Asian equities traded mixed despite a positive Wall Street close on Friday amid light news flow. ASX 200 (+0.16%) traded in positive territory following a bout of strong earnings, the Nikkei 225 (+0.32%) rose as participants shrugged off disappointing Q2 GDP figures as this increases calls for further measures by Japanese authorities. Chinese bourses began the week on the back foot after posting its strongest week of gains in 2-months, as the region was dragged lower by energy names. JGBs fell amid strength in equities coupled with the BoJ refraining from conducting its massive JGB purchase program.
IMF forecasts China economic growth to slow to 6.8% in 2015 and 6.3% in 2016 but see more sustainable growth. (China Economic Net) There were also comments from PBoC's Jun that China is likely to hit its target of 7% growth. (BBG)
The PBoC has warned the market that there will be further “two-way” volatility in CNY at the start of this week. (FT)
Japanese GDP SA (Q2 P) Q/Q -0.4% vs. Exp. -0.5% (Prev. 1.0%, Rev. 1.1%)
- GDP Annualised SA (Q2 P) Q/Q -1.6% vs. Exp. -1.8% (Prev. 3.9%, Rev. 4.5%).