BOJ's Kuroda sees no need for further QE

Asian Mid-session Update: BOJ's Kuroda sees no need for further QE; Australia CAPEX estimates revised higher

Economic Data

- (AU) AUSTRALIA Q2 PRIVATE CAPITAL EXPENDITURE (CAPEX) Q/Q: -4.0% V -2.5%E; 3rd straight decline

- (PH) PHILIPPINES Q2 GDP Q/Q: 1.8%V 1.7%E; Y/Y: 5.6% V 5.7%

- (TH) Thailand July Customs Trade Balance: $0.8B v $0.4Be

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +1.9%, S&P/ASX +1.3%, Kospi +1.3%, Shanghai Composite +1.1%, Hang Seng +2.4%, Sept S&P500 +0.4% at 1.945

Commodities/Fixed Income

- Dec gold +0.2% at $1,127/oz, Oct crude oil +2.4% at $39.52/brl, Sept copper +1.8% at $2.28/lb

- (CN) PBoC to inject CNY150B in 7-day reverse repos (19th consecutive injection); Injects net CNY60B this week v injected CNY150B prior (3rd week of injection)

- USD/CNY: (CN) PBoC sets yuan mid point at 6.4085 v 6.4043 prior setting; Weakest setting since Aug 2011

- JGB: (JP) Japan MoF sells ¥2.30T in 2-yr JGBs; Avg yield: 0.008% v 0.005% prior; bid to cover: 4.39x v 3.84x prior

- (JP) Japan investors sold net ¥273.8B in foreign bonds v bought ¥600.3B in prior week; Foreign investors sold net ¥461.9B in Japan stocks v sold ¥501.4B in prior week

Market Focal Points/FX

- US equity markets saw their biggest gains in several years, and the selloff that haunted late trading in the prior session was avoided. Investors in China are hoping for a similar outcome after yesterday's late day weakness. More constructive sentiment was attributed to decent durable data out of the US as well as dovish comments from Fed's Dudley. In Asia, the positive developments also emerged from China, with PBOC injecting another CNY150B in 7-day reverse repos and doing so at a lower yield of 2.35% v 2.50% prior - the first time that yield was lowered since Jun 29th. Separately, earlier today, Chinese pres citing State Information Center researcher Zhu Baoliang noting GDP can grow around 7% in the future and fundamentals are sound.

- BOJ's Kuroda reiterated the view that inflation target can be met despite the oil price decline, signalling that while the central bank is prepared to adjust QQE, the current pace of QQE will meet price objective. BOJ also stated there is no plan for further easing at this time despite the recent speculation that the easing may be boosted due to low oil prices.

- Australia's Q2 CAPEX marked its 3rd straight decline with the headline figure for Q2 coming in worse than expected. However, after the initial decline, AUD/USD rallied some 40pips to $0.7150 on the upward revisions in FY14/15 and FY15/16 aggregate expenditure targets. In other USD majors, USD/JPY saw a brief 30pip dip below 120 on BOJ Gov comments, and EUR/USD is up about 40pips above 1.1350 in afternoon trading.

Equities

US equities/ADRs:

- PVH: Reports Q2 $1.37 v $1.28e, Total Rev $1.86B v $1.83Be; +5.2% afterhours

- AVGO: Reports Q3 $2.24 v $2.13e, R$1.74B v $1.74Be; +1.6% afterhours

- GES: Reports Q2 $0.21 v $0.15e, R$546.3M v $533Me; -3.8% afterhours

- TLYS: Reports Q2 $0.02 v $0.04e, R$130M v $130Me; -4.1% afterhours

- WSM: Reports Q2 $0.58 v $0.58e, R$1.13B v $1.10Be; -6.6% afterhours

- WDAY: Reports Q2 -$0.37 v -$0.06e, R$283M v $274Me; -8.8% afterhours

Notable movers by sector:

- Consumer discretionary: Huayu Automotive Systems 600741.CN +4.5% (H1 result); Nine Entertainment Co Holdings NEC.AU +2.1% (FY15 result); Panasonic Corporation 6752.JP +1.5% (to close plant and job cut); Billabong BBG.AU -0.4% (FY15 result); Bega Cheese BGA.AU +0.9% (FY15 result); Flight Centre FLT.AU +14.3% (FY15 result)

- Consumer staples: Mengniu Dairy 2319.HK -6.5% (H1 result)

- Financials: Bohai Leasing Co 000415.CN +5.6% (China encourages reform in financial leasing); China Life Insurance 2628.HK +5.7% (H1 result); Sinolink Securities Co 600109.CN +0.8% (H1 result); Dalian Wanda Commercial Properties Co 3699.HK +4.3% (H1 result, acquires sports company); Shimao Property 813.HK +6.9% (H1 result)

- Industrials: Daqin Railway Co 601006.CN +2.0% (H1 result); BYD Company Limited 1211.HK +10.0% (H1 result); Boral Ltd BLD.AU -8.7% (FY15 result); Guangzhou Shipyard International 600685.CN +4.0% (H1 result); China Railway Signal & Communication 3969.HK +3.0% (H1 result); Transfield Services TSE.AU +5.5% (FY15 result)

- Technology: China Avic Electronics 600372.CN +0.7% (H1 result); ZTE Corp 763.HK +13.5% (H1 result)

- Materials: Shenzhen Zhongjin Lingnan Nonfemet Co 000060.CN -0.6% (H1 result); Shandong Iron and Steel Co 600022.CN -3.9% (H1 result)

- Energy: CNOOC 883.HK +11.7% (H1 result); China Petroleum & and Chemical Corp 600028.CN +1.3% (H1 result); Ausdrill ASL.AU +7.1% (FY15 result)

- Healthcare: Sichuan Kelun Pharmaceutical 002422.CN +1.0% (H1 result); Shanghai Pharmaceuticals Holding 601607.CN +1.4% (H1 result); Ramsay Health Care RHC.AU +5.4% (FY15 result)

- Telecom: China Communications Services Corp 552.HK +3.9% (H1 result)

- Utilities: Sound Environmental Co 000826.CN +3.9% (H1 result)