While the entire Singapore was commemorating its 48th birthday on 9 Aug, Friday, investors elsewhere were celebrating China’s industrial production (July) which exceeded analysts’ estimates. Actual numbers came in much better than expected at 9.7% yoy against analysts estimates of 8.9%, the highest reading since March this year.
 
HSI buoyed by China’s industrial production
Following the release of this strong set of numbers, the Hang Seng Index (HSI) climbed rapidly from 21,732 to 21,808 in a span of 5 minutes and the HSI closed 0.7% higher day on day, helped by Chinese coal companies. The basic materials sector gained 6.9% as China Coal Energy jumped 10.3% for the day. China Coal is the second largest state-owned coal mining company in China.
 
The HSI has been in a two-month uptrend that started since it reached an intraday low of 19,426 on 25 June 2013.
 
Hong Kong’s GDP this week
In the upcoming week, it will be sensible to keep an eye on Hong Kong’s 2Q GDP. Growth is expected to be at 3.2%, up from the previous 2.8%. The Hong Kong economy has been experiencing positive growth for 4 years now, the last quarterly GDP contraction was in Sep 2009.
 
Key Macro Data this week
Mon 12 Aug: Singapore GDP
Tue 13 Aug: US retail sales; Euro industrial production
Wed 14 Aug: US PPI; Euro GDP
Thu 15 Aug: US CPI; Singapore retail sales
Fri 16 Aug: US housing data; Euro CPI, trade balance; HK GDP

Source: Macquarie Research - 12 Aug 2013