Asia Market Update: Equity indices trade mixed after US declines, HK impacted by weather conditions; CN trade surplus above ests, components were mixed; US CPI due later today, corporate earnings also in focus.

General trend

- USD index trades slightly lower in Asia ahead of CPI data.

- Equity markets are generally off of the lows.

- US equity FUTS have remained modestly lower amid the Apple news.

- Nikkei has pared decline; Fast Retailing (largest Nikkei component) to report after the market close on Thurs.

- S&P ASX 200 has seen slight losses.

- Hang Seng index closed on session due to weather conditions, Thursday is also a holiday in HK.

- Shanghai Composite ended morning trading slightly lower (-0.4%); Property index dropped >1.5%.

- Chinese coal FUTs erase gain after hitting record high.

- China Sept inflation data is due on Thursday (Oct 14th).

- Monetary Authority of Singapore (MAS) is due to hold policy meeting on Thurs., Q3 advance GDP also due.

- Australia Sept jobs report also due tomorrow.

- Companies due to report during the NY morning include BlackRock, Delta, Infosys, JPMorgan.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened flat.

- (AU) Australia Oct Westpac Consumer Confidence: 104.6 v 106.2 prior; M/M: -1.5% v +2.0% prior.

- (AU) Australia Sept HIA New Home Sales M/M: 2.3% v 5.8% prior.

- (AU) Australia Treasurer Frydenberg: Expects GDP contraction of 3% of more in Q3; Companies and households have built up A$250M on balance sheets; open to review of RBA, there is a case there for having a review of the RBA.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 1.25% May 2032 bonds, avg yield 1.7305%, bid to cover 5.90x.

- (NZ) New Zealand Sept ANZ Business Confidence: -8.6 v -3.8 prior; Activity Outlook: 26.2 v 19.2 prior.

- (NZ) Reserve Bank of New Zealand (RBNZ) Bascand: To give speech at Citi conference on Oct 13th; the speech is titled "The contribution of strong balance sheets to NZ's economic resilience and recovery from the pandemic".

- (NZ) New Zealand Sept Food Prices M/M: 0.5% v 0.3% prior.

China/Hong Kong

- Hang Seng closed due to weather conditions, Shanghai Composite opened -0.1%.

- (CN) CHINA SEPT TRADE BALANCE: $66.8B V $46.6BE; Exports Y/Y: 28.1% v 21.5%e; Imports Y/Y: 17.6% v 20.7%e.

- (HK) Hong Kong Typhoon warning Signal 8 to remain in effect until 16:00 local time (end of afternoon trading session) [Earlier today Hong Kong Exchange said: if the typhoon warning is at 8 or above (or extreme weather conditions are announced) and remains issued at 12 noon, all trading sessions today will be cancelled].

- (CN) China Energy Administration: Sept Power Consumption Y/Y: 6.8% v 3.6% prior.

- (CN) China Industry Min (MIIT): Has asked steel mills in certain cities to cut steel production from Nov 15 to Mar 15 2022.

- (CN) China Real Estate Association said to be planning meeting with builders over difficulties and risks; to hold a symposium with property developers in Beijing Friday, Oct 15th to implement property industry policies – press.

- (CN) China Sec Journal: Property Market may cool down further during Q4 due to additional regulations.

- IMF: Cuts China 2021 GDP growth forecast from 8.1% to 8.0%; Cuts China 2022 GDP growth forecast from 5.7% to 4.9%.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY90B v Net drain CNY90B prior.

- (CN) China PBOC sets Yuan reference rate: 6.4612 v 6.4447 prior.

- (CN) China MOF to sell an additional CNY6.0B worth of Dim Sum bonds in Hong Kong on Oct 20th (Wed).

- (TW) Taiwan Defense Ministry: Warns that will issue tougher response to China if military jet flights get too close.


- Nikkei 225 opened -0.5%.

- (JP) Japan PM Kishida: Must be cautious on issuing perpetual bonds for Govt funding, need to ensure market trust; No comment on recent FX Development.

