JUN INDUSTRIAL PRODUCTION M/M: 2.3% V 1.5%E; Y/Y: 1.2% V -2.0%E

- (KR) South Korea Aug Business Manufacturing Survey: 70 v 67 prior; Non-Manufacturing Survey: 71 v 66 prior

- (UK) UK JUL GFK CONSUMER CONFIDENCE: 4 V 5E

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +0.1%, S&P/ASX +0.4%, Kospi -0.5%, Shanghai Composite -1.1%, Hang Seng +0.5%, Sept S&P500 -0.1% at 2,102

Commodities/Fixed Income

- Dec gold -0.4% at $1,083/oz, Sept crude oil -0.6% at $48.21/brl, Sept copper flat at $2.37/lb

- (JP) BOJ offers to buy ¥375B in 1-3yr JGBs, ¥425B in 3-5yr JGBs, ¥400B in 5-10yr JGBs, and ¥1.5T in T-bills

- (AU) Australia MoF (AOFM) sells A$1.2B in 2.75% 2019 Bonds; avg yield: 2.0142%; bid-to-cover: 4.53x

Market Focal Points/FX

- Asian equity markets are mixed again but hardly shaken despite the better than expected Q2 GDP, upside revision in Q1, and hotter quarterly PCE deflator combined to bolster the case for a September Fed liftoff. Shanghai Composite is lagging once again after a steep selloff in the final minutes of trade in the overnight session. CSRC continues to look for the culprit of spiking volatility, planning to enhance scrutiny over program trading institutions.

- Japan economic data was largely a disappointment, erasing any positive sentiment from yesterday's better than expected industrial output. Household spending came in negative, prompting explanation from cabinet officials blaming the decline on poor weather. Inflation figures were largely in line, though leading Tokyo core CPI index turned negative for the first time in 2 years. JPY strengthened after the release, as markets slowly begin to question the efficacy of Abenomics. Fin Min Aso said economy would recover in the current quarter.

- Down under, economic data from New Zealand and Australia also remains on the soft side. New Zealand ANZ activity for August was especially poor, hitting a 6-year low and sending NZD down by over 20pips. Australia's quarterly PPI was mixed, but lending slowed.

Equities

US equities/ADRs:

- COLM: Reports Q2 -$0.09 v -$0.22e, R$380M v $346Me; raises EPS outlook; +11.7% afterhours

- ELLI: Reports Q2 $0.48 v $0.32e, R$65.9M v $59.6Me; +9.3% afterhours

- CCE: Reports Q2 $0.79 v $0.76e, R$1.93B v $1.89Be; +9.6% afterhours

- EXPE: Reports Q2 $1.02 v $0.85e, R$1.66B v $1.66Be; +8.5% afterhours

- JUNO: Announces FDA Clearance of Investigational New Drug Application for JCAR015 in Adult Relapsed/Refractory Acute Lymphoblastic Leukemia; +1.7% afterhours

- WU: Reports Q2 $0.41 v $0.39e, R$1.38B v $1.35Be; +1.7% afterhours

- AMGN: Reports Q2 $2.57 v $2.43e, R$5.23B v $5.32Be; +1.4% afterhours

- EA: Reports Q1 $0.15 v $0.04e, R$815M v $674Me; -1.9% afterhours

- LNKD: Reports Q2 $0.55 v $0.32e, R$711.7M v $690Me; -4.8% afterhours

- FEYE: Reports Q2 -$0.41 v -$0.48e, R$147.2M v $143Me; CFO to leave; -5.4% afterhours

- OUTR: Reports Q2 $2.19 v $1.73e, R$545M v $571Me; -10.0% afterhours

Notable movers by sector:

- Consumer discretionary: Suning Appliance Co Ltd 002024.CN +2.6% (H1 result); Zhejiang Aokang Shoes Co Ltd 603001.CN -10.0% (H1 result); Guizhou Space Appliance 600704.CN -5.3% (H1 result); Cabbeen Fashion 2030.HK +1.6% (H1 result)

- Consumer staples: Hunan Dakang Pasture Farming Co 002505.CN +0.9% (H1 result)

- Financials: ORIX Corp 8591.JP +9.2% (Q1 result); AnXin Trust & Investment Co 600816.CN -2.0% (H1 result); Jinmao Investments 6139.HK -0.8% (H1 guidance)

- Industrials: Mitsubishi Motors 7211.JP -6.7% (Q1 result); Mazda Motor Corp 7261.JP -0.5% (Q1 result); Jiangsu Dongyuan Electrical Group 002074.CN +5.4% (H1 result); China Cosco Holdings Co 601919.CN +2.8% (H1 guidance); BYD Company Limited 1211.HK +0.9% (partnership for electric bus); Hang Lung Group 10.HK +0.6% (H1 result); Mitsui Osk Lines 9104.JP +2.4% (Q1 result)

- Energy: Showa Shell 5002.JP -1.5% (sells shares); Tohoku Electric 9506.JP +2.7% (Q1 result);Origin Energy ORG.AU -0.8% (Q4 result); Sundance Energy Australia SEA.AU +3.2% (Q2 result)

- Technology: Sony Corp 6758.JP -1.5% (Q1 result); Kyocera Corp 6971.JP +0.5% (Q1 result); NEC Corp 6701.JP +7.2% (Q1 result); Sumitomo Electric Industries 5802.JP -3.5% (H1 result); FujiFilm Holdings Corp 4901.JP +7.1% (Q1 result); Fujitsu Ltd 6702.JP -0.5% (Q1 result)

- Utilities: Mitsubishi Electric Corp 6503.JP -4.4% (Q1 result)

- Materials: Lotte Chemical Corp 011170.KR -5.0% (Q2 result); Sichuan Hebang Corp 603077.CN -7.3% (H1 result)