Equity weakness and jobs data weigh on Aussie, Gov’t bond yields extend gains
|Asia Market Update: Equity weakness and jobs data weigh on Aussie; Gov’t bond yields extend gains; Taiwan Semi to report results.
General trend
- Australia commented on the employment data: It is important to remember that a fall in unemployment does not always mean much higher employment.
- Japan 10-year Swap Rate rises to the highest since 2011.
- USD/JPY is still below ¥150.
- Japan’s trade data was supported by US auto strike?
- MYR declines to the lowest level since 1998 [Asian Financial Crisis].
- Asian equity indices decline by >1%, track losses on Wall St.
- Nasdaq FUTs trade slightly lower; Tesla declined after reporting results, Netflix rose.
- Chip-related firms drop after results from ASML.
- PBOC increased liquidity injection; Loan prime rate decision due on China.
- US Fed speak will continue.
- Japan National CPI figures due on Fri [Reminder: JAPAN SEPT TOKYO CPI Y/Y: 2.8% V 2.7%E; CPI (EX-FRESH FOOD) Y/Y: 2.5% V 2.6%E (lowest core since July 2022)].
Headlines/economic data
Australia/New Zealand
-ASX 200 opens -0.6% at 7,034.
-AUSTRALIA SEPT EMPLOYMENT CHANGE: +6.7K V +20.0KE; UNEMPLOYMENT RATE: 3.6% V 3.7%E.
-Australia Q3 NAB Business Confidence: -1 v -3 prior.
- Reserve Bank of Australia (RBA) releases FY23 annual report: recorded an accounting loss of A$6B.
-Origin Energy: There is speculation that Brookfield might increase offer - Australia press.
-New Zealand Debt Management Office: Today's bond auction postponed; cites technical difficulties related to Yieldbroker; to now hold the bond auction on Oct 20th (Fri).
-NZD/USD NZD declines to the lowest level since early Nov 2022.
China/Hong Kong
-Hang Seng opens -1.1% at 17,540.
- Shanghai Composite opens -0.5% at 3,043.
-Country Garden: Founder and board director said to be currently at work as usual; cites company statement.
- Hong Kong might announce 'slight' cut in the home purchase tax [property stamp duty]; the announcement might come in next week's policy address - HK press.
-Sino-Ocean: To hold online meeting with bondholders on Oct 20th.
-China Sept New Home Prices M/M: -0.3% v -0.3% prior.
-China PBOC Open Market Operation (OMO): Sells CNY344B in 7-day reverse repos; Net injects CNY182B v injects CNY3.0B prior.
-China PBOC sets Yuan reference rate: 7.1795 v 7.1795 prior.
-China Sept Swift Global Payments (CNY): 3.7% v 3.5% prior.
-Tencent: Reportedly China takes control of domestic unit - Information.
-Vinda International [3331.HK]: RGE said to consider bidding for the co. - US financial press.
-WH Group: Said to prepare for US IPO of Smithfield Foods; the IPO could be conducted by as early as 2024 - US financial press.
-NDRC signs MOU with HKMA related to corporate financing and bond market.
Japan
-Nikkei 225 opens -1.4% at 31,579.
-JAPAN SEPT TRADE BALANCE: +¥62.4B V -¥450.0BE; Overall car export growth hit record amount [US UAW strike started on Sept 15th].
-Japan releases weekly flows data [period ended Oct 13th]: Foreign buying of Japan equities +¥1.3T; Japan buying of foreign bonds: +¥794.0B; Foreign buying of Japan bonds: +¥947.8B.
-Former BOJ Board member Sakurai: BOJ may scrap negative rates by end-2023 before tweaking Yield Curve Control (YCC) [from Oct 18th].
- Bank of Japan (BOJ) quarterly Regional Economic Report (Sakura): Upgrades assessment of 6 of 9 regions.
- Japan Top FX Diplomat Kanda: US economy is stronger than expected, but beige book out today suggests signs of softening.
-Mitsubishi Motors: Board expected to decide on exit from China next week - Japanese press.
-Maiji Yasuda Life Insurance: To raise wages by 7% on avg from next Spring - Japan media.
Korea
-Kospi opens -1.2% at 2,431.
-Bank of Korea (BOK) Gov Rhee: Decision to keep policy steady was unanimous; 1 member sees the need to either lower or raise rate - Post rate decision comments.
-BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 3.50%; AS EXPECTED; Expects delay in South Korea inflation reaching the target.
-Kakao Corp: Kakao CIO said to have been arrested, relates to SM stock manipulation - South Korea press.
Other Asia
-Malaysia Trade Min; No plan to abolish import permits for EVs.
North America
-(US) Fed's Williams (voter): Inflation has come down quite a bit, but still a ways to go get it back to target.
-(US) Fed's Waller (voter, hawk): Too soon to tell if economy cooling, prices heating up.
-(US) Fed's Cook (voter) does not comment on monetary policy.
-(US) TREASURY $13B 20-YEAR BOND REOPENING DRAWS 5.245% v 4.592% prior, BID-TO-COVER 2.59 v 2.74 PRIOR AND 2.68 OVER LAST 8 REOPENINGS.
-Netflix [NFLX]: Reports Q3 $3.73 v $3.46e, Rev $8.54B v $8.53Be; Adds highest amount of subscribers since Q1 2020; Confirms to raise prices for some customers in the US, UK and France from today; Talks with SAG-AFTRA ongoing; Guides Q4 $2.15 v $2.21e, total Rev $8.69B v $8.77Be; Guides Q4 Net adds similar to Q3 +/- a few million (implies +8.76M +/- a few million) v 7.7Me.
- Tesla [TSLA]: Reports Q3 $0.66 v $0.73e, Rev $23.4B v $24.4Be; Cybertruck deliveries begin in Nov 2024; Affirms FY23 vehicle production at 1.8M and to remain ahead of long-term 50% CAGR (prior: 1.8M and to remain ahead of long-term 50% CAGR).
- Ford [F] To lay off 150 additional workers in Michigan, brings the total to 2,730 workers; cites the UAW strike - press.
Europe
-Iran Foreign Min Amirabdollahian: Request for oil embargo against Israel.
-OPEC+ said not planning any extraordinary meeting following Iran Foreign Min called for an oil embargo against Israel - press.
-(IL) Israeli air strike targets Kafr Shuba in Southern Lebanon.
-(IL) US Pres Biden: Did not offer US troops if Lebanon's Hezbollah starts war on Israel.
-SAP [SAP.DE]: Reports Q3 €1.45 v €1.33e, Rev €7.74B v €7.78Be; Guides Q4 Rev -5% to -3% y/y, Op profit -4% to -2% v -0.5%e.
Levels as of 01:20 ET
- Nikkei 225, -1.7%, ASX 200 -1.4% , Hang Seng -1.9%; Shanghai Composite -1.2% ; Kospi -1.8%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 -0.2%.
- EUR 1.0541-1.0530 ; JPY 149.93-149.66 ; AUD 0.6341-0.6296 ;NZD 0.5863-0.5824.
- Gold -0.4% at $1,959/oz; Crude Oil -0.2% at $87.10/brl; Copper -0.3% at $3.5713/lb.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.