The weekend news dominated by another nuclear test by North Korea
- North Korea says it has successfully tested a hydrogen bomb
- US Def Sec Mattis on North Korea - threatens massive response
- China has begun emergency monitoring for radiation along its border with North Korea
On the agenda in Asia today:
2350GMT - Japan monetary base for August
0100GMT - Australia - Melbourne Institute Inflation Gauge for August
- We get official CPI data from Australia only once a quarter, this monthly data from a private source fills in the gaps somewhat
- priors 0.1% m/m and 2.7% y/y
0110GMT - Bank of Japan JGB buying operation scheduled (10 - 25 yers and 25+ years)
0130GMT - Australia - Q2 Inventories and Company Operating profits data
- Inventories expected 0.3% q/q, prior 1.2%
- Profits expected -4% q/q, prior +6%
Inventory is a direct input to the GDP figure due September 6. Westpac's preview of what they expect says, in brief:
- we expect total inventories to increase by only 0.2%,
- subtracting 0.4ppts from growth
- The headline figure is constrained by a likely drawing down of mining inventories as rail links re-opened
- Total inventories ex mining and ex manufacturing (where there is a structural decline) are forecast to rise by a strong 1.5% in Q2, matching the outcome for Q1
- Firms across the non-mining economy are expanding inventories to meet rising sales
ANZ's preview (in summary):
- we expect a small pullback in inventories of -0.1% q/q
- This would see private non-farm inventories take around 0.5ppts off GDP growth in the quarter,
- Keep in mind, though, that the volatile farm and public inventories numbers (not included in this release) can swing the National Accounts measure of total inventories around
0130GMT - Australia - ANZ Job advertisements for August
- prior +1.5% m/m & +12.8% y/y for the 5th successive month higher and the highest for this indicator since 2011
0200GMT - New Zealand monthly economic indicators from Treasury
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And, also note that it's a Federal holiday in the US today for Labor Day, Monday (4 September 2017)