Economic Data
(JP) JAPAN JUN PRELIM INDUSTRIAL PRODUCTION M/M: -3.3% V -1.5%E (1st decline in 5 months); Y/Y: -4.8% V -2.6%E
(JP) JAPAN JUNE OVERALL HOUSEHOLD SPENDING M/M: -0.4% V +1.4%E (2nd consecutive decline)
(JP) JAPAN JUNE JOBLESS RATE: 3.9% V 4.0%E (below 4.0% for the first time since Oct 2008); JOB-TO-APPLICANT RATIO: 0.92 V 0.91E (highest since June 2008)
(AU) AUSTRALIA JUN BUILDING APPROVALS M/M: -6.9% V +2.0%E (biggest decline in 11 months); Y/Y: -13.0% V 0.0%E
(NZ) NEW ZEALAND JUN BUILDING PERMITS M/M: -4.0% V +1.0% PRIOR (largest decline since Nov 2012)
(KR) SOUTH KOREA JUN INDUSTRIAL PRODUCTION M/M: 0.4% V 0.4%E; Y/Y: -2.6% V -1.1%E
(KR) SOUTH KOREA JUN CURRENT ACCOUNT: $7.2B V $8.6B PRIOR; GOODS BALANCE: $5.0B V $7.3B PRIOR
(KR) SOUTH KOREA JUN CYCLICAL LEADING INDEX CHANGE y/y: 0.5% V 0.3% PRIOR
Markets Snapshot (as of 03:15 GMT)
Nikkei225 +0.4%
S&P/ASX -0.2%
Kospi +0.8%
Shanghai Composite +1.4%
Hang Seng +0.7%
Sept S&P500 +0.2% at 1,685
Aug gold -0.1% at $1,329
Aug crude oil -0.2% at $104.30/brl
Observations/Insights/Currencies
Japanese shippers and financials are leading the Nikkei225 index higher as it tracked weaker yen following the release of disappointing industrial production. Inverse correlation between the strength of Japan economic data and the equity markets vis-a-vis reaction in the currency markets has been on display in the past few trading session, as investors revved up expectations of more BOJ actions after this rare round of data. USD/JPY was up over 50pips above ¥98.50 while EUR/JPY tested ¥130.50, up over 70 pips from the lows. Prior to the Tokyo market open, Japanese press reported the govt may lower the official FY14/15 real GDP growth forecast to around 1.0% and nominal GDP of about 3.2% vs 2.8% and 2.6% most recent targets.
Shanghai Composite has broken the string of 3 consecutive losing sessions with an outsized gain, briefly testing above the psychological 2,000 mark. PBoC stepped in with a CNY17B injection in 7-day reverse repos, sending the 7-day Shibor rate to its first decline since July 16th. Separately, report out of Chinese press citing unnamed sources hinted the local govt are not particularly receptive to the audit measures announced by the China's National Audit that is set to start tomorrow.
AUD/USD is down over 1% below the $0.91 handle - a 2-week low - while AUD/NZD cross hit its worst levels since late 2008. Aussie weakness was the result of a double-whammy from down under, as building approvals showed an unexpectedly deep contraction and RBA Gov Stevens hinted at further easing in the pipeline. Specifically, Stevens said there is still some scope to ease following the latest inflation data, that the recent fall in AUD is justified, and that the impending decline in in mining could be significant. Moreover, Stevens did not rule out the use of macro tools and also warned that "normal" policy stance could be more accommodative relative to historic levels.
Fixed Income/Commodities
(JP) Japan MoF sells ¥2.67T in 0.1% 2-yr notes, Avg Yield: 0.127% v 0.146% prior; bid to cover: 9.27x v 5.44x prior (highest since Jan)
(CN) China PBoC injecting CNY17B through 7-day reverse repos
(CN) PBoC sets yuan mid point at 6.1770 v 6.1325 prior close (weakest CNY setting since 6.1807 on Jul 8th)
(CN) China Guangdong plans to sell CNY6.05B in each of 5-yr and 7-yr bonds.
(SR) Prince Alwaleed: Saudi Arabia is increasingly vulnerable to US shale gas boom; Govt needs to accelerate plans to diversify the economy - FT
Daily Shibor fixings: 1-week: 4.9720% (first decline since July 16th) v 5.0570% prior
Speakers/Political/In the Papers
(CN) Certain local governments may be opposed to an audit plan, suggesting prior debt estimates may have been low as local governments are struggling with legacy debts from the Wen years.
