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Article / 06 September 2016 at 2:10 GMT

Morning Report APAC: Asian equities feel the boost

APAC Sales Trading Desk / Saxo Capital Markets

  • Japan’s Topix at three-month high this morning with Kospi also near highs
  • USD maintains lower levels, with AUD the strongest beneficiary
  • WTI crude remains above $45/barrel after gains were lost in last session
  • Europe, UK enjoy some robust data - UK Services PMI leading the way

By Saxo APAC Sales Trading

Economic data of the day (Singapore Time)


No speeches

Overnight news

US:  Extremely quiet session from the US as they were out for Labour Day holiday. 

Europe:  Robust set of services PMI across Europe yesterday, with the Eurozone coming in at 52.8, down slightly from 53.3 prior but comfortably in expansionary territory. Eurozone retail sales had a strong beat coming in at 2.9% year on year versus consensus expectations of 1.8%.

UK: The services PMI came in much stronger than expected, printing 52.9 versus 50 expected. The raft of strong UK data continues and saw a rapid rise in the GBP post release, but gains were pared later in the session.


The USD traded on the backfoot all day triggered by comments from Bank of Japan governor Haruhiko Kuroda at the G20, which the market interpreted as hinting at potentially less stimulus or at a lack of clarity around stimulus at the September 21 BoJ meeting.

Risk sentiment was generally buoyant throughout yesterday’s Asian session which saw traders sell USD and buy carry currencies.

Emerging markets saw big inflows yesterday and had a very strong day before a quiet overnight session due to the US holiday.

THB bucked the trend, traded weaker as the Stock Exchange of Thailand tumbled on the market open and rumours of the Bank of Thailand preventing baht strength circulated.

Ahead we expect emerging market currencies with strong fundamentals to remain bid as the market continues to push for yield.
Foreign exchange movementsxxx


The European Central Bank's quantitative easing program passed a milestone last week, topping 1 trillion euros in purchases after 18 months of aggressive bond buying.

The bank's policy makers are scheduled to hold their regular meeting on Thursday, and expectations are mixed: Some expect the ECB to extend the run of the QE program beyond March 2017, while others expect the bank to wait until later in the year before acting, in order to have a better understanding of the Brexit fallout.





US markets were closed for Labor Day. European markets finished lower last night with shares in London leading the region. The FTSE 100 was down 0.22% while Germany's Dax was off 0.11% and France's CAC 40 is lower by 0.02%.

Airbus Group (AIR:xpar)is said to be in advanced talks with Vietnam’s Vietjet for a multi-billion dollar single-aisle jet order. Deal is likely to be announced as early as Tuesday and Airbus group closed 67 cents higher or 1.8% to E53.86.

Asia-Pacific stocks

Greater China highlights

  • Beijing Xinwei (600485 CH): Spacecom seeks to amend sale terms with co., CEO says
  • Fosun Intl (656 HK): Bought back 1.89m shares for HK$22.1m on Monday
  • Goldin Financial (530 HK): Signs JV pact to buy land for as nuch as HK$20b

Japan highlights


  • ABC Mart (2670 JP): Korea unit seeks to list on Korea Exchange
  • Amada Holding (6113 JP): To lower payout ratio target to at least 50%: Nikkei
  • KDDI (9433 JP): TV shopping ops may add 20b yen to FY oper. profit: Nikkei

Southeast Asia highlights

  • Global Premium Hotels (GPHL SP): Tourist influx brings no joy to Singapore hotels amid room glut
  • Greenwood Sejahtera (GWSA IJ): Plans to offer up to 2.5b shrs in rgt issue
  • Matahari Dept. Stores (LPPF IJ): Lippo seeks up to $128m paring Matahari Dept Store stake: Terms

Source: Bloomberg

Haruhiko Kuroda told the G20 last night that there were downsides to Japan's negative
interest-rate policy, suggesting caution about further reductions in rates. Photo: Flickr

– Edited by Adam Courtenay

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