Equities trade generally lower

Asia Market Update: Equities trade generally lower; Gov’t bond yields rise amid NZ CPI and US retail sales, oil prices extend gain; CN Bond FUTS drop after PBOC comments, little initial impact seen from data (including GDP).

General trend

- Equity markets have generally pared gains amid rise in government bond yields, higher oil prices.

- Nikkei has traded modestly lower after the higher open.

- Shanghai traded modestly lower during the morning session after opening flat; Property index drops amid higher yields and tax concerns.

- China data weaker than expected, but affirms economic targets for the year.

- Hang Seng reversed the opening gain.

- Evergrande bond payments and grace periods still in focus.

- S&P ASX 200 has outperformed [Resources and Financial indices rise].

- BHP to issue Q1 production update on Tues.

- China Thermal Coal FUTs rise over 10%; Largest Chinese coal province reported rise in COVID cases.

- US Natural Gas FUTs drop.

- NZ Dollar and Bond yields rise after higher than expected CPI data, some now see higher probability of 50bps rate hike in Nov; NZD later pared gain.

- UST yields extend rise, curve flattens.

- RBA Oct Meeting Minutes due on Tues (Oct 19th).

- Companies due to report during the NY morning include State Street.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened 0.0%.

- ALL.AU Comments on funding for acquisition of Playtech: launches A$1.3B capital raise.

- HUB.AU To acquire Class Ltd (CL1.AU); Class shareholders will receive 1 ordinary HUB24 share for every 11 ordinary Class shares held, plus $0.10 per ordinary Class share.

- (NZ) NEW ZEALAND Q3 CPI Q/Q: 2.2% V 1.5%E; Y/Y 4.9% V 4.2%E (2nd consecutive reading above target, fastest in 10 years).

- (NZ) Bank of New Zealand: Probability of RBNZ 50bps rate hike at Nov meeting is ~ 50:50.

- (NZ) New Zealand Q3 RBNZ Sectoral Factor Model inflation Index Y/Y: 2.7% v 2.2% prior.

Japan

- Nikkei 225 opened +0.1%.

- (JP) Japan PM Kishida: Will urge oil producing countries to increase production.

- (JP) Japan PM Kishida: No plans to change consumption tax, can deliver cash handouts in a quick manner.

Korea

- Kospi opened +0.1%.

- (KR) South Korea Fin Min Hong: Will actively respond to US info sharing request on chipmakers supply chains – Yonhap.

- (KR) According to a recently Bank of Korea (BOK) poll, South Korea banks are expected to keep loans to households subdued in Q4 - Yonhap.

China/Hong Kong

- Hang Seng opened +0.4%; Shanghai Composite opened 0.0%.

- (CN) CHINA Q3 GDP Q/Q: 0.2% V 0.4%E; Y/Y: 4.9% V 5.0%E; GDP YTD Y/Y: 9.8% v 10.1%e.

- (CN) CHINA SEPT RETAIL SALES Y/Y: 4.4% V 3.5%E.

- (CN) CHINA SEPT INDUSTRIAL PRODUCTION Y/Y: 3.1% V 3.8%e.

- (CN) China National Bureau of Stats (NBS): Seek to ensure achieving annual economic targets, domestic recovery is unsolid and unbalanced , see major economic data in reasonable range for Q1 to Q3.

- (CN) China Sept Surveyed Jobless Rate: 4.9% v 5.1%e.

- (CN) CHINA SEPT PROPERTY INVESTMENT YTD Y/Y: 8.8% V 9.5%E.

- (CN) China PBOC Gov Yi Gang: China's economy is "doing well", but faces challenges such as default risks for certain firms due to "mismanagement"; authorities are keeping a close eye "so they do not become systematic risks"; sees 2021 GDP at 8% - online meeting of the Group of 30 International Banking Seminar Sunday.

- (CN) China Industry (MIIT) Min Xiao: Reiterates China to deepen its drive into antimonopoly in internet sector.

- (CN) China Premier Li: China is committed to expanding opening up and facilitating free trade.

- (CN) China to sell $4.0B in 3,5,10,30 year tenors (smallest offering of USD bonds since 2018) in Hong Kong.

- 3333.HK Will officially be in default on Oct 23rd, the end of grace period on first non-payment.

- (CN) China PBOC sets Yuan reference rate: 6.4300 v 6.4386 prior.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY10B v Net CNY0B prior.

Other

- (SG) SINGAPORE SEPT NON-OIL DOMESTIC EXPORTS M/M: 1.2% V 0.0%E; Y/Y: 12.3% V 8.5%E; Electronic Exports Y/Y: 14.4% v 16.7% prior.

North America

- BIIB Tofersen Phase 3 Study did not meet primary endpoint of change from baseline to week 28 in Revised Amyotrophic Lateral Sclerosis Functional Rating Scale (ALSFRS-R); Open-Label Extension in SOD1-ALS reinforced these findings and showed that early tofersen initiation led to less decline across multiple measures.

Europe

- (NL) ECB's Knot (Netherlands): Sees interest rates edge up once central banks begin unwinding their stimulus programs during H1 2022 - TV interview.

- OPEC+ Sept compliance with cuts seen at 115%, see 2021 global oil demand to make up 65% of loss in 2020 - press.

- PTEC.UK Aristocrat makes offer to acquire at 680p/shr cash, £2.1B; board recommends.

- (UK) BOE Gov Bailey: have already signaled that we will have to act to fight inflation; Action to come in our monetary policy meetings.

- (EU) ECB chief Lagarde: Reiterates stance ECB will continue supporting the economy in order to durably stabilise inflation at our 2% inflation target over the medium term.

Levels as of 01:15ET

- Hang Seng -0.6%; Shanghai Composite -0.3%; Kospi -0.2%; Nikkei225 -0.2%; ASX 200 +0.1%.

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

- EUR 1.1605-1.1578; JPY 114.45-114.01; AUD 0.7437-0.7400; NZD 0.7105-0.7064.

- Commodity Futures: Gold 0.0% at $1,768/oz; Crude Oil +1.4% at $82.88/brl; Copper +1.1% at $4.77/lb.