China Q3 GDP growth slower than expected

Asia Market Update: China Q3 GDP growth slower than expected, hits multi-year low; Various Chinese officials comment on market support measures

General Trend:

- Asian equity markets pare losses

- Shanghai Composite trades between gains and losses in early trade, traders assess GDP data and market support measures

- Japan electronics/appliances seller Yamada Denki declines on profit warning

- China officials pledge to support non-state backed listed companies, limit risks related to share pledging

- China net exports subtract from Jan-Sept GDP growth

- PBoC continues to fix yuan weaker after escaping currency manipulator designation

 

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened -0.4%

-(NZ) New Zealand Sept Net Migration: 4.6K v 5.0K prior (lowest since 2014)

-(NZ) New Zealand Sept Credit Card Spending M/M: 0.8% v 2.6% prior; Y/Y: 7.8% v 7.7% prior

China/Hong Kong

-Shanghai Composite opened -1.1%, Hang Seng -1.1%

-(CN) China PBoC Gov Yi Gang: China equity market valuation at historically low level, recent market volatility caused by investor sentiment; supports local governments to support companies liquidity

-(CN) China Securities Regulator (CSRC) Chief Liu: China will support non-state backed listed companies

-(CN) China Banking and Insurance Regulatory Commission (CBIRC) Chairman Guo Shuqing: To push financial market back to 'normal path', volatility not in line with healthy status; reiterates systemic risks are currently under control

- (CN) China Vice Premier Liu He: China and US 'in touch'; China government pays 'high attention' to healthy stock market development - Xinhua

-(CN) China National Bureau of Stats (NBS) Official Mao: Notes extremely complex, severe domestic and economic situations; Economy is stable, helping reach full-year target, affirms 2018 GDP growth target of ~6.5%

-(CN) CHINA Q3 GDP Y/Y: 6.5% V 6.6%E (slowest growth since Q1 2009)

-(CN) CHINA SEPT INDUSTRIAL PRODUCTION Y/Y: 5.8% V 6.0%E (slowest growth since 2016)

-(CN) CHINA SEPT FIXED ASSETS INVESTMENTS (EX RURAL) YTD Y/Y: 5.4% V 5.3%E

-(CN) China Sept Fiscal Spending +11.7% y/y; Fiscal Rev +2% y/y

-(CN) China Sept Surveyed Jobless Rate: 4.9% v 5.0% prior

-(CN) CHINA SEPT RETAIL SALES Y/Y: 9.2% V 9.0%E

-(CN) CHINA PBOC SET YUAN REFERENCE RATE: 6.9387 V 6.9275 PRIOR (weakest CNY fix since Jan 4 2017)

-(CN) China PBoC Open Market Operation (OMO): To inject CNY30B in 7-day reverse repos v skipped prior: Net: CNY30B injection v nll prior

- (CN) China Finance Ministry (MOF) auctions 30-year bonds: yield 4.08% v 4.14%e; bid to cover 2.56x

-(CN) China Banking and Insurance Regulator (CBIRC) issues draft rules on bank wealth management units

-(CN) China said to have order rural banks to clean up non-performing loans (NPLs) faster - financial press

-(CN) Additional cities in Guangdong (China) said to plan support for listed companies - Chinese Press

-(CN) China Agriculture Ministry: China hog prices set to rise ahead of Chinese new year festival due to African Swine Fever's impact on supply; domestic soybean supply relatively ample

- (CN) China arrested former Vice Finance Minister Zhang Shaochun as part of corruption probe - financial press

Japan

-Nikkei 225 opened -1.4%

-(JP) JAPAN SEPT NATIONAL CPI Y/Y: 1.2% V 1.3%E; CPI EX FRESH FOOD (CORE): 1.0% V 1.0%E

-(JP) Japan Finance Min Aso: There are negative concerns over sales tax hike, trying to control negative impact as PM Abe says; To begin US/Japan trade talks in mid Jan

-(JP) Japan Trade Min Seko: Confirms considering steps to reduce credit card fees

Korea

-Kospi opened -0.8%

North America

-US equity markets ended lower: Dow -1.3%, S&P500 -1.4%, Nasdaq -2.1%, Russell 2000 -1.8%

Europe

-(EU) ECB's Draghi: Reportedly tells EU leaders Euro area outlook positive but protectionism remains a source of risk

-(EU) ECB Villeroy (France): Low mortgage rates in France to rise gradually

-(IT) EU Commission responds to Italy draft budget plan: points to "particularly serious" non-compliance; says Italy plans "unprecedented" deviation from budget rules

-Reportedly internal OPEC report sees bearish factors causing oil price to fall in coming weeks - press

 

Levels as of 01:30ET

- Nikkei 225, -0.8%, ASX 200 -0.1%, Hang Seng +0.5%; Shanghai Composite +0.6%; Kospi +0.2%

- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.6%, Dax +0.4%; FTSE100 +0.5%

- EUR 1.1463-1.1449 ; JPY 112.45-112.13 ; AUD 0.7114-0.7088 ;NZD 0.6567-0.6523

- Dec Gold +0.1% at $1,230/oz; Oct Crude Oil +0.3% at $68.86/brl; Dec Copper +0.6% at $2.747/lb