Weekend News Roundup - Newsquawk Daily Asia-Pac Market Open

• US stocks closed higher on Friday, with the Nasdaq leading gains, although the advance was broad-based, with the equal-weight S&P 500 (RSP) also firmer, highlighting positive underlying breadth. Sectors were predominantly higher, led by Materials, Consumer Discretionary and Technology, while Energy was the clear laggard. Financials and Communication Services also finished modestly lower. The US Nonfarm Payrolls report was the primary driver of market action, with the surprisingly soft release prompting participants to pare Fed rate hike expectations. The dovish repricing supported equities, Treasuries and precious metals, while weighing on the Dollar. The Treasury curve bull steepened following the report, which showed the US economy unexpectedly shed 23k jobs in July, versus expectations for a 91k increase. Prior readings were also revised sharply lower, with June cut by 37k and May by 66k, leaving the two-month net revision at -103k. However, the unemployment rate unexpectedly fell to 4.1% from 4.2%, moving further below the Fed's 4.3% year-end projection, although the decline was accompanied by a lower participation rate.
• Iran said it is very close to a deal with Oman regarding a new maritime transit route in the Strait of Hormuz, but it renewed a list of demands for the US to agree to before the waterway could open.
• Chinese inflation data printed softer than expected.
• Looking ahead, highlights include Japanese Current Account, Eco Watchers Survey, BoJ Summary of Opinions, Market Closure in Singapore for National Day holiday.

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LOOKING AHEAD

• Highlights include Japanese Current Account, Eco Watchers Survey, BoJ Summary of Opinions, Market Closure in Singapore for National Day holiday.
• Click for the Newsquawk Week Ahead.

IRAN CONFLICT

• US President Trump told Axios that they are only semi-negotiating with Iran and are just watching Iran with its huge inflation, while he stressed that Iran is in very bad shape economically and has no money to pay its troops, with the US naval blockade exacerbating the Iranian regime's economic crisis. However, he said it will work out and that it always works out, as well as compared it to a chess game regarding the back-and-forth with Iran.
• US Vice President JD Vance said the US is in the middle of a game in the Iran conflict.
• Iranian President Pezeshkian said now is the best time for an agreement because Iran is strong, united and seen as victorious in war. Pezeshkian separately commented on Friday that they will not yield to force, but are not seeking war or aggression either, while he added there will be no reason for the tension to continue if the pressure and threats against Iran stop. Furthermore, he said there was no gap between the government and the armed forces, as well as noted that Iran had solved many problems with its neighbours and relations had improved significantly.
• Iranian Foreign Minister Araghchi said Iran and the US are not engaged in talks, and Tehran will not allow them to start as long as Washington breaches the interim deal signed in June.
• Iran said it is very close to a deal with Oman regarding a new maritime transit route in the Strait of Hormuz, but it renewed a list of demands for the US to agree to before the waterway could open. It was separately reported that Iran warned it will not reopen the Strait of Hormuz unless the US meets a series of conditions, including paying compensation for war damage, according to FT.
• Iran’s Supreme National Security Council issued six demands to the US, including total force withdrawal, end to proxy warfare, financial reparations, sanctions and asset relief, lifting the blockade and cessation of rhetoric.
• The wait for the Iran-Oman deal regarding the Strait of Hormuz dragged on, with Iran warning the US that any pact wouldn’t lead to an immediate reopening of the key waterway.
• Iran appointed Mohsen Rezaei as Secretary of the Supreme National Security Council, while Iran's Supreme Leader appointed Mohammad Bagher Zolghadr as political adviser.
• UKMTO reported that a vessel near Oman was struck by an unknown projectile, which caused a fire on board but has been extinguished.
• Saudi Arabia put out a fire at its Jazan plant early on Sunday, while Yemen’s Houthis claimed responsibility for the attack on the refinery. It was separately reported that Houthis resumed attacking Yemen’s Mocha port using ballistic missiles and drones, with the attacks aimed at Saudi troop concentrations and weapon depots in the region.
• Israeli PM Netanyahu said Israel does not accept a US-backed 15-point plan for Gaza, under which Hamas would disarm in exchange for a phased Israeli withdrawal from the Palestinian enclave, according to FT.

