Equities trade mostly lower amid key data

Asia Market Update: Equities trade mostly lower amid key data; China Q3 GDP misses ests and hits lower end of growth target range, Sept IP rebounds; CPI slows further in Japan

 

General Trend:

- Property shares and financials weigh on Shanghai market in early trading

- Real estate firms also weigh on Hang Seng; Sportswear company XTEP declines over 9%, said sales growth moderated in Sept

- Iron/Steel firms are among the gainers in Japan

- Declines in consumer stocks weigh on Australian equity market

- China Stats Bureau official: Able to keep growth steady and ensure stable trend in Q4, to front-load some 2020 special local government bond issuance to this year

- Japan CPI slows further in Sept, some are expecting BoJ to ease policy at Oct meeting [Oct 30-31st]

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened flat

- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Do not agree that RBA has a lot of work to do to reach its inflation target

China/Hong Kong

-Shanghai opened +0.2%, Hang Seng +0.2%

- (CN) CHINA Q3 GDP Q/Q: 1.5% V 1.5%E; Y/Y: 6.0% V 6.1%E (lowest annual reading since 1992)

- (CN) CHINA SEPT INDUSTRIAL PRODUCTION Y/Y: 5.8% V 4.9%E

- (CN) CHINA SEPT RETAIL SALES Y/Y: 7.8% V 7.8%E; YTD Y/Y: 8.2% V 8.1%E

- (CN) CHINA SEPT FIXED URBAN ASSETS Y/Y: 5.4% V 5.5%E

- (CN) China PBoC Gov Yi Gang met with US Fed Chairman Powell, discussed China and US economy and monetary policy

- (CN) China PBoC Open Market Operation (OMO): Injects CNY30B v skip prior in 7-day; Net injects CNY30B v skip prior

- (CN) China PBOC sets Yuan Reference Rate: 7.0690 v 7.0789 prior

- (CN) China Finance Ministry sells 30-year upsized government bonds: yield 3.7991% v 3.6862% prior, bid to cover: 2.11x

Japan

- Nikkei opened +0.3%

- (JP) JAPAN SEPT NATIONAL CPI Y/Y: 0.2% V 0.2%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.3% V 0.3%E (lowest core y/y rise since 2017)

- (JP) Bank of Japan (BOJ) Gov Kuroda: Japan exports are weakening through domestic demand remains firm

- (JP) Japan Fin Min Aso: No discussion now among G20 nations to take coordinated and immediate action to fend off shock - comments from Washington D.C.

- (JP) Japan Government: Previously announced US/Japan trade deal to increase Japan's GDP by ~0.8%, contribution to Japan GDP estimated at about ¥4.0T based on FY18 GDP

- (JP) Japan MOF confirms exemptions related to foreign investment law: foreign securities companies trading on their own account will be exempted from the law

Korea

- Kospi opened +0.2%

- (KR) Treasury Sec Mnuchin: will consider South Korea's position on auto tariffs

- (KR) South Korea reportedly willing to enter talks with Japan to settle bilateral tensions over wartime labor issues - Nikkei

North America

- (US) Fed’s Williams (moderate, voter): open market operations have stabilized the markets; balance sheet actions don't change monetary policy stance

Europe

- (US) USTR Official: [Previously announced] tariffs of 10-25% on EU goods to take effect on Oct 18 (as expected)

- (TR) US VP PENCE: WE REACHED A DEAL WITH TURKEY FOR A CEASEFIRE IN NORTHERN SYRIA

- (EU) ECB Visco (Italy): Starting to see spillovers to service sector; would have been better to name dissenters in ECB account

- (FR) ECB's Villeroy (France): we must be vigilant about the evolution of global debt - comments in DC

- (EU) ECB's Knot (Netherlands): on balance the effects of negative rates have been positive

- (UK) Scotland court will hear a legal bid to halt Brexit deal - UK Press

 

Levels as of 1:20 ET

- Nikkei 225, +0.2%, ASX 200 -0.5%, Hang Seng -0.2%; Shanghai Composite -0.7%; Kospi -0.4%

- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.4%

- EUR 1.1131-1.1121 ; JPY 108.68-108.52 ; AUD 0.6839-0.6820 ;NZD 0.6377-0.6342

- Gold -0.2% at $1,495/oz; Crude Oil -0.2% at $53.81/brl; Copper -0.2% at $2.595/lb