AU yields rise ahead of CPI data

Asia Market Update: Equity indices trade generally higher after US gains; HSI lags, China to meet with property developers; AU yields rise ahead of CPI data.

General Trend

- Nasdaq FUT rise amid tech earnings.

- Nikkei has extended gain [Heavyweights rise after prior declines (Fast Retailing and Softbank Group); Topix Shipping index rises amid earnings speculation; Panasonic has supported the Electric Appliances index].

- Japanese companies due to report earnings include Canon Inc and Nidec.

- Hang Seng has pared the opening gain [Property index declines].

- HK Property Developers remain under the microscope; Modern Land China defaulted after failed debt exchange, Agile Group tries to reassure investors; China State Planner (NDRC) to meet in Beijing with certain property developers on Tues (Oct 26th).

- Shanghai Composite ended morning trading fractionally higher [Property index continued to lag].

- S&P ASX 200 has pared gain [Energy, Resources, Consumer Discretionary and Financial indices outperform].

- Hynix reported mixed results.

- AU Q3 CPI data due on Wed (Oct 27th).

- Companies due to report during the NY morning include Asbury Automotive, Archer-Daniels Midland, Arch Resources, Armstrong World Industries, Centene, Dana, Ecolab, GE, Corning, Hasbro, JetBlue, Eli Lilly, Lockheed Martin, 3M, Paccar, PulteGroup, Polaris, Pentair, Raytheon, Sherwin-Williams, S&P Global, UPS, Waste Management, Xerox.

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened +0.1%.

- FCG.NZ Raises FY21/22 forecast milk price to NZ$7.90-8.90; Affirms FY21/22 EPS NZ$0.25-0.40/shr.

- OSH.AU Reports Q3 Total production 6.9 MMBOE v 7.3 y/y; Rev $408.8M v $189M y/y.

- CWN.AU Victoria Govt issues conduct report: Company not suitable to hold casino license in Melbourne. Will be permitted to operate under oversight.

- (AU) Australia Trade Min Tehan: Prepared to supply coal to China; Will welcome other visa holders by Christmas.

- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Climate change could lead to a prolonged period of faster inflation that requires a monetary policy response, current price increases are proving more persistent.

Japan

-Nikkei 225 opened +1.1%.

- (JP) Bank of Japan (BOJ) has extended deadline for FX Swap agreement with China PBOC to Oct 25, 2024.

- (JP) Japan PM Kishida: Digitalization will be catalyst for economic growth; Will draft proposals on economic priorities in Nov.

- (JP) According to recent poll PM Kishida’s ruling Liberal Democratic Party is likely to keep substantially more than half the seats in parliament in this weekend’s. general election

Korea

-Kospi opened +0.6%.

- (KR) SOUTH KOREA Q3 PRELIMINARY GDP Q/Q: 0.3% V 0.6%E; Y/Y: 4.0% V 4.3%E.

- 000660.KR Reports Q3 (KRW) Net 3.32T (largest since 2018) v 1.1T y/y; Op 4.17T v 1.30T y/y; Rev 11.8T v 8.13T y/y.

- (KR) South Korea Fin Min: Oil tax to be cut by 20% for 6-month; To lower LNG Tariff to 0%.

China/Hong Kong

-Hang Seng opened +0.4%; Shanghai Composite opened %.

- (CN) China State Planner (NDRC): Considering floating coal prices based off of benchmark pricing; Studying mechanism to stabilize coal prices over long term.

- (CN) China Securities Journal (CSJ): PBOC liquidity injections show less prospects for RRR cut [in line].

- 1107.HK Due to unexpected liquidity issues, repayment of principal and interest amount of notes was not met on Oct 25th for 12.85% senior notes due 2021; continued halt in trading.

- (CN) China PBOC sets Yuan reference rate: 6.3890 v 6.3924 prior.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY200B prior; Net inject CNY190B v Net inject CNY190B prior.

- (CN) China Vice Premier Liu He and US Treasury Sec Yellen spoke on Tuesday (Oct 26th) on Economy, and bilateral and global cooperation.

- (HK) Hong Kong Chief Exec Lam: To remove most coronavirus quarantine exemptions.

North America

- FB Reports Q3 $3.22 v $3.20e, Rev $29.0B v $29.6Be; Increases share repurchase program by $50B; Notes significant uncertainty ahead of Q4 and continued headwinds from Apple's iOS 14 changes.

- (US) Reportedly SEC has convinced other regulators and will get go ahead to make moves to crack down on stablecoin market – press.

- TSLA Hertz orders 100K Tesla by end of 2022 with new EV charging infrastructure across global ops (US morning).

- (US) San Pedro Ports (Located in Los Angeles and Long Beach California) to impose dwell time charges for ocean carriers of $100/day.

- AAPL DOJ reportedly has accelerated its two-year-old antitrust probe of Apple and is likely to bring case - The Information.

Europe

- (FR) France President Macron approval rating -2ppt to 40% in latest Odoxa poll.

- (UK) Chancellor of the Exchequer Sunak (Fin Min) expected to announce a salary rise next year for public sector workers, will also raise National Living Wage from £8.91 to £9.50/hr - UK press.

- (FR) France to use "go slow" strategy for customs checks for UK lorries heading into Christmas season in retaliation over fishing dispute - UK press.

- (RU) Russia Energy Min Novak: Expect OPEC+ to up oil output by 400K bpd in November (as previously agreed) - press.

- UBSG.CH Reports Q3 Net $2.28B v $2.1B y/y; Rev $9.13B v $8.94B y/y, to give strategic update Feb 1, 2022.

Levels as of 01:15ET

- Hang Seng -0.3%; Shanghai Composite +0.1%; Kospi +0.8%; Nikkei225 +1.8%; ASX 200 +0.0%.

- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.5%, Dax +0.2%; FTSE100 +0.1%.

- EUR 1.1612-1.1597; JPY 113.99-113.68; AUD 0.7518-0.7484; NZD 0.7177-0.7158.

- Commodity Futures: Gold -0.1% at $1,805/oz; Crude Oil +0.1% at $83.86/brl; Copper +0.2% at $4.53/lb.