Article10 September 2018Reading time about 3 minutes

ASEAN Morning Bytes 11 September 2018

General Market Tone: Risk Off. International theme: Market Players Still Await Developments With Deadlines Passed. EM Space: The Waiting Game Continues, Trump-Kim Part 2. What to look out for: Philippine trade data, UK employment figures

In this article

International theme: Market Players Still Await Developments With Deadlines Passed

  •  Canada troops back to the negotiating table on Tuesday with Foreign Secretary Freeland hoping to salvage NAFTA with the US side indicating that time is running short.  Over in Asia China has indicated that they would not back down from an aggressive tariff salvo from the US, promising retaliatory measures if Trump would proceed with stiff trade restrictions. 
  • News broke of a possible new meeting between world leaders Donald Trump and North Korea’s Kim with the White house announcing a possible second meeting sometime in the near future.  Although details are scant, market eagerly awaits developments on this front. 

EM Space: The Waiting Game Continues, Trump-Kim Part 2?

  •  General Asia: Asian markets remain in limbo as Trump discusses trade on both sides of the US fence.  Reports that Trump received a second formal invitation from North Korea for a 2nd summit may prove to be a developing story moving forward.   

 

  •   Malaysia: Markets are on holiday today for Muslim festival Awal Muharram.

 

  • Thailand: The government approved a THB 79bn public-private partnership expressway project connecting Nakhon Pathom province and Cha-am district. The investment spending has gained some traction in the first half of 2018, though its contribution to GDP growth continued to be lackluster.

 

  • Philippines:  July trade data will likely drive trading on Tuesday with market expecting the deficit to swell with imports seen to sustain the double digit pace of growth.  Foreign direct investments grew 9.2% bringing the YTD haul to $5.755Bn or up 42.4%.  Meanwhile, President Duterte has announced he would address the nation at 3pm with the Palace mum on details.

What To Look Out For

  • PHL trade 09/11/2018
  • EZ ECB meeting 9/13/2018
  • US CPI inflation 9/13/2018
  • US Retail sales 9/14/2018
  • US-China trade negotiations (on-going)
  • Argentina-IMF credit line request (on-going)