HALISTER1: INSIDE ASIA: China PMI Tops Forecast; Aussie Capex Outlook Rises

INSIDE ASIA: China PMI Tops Forecast; Aussie Capex Outlook Rises

(Bloomberg) -- Chinese factory PMI topped all survey estimates, which may reduce pressure for monetary easing; Malaysia’s ringgit and Korea’s won drop, weighed down by oil’s slump and losses in local stocks.
  • China raises yuan reference rate by most in a week, fueling speculation it’s propping up the currency before weekend’s G-20 meeting
    • Aug. manufacturing PMI rose to 50.4 vs est. 49.8, reaching highest since Oct. 2014; it suggests PBOC won’t cut RRR, says ANZ
    • USD/CNH saw broad-based selling after Caixin PMI above 50 was viewed as confirmation of strong official PMI, says FX traders
    • Manufacturing expansion is at odds with factory closures during the month and slowing growth in services PMI, says RBC Capital Markets; U.S. payrolls Friday remains a key factor for USD/CNH
  • Aussie gains on Chinese data as well as local capex survey, which RBA watches for signs that low rates are spurring business spending
    • Companies now plan to spend A$105.2b in 2016-17 vs est. A$97b; three months ago, they had planned just A$89.2b
  • Ringgit underperforms Asian peers as trading resumes after yesterday’s holiday and oil’s overnight decline
    • Malaysia’s 5-year govt bond yields could be more influenced this month by a tilt in U.S. rates than domestic data; see chart analysis here
  • Baht steady ahead of Thailand’s inflation data for August
    • CPI is forecast at 0.43% y/y, the least in 3 months
    • If the figure lags forecast, it may push USD/THB above 21-DMA; see analysis
  • Rupiah declines in line with most EM currencies
    • Indonesia Aug. inflation is due; est. +3.02% y/y (3.21% prior)
    • Govt considers lowering GDP target in 2016 budget, Bisnis reports
  • Won snaps two-day gain after South Korea’s August CPI rose 0.4% y/y vs est. 0.7%, well short of central bank’s 2.0% target
    • Current-account surplus shrank by 28% to $8.7b in July, the smallest in three months
    • Finance Minister Yoo said govt will seek to minimize economic & industrial impact from receivership filing by Hanjin Shipping
  • Japan’s yen snaps six-day drop against dollar; FX options expiring today include strikes 103.00 for $782m and 103.90 for $830m
    • Persistent expectations of additional BOJ easing are weighing on yen amid weak economic data from Japan, says Nomura
    • 2Q capital spending rose 3.1% y/y vs est. 5.5%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

To de-activate this alert, click here

UUID: 7947283