Updated throughout the day
September 4
Good evening everyone. Risk was definitely off today as the world’s markets seem to be waiting with baiting breath for tonight’s non-farm payrolls report. A good reading here might seal the deal on a rate hike this month, while a bad one would surely push it off to a later date. The selling during the lower half of the session however seemed a little panicky, which could be attributed to Hong Kong’s terrible PMI reading earlier in the day but with the Nikkei hitting seven-month low, it might be something else altogether. Anyway, here’s how the major Asia-Pacific markets fared this week:
| Day | Week | |
| Nikkei 225 | -2.2% | -7% |
| Hang Seng Index | -0.7% | -4.7% |
| ASX | +0.3% | -4.2% |
The Chinese markets were closed Thursday and Friday; the Shanghai Composite lopped off 2.2% in its shortened week. European markets aren’t doing too well, despite Mario Draghi’s assurance that he’ll expand stimulus “if warranted.” The FTSE 100 retraced gains to fall 1.63%, the DAX – exacerbated by Germany’s surprise drop in factory order – slid 1.75%, while the CAC slumped 1.83%.
Here’s what else you need to know:
Hong Kong PMI falls to six-year low. Weak demand, lower output, as well as one the largest and fastest workforce declines since 2003 led the Nikkei Hong Kong Purchasing Managers’ Index to fall to 44.4 in August. That’s well below its 48.2 reading in July and its worst showing since February 2009. Markit
Japanese wages miss estimates – badly. Japan’s manufacturing industry may be growing at a fast clip, but its labor market is continuing to disappoint. Labor cash earnings for the land of the rising sun grew just 0.6% in July, far below an estimated climb of 2% and even more worrisome if you adjust for inflation. It is. however, the first real wage rise the nation has experienced since 2012. Silver linings, man. Financial Times (paywall)
China swaps Australian mining for the country’s agriculture. After plunking ungodly amounts of money into the nation’s mining industry, China is now investing in Australian agriculture. Not only is China the No. 1 buyer of meats, wheats, and various other treats, it is now Australia’s largest investor in the agricultural sector, plowing as much as $450 million into the industry in 2014 alone. Wall Street Journal
ECB ready to expand stimulus. European Central Bank President Mario Draghi says the bank is projecting slower than expected economic growth in the eurozone, and the ECB will “act if warranted.” Wall Street Journal (paywall)
Debris found confirmed to be from missing MH370 flight. French investigators say they are certain that a piece of an airplane wing that washed up on a remote Indian Ocean island came from Malaysia Airlines Flight 370, which disappeared in March 2014 with 239 people on board. The New York Times
Iran to have final say on nuclear deal. Iran’s parliament will get the final word on approving or rejecting the landmark nuclear agreement forged with world powers in July, top Iranian officials have said, raising fresh uncertainty about the deal. Moderate President Hassan Rouhani and his negotiators have publicly fought against allowing the Iranian parliament to hold a vote. Wall Street Journal
China trimming armed forces by 300,000. This is not a kumbaya moment. President Xi made the announcement as the Communist Party military displayed its might in a parade marking the 70th anniversary of the end of World War II. Analysts suggest China is simply becoming more efficient, relying on technology that require fewer personnel. Meanwhile, China has been sailing ships off the coast of Alaska — a first and none-too-peaceful sign. New York Times (paywall) BBC
Images of dead child put face to migrant problem. Photos of a 3-year-old Syrian Kurd boy who drowned near Turkey are tugging heart strings everywhere. The horrible images of the child show how desperate the migrant situation is, as thousands have perished this year alone. The boy’s mother and 5-year-old brother also died, and his father is in the hospital. Wall Street Journal
Donald Trump will sign GOP loyalty pledge. A Trump associate says that the presidential candidate will sign the pledge to endorse the Republican nominee, preventing a third-party run. The move will help put Trump on Republican primary ballots more easily, and will undermine his opponent’s attacks on the possibility of him running as an independent. Politico
You won’t believe this…
The Japanese are not lovin’ it. McDonalds has had another McDisaster in the land of the rising sun after a customer was injured by plastic shards floating in their green tea latte. It’s the latest in a string of food contamination scandals for McDonald’s Japan that have included out-of-date meat and human teeth in fries. Yummy. Channel News Asia
Japan has a 400-ton moving castle. This is not Howl’s Moving Castle of anime-fan fame but the 400-year-old Hirosaki castle of Aomori prefecture. The castle has been lifted 60 centimeters (two feet) from the ground to allow for reconstruction of the stone walls beneath it and will be moved about 70 meters (230 feet) away from where it currently stands. The Wall Street Journal
Nude painting could go for $100 million. The nearly 100-year-old painting of a nude woman is by the famed Amedeo Modigliani. Christie’s will be auctioning the piece in New York this November. Other recent modern art pieces have been braking records, and banks. Picasso’s “Les femmes d’Alger” went for $140 million in May. CNN
Photo: flazingo photos