Equity markets generally decline ahead of US jobs data

Asia Market Update: Equity markets generally decline ahead of US jobs data; Little impact seen on Samsung’s shares following earnings miss; JP and CN FX Reserves drop.

General trend

- HK-listed property developers lag [Country Garden drops amid block trade].

- Japanese companies expected to report earnings include [Yaskawa Electric, Kewpie, Sakata Seed, Adastria].

- Shanghai markets are closed this week for holiday, resume trading on Mon (Oct 10th).

- Taiwan Semi may release monthly sales.

Headlines/economic data

Australia/New Zealand

- ASX 200 opened flat.

- (AU) Australia sells A$700M v A$700M indicated in 0.25% Nov 2025 Bonds: Avg Yield: 3.4303%; bid-to-cover 3.04x.

- (AU) Reserve Bank of Australia (RBA) Financial Stability Review: Markets stressed by higher USD, rising energy costs, Geopolitical tensions and synchronized policy tightening.

Japan

- Nikkei 225 opened -1.2%.

- (JP) Japan Sept FX Reserves: $1.24T v $1.29T prior (Largest m/m fall; at lowest amount since Dec 2015).

- (JP) Japan PM Kishida: Confirms will take additional measures on gas price increases and review burden on households and businesses.

- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].

- (JP) Follow Up: Japan announces sanctions after EU earlier revealed new sanctions on Russia; to impose additional asset freezes on Russia.

- (JP) Japan Fin Min Suzuki: FX reserves fell most on record in Sept; FX intervention was a factor in fall in reserves.

- (JP) Japan Aug Labor Cash Earnings Y/Y: 1.7% v 1.4%e; Real Cash Earnings Y/Y: -1.7% v -1.8%e.

- (JP) Japan Aug Household Spending Y/Y: 5.1% v 6.7%e.

Korea

- Kospi opened -0.9%.

- (KR) South Korea President Yoon: Govt will make efforts to maintain current account surplus and drive capital inflows.

- (KR) South Korea Finance Ministry: Will have channels ready for supply of FX liquidity to finance companies if needed.

- (KR) US and South Korea to perform joint maritime drills with US Aircraft carrier on east coast of country on Oct 7-8th [follows recent missile launches by North Korea].

- (KR) South Korea Aug Current Account (BOP): -$3.05B v $1.1B prior; Balance of Goods (BOP): -$4.4B v -$1.2B prior (Largest deficit since Apr 2020).

China/Hong Kong

- Hang Seng opened -0.9%; Shanghai Composite closed for the week for holiday.

- (CN) China Sept Foreign Reserves $3.03T v $3.06T prior (vs $2.998Te) [lowest since 2017].

Other

- (SG) Monetary Authority of Singapore to release monetary policy statement next Friday, Oct 14th.

North America

- (VZ) US Sec of State Blinken: Would review sanctions with constructive steps; reiterates no change in sanctions on Venezuela.

- (US) Fed'S mester (FOMC voter): Fed will not cut rates at all in 2023.

- (US) Fed's Mester (FOMC voter): Need real rates positive and there for a while to lower inflation; Has not seen evidence markets not working in US; See more persistence in inflation and see rates rising higher than median of fed policy makers; Not seeing evidence to slow pace of rate hikes.

- (US) Senate Majority Leader Schumer (D-NY): Examining NOPEC bill and other options after OPEC+ production cut.

- (US) Fed's Waller (voter): Inflation is much too high, not likely to fall quickly; Anticipate additional rate hikes into early next year.

- (US) Sept Challenger Job Cuts: +30.0K v +20.5K prior; Y/Y: 67.6% v 30.3% prior; Sep planned hires lowest since 2011.

- (US) Initial jobless calims: 219K V 204KE; continuing claims: 1.36M V 1.35ME.

- (BR) Brazil Sept FGV Inflation IGP-DI M/M: -1.2% v -0.8%e; Y/Y: 7.9% v 8.3%e.

- (US) Fed's Kashkari (non-voter): We have more work to do on inflation; I hope we can do so without causing a recession; we are quite a way from a pause.

- (US) Fed's Mester (FOMC voter): US is in an unacceptably high inflation environment.

- (CA) Canada Sept Ivey Purchasing Managers Index (seasonally adj): 59.5 v 60.9 prior.

- White House energy advisor Hochstein: US is not considering easing Venezuela sanctions.

- (US) Weekly EIA natural gas inventories: +129BCF VS. +114 BCF TO +116 BCF indicated range.

- (US) Treasury's $50B 4-week bills draw 2.920% v 2.660% prior, BTC 2.75; $45B 8-week bills draw 3.230% v 3.065% prior, BTC 2.53.

- (US) Fed's Cook (voter): Focusing on lag between policy actions and effects, restoring price stability to require ongoing rate hikes.

- (US) Fed's Evans (non-voter): Inflation is very high right now, that is the issue that is top of mind for FED.

- (US) Biden Admin to ask officials to review how marijuana is scheduled under federal law and urging state governors to do the same.

- (US) Reportedly US to announce new measures that will halt some exports of US equipment to Chinese firms making advanced NAND and DRAM memory chips - press.

Europe

- (DE) German Energy Regulator Chief: Struggle to avoid gas emergency this winter without at least 20% savings in private households, businesses and industry.

- (UK) BoE Letter to Treasury Committee: Liquidity conditions were very poor in the run up to the BoE Gilt intervention; Identified LDI concerns on day of fiscal plan; Sept 28th price moves exceeded those practiced with stress tests.

- (IS) Israel Central Bank Gov Yaron: Interest rate to peak at over 3%; Inflation rate to move back to 1-3% target range by next summer.

- (RU) Russian Foreign Ministry: We are fully committed to the principle of never allowing nuclear war; Our position has not changed, nuclear war must never be unleashed.

- (EU) ECB publishes account of September policy meeting (minutes): Some officials preferred 50bps hike in Sept; Inflation is far too high and likely to stay above target for an extended period.

- (DE) Germany Econ Ministry: Expects inflation at 7.9% in 2022 and 8.0% in 2023; Data will be presented next week but the figures are not finalized - press.

Levels as of 01:20 ET

- Nikkei 225, -0.7%, ASX 200 -0.8% , Hang Seng -1.4%; Shanghai Composite closed ; Kospi -0.2%.

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

- EUR 0.9812-0.9786 ; JPY 145.13-144.85 ; AUD 0.6432-0.6403 ;NZD 0.5675-0.5646.

- Gold -0.1% at $1,718/oz; Crude Oil -0.2% at $88.24/brl; Copper -0.6% at $3.4170/lb.