Asia Mid-Session Market Update: China trade continues to slow in July; Japan and N. Korea hold short meeting
***Asia Summary***
- Asian markets opened mixed, with USD weakening during the session. China reported its July trade balance data, exports slowed for the 5th consecutive month. The yuan rose 0.25% against the USD, after trade data, to 6.7044. Notably steel product exports were down ~29% y/y at a 2013 low. AUD/USD rose after July business confidence and conditions rose. Fresh talks recirculated that the yuan trading band could be expanded later this year. Japan and Korea markets were little moved on the report that Japan and North Korea foreign ministers briefly met yesterday. No further details were given on the meeting.
***Key economic data***
- (CN) CHINA JULY TRADE BALANCE (CNY): 321.2B V 297.4BE; Exports Y/Y: 11.2% v +15.2%e, Imports Y/Y: 14.7% v 22.6%e
- (CN) CHINA JULY TRADE BALANCE: $46.7B V $45.0BE; Exports Y/Y: 7.2% v +11.0%e; Imports Y/Y: 11.0% v +18.0%e
- (JP) JAPAN JUN TOTAL CURRENT ACCOUNT: ¥934.6B V ¥860.5BE; ADJ TOTAL CURRENT ACCOUNT: ¥1.52T V ¥1.50TE; TRADE BALANCE BOP BASIS: ¥518.5B V ¥571.5BE
- (JP) JAPAN JUL BANK LENDING (INC TRUSTS) Y/Y: 3.3% V 3.3% PRIOR; BANK LENDING (EX-TRUSTS) Y/Y: 3.4% V 3.3%E
- (AU) Australia July NAB Business Confidence: 12 v 8 prior; Conditions: 15 v 14 prior
***Speakers and Press***
China
- (CN) Trump delays intellectual property investigation into China by at least 1-week after China backed UN sanctions against North Korea
Australia
-(AU) Australia Trade Min Ciobo: Stronger A$ is making exports less competitive
- (AU) Australia July Port Hedland Iron Ore Exports: 37.9Mt v 43.1M tons prior; Iron ore exports to China 32.0Mt v 36.6M tons prior
Korea
- (KR) North Korea Foreign Min Yong Ho: Will not give up its nuclear weapons under any circumstances
Japan
- (JP) Japan Chief Cabinet Sec Suga: Japan and North Korea Foreign Mins met briefly yesterday
- (JP) Former BOJ Deputy Gov Iwata: BOJ should proceed with current slowdown in JGB buying so annual pace of buying eventually falling to ¥40T from ¥80T
***Asian Equity Indices/Futures (00:00ET)***
- Nikkei -0.3%, Hang Seng +0.1%, Shanghai Composite -0.2%, ASX200 -0.7%, Kospi -0.1%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.2%, FTSE100 -0.2%
***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.1824-1.1791; JPY 110.81-110.57; AUD 0.7939-0.7906; NZD 0.7369-0.7351
- Dec Gold +0.1% at 1,265/oz; Sept Crude Oil -0.3% at $49.23/brl; Sept Copper -0.3% at $2.90/lb
- (AU) Australia sells A$150M in 2030 bonds; avg yield 0.8959%; bid-to-cover 7.04x
- (CN) China PBOC OMO injects CNY140B in 7 and 14-day reverse repos v CNY250B prior; Drains net CN0Y v CNY60B prior
- USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT: 6.7184 V 6.7228 PRIOR
- JGB (JP) Japan MoF sells ¥647B v ¥800B indicated in 0.8% (0.8% prior) 30-yr bonds; Avg yield: 0.8760% v 0.8780% prior; Bid to cover: 3.90x v 3.62x prior (highest bid-to-cover since March 2016)
***Equities notable movers***
Hong Kong/China
- Geely, 175.HK Reports July Vehicle sales 91.1K units +88% y; +3.8%
Japan
- Suntory Beverage, 2587.JP Reports Q1 Net ¥20.5B v ¥17.9B y/y; Op ¥43.0B v ¥39.9B y/y; Rev ¥689.6B v ¥679.1B y/y; -4.5%
Korea
- Kia, 000270.KR Seoul Court to rule on base pay case on Aug 17th - South Korean press; -4.5%
Australia
- Mobile Embrace, MBE.AU Reports FY17 EBITDA A$5.3M v A$5-6M guided; Rev A$52.1M v A$52M guided: Names Neil Wiles new CEO; +18.7%
- Cudeco,CDU.AU Reports July Rocklands shipment of 8,620 WMT, valued at A$17.4M; +10%
- James Hardie, JHX.AU Reports Q1 Net $57.4M v $87.1M y/y; Rev $507.7M v $477.7M y/y; -5.3%
- CBA.AU Says CEO Narev retains 'full confidence of the board'; Narev short-term variable pay to be cut to zero; -1.2%
Other
- Shin Kong Financial, 2888.TW Reports July Net NT$6.84B v NT$2.07B m/m; +10%