Equity markets trade broadly lower at start of new month and quarter amid holiday in Shanghai and HK

Asia Market Update: Equity markets trade broadly lower at start of new month and quarter amid holiday in Shanghai and HK; US equity FUTS reverse gains; Concerns related to US infrastructure bill said to be a focal point, debt ceiling issue also remains unresolved; US Aug PCE due later today; Biden’s China agenda due next week.

General trend

- Equity indices have extended declines.

- Shanghai markets will be closed for holiday from Oct 1-7 (Fri-Thurs); HK will be closed on Oct 1st..

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.3%.

-*(AU) AUSTRALIA AUG HOME LOANS VALUE M/M: -4.3% V -0.5%E; INVESTMENT LENDING M/M: +1.5% V 3.5% PRIOR.

- (AU) Australia Sept Final PMI Manufacturing: 56.8 v 57.3 prior (confirms 16th month of expansion).

- (AU) Australia Sept AIG Manufacturing Index: 51.2 v 51.6 prior.

-(AU) Australia Sept CoreLogic House Prices M/M: 1.5% v 1.5% prior.

-(AU) Australia PM Morrison: Australia ready to take next steps to safely reopen to the world; Will roll out 7 day quarantine for vaccinated individuals.

-(AU) Australia said to remove international travel curbs on Australians once states move to home quarantine – Press.

-(AU) New South Wales Premier Berekjiklian resigns [amid probe].

-(AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2028 bonds, avg yield 1.1425%, bid to cover 5.30x.

-(NZ) New Zealand Sept ANZ Consumer Confidence: 104.5 v 109.6 prior; M/M: -4.7% v -3.1% prior.

China/Hong Kong

- Hang Seng closed, Shanghai closed.

- (HK) Macau Sept Casino Rev (MOP) 5.88B v 4.44B prior; Y/Y +165.9% v 200.4%e.

- (CN) China said to publish draft rules to regulate accounting treatment of asset management products, cites the Finance Ministry (MOF); The rules are said to be aimed at improving the quality of accounting information related to domestic asset management products; China is also seeking to avoid financial risks..

- (CN) China Premier Li: To ensure energy and power supply and will maintain economic operations within a reasonable range; China will maintain the continuity and stability of its macro policies, increase policy effectiveness, and will make preemptive policy fine-tuning.

- (CN) China Commerce Ministry (MOFCOM) spokesperson: China-US economic and trade teams are maintaining regular communication.

- (US) Trade Chief Tai: To outline Biden China strategy on Monday (Oct 4th).

- (CN) US House Panel to hold hearing on China listings on US Exchanges on Oct 26th.

- (CN) China Industry Ministry (MIIT): sees pressure to stabilize industrial economic growth.

- (CN) China FX Regulator SAFE: Reiterates to continue maintaining flexibility in exchange rate.

Japan

- Nikkei opened -0.7%.

- (JP) Bank of Japan (BOJ) announces Bond purchases for Oct-Dec period; To keep current pace of JGB buying from Oct to Dec 2021.

- (JP) Japan Fin Min Aso to be replaced by former Olympics Minister Suzuki - Japanese press.

- (JP) Expected that Japan new PM Kishida will appoint Yamagiwa as Economy Min - Press.

- *(JP) JAPAN Q3 TANKAN LARGE MANUFACTURING INDEX: 18 V 13E; OUTLOOK SURVEY: 14 V 14E.

- *(JP) JAPAN AUG JOBLESS RATE: 2.8% V 2.9%E.

- (JP) Japan Sept Final PMI Manufacturing: 51.5 v 51.2 prelim (confirm the 8th straight month of expansion).

- (JP) Japan Sept Consumer Confidence: 37.8 v 37.5e.

- (JP) Bank of Japan (BOJ) Summary of Opinions from Sept 21-22 meeting: Seeing signs of slowdown in China growth.

- (JP) Said that Newly Elected LDP Leader (incoming PM) Kishida will dissolve parliament on Oct 14th - Press.

Korea

- Kospi opened -0.4%.

- (KR) South Korea Sept Trade Balance: $4.2B v $5.1Be.

- (KR) South Korea Sept PMI Manufacturing: 52.4 v 51.2 prior (11th month of expansion).

- (KR) South Korea extends social distancing measures by additional 2 weeks.

Other Asia

- (ID) Indonesia Sept PMI Manufacturing: 52.2 v 43.7 prior (1st expansion in 3 months).

- (MY) Malaysia Sept PMI Manufacturing: 48.1 v 43.4 prior (4th consecutive contraction).

- (PH) Philippines Sept PMI Manufacturing: 50.9 v 46.4 prior (1st expansion in 2 months).

- (TW) Taiwan Sept PMI Manufacturing: 54.7 v 58.5 prior (15th month of expansion).

North America

- (US) House Leadership Aide: House will not vote on $1.0T infrastructure bill on Sept 30th, will return Friday (Oct 1st) to attempt to vote on bill.

- (US) White House: Closer to agreement than ever on infrastructure bill; Additional time needed to broker deal on Presidential Agenda.

- (US) President Biden signs bill to avoid Govt shutdown and fund Govt through Dec 3rd (as expected).

- (US) Fed's Evans (dove, voter): Recent increase in prices has been 'eye popping'; There is no way to sugarcoat the way higher prices are affecting people.

- (US) Fed Chair Powell: Fed finds itself in difficult situation in regards to tension between inflation and employment; Inflation is well above target but we are still far away from full employment - House testimony.

- (US) White House Press Sec Psaki: Oil price remains a concern; Been in touch with OPEC.

Europe

- OPEC+ reportedly considering options for releasing more oil to the market at next week's meeting beyond the plan for adding 400K bpd in Nov - press.

- (DK) Denmark Central Bank (Nationalbanken) cuts certificate of deposit rate due to sale of foreign currency; Cuts Certificate of Deposit rate 10bps to -0.60% from -0.50%, Cuts lending rate to -0.45% from -0.35%; Keeps all other rates unchanged.

Levels as of 01:20 ET

- Nikkei 225, -2.2%, ASX 200 -2% , Hang Seng closed; Shanghai Composite closed; Kospi -1.5%.

- Equity S&P500 Futures: -0.5%; Nasdaq100 -0.5%, Dax -0.9%; FTSE100 -0.6%.

- EUR 1.1583-1.1563 ; JPY 111.48-111.11 ; AUD 0.7241-0.7215 ;NZD 0.6915-0.6885.

- Gold -0.2% at $1,753/oz; Crude Oil -0.1% at $74.97/brl; Copper -1% at $4.0630/lb.