China Premier Li commented on Q3 GDP ahead of Friday’s release date

Asia Market Update: China Premier Li commented on Q3 GDP ahead of Friday’s release date; China again cuts US Treasury holdings as trade war continues, Thursday's Aussie employment figures in focus

General Trend:

- Asian equities trade generally higher after rise on Wall St; Shanghai pares gain

- Local governments in China continue to announce liquidity support measures

- Japan equity markets supported by technology and financial firms

- Japanese shipping companies trade lower

- Financials help push the S&P ASX 200 higher

- BHP declines after quarterly production update

- Australia-listed Berkeley Energy drops over 25% amid concerns about uranium project in Spain

- Chipmaker Nanya Technologies rises after earnings report, cut FY Capex forecast

- China Premier Li is currently in the Netherlands

- China cuts is holdings of US Treasuries for the 3rd consecutive month according to US Treasury data

- RBA’s Debelle discussed labor market ahead of Thursday’s employment figures

- Singapore exports to China decline for the 2nd straight month

- President Trump: My "biggest threat" is the Fed because its "raising rates too fast, and it’s too independent" - Fox interview

- Wednesday’s EU/UK summit in Brussels in focus

- US companies expected to report earnings on Wednesday (including afterhours) include Alcoa, SL Green and Abbott Labs

- Traders still on the lookout for US Treasury’s FX report

- Bank of Korea (BoK) due to hold policy decision on Thursday, some traders are looking for hawkish signal (press)

Headlines/Economic Data

Japan

- Nikkei 225 opened +1.1%

- 4523.JP With Purdue Pharma Announce Positive Topline Results of SUNRISE 2, the Second Phase 3 Pivotal Study of Lemborexant

- (JP) Reportedly Japan is going to extend subsidies for LNG shipments – Nikkei

- (JP) BOJ Gov Kuroda: Globalization effects on prices differ depending on economy - BIS speech (after the close yesterday)

- 4901.JP Confirms Appellate Court in New York decided to end lawsuit against the company related to Xerox; The court ruling will enable Fujifilm to discuss with Xerox cooperation to fulfill the original agreement between the two companies

- REITs including Orix JREIT and Daiwa House are expected to report earnings results later today

Korea

- Kospi opened +1.1%

- (KR) Bank of Korea (BOK) sells KRW2.5T in 2-yr bonds at 2.035%

-(KR) Some traders said to be looking for ‘hawkish’ signal at Thursday’s Bank of Korea policy decision, BoK expected to raise rates by the end of 2018 – financial press

- Reminder: Bank of Korea (BOK) meetings tomorrow on interest rate decision

China/Hong Kong

- Hang Seng opened closed, Shanghai Composite +1.1%

- (CN) China Premier Li: Confident to reach economic goals this year; Q3 GDP will be at reasonable range

- (CN) China local govt Guangdong said to be considering offering support to local listed companies - Chinese press

- (CN) Beijing Hadian said to establish fund aimed at supporting listed technology companies in China - US financial press

- (CN) Certain homeowners in China stage protests over declining prices - FT

- (CN) China PBoC Open Market Operation (OMO): Skips OMO v skipped prior: Net: nil v nil prior

- (CN) China PBoC set yuan reference rate: 6.9103 v 6.9119 prior

-(CN) China MoF sells 2-yr bonds at 3.00% v 3.11%e, bid to cover 2.11x and 5-yr bonds at 3.29% v 3.38%e, bid to cover 2.42x

-(HK) Hong Kong Chief Exec Lam: HK land cannot be bought cheaply, govt is not deliberately pushing up property prices - SCMP

Australia/New Zealand

- ASX 200 opened +0.6%

- (AU) RBA Assist Gov Debelle: Unemployment could fall further than in past before wages increase, see employment growing a bit above trend over next 6-months; overall labor market in pretty good shape

- BHP.AU Reports Q1 Waio iron ore production 69Mt v 71Mte; attributable iron ore production 61Mt v 62Mte v 64Mt y/y

- ORG.AU Chairman: Affirms FY19 guidance; medium term outlook supports recommencement of dividends in FY19 – AGM

- (AU) On Saturday (Oct 20th) Australia is due to hold a by-election in Wentworth (Sydney), ruling parties' 1 seat majority in parliament in focus - financial press

- (AU) Australia Sept Westpac Leading Index M/M: -0.1% v +0.1% prior

- (AU) Australia sells A$1.0B v A$1.0B indicated in Nov 21 2029 bonds, avg yield 2.7298%, bid to cover: 3.1x

- TRS.AU Cuts H1 Net A$10-11M (prior A$17.7M) [-40.5%]

- (NZ) New Zealand swap curve is implying an ~18% probability of an RBNZ rate cut by Aug 2019 vs 24% prior amid higher than expected Q3 CPI data – US financial press

Other Asia

- (SG) Singapore Sept Non-oil Domestic Exports M/M: -4.3% v -6.4%e; Y/Y: 8.3% v 11.1%e; Exports to Europe +21.6% y/y; China -17.8% y/y; US +41.5% y/y

North America

- (MX) Mexico Finance Min said to be traveling to Washington DC for Treasury joint statement - US financial press

- (US) Fed's Daly (voter): inflation is effectively at Fed's 2% target; labor market is beyond full employment and growth is robust

- (US) President Trump: My "biggest threat" is the Fed because its "raising rates too fast, and it’s too independent" - Fox interview

- XOM China Zhoushan City Government: In talks with Exxon for $7.0B ethylene plant, annual production capacity seen at 1.5-1.8M tons; also in talks with Honeywell to build a 10K ton/year catalyst production project

Europe

- (UK) Trump administration announces intent to negotiate a trade agreement with the UK - press

- (UK) Fin Min Hammond reportedly warns MPs that Britain would face £36B bill if it doesn't agree to trade deal with EU - UK press

-(UK) EU Brexit Negotiator Barnier reportedly is open to possibly extending Brexit transition by one year in exchange for two-tier backtop to avoid Ireland border - FT

- IMF: Managing Director Lagarde to 'defer' trip to the Middle East

Levels as of 01:15ET

- Hang Seng +0.1%; Shanghai Composite -0.4%; Kospi +0.8%; Nikkei225 +1.2%; ASX 200 +1.2%

- Equity Futures: S&P500 -0.0%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 -0.1%

- EUR 1.1580-1.1548; JPY 112.42-112.22 ; AUD 0.7144-0.7129;NZD 0.6594-0.6579

- Dec Gold -0.6% at $1,224/oz; Nov Crude Oil +0.2% at $72.08/brl; Dec Copper -0.7% at $2.76/lb