The weekend news dominated by another nuclear test by 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


And, also note that it's a Federal holiday in the US today for Labor Day, Monday (4 September 2017)