Japan manufacturing PMI returns to expansion
|Asia Mid-Session Market Update: Japan manufacturing PMI returns to expansion as cabinet officials resume jawboning against Yen strength
Top US session headlines
- (US) AUG EXISTING HOME SALES: 5.33M V 5.45ME
- (US) INITIAL JOBLESS CLAIMS: 252K V 261KE; CONTINUING CLAIMS: 2.11M V 2.14ME (lowest initial jobless claims since April)
- Reportedly no breakthrough reached at OPEC meeting in Vienna ahead of meeting in Algeria next week - press
- (US) TREASURY $11B 10-YEAR TIPS REOPENING DRAW 0.052%; BID TO COVER 2.59 V 2.27 PRIOR AND 2.38 AVG OVER THE LAST 4 (highest BTC since May 2014)
- YHOO: Confirms certain data from 500M user accounts was stolen, including hashed passwords, names and email addresses
Asia Notes/Observations
- Volatility is compressed for the 2nd day and US yield curve flattens as markets process FOMC ripple and settle on 50-50 chance of December hike.
- Nikkei returns from holiday with a down day amid catch-up to Yen bid on BOJ policy change
- Oil pares gains on diminished prospects of Algiers agreement for any supply shift
- NZD still under pressure in the extended wake of more dovish than expected RBNZ; other USD majors in narrow ranges
- Japan PMI surprises to the upside with first expansion in 7 months; Output up for 2nd month and Employment rises to 4-month highs
- Japan Fin Min acknowledges not much impact anticipated from latest BOJ move; Cabinet Sec Suga warns govt watching market moves and Yen direction following BOJ and FOMC
- North Korea Army spokesperson threatens to strike Guam and Seoul if US flies its B-1B bombers over Korea
US markets on close: Dow +0.5%, S&P500 +0.7%, Nasdaq +0.8%
- Best Sector in S&P500: Consumer Discretionary
- Worst Sector in S&P500: Basic Materials
- Biggest gainers: WY +5.7%, RIG +5.6%, DISCA +4.8%, FTR +4.8%, RCL +4.6%
- Biggest losers: EQR -2.5%, SWN -2.3%, LVLT -2.1%, KSS -1.9%, PXD -1.8%
VIX 12.0 (-1.3pts); Treasuries: 2-yr 0.77% (-1bp), 10-yr 1.63% (-4bp), 30-yr 2.35% (-4bp)
US movers afterhours
- MIFI +29.8%; Pact to Sell Mobile Broadband Unit
- BATS +28.5%; CBOE reportedly in discussions to acquire BATS Global - press
- IMPV +16.4%; Said to Draw Acquisition Interest
- AIR +4.8%; 1Q EPS Cont. Operations, Sales Beat Ests.
- FB -1.4%; Said to have overestimated video ads' viewing time by as much as 60-80% for 2 years - financial press
- ENPH -21.0%; Will Cut 11% of Workforce, Offer Stock
After extended session
- GM: Chevrolet to begin offering all-new Equinox SUV model in China - financial press
Equity Futures (23:30ET): S&P e-mini flat, Dax flat, FTSE100 -0.1%
FX/Commodities (23:30ET):
- EUR 1.1195-1.1210; JPY 100.70-101.25; AUD 0.7630-0.7650, NZD 0.7275-0.7315
- Gold -0.2% at 1,338; Oil -1.1% at $45.81/brl; Copper -0.2% at $2.19/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.5 tonnes to 950.9 tonnes; Highest since Sept 7th
Asian Equity Markets (23:30ET)
- Nikkei -0.1%, Hang Seng +0.1%, ASX +0.7%, Shanghai -0.1%, Kospi +0.1%
Key economic data:
- (JP) JAPAN SEPT PRELIMINARY PMI MANUFACTURING: 50.3 V 49.5 PRIOR; first expansion in 7 months
- (HK) Macau Aug visitor arrivals: 2.88M, +3.1% y/y
Speakers/Press
China:
- (CN) Former China vice housing minister Qiu Baoxing warns about risk of overheating property sector - Chinese press
- (CN) Moody's: China developers will have stable margins in 2016 v 2015
- (CN) China State Administration of Foreign Exchange (SAFE) official: No basis for long term Yuan depreciation - financial press
Japan:
- (JP) Japan Chief Cabinet Sec Suga: Will continue to watch market moves, fx moves are very sensitive
- (JP) Japan Fin Min Aso: Reiterates Govt and BOJ need to work together on many issues; deflation is the main problem for the economy
- (JP) Japan Business Federation (Keidanren) chief Sakakibara met with China's Commerce Ministry, urging more transparent antitrust process - Nikkei
Asia movers
- China Unicom 762.HK +5.0%; Raised at Goldman Sachs
- Iluka Resources ILU.AU +4.8%; raised to buy from neutral at UBS
- Qube Holdings QUB.AU +4.6%; upgraded to outperform at Macquarie
- Warehouse Groupd WHS.NZ +1.4%: Reports FY16 adj net NZ$64.1M v NZ$57.1M y/y, Rev NZ$2.95B v NZ$2.78B y/y
- Gold miners trade lower on gold prices; Newcrest NCM.AU -2.8%, Evolution Mining EVN.AU -2.6%
- Wynn Macau -3.7%, MGM China -3.0% cut at Credit Suisse
- Dentsu 4324.JP -4.6%: Confirms issues with improper accounting in internet ads, apologizes to customers
- Charter Hall CHC.AU -6.6%; Halt lifted after Gandel Group block sale
- Whitehaven Coal WHC.AU -8.5%; Annual report, CEO pay hike
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