US retail sales jump and give global stocks a boost. Australia’s jobs rise in July is tempered by rising participation. The Philippines’ central bank cuts. China’s domestic demand slumps, while Japan’s GDP gets a consumer shot in the arm.
In our bonus deep dive interview, ANZ FX Analyst Kausani Basak reviews PMI data to reveal which Asian economies are riding an AI demand boost.
5 things to know:
US stocks are up 1.5% to 2% after US retail sales rose 1.0% in July from June, which was stronger than expected. ANZ Economist Bansi Madhavani says the solid data reinforced that the Fed didn’t need to rush in with a 50 bps cut.
Australian jobs rose a surprising 58,200 in July, nearly three times the consensus. But a higher participation rate meant unemployment nudged up to 4.2%. ANZ Head of Australian Economics Adam Boyton says extra labour supply is keeping pressure off inflation.
China’s domestic demand-side weakness showed through in a swathe of data yesterday, says ANZ Senior China Strategist Zhaopeng Xing.
Japan’s economy jumped back into life in Q2, with annualised growth of 3.1% after a revised 2.3% contraction in Q1. ANZ FX Analyst Felix Ryan says growth was led by the first consumption rise since the start of 2023.
The Philippines’ central bank cut its key rate 25 basis points to 6.25% and signalled another cut by the end of the year, says ANZ Economist Arindam Chakraborty.
Cheers
Bernard
PS: Catch you next week with the RBA Board’s minutes from its August meeting.