(CN) China property sector seen as the biggest burden to economic upgrade - Chinese press
(CN) China Ministry of Industry and Information Technology (MIIT) official Zhu: govt studying plan to cut overcapacity - People's Daily
(JP) Japanese government may lower the official FY14/15 real GDP growth forecast to around 1.0% and nominal GDP of about 3.2% vs 2.8% and 2.6% most recent targets respectively - Nikkei News
(JP) Japan Ministry of Economy, Trade and Industry (METI): Pace of decline in June industrial production is the fastest since Mar 2011
(JP) Japan Chief Cabinet Sec Suga: Abenomics reflected in employment data
(JP) Japan Fin Min Aso: Q2 economy assessed as picking up gradually; Important to push ahead with fiscal reform - financial press
(AU) RBA Gov Stevens: There is still some scope to ease following inflation data
(KR) North Korea has yet to reply to South Korea's "final offer" over the weekend on restarting talks on Kaesong industrial zone.
(PH) Philippines Central bank gov Tetangco: sees 2013, 2014 inflation to remain within target range, ensuring unchanged interest rates
(EG) EU Foreign policy chief Ashton reported to have met with deposed Egypt President Mursi - financial press
(US) Fed's Yellen expected to moderate a panel at the central bank's Aug Jackson Hole conference - financial press
IDC: Forecasts worldwide semiconductor revenue to rise 6.9% to $320B in 2013
Equities
US movers on earnings:
CYH: Reports Q2 $0.32 v $0.57e, R$3.24B v $3.31Be; -5.8% afterhours
ESRX: Reports Q2 $1.12 v $1.10e, R$26.4B v $25.6Be; announces CFO transition; -1.0% afterhours
HIG: Reports Q2 $0.66 v $0.71e, R$2.81B v $2.78Be; -0.1% afterhours
APC: Reports Q2 $1.05 v $0.90e, R$3.49B v $3.55Be; +0.1% afterhours
EMN: Reports Q2 $1.80 v $1.64e, R$2.44B v $2.41Be; +4.0% afterhours
HLF: Reports Q2 $1.41 v $1.19e, R$1.22B v $1.17Be; +5.8% afterhours
Japan movers: [Nomura 8604.JP +0.9%, Mizuho 8411.JP +0.5%, Sumitomo Mitsui Financial 8316.JP +0.3% (Q1 results), Daiwa 8601.JP +3.6% (Q1 results), Nippon Yusen 9101.JP +2.6% (Q1 results), Kawasaki Kisen +6.3% (Q1 results), Mitsui OSK +3.8% (Q1 results)]
Kawasaki Kisen 9107.JP: May report Q1 pretax ¥9B, +40% y/y - Nikkei News
Nippon Yusen 9101.JP: May reports Q1 pretax ¥10B amid strong demand from Toyota and Fuji Heavy auto shipments - Nikkei News
Mitsui OSK 9104.JP: May report Q1 pretax ¥16B v loss ¥1.5B y/y - Nikkei News
Osaka Securities 8697.JP: Reports Q1Net ¥11.2B, Op profit ¥17.9B, Rev ¥36.1B
Australia movers: [Woolworths -1.9% (Q4 results), Atlas Iron +1.9%, Leighton +2.6% (contract award), BHP Billiton +0.7%, Rio Tinto +0.5%, Regis +2.6% (gold production), Resolute +5.0% (gold production), Teranga (Q2 production)]
LEI.AU: Awarded A$2.8B contract to deliver luxury integrated hotel resort in Macau
WOW.AU: Reports Q4 Rev $14.1B v $12.5B y/y
KCN.AU: Reports Q4 gold production production 62.0Koz; FY13 production in line with guidance at 200k oz (guided at lower end of 200-220K prior)
AWE.AU: Reports Q4 production 1.3Mmboe, -4% y/y; Rev A$78M v A$77M q/q v A$54M y/y
ROC.AU: Reports Q2 production 6.69K boepd,+7$ q/q, Rev $56.8M, -1% q/q
NVT.AU: Reports FY Net A$74.6M, +1.9% y/y; Rev A$731.7M, +6.3% y/y
BPT.AU: Reports Q4 production 2.2mmboe, +23% q/q, Rev A$200M, +28% q/q
DLS.AU: Reports Q4 production 0.6mmboe, +191% q/q, Rev A$50.7M, +121% q/q
RSG.AU: Reports Q4 gold production 102.7Koz; FY13 production 435.9K oz
TGZ.AU: Reports Q2 gold production 49.7k oz, +9% y/y; remains on track for FY13/14 production 190.0-210.0k oz
SK Telecom 017670.KR: Reports Q2 Net KRW466.6B v KRW448.8Be, Op profit KRW553.4B v KRW543.2Be, Rev KRW4.16T v KRW4.21Te
Delta Electronics 2308.TW: Reports Q2 Net NT$4.33B +2% y/y (update)
Yanzhou Coal Mining 1171.HK: Guides H1 net loss CNY2.35B v profit CNY4.91B y/y due to coal price drop
IMOH, Clement I.
+234 802 905 9344
+234 703 569 1707
No comments:
Post a Comment