Asian Market Update: Stock markets generally reverse gains; Evergrande’s silence continues; Focus on Hong Kong’s political address; NZD falls after widely expected RBNZ rate hike, vague political outlook? ; The 10-year UST yield extends its rise, US ADP data is expected later today.
General trend
– Decline in US equities FUTS in Asia.
– Nikkei fell more than 1.5% after the higher opening [Heavyweights continue to weigh on the index (Fast Retailing and Softbank Group)]; The Topix Marine Transportation index falls again, the banks rise.
– Hang Seng also reversed the opening gain, currently reduced the loss [TECH and Property indices drop, but pare declines during morning trading].
– The S&P ASX 200 has been weighed down by financials.
– Copper FUTs prolong the decline.
– Companies expected to report this morning in New York include Madison Square Garden, RPM International, Constellation Brands.
– Shanghai markets are closed for holidays from October 1 to 7 (Friday to Thursday).
Titles / Economic data
Australia / New Zealand
–The ASX 200 opened + 0.1%.
– (NZ) CENTRAL BANK OF NEW ZEALAND (RBNZ) INCREASES OFFICIAL CASH RATE (OCR) FROM 25BP TO 0.50%; AS EXPECTED (1st rate hike since July 2014).
– MFG.AU reports seven FUM (A $) 113.3 billion against 118.0 billion before; Outflows of AU $ 1.53 billion.
– (AU) Australia sell A $ 1.0 billion against A $ 1.0 billion quoted in November 2032 1.75% bonds, average yield 1.6137%, hedge offer: 5.88x .
– (NZ) The Reserve Bank of New Zealand (RBNZ) appoints Deputy Governor Hawkesby as Deputy Governor, replacing Bascand who is leaving in January.
– (CN) China says it has released coal from Australia that has been “trapped in storage” – FT.
Japan
–Nikkei 225 opened + 0.8%.
– 4502.JP The safety signal emerged in its phase 2 study of the experimental oral orexin agonist TAK-994; patient dosing suspension as a precaution.
– (JP) Japanese Prime Minister Kishida’s approval rating at 59% (3rd lowest for inaugural ratings among 9 prime ministers since 2002.
– (JP) Japan Chief Cabinet Sec Matsuno: Stopping the decline in R&D capacity in Japan is important; The CPI is not as low as the numbers suggest.
– (JP) Bank of Japan (BOJ) Gov Kuroda: The economy has recovered thanks to exports and manufacturing, strong growth in US GDP has supported global economic growth).
– (JP) Japan Fin Min Suzuki: the PM asked me to be flexible on politics; will seek a new type of capitalism and will simultaneously scrutinize fiscal health and growth (yesterday after the close).
– (JP) Japan Econ Min Yamagiwa: the government will take all necessary measures to support the economy “flexibly and without hesitation” (yesterday after the close).
– (JP) Japan Industry Min Hagiuda: Nuclear energy is essential to decarbonize Japan (yesterday after the close).
Korea
-Kospi open%.
– (KR) SOUTH KOREA SEVEN CPI H / M: 0.5% V 0.4% E; Y / Y: 2.5% V 2.4% E (6th consecutive month above target); CPI Core Y / Y: 1.9% vs. 1.8% e (fastest increase since 2017).
– (KR) Japan spotted a North Korean ship carrying missiles in June off the coast of Ishikawa prefecture – Japan press.
China / Hong Kong
-Hang Seng opened + 0.6%; Shanghai Composite closed for holidays.
– (HK) Hong Kong August PMI (Whole Economy): 51.7 versus 53.3 before (8th consecutive expansion).
– 880.HK Said to close 1 Macau casino operations due to visit by coronavirus patient – Press.
– 2393.HK Debt Restructuring Updates: New offshore debt restructuring and agreement for $ 200 million 6.9% notes due 2021; to issue new tickets under the agreement.
– (HK) Hong Kong Chief Exec Lam: Hong Kong will continue with Article 23 of the National Security Law, Confirms Northern Housing Project – Annual Political Speech.
Other
– (TW) US President Biden: met with Chinese President Xi in Taiwan; Agreed to comply with the Taiwan agreement.
– (TW) Taiwan Ministry of National Defense (DND): China not sure if attack on Taiwan would be successful, could be ready for full-scale invasion of Taiwan by 2025 – Taiwanese Press.
North America
– (CN) USTR seeks public comment on tariff exclusions for 549 categories of Chinese imports – press.
Europe
– (UK) Prime Minister Johnson reportedly intends to announce “significant” minimum wage increase in coming weeks – UK’s Times.
– (IE) the Central Bank of Ireland is raising its GDP outlook for 2021 to 15.3% (before 8.3%) due to a stronger than expected surge in consumption which will worsen inflationary pressures; also raises altered domestic demand outlook.
Levels from 1:00 am ET
– Hang Seng -0.9%; Shanghai Composite closed for holidays; Kospi -1.5%; Nikkei225 -1.3%; ASX 200 -0.7%.
– Equity Futures: S & P500 -0.6%; Nasdaq100 -0.6%, Dax -0.7%; FTSE100 -0.7%.
– 1.1604-1.1583 euros; 111.76-111.43 JPY; AUD 0.7297-0.7254; NZD 0.6980-0.6919.
– Commodity Futures: Gold -0.4% at $ 1,753 / oz; Crude oil + 0.1% at $ 78.97 / brl; Copper -1.0% at $ 4.14 / lb.
