USD trades generally weaker, NZD rebounds
|Asia Market Update: Equity markets trade mixed; USD trades generally weaker, NZD rebounds; RBA Financial Stability Review due on Fri.
General trend
- KRW rises amid FX reserves data.
- Japanese equity markets have extended gains.
- Seven & I is due to report earnings.
- Slight equity losses seen in Australia after the recent advances.
- Slight declines also seen in Hong Kong.
- Shanghai markets are closed this week for holiday.
- Samsung Electronics may report prelim Q3 results on Fri.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened -0.1%.
- (AU) Australia Sept AIG Construction Index: 46.5 v 47.9 prior.
- (AU) Australia Aug Trade Balance (A$): 8.3B v 10.0Be.
- (NZ) New Zealand Fin Min: Not worried about NZ$ long-term outlook.
- (NZ) New Zealand Sept ANZ Commodity Price M/M: -0.5% v -3.4% prior.
- (NZ) New Zealand sells N$400M v NZ$400M indicated in 2028, 2033, and 2051 bonds.
- (NZ) New Zealand Fin Min Robertson: Monetary and fiscal policy need to work together; There does not need to be a recession in New Zealand.
Japan
- Nikkei 225 opened +0.1%.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan Sept Tokyo Avg Office Vacancies: 6.5% v 6.5% prior.
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥886.3B v -¥1.10T prior; Foreign Net Buying of Japan Stocks: -¥501.8B v -¥1.18T prior.
Korea
- Kospi opened +0.7%.
- Samsung Electronics: Said to NOT consider cutting memory chip production; cites EVP - South Korea press.
- (KR) South Korea Sept Foreign Reserves: $416.8B v $436.4B prior; Lowest since July 2020, fastest decline in 14 years.
- (KR) South Korea President Yoon: Aircraft carrier (USS Ronald Reagan) entered into Korean waters last night; North Korea Mid range ballistic missiles aimed at hitting strategic targets.
- (KR) South Korea Foreign Ministry has ordered Kwon, involved in the Terra Cryptocurrency, to surrender his passport - Press.
China/Hong Kong
- Hang Seng opened %; Shanghai Composite closed for the week for holiday.
- (HK) Hong Kong Sept PMI (Whole Economy): 48.0 v 51.2 prior (1st contraction in 6 months).
- (HK) Said that Hong Kong will give away 500K airline tickets to stimulate tourism - SCMP.
- HUAWEI.CN Said to be relaunching 5G Phone despite US Sanctions - FT.
- (CN) China Ministry of Finance (MOF) To sell total CNY5.5B in 2024 and 2027 bonds in Hong Kong on Oct 12 (Wed).
North America
- (VZ) US NSA Official: Venezuela sanctions policy unchanged.
- GE To lay off 20% of US Onshore Wind workforce; Planning additional layoffs globally - Press.
-(US) MBA Mortgage Applications w/e Sept 30th: -14.2% v -3.7% prior.
- (US) Sept ADP employment change: +208K V +200KE; Notes annual pay growth for job changers in Sept is down m/m; Aug revised higher.
-(US) Aug trade balance: -$67.4B V -$67.7BE.
- (US) White House spokesperson Kirby: US needs to be less dependent on OPEC+ and foreign producers of oil.
- (US) Sept ISM services index: 56.7 V 56.0E; New Orders Index: 60.6 v 61.8 prior ; Prices Paid: 68.7 v 71.5 prior (lowest since Jan 2021).
-(US) Fed's Daly (non-voter): Fed is resolute at raising rates to restrictive territory; We are committed to staying the course until we are truly done - TV interview.
-(US) DOE crude: -1.4M V +1.5ME; GASOLINE: -4.7M V -1ME; distillate: -3.4M V -1.5ME.
- (US) Atlanta Fed GDPNow: Raises Q3 GDP to 2.7% from 2.3%.
-(US) Association of American Railroads weekly rail traffic report for week ending Oct 1st: 496K total units, -3.9% y/y.
-(US) September preliminary NA Class 8 Net Orders 56.5K, +169% m/m; Largest net orders ever.
Europe
- (UK) PM Truss: Domestic GDP growth hasn't been strong enough; Will lower tax burden; Will bring down debt as a share of national income - party conference.
- (ES) Bank of Spain updates economic outlook; Sees inflation hovering around 8% in coming quarters and slowing down in spring.
- OPEC+ agrees to oil output cut of 2M bpd; [***Note when Russian production is exempted (currently under producing by ~1.3M bpd) and accounted for the actual physical cut felt by markets will be under 1M bpd***].
- (PL) Poland Central Bank (NBP) leaves base rate unchanged at 6.75%; not expected.
- (RU) Russia Dep PM Novak: OPEC+ agreed to extend co-operation deal until end 2023.
- (RU) LME restricts new deliveries of metal from Russia's Ural Mining Metallurgical Company (UMMC), following UK sanctions placed on UMMC owner Iskander Makhmudov.
Levels as of 01:20 ET
- Nikkei 225, +0.9%, ASX 200 flat , Hang Seng -0.3%; Shanghai Composite closed ; Kospi +1.5%.
- Equity S&P500 Futures: +0.5%; Nasdaq100 +0.7%, Dax +1.3%; FTSE100 +0.7%.
- EUR 0.9926-0.9873 ; JPY 144.70-144.38 ; AUD 0.6540-0.6480 ;NZD 0.5815-0.5731.
- Gold +0.6% at $1,730/oz; Crude Oil +0.1% at $87.85/brl; Copper +0.7% at $3.5680/lb.
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