US Stock Futures Hold Steady as Iran Hormuz Deal and Earnings Shape Market Sentiment 
Oil Prices Surge as Iran Hormuz Restrictions Renew Supply Fears 
US Job Growth Seen Picking Up in July 
Philippine GDP Growth Slows to 2.3% in Q2 
Asian Stocks Cautious Ahead of US Jobs Data as Oil Rises 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Australia Trade Surplus Returns in June as Iron Ore, Coal and LNG Exports Surge 
Wall Street Ends Mixed as Dow Hits Record Despite Tech Weakness 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
China Trade Surplus Beats Forecasts in July as Exports Stay Strong 
Persistent trade-tensions and subdued demand for technology products to cap the upside on overall investment activity from re-negotiated public projects in Malaysia, according to the latest report from ANZ Research.
Private consumption, the mainstay of growth, accelerated to 7.8 percent in the quarter (Q1: 7.6 percent y/y). Meanwhile, public consumption growth moderated to 0.3 percent y/y in Q2, after rising 6.3 percent y/y in Q1 19. Export growth was unchanged from the previous quarter at 0.1 percent y/y as external demand remains weak.
At the same time, imports contracted by 2.1 percent y/y (Q1: -1.4 percent y/y) as intermediate and capital goods imports weakened. Consequently, net trade made a larger positive contribution to growth in Q2 than in Q1 (1.4ppt in Q2 compared to 0.9ppt in Q1). Investment contracted for the second straight quarter, although it posed a smaller drag of 0.2ppt to overall growth in Q2 (Q1: -0.9ppt).
Gross fixed capital formation contracted by 0.6 percent y/y (Q1: -3.5 percent y/y) on the back of a 4.2 percent y/y decline (Q1: -7.4 percent) in ‘machinery and equipment’ investment. Public investment remained weak (Q2: -9.0 percent y/y), although private investment improved to 1.8 percent y/y in Q2, from 0.4 percent previously.
On the other hand, inventories were drawn down at a quicker pace than in Q1, and so accounted for a larger drag on growth in the quarter. (0.7ppt in Q2 compared to 0.5ppt in Q1). From a sector perspective, the performance was mixed.
Activity in agriculture and services sectors moderated to 4.2 percent y/y and 6.1 percent y/y in Q2 (from 5.6 percent and 6.4 percent respectively in Q1). However, a rebound in the mining and quarrying sector (particularly natural gas) provided an offset. At the same time, manufacturing activity posted a marginal improvement (Q2: 4.3 percent y/y, Q1: 4.2 percent y/y).
