• Asian stock market, economy and companies update (August 31, 2015)

    ***Index Snapshot (as of 02:30 GMT)***
    - Nikkei225 -1.3%, S&P/ASX -1.2%, Kospi -0.6%, Shanghai Composite -2.4%, Hang Seng -0.5%, Sept S&P500 -1.0% at 21,969

    ***Commodities/Fixed Income***
    - Dec gold flat at $1,134/oz, Oct crude oil -1.6% at $44.48/brl, Sept copper -1.0% at $2.32/lb
    - USD/CNY: (CN) PBoC sets yuan mid point at 6.3893 v 6.3986 prior setting; 2nd straight firmer yuan setting
    - (JP) BOJ offers to buy 375B in 1-3yr JGBs, 425B in 3-5yr JGBs, 240B in 10-25yr JGBs, and 140B in JGBs with maturity over 25-yr
    - (AU) Australia MoF (AOFM) sells A$500M in 2.75% 2035 Bonds; avg yield: 3.32%; bid-to-cover: 2.01x

    ***Market Focal Points/FX***
    - Equity markets in Asia are down across the board and S&P500 futures are lower by over 25pts or over 1% in the wake of Jackson Hole symposium that proved to be less inclined toward continued accommodation than anticipated. In Fed Chair Yellen's absence, remarks from Fed Vice Chair Fischer were scrutinized particularly closely, as he indicated the FOMC will not wait for 2% inflation to raise interest rates. Fischer did acknowledge some recent market volatility and China slowdown, but was also skeptical that there's causality in China market turmoil from Fed tightening expectations. On inflation, Fischer said energy price decline is a one-off temporary factor, suggesting the Fed will seek to avoid the perception of being behind the curve. Fed watcher Hilsenrath summed up the meeting by noting policymakers have maintained the view of improving US economy and jobs market, adding that doves such as Kocherlakota are not finding much support. Outside of Fed-speak, BOE Gov Carney also noted the slowdown in China will not deter UK from raising rates early next year.

    - China regulators continued their efforts to generate liquidity and ease financial strain, but Shanghai Composite is a notable laggard to start the week. China announced it would end the 75% loan-to-deposit ratio cap effective Oct 1st and also cap local govt debt in 2015 at CNY16T - up just CNY0.6T from 2014-end levels. China Commerce Ministry also said CNY devaluation was a "normal adjustment", and then firmed by the midpoint fix by a significant amount for the 2nd straight day. China Premier Li saw the economy within "appropriate range", but acknowledged traditional drivers for growth are not as strong, requiring more support in public goods and services sectors. Also of note, an FT report added to the pressure on the Shanghai indices, speculating the govt has abandoned measures to boost the stock market after spending as much as $200B over the past two months. Instead, the report said regulators will focus on investigating institutions that obstructed govt measures. In response, CSRC chairman reportedly ordered 50 major brokerages to continue to offer funds to the CSF.

    - Ahead of tomorrow's RBA decision, TD inflation gauge remained below the key 2% y/y threshold and corporate profits contracted further than expected, even as expectations for renewed easing are narrow. New Zealand ANZ business confidence contracted for the 3rd month, hitting a 6-year low. AUD/USD and NZD/USD are under pressure, falling 40pips and 50pips respectively at their lows of 0.7120 and 0.6410. In other FX majors, JPY was bid on risk-off flows, with USD/JPY falling some 70pips below 121.00.


    ***Equities***
    Notable movers by sector:
    - Consumer discretionary: Midea Group Co 000333.CN -2.4% (H1 result); Suning Appliance Co 002024.CN -5.1% (H1 result); China Southern Airlines Co 1055.HK -6.0% (H1 result); Panasonic Corporation 6752.JP +0.5% (to close 2 plants)
    - Consumer staples: Inner Mongolia Yili Industrial Group Co 600887.CN -3.1% (H1 result); Tsingtao Brewery Co 168.HK -1.8% (H1 result); Bright Dairy & Food 600597.CN -6.7% (H1 result)
    - Financials: Bank of China 601988.CN -3.1% (H1 result); China Construction Bank 601939.CN -2.9% (H1 result); CITIC Securities 600030.CN -7.6% (allegation of insider trading); PICC Group 1339.HK -3.0% (H1 result); Industrial Bank Co 601166.CN -2.5% (H1 result)
    - Industrials: CRRC Corp 601766.CN +2.9% (H1 result); China Railway Group 601390.CN -2.9% (H1 result); China Railway Construction Corp 1186.HK -4.3% (H1 result); Dongfeng Motor 489.HK +4.7% (H1 result); Honda Motor 7267.JP -0.5% (July Japan sales); Suzuki Motor 7269.JP -1.1% (share buyback)
    - Technology: Qingdao Haier Co 600690.CN -6.0% (H1 result); Gree Electric Appliances 000651.CN -7.7% (H1 result)
    - Materials: Angang Steel 347.HK -6.8% (H1 result); China Molybdenum Co 603993.CN -6.3% (H1 result)
    - Energy: GCL-Poly Energy Holdings 3800.HK -5.1% (H1 result); Sinopec Engineering Group Co 2386.HK -8.8% (H1 result); Shaanxi Coal and Chemical Industry Group Co 601225.CN -6.1% (H1 result); Yanzhou Coal Mining Co 600188.CN -5.4% (H1 result)


    ***Economic Data***
    - (AU) AUSTRALIA AUG TD SECURITIES INFLATION M/M: 0.1% V 0.2% PRIOR; Y/Y: 1.7% V 1.6% PRIOR
    - (AU) AUSTRALIA Q2 COMPANY OPERATING PROFIT Q/Q: -1.9% V -1.8%E; INVENTORIES Q/Q: 0.0% V 0.2%E
    - (AU) AUSTRALIA JULY PRIVATE SECTOR CREDIT M/M: 0.6% V 0.5%E; Y/Y: 6.1% V 5.9%E
    - (AU) AUSTRALIA JULY HIA NEW HOME SALES M/M: -0.4% V +0.5% PRIOR
    - (NZ) NEW ZEALAND AUG ANZ ACTIVITY OUTLOOK: 12.2 V 19.0 PRIOR; BUSINESS CONFIDENCE: -29.1 V -15.3 PRIOR; 3rd straight decline and 6-year low
    - (NZ) NEW ZEALAND JULY BUILDING PERMITS M/M: +20.4% V -3.3% PRIOR; 2-year high
    - (JP) JAPAN JULY VEHICLE PRODUCTION Y/Y: -5.9% V -5.3% PRIOR (11th straight negative reading)
    - (JP) JAPAN JULY LOANS & DISCOUNTS CORP Y/Y: 3.3% v 2.7% PRIOR
    - (JP) JAPAN JULY PRELIMINARY INDUSTRIAL PRODUCTION M/M: -0.6% V +0.1%E; Y/Y: 0.2% V 0.8%E
    - (KR) SOUTH KOREA JULY INDUSTRIAL PRODUCTION M/M: -0.5% V +0.1%E; Y/Y: -3.3% V -1.6%E
    - (KR) SOUTH KOREA JULY CYCLICAL LEADING INDEX CHANGE: 0.0% v -0.5% PRIOR
    - (KR) South Korea Sept Business Manufacturing Survey: 71 v 70 prior; Non-Manufacturing Survey: 73 v 71 prior

    Contributed by Trade The News
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.