- (JP) Japan PM Kishida: Must deploy fiscal stimulus flexibly but does not suggest any problem with raising debt balance indefinitely; Must avoid the possibility of any emerging JGB default risk - parliament comments [from Oct 12th’].

- (JP) Japan Sept M2 Money Supply Y/Y: 4.2% v 4.3%e; M3 Money Supply Y/Y: 3.8% v 3.9%e.

- *(JP) JAPAN AUG CORE MACHINE ORDERS M/M: -2.4% V +1.4%E; Y/Y: +17.0% V 13.9%E.


- Kospi opened -0.1%.

- (KR) South Korea Aug Unemployment Rate: 3.0% v 3.0%e.

- (KR) South Korea sells 2-year bonds: avg yield 1.650% v 1.320% prior.

- (KR) South Korea Sept Total Bank Lending to Households (KRW): 1,053T v 1,046T prior.

North America

Apple [AAPL]: now said to expect production of new iPhones in the last three months of 2021 to be as much as 10M units lower than its original plan for 90M units – press.

- (US) Fed's Quarles to no longer be chair of Supervision and Regulation committee when term expires tomorrow (Oct 13th), committee to meet on unchaired basis.

- (US) Fed's Barkin (FOMC voter, hawk): Reiterates prices are being pushed higher by shortages.

- (US) Debt limit increase bill through Dec 3rd has passed in the House of Representatives, the final vote was 219-206; White House has previously said that President Biden will sign the bill.

- (US) US to allow vaccinated Canadians and Mexicans to enter county in early Nov - Press.


- LVMH [MC.FR]: Reports Q3 Rev €15.5B v €15.0Be; Sees continuation of current growth.

- SAP [SAP.DE]: Raises FY21 Cloud Rev €9.4-9.6B, op profit €8.1-8.3B (prior Cloud Rev €9.3-9.5B, op profit €7.95-8.25B).

Levels as of 01:20 ET

- Nikkei 225, -0.1%, ASX 200 -0.1% , Hang Seng closed; Shanghai Composite +0.1% ; Kospi +1%.

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

- EUR 1.1555-1.1528 ; JPY 113.62-113.34 ; AUD 0.7353-0.7328 ;NZD 0.6949-0.6921.

- Gold +0.1% at $1,761/oz; Crude Oil -0.1% at $80.56/brl; Copper +0.4% at $4.3405/lb.

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD remains vulnerable near 1.1600 amid firmer dollar

EUR/USD is hovering around 1.1600, on the defensive amid a broadly stronger US dollar. Markets cheer US-Sino talks and stimulus progress despite looming inflation fears. The Fed-ECB monetary policy divergence weighs down on the euro. US Consumer Confidence data awaited.


GBP/USD hovers around 1.3750, Brexit talks in London eyed

GBP/USD is trading above 1.3750, struggling for a clear direction after Monday’s rebound. Market sentiment improves on stimulus hopes, US-Sino talks but the dollar remains firmer. UK’s Frost offers EU December deadline to solve the row over the NI proposal. All eyes on the Brexit talks in London.


Acceptance above 100/200-day SMAs favours XAU/USD bulls

Gold regained positive traction on Monday and inched back closer to multi-week tops. Fresh COVID-19 jitters benefitted the safe-haven metal. A stronger USD, hawkish central bank outlooks kept a lid on any meaningful upside.

Gold News

Traders book profits from Shiba Inu to push Dogecoin to $0.34

Dogecoin price could see some incoming speculative money from profit-taking in Shiba Inu A bullish close above the Cloud on the daily chart indicates future upswing likely. The outperformance of Shiba Inu is likely as Dogecoin lags the majority of the market.

Read more

Conference Board Consumer Confidence October Preview: Watch what we do... Premium

Confidence expected to slip to 108.3 from 109.3 in September. Michigan Consumer Sentiment eroded slightly in October. Sentiment seems divorced from labor market and Retail Sales. Federal Reserve taper will not hinge on a happy US consumer.

Read more