China July data misses market expectations amid trade frictions, unemployment rate rises

General Trend:

- Asian markets show stability following losses on Monday; overall trading is mixed

- Chinese equity markets decline in early trading

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.3%

- ASX 200 Energy index +1.2%, Utilities +1.1%, Financials +1%, Consumer Discretionary +0.9%, Resources +0.8%; REIT -0.2%

- (AU) Australia Jul NAB Business Conditions: 12 v 15 prior; Confidence: 7 v 6 prior

- (AU) Australia sells A$150M v A$150M indicated in Nov 21 2027 indexed bonds, avg yield 0.7099%

- (NZ) New Zealand Fin Min Robertson: Domestic economy has strong fundamentals

China/Hong Kong

- Shanghai Composite opened -0.2%, Hang Seng flat

- Hang Seng Industrial Goods index -4.5%, Info Tech -3.6%, Materials -1.8%, Services -1.5%, Consumer Goods -1.3%, Property/Construction -1%, Financials -0.5%

- (CN) CHINA JUL INDUSTRIAL PRODUCTION Y/Y: 6.0% V 6.3%E

- (CN) CHINA JUL FIXED ASSETS INVESTMENT (EX RURAL) YTD Y/Y: 5.5% V 6.0%E (new multi-year low)

- (CN) China Jul Retail Sales Y/Y: 8.8% v 9.1%e: YTD Y/Y: 9.3% v 9.4%e

- (CN) CHINA JUL SURVEYED JOBLESS RATE: 5.1% V 4.8% PRIOR

- (CN) China Stats Official: Economic operation steady, with some changes in July; economic growth is still within a reasonable range, which is hard won

- (CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.8695 V 6.8629 PRIOR (weakest CNY fix since May 2017)

- (CN) China PBoc Open Market Operation (OMO): Skips OMO (18th straight skip)

- (CN) China Ministry of Commerce (MOFCOM): To evaluate US Act of Foreign Investment

- (CN) China Foreign Ministry: Situation in Xinjiang is stable

- (CN) China should prepare for free-floating yuan currency (CNY) framework - Chinese Press

Japan

- Nikkei 225 opened +0.9%

- TOPIX Electric Appliances index +1.2%, Info & Communications +1.2%, Real Estate +1%

- (JP) Japan Jun Final Industrial Production M/M: -1.8% v -2.1% prelim; Y/Y: -0.9% v -1.2% prelim

Korea

- Kopsi opened +0.1%

- (KR) North Korea state media: confirms will hold new summit meeting with South Korea in Sept

Other

- (ID) Indonesia said to hold cabinet meeting related to FX reserves

North America

- US equity markets ended lower: Dow -0.5%, S&P500 -0.4%, Nasdaq -0.3%, Russell 2000 -0.7%

- S&P500 Energy -1.3%, Materials -1%

Levels as of 01:30ET

- Nikkei 225, +1.9%, ASX 200 +0.7%, Hang Seng -1.1%; Shanghai Composite -0.5%; Kospi +0.5%

- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.3%; FTSE100 +0.2%

- EUR 1.1415-1.1394; JPY110.88-110.58; AUD 0.7285-0.7260 ;NZD 0.6606-0.6570

- Aug Gold +0.3% at $1,201/oz; Sept Crude Oil +0.4% at $67.48/brl; Sept Copper -0.3% at $2.728/lb