China Aug data mixed

Asia Market Update: Chipmakers trade generally higher; China Aug data mixed

General Trend:

- Equity markets trade generally higher, Shanghai lags

- Nikkei 225 tests early Feb highs above 23,050

- China fixed asset investment growth hits new multi-year low

 

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened +0.1%

-(NZ) NEW ZEALAND AUG MANUFACTURING PMI: 52.0 V 51.2 PRIOR

-(NZ) Reserve Bank of New Zealand (RBNZ): Offers to buy bonds for liquidity management purposes; will open offer to buy March 2019 government bonds on Sept 17th

China/Hong Kong

-Shanghai Composite opened +0.1%, Hang Seng +0.8%

- (CN) CHINA AUG INDUSTRIAL PRODUCTION Y/Y: 6.1% V 6.1%E

- (CN) CHINA AUG FIXED ASSETS INVESTMENT (EX RURAL) YTD Y/Y: 5.3% V 5.6%E (new multi-year low)

- (CN) CHINA AUG RETAIL SALES Y/Y: 9.0% V 8.8%E

- (CN) China Aug Surveyed Jobless Rate: 5.0% v 5.1% prior

- (CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 7 and 14-day reverse repos v CNY120B injected in 7 and 14-day reverse repos prior: Net: CNY150B injection v CNY120B injection prior

- (CN) China PBoC set yuan reference rate: 6.8362 v 6.8488 prior

- (CN) FTSE Russell said it plans to decide on the inclusion of China A-shares into its indices 'very soon' - FT

Japan

-Nikkei 225 opened

-(JP) Nikkei 225 options and futures said to settle at ~23,057

- (JP) Japan PM Abe: Wants BoJ to deal 'thoroughly' with price stability target; don't think Japan should maintain ultra-easy policy 'forever'

-(JP) Japan Cabinet Office Sept Monthly Economic Report: Maintains economic assessment, economy is recovering at moderate pace

- (JP) Japan Econ Min Motegi: Still setting date for next trade talks with the US

Korea

-Kospi opened +0.8%

-(KR) Bank of Korea (BoK) Vice Chief Yoon: Policy rate decision should be made according to relevant central bank law and independently

-(KR) South Korea Fin Min: Not right to say income-led growth policies and minimum wage hikes are failing the domestic economy

-(KR) South Korea prices 10 and 30-year US dollar denominated bonds; total bid to cover 5.7x

-(KR) South Korea Aug Export Price Index M/M: -0.1% v 2.5% prior; Y/Y: 2.1% v 2.8% prior

Other

-(IN) India PM Economic Advisory Panel Official: 'Extreme vigilance' needed to check weak Rupee (INR) currency; reasonable to expect the Rupee to weaken 4-6% vs the US dollar annually without external shocks

North America

-US equity markets closed mixed: Dow +0.6%, S&P500 +0.5%, Nasdaq +0.8%, Russell 2000 -0.1%

-S&P500 Healthcare +1.2%, Technology +1.2%; Financials -0.1%

-(US) Fed's Kaplan (dove, non-voter): Reiterates Fed should be moving toward neutral rate, neutral Fed Funds Rate (FFR) seen 2.50-2.75% range

Europe

-(UK) BOE Gov Carney warns Cabinet of consequences of a 'no deal' Brexit, says could be as dire as the 2008 financial crash - press

 

Levels as of 01:30ET

- Nikkei 225, +0.9%, ASX 200 +0.7%, Hang Seng +0.8%; Shanghai Composite -0.1%; Kospi +1.3%

- Equity Futures: S&P500 flat; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%

- EUR 1.1698-1.1686; JPY 112.11-111.78 ; AUD 0.7199-0.7176 ;NZD 0.6590-0.6561

- Dec Gold +0.2% at $1,210/oz; Oct Crude Oil +0.4% at $68.86/brl; Dec Copper +0.8% at $2.698/lb