Halister News

(Bloomberg) -- China’s FX reserves likely buffered by investors hunting for yield after Brexit vote, analysts say, with median est. seeing $5b drop to $3.2t in July.

• Reserves fell $125b in 1H
• With global bond yields edging lower, many fund managers are increasing their portfolio in Asian bonds, including Chinese ones, helping offset outflows, OCBC economist Tommy Xie says
  • Capital restrictions could also moderate outflows in 2H as many investors have used up their yearly $50k quota on sending money overseas; expects July reserves fell $10b
• Global investors hunting for yield leads to more flows into China, mitigating yuan depreciation pressure, Commerzbank senior economist Zhou Hao says; forecasts reserves to rise $5b
• Valuation effect may have added $7b to headline reserves in July, mainly due to EUR gaining vs USD, RBC Capital Markets head of Asia FX strategy Sue Trinh says
• Yuan rose 0.12% vs dollar in July, gaining for first time in 4 months

(Bloomberg) -- Nokia 2Q sales EU5.7b vs est. EU5.87b

• 2Q adj. diluted EPS EU0.03 vs est. EU0.03
• Raised annual cost savings target to ~EU1.2b of total annual cost savings to be achieved in full year 2018; previously saw synergies above EU900m
• Sees FY networks non-IFRS net sales declining y/y, adj. op. margin at 7-9%; previously saw margin above 7%

Statement

(Bloomberg) -- Majority of Asian currencies advance as oil prices rebound; Malaysian ringgit is sensitive to oil and leads the gainers after 2-day decline; South Korea’s won also heads for first daily gain since Monday.

• Oil price jump supportive of risk and EM markets, Oanda senior Asia Pacific FX trader Stephen Innes says
  • Cautious atmosphere; nobody too eager to take mkts one way or the other
  • Lack of speculative flows in Aug. as traders tend to pare positions during holiday season, with liquidity only from corporates, real & cash investors
• India passes goods & services tax bill; click here for roundup
  • Mirae Asset Global adds India govt bonds as reforms continue: interview
  • Rupee steady at 66.99 per dollar after falling yesterday for first time in 7 days; 10-yr govt bond yield down 2 bps at 7.17%
• Yen rises as much as 0.4% to 100.86 vs USD; pares back to 101.23
  • Iwata spurs uncertainty on BOJ stance, NBC Financial Markets Asia says
  • BOJ to buy more often to reach $59b ETF target, Tokai Tokyo Research says
  • Nikkei 225 up 0.3% after falling in morning
  • Yield on 10-yr govt bond rises 1 bp to -0.85%
  • Regional Minister Yamamoto says poor wage gains slow deflation escape
  • Overseas investors bought JGBs last week on BOJ rate-cut bets, BofAML says
  • Sale of 10-yr inflation-linked bond sale gets higher cut-off price than est.
• Aussie and Kiwi gain as energy price rises
  • Australia June retail sales rose 0.1% vs +0.3% est.
  • CBA says NZD/USD unlikely to drop much on RBNZ rate-cut next week as already largely priced in
• Yuan steady after PBOC weakens yuan fixing by 0.38%, most since July 6, to 6.6444 vs USD; strengthened it 0.39% yesterday
  • PBOC reiterates it will keep prudent monetary policy in 2H and liquidity ample; comment comes after NDRC researchers withdrew earlier calls for interest-rate and RRR cuts
• Indonesia rupiah one of few decliners, heading for third daily loss
  • Planned 2016 budget deficit widened to 2.5% of GDP from 2.35%, Finance Minister Indrawati said late yesterday
• Thailand baht steady after earlier fall
  • Bank of Thailand left rates unchanged yesterday; assistant governor Jantarangs said BOT won’t be limited to using only interest rates to manage currency volatility