Index Snapshot (as of 02:30 GMT)
- Nikkei225 closed , S&P/ASX -1.9%, Kospi -1.3%, Shanghai Composite -1.3%, Hang Seng -3.0%, Dec S&P500 -0.9% at 1,914
Commodities/Fixed Income
- Dec gold -0.1% at $1,123/oz, Nov crude oil -0.4% at $46.20/brl, Dec copper +0.1% at $2.30/lb
- (CN) China MOF to sell 3-Year Bonds, avg yield at 2.92%
- (AU) Australia MoF (AOFM) sells A$700M in 3.25% 2018 Bonds; avg yield: 1.9037%; bid-to-cover: 4.27x
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3773 v 6.3721 prior setting (weakest Yuan setting since Aug 31st)
- USD/KRW: Onshore opens at KRW1,184 v KRW1,179 prior close
Market Focal Points/FX
The stronger USD and weaker US indices and commodities theme continued into the Asia markets today as the ASX opened -0.3% and quickly moved lower to suffer losses of more than 1% ahead of the China PMI figures. BHP's annual report didn't help the commodity outlook hangover as they lowered CAPEX guidance and expected a sanguine rest of the year. They offered hope for the future however, indicating they saw a good growth picture ahead for the EMU, Japan and the US. The JPY quickly lost some ground against the USD early in the session after avoiding most of the damage in the US session that befell other currencies.
Following the initial open slightly lower, most indices remained in a holding pattern ahead of the greatly anticipated China Sept PMI figures. AUD traded flat ahead of the number despite decent Conference Board and Skilled vacancies figures. There was some speculation abound that the China figures would show a bounce following 6 straight months of contraction, especially given the concurrent high profile visit of China President Xi. This, however, was to no avail as the PMI numbers came in below expectations, sending the Hang Seng down over 2.5%, AUD and NZD down more than 0.5%, and investors into the JPY and CHF. Crude moved slightly lower and Gold, after initially selling off, pared its losses to trade flat. Xi made broad overtures to greater Sino-US relations, including calls for greater cooperation on the Cyber Crime/Spy/trade front. He also sought to ease tensions amongst trading partners and neighbors in his speech, noting that China sought not hegemony, but greater cooperation and a move towards freer trade.
Equities
US equities / ADRs:
- HRTX: Reports positive top-line results from Phase 2 study of HTX-011 in the management of post-operative pain; +21.6% afterhours
- BMR: Reportedly hires advisors to evaluate a sale of the company given PE interest - financial press; +6.9% afterhours
- CTXS: Reportedly seeking to sell the entire company before any decision is made to conduct asset sales - financial press; +0.3% afterhours
Notable movers by sector:
- Financials: OzForex Group OFX.AU -0.8% (leadership changes) CITIC Securities 600030.CN -3.2% (speculation for illegal trade)
- Industrials: Cardno CDD.AU -0.7% (FY16 outlook); China Ocean Shipbuilding Industry Group 651.HK -3.5% (leadership change); BYD Company 1211.HK +0.9% (Approval for unit acquisition); Nufarm NUF.AU +7.9% (FY15 results,); Hyundai Mipo Dockyard 010620.KR -3.3% (awarded contract); Hyundai Motor 005380.KR -3.1% (union plans partial strikes)
- Materials: Apac Resources 1104.HK -1.1% (FY15 result); BHP Billiton BHP.AU -3.9% (CEO's comment, update); OZ Minerals OZL.AU -5.1% (gold futures decline)
-Technology: Inspur Electronic Information Industry Co 000977.CN +6.9% (speculation to partner with Cisco); HTC Corp 2498.TW -1.6% (remove from blue chip index)
- Telecom: China Mobile 941.HK -1.6% (MIIT urges for lowering internet fees)
- Utilities: Shenzhen Energy Group Co 000027.CN +2.8% (acquisition)
Economic Data
- (AU) Australia July Conference Board Leading index m/m: +0.3% v -0.3% prior
- (PH) PHILIPPINES JULY TRADE BALANCE: -$1.18B v -$0.24Be
- (AU) AUSTRALIA AUG SKILLED VACANCIES M/M: 0.2% V 0.1% PRIOR
- (CN) CHINA SEPT CAIXIN/MARKIT FLASH MANUFACTURING PMI: 47.0 V 47.5E (78 month low, 7TH STRAIGHT MONTH OF CONTRACTION)
Contributed by Trade The News