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