Equity markets trade mixed

Asia Market Update: Equity markets trade mixed, Nasdaq FUTs drop after earnings from Apple and Amazon; AU 3-yr yield continued to move above the RBA’s target amid no unscheduled bond buying; Evergrande said to make debt payment.

General trend

- KDDI, Japan Tobacco, Murata Manufacturing.

- Hang Seng has remained modestly lower.

- Shanghai Composite ended morning trading slightly higher (+0.2%).

- S&P ASX 200 has declined amid the rise in Aussie bond yields [REITs drop].

- China bonds and WGBI [bond index] in focus [FTSE Russell previously stated that China bonds to be included in the WGBI over a period of 36 months, effective from Oct 29th 2021 (Fri)].

- Companies due to report during the NY morning include AbbVie, Booz Allen Hamilton, CBOE, Cameco, Charter Communications, Colgate, Carter’s, Chevron, W.W Grainger, Huntsman, Lazard, L3Harris, LyondellBasell, Newell, Phillips 66, Royal Caribbean, Weyerhaeuser, Exxon.

Headlines/Economic Data

Australia/New Zealand

-ASX opened +0.2%.

-RIO.AU Priced $1.25B in 2.75% 30-year bonds.

-(AU) ANZ bank expects RBA to eliminate Apr 2024 YCC target at next week monetary policy meeting.

-(AU) NAB expects RBA to start raising rates in Mid 2023; Expects RBA to stop YCC target next week.

-(AU) Australia Apr 2024 bond yield hits 76bps, above the 10bps YCC target.

-(AU) Australia Q3 Retail Sales M/M: 1.3% v 0.4%e.

-(AU) Australia Sept Private Sector Credit M/M: 0.6% v 0.6% prior; Y/Y: 5.3% v 5.0%e.

-(AU) Australia Q3 PPI Q/Q: 1.1% v 0.7% prior; Y/Y: 2.9% v 2.2% prior.

-(NZ) New Zealand Oct ANZ Consumer Confidence: 98.0 v 104.5 prior; M/M: -6.2% v -4.7% prior.

Japan

-Nikkei 225 opened flat.

-(JP) Japan Oct