Traders assess FOMC minutes and UK CPI, AUD pared rise on jobs miss
|Asia Market Update: Equity markets track the declines on Wall St.; Traders assess FOMC minutes and UK CPI; AUD pared rise on jobs miss.
General trend
- NZD still weaker following the recent RBNZ decision.
- Property indices decline in China; Shanghai Banks index also drops.
- CN property developers continue to issue profit warnings [Country Garden].
- Nikkei 225 has remained modestly lower.
- AU earnings remain in focus [ASX, Blackmores, IPH, Origin Energy, Transurban, Treasury Wine].
- Philippines Central Bank is expected to raise rates later today.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- Japan CPI data due on Fri.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened -0.1%.
- (AU) Australia July employment change: -40.9K V +25.0KE (First decrease since Oct 2021); UNEMPLOYMENT RATE: 3.4% V 3.5%E (Lowest since Aug 1974).
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: There were periods when monetary policy was too loose; Yet to be determined if rates got too low.
- (NZ) New Zealand Treasury and Reserve Bank of New Zealand joint statement on Housing Market: Housing prices lifted by taxes and low home loan rates.
- (AU) Reserve Bank of Australia (RBA): Establishes a private sector economist panel for discussions of economic issues; the first meeting of the panel of private-sector economists is planned for 6 October.
- (NZ) New Zealand Treasury expects to issue between NZ$1.5B and NZ$2.5B of the 20 September 2035 inflation-indexed bond in the syndicated tap [in line].
- (AU) Australia July RBA Govt FX Transactions (A$): -1.1B v -3.2B prior.
Japan
- Nikkei 225 opened -0.9%.
- (JP) The new operator of Sakhalin-2 said to offer Japan cos. unchanged terms - Japanese media.
- (JP) Japan said to consider easing limits imposed on stock options for start up companies - Press.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.800% 20-year JGBs, Avg Yield: 0.7520% v 0.9020% prior, bid-to-cover: 3.28x v 3.63x prior.
Korea
- Kospi opened -0.7%.
- (KR) South Korea to block unregistered cryptocurrency exchanges.
- Kakao Corp 035720.KR No longer considering 10% stake sale in mobility unit; Employees and Union opposed stake sale.
- (KR) South Korea Q2 Short Term External Debt: $183.8B v $174.9B prior.
China/Hong Kong
- Hang Seng opened +0.3%; Shanghai Composite opened -0.2%.
- (CN) China might issue CNY1.5T in extra local debt, relates to plan to raise investment [infrastructure spending]- Chinese press.
- (CN) China PBOC sets Yuan reference rate: 6.7802 v 6.7863 prior.
- (CN) Goldman Sachs expects China 2022 GDP +3.0% (prior forecast 3.3%).
- Country Garden 2007.HK Profit warning: Guides H1 (CNY) Net 200M to 1.0B v 15.0B y/y; cites reduced revenue recognized from sales.
- (CN) China July Swift Global Payments (CNY): 2.20% v 2.17% prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v Net CNY0B prior.
- (CN) China issues guidelines on development of cruise industry; To promote cruise tourism in Xiamen, Shanghai, and Tianjin.
- (CN) Civil Aviation Administration of China (CAAC): July Air Passengers 34M, +54.5%m/m, -30.8% y/y.
Other
- (SL) Sri Lanka Central Bank (CBSL) leaves Key Rates unchanged (as expected).
- (TW) Taiwan to meet with US on trade in Sept.
North America
- TSLA To shorten Model Y wait time in China to 4-8 weeks, Model 3 wait time to 12-16 weeks - Press.
Europe
- (IE) Ireland Aug Consumer Confidence: 53.4 v 53.7 prior.
- (RU) Said that Russia may begin offering less expensive loans to OIl and Gas Companies - Russia Press.
Levels as of 01:20 ET
- Nikkei 225, -0.9%, ASX 200 -0.2% , Hang Seng -0.5%; Shanghai Composite -0.4% ; Kospi -0.4%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 -0.1%.
- EUR 1.0193-1.0163 ; JPY 135.18-134.73 ; AUD 0.7021-0.6916 ;NZD 0.6306-0.6264.
- Gold +0.1% at $1,777/oz; Crude Oil +0.1% at $88.19/brl; Copper -0.5% at $3.5710/lb.
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