US TRADE

• US stocks closed higher on Friday, with the Nasdaq leading gains, although the advance was broad-based, with the equal-weight S&P 500 (RSP) also firmer, highlighting positive underlying breadth. Sectors were predominantly higher, led by Materials, Consumer Discretionary and Technology, while Energy was the clear laggard. Financials and Communication Services also finished modestly lower. The US Nonfarm Payrolls report was the primary driver of market action, with the surprisingly soft release prompting participants to pare Fed rate hike expectations. The dovish repricing supported equities, Treasuries and precious metals, while weighing on the Dollar. The Treasury curve bull steepened following the report, which showed the US economy unexpectedly shed 23k jobs in July, versus expectations for a 91k increase. Prior readings were also revised sharply lower, with June cut by 37k and May by 66k, leaving the two-month net revision at -103k. However, the unemployment rate unexpectedly fell to 4.1% from 4.2%, moving further below the Fed's 4.3% year-end projection, although the decline was accompanied by a lower participation rate.
• SPX +0.62% at 7,758, NDX +1.19% at 29,722, DJI +0.28% at 54,042, RUT +1.10% at 3,034.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed’s Bowman (voter) said policy is well positioned to bring inflation back to 2% and that she supported keeping the Fed funds rate steady at the July meeting. Bowman also noted that improved inflation data in June and a labour market that has not been a source of inflationary pressure reinforce her case for maintaining current rates and support her view that policy is well-positioned for inflation to return to the target.

DATA RECAP

• US Nonfarm Payrolls (Jul) -23k vs. Exp. 91.0k (Prev. 57k, revised down to 20k)
• US Unemployment Rate (Jul) 4.1% vs. Exp. 4.3% (Prev. 4.2%)
• US Average Hourly Earnings (Jul) Y/Y 3.2% vs. Exp. 3.5% (Prev. 3.5%)

COMMODITIES

• Unionised workers at BHP's Port Hedland iron ore operations in Western Australia began rolling 24-hour strikes.

GEOPOLITICAL

MIDDLE EAST

• Syria reached an agreement to take control of two Russian military bases, largely ending Moscow’s military presence in the country, according to FT.

RUSSIA-UKRAINE

• Russia struck two oil refineries in Ukraine's northeastern Sumy region, according to Interfax. It was separately reported that Ukraine’s Odesa port sustained damage from a Russian attack, while Russian authorities said five were killed in a Ukrainian drone attack on Belgorod.
• US President Trump's special envoy Steve Witkoff and son-in-law Jared Kushner may visit Kyiv and Moscow within the next 7-10 days, according to TASS.
• New Zealand announced additional sanctions targeting individuals and entities supporting Russia's war against Ukraine, following the passage of a new bill in the US Senate targeting Russia's oil and gas revenues.

ASIA-PAC

NOTABLE HEADLINES

• China issued a red alert in preparation for approaching Typhoon Dolphin, with more than 1,000 flights cancelled and some rail services suspended.
• Chinese AI chipmaker Moore Threads Technology said it plans to list in Hong Kong at an appropriate time, following a more than 420% surge in shares since its Shanghai debut last year.

DATA RECAP

• Chinese CPI MM (Jul) -0.1% vs. Exp. 0.2% (Prev. -0.3%)
• Chinese CPI YY (Jul) 0.5% vs. Exp. 0.8% (Prev. 1.0%)
• Chinese PPI YY (Jul) 3.5% vs. Exp. 3.8% (Prev. 4.1%)

EU/UK

NOTABLE HEADLINES

• French Budget Minister Amiel said they must resist the temptation to delay difficult spending decisions until after next year’s presidential election, as they cannot afford to worsen the wide deficit.