New Zealand Q2 GDP beats estimates, has fastest growth in 2 years
|Asia Market Update: New Zealand Q2 GDP beats estimates, has fastest growth in 2 years ; China Premier Li comments on the merits of trade talks
General Trend:
-Asian equity markets trade mixed
- Meituan Dianping rises in first day of trading in Hong Kong
- China said to plan to cut tariff rates on imports from majority of its trading partners
-Japan PM Abe wins the LDP leadership election (as expected)
- Abe is seeking a 3rd straight term, which would make him Japan’s longest serving PM
-The winner of the LDP party's leadership election is expected to comment to the press at 6pm (local time)
- HSBC again raises deposit rates in Hong Kong
-North Korea/South Korea summit is due to conclude today
- Norway Central Bank (Norges) expected to raise rates at meeting later today
-US Treasury Futures trade flat in Asia after recent declines
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
-Rio Tinto [RIO.AU]: Announced details of A$3.2B buyback
-(AU) Australia sells A$500M v A$500M indicated in Dec 2018 notes, avg yield 1.91%, bid to cover 4.5x
-(NZ) NEW ZEALAND Q2 GDP Q/Q: 1.0% V 0.8%E (fastest growth in 2 years); Y/Y: 2.8% V 2.5%E
-(NZ) New Zealand sells NZ$150M v NZ$150M indicated in April 2037 bonds, avg yield 3.000%, bid to cover 2.87x
China/Hong Kong
-Shanghai Composite opened +0.1%, Hang Seng +0.7%
-Leshi Internet [300104.CN]: Said some shares pledged by Founder Jia Yueting have triggered a margin call, holder will be forced to sell shares
-Haier [1169.HK]: Said to suspend plan to sell US-made and GE-branded products in China (FT)
-Maoye International [848.HK]: Issued $150M in 13.25% senior guaranteed notes due 2020
- (CN) China said to plan a 'broad' import tax cut as soon as October - press
-(CN) China Premier Li Keqiang: Bilateral and multilateral trade talks supplement each other; reiterates multilateral trade regime should be upheld; Multilateral trade regime could be improved via talks
-(CN) China PBOC: Banks should increase financing support to private companies
-(CN) Former PBoC Gov Zhou: Chinese exporters may rapidly quit the US market over a trade war
-(CN) China PBoC Open Market Operation (OMO): Injects CNY70B in 7 and 14-day reverse repos v CNY60B injected in 7 and 14-day reverse repos prior: Net: CNY30B drain v nil prior
-(CN) China PBoC set yuan reference rate :6.8530 v 6.8569 prior
Japan
-Nikkei 225 opened +0.3%
-(JP) Japan's Financial Regulator reportedly to check banks' readiness for sharp movements in emerging markets - press
-(JP) Japan auto group (JAMA) said to seek large reduction in the car tax as part of the FY2019 reforms - Japanese press
-Japan PM Abe said to consider cabinet reshuffle on Oct 1st - Japanese Press
-(JP) Japan End-June Household Assets: ¥1,848T, +2.2% y/y - BoJ Q2 Flow of Funds Report
-(JP) Tech Bureau: Says ¥6.7B (~$60M) in cryptocurrency was lost in hack
-(JP) Japan FSA says it is conducting emergency inspections on cryptocurrency exchange operators’ management of customer assets
-(JP) Japan Finance Ministry (MOF) sells ¥1.0T v ¥1.0T indicated in 0.50% 20-year bonds, avg yield 0.6180% v 0.6070% prior, bid to cover 4.03x v 4.66x prior
Korea
-Kospi opened +0.3%
-(KR) South Korea Envoy Lee comments on Sept 18-20 summit in North Korea: Says the summit paved the way for further denuclearization talks between the US and North Korea
-(KR) Bank of Korea (BOK): Q2 household debt/disposable income ratio: 161.1% v 159.8% at the end of 2017
North America
-US equity markets ended mixed: Dow +0.6%, S&P500 +0.1%, Nasdaq -0.1%, Russell 2000 -0.5%
-(US) US said to seek alternatives to Iran oil for allies – FT
-(US) DOE CRUDE: -2.1M V -2ME;
-(US) Pres Trump to nominate former Fed economist Nellie Liang for Board of Governors seat
Europe
-British American Tobacco [BATS.UK]: Confirms CEO Durante to retire, effective April 1 2019; Board to make further announcement regarding successor in due course
-(UK) Prime Min May reportedly told EU leaders that extending Brexit talks is not an option; there will not be a second referendum; Northern Ireland cannot have a separate customs regime
-(UK) Brexit Minister Raab: need to see EU move in our direction in Brexit talks, if we don't get that it will be a lose-lose situation
-(UK) MP Mike Penning (ally of PM May) reportedly says the Chequers Brexit plan is dead - UK press
Levels as of 01:30ET
- Nikkei 225, +0.3%, ASX 200 -0.3%, Hang Seng -0.2%; Shanghai Composite -0.1%; Kospi +0.9%
- Equity Futures: S&P500 flat; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.1%
- EUR 1.1687-1.1669 ; JPY 112.35-112.08 ; AUD 0.7272-0.7253 ;NZD 0.6654-0.6601
- Dec Gold +0.1% at $1,210/oz; Oct Crude Oil +0.6% at $71.19/brl; Dec Copper +0.4% at $2.738/lb
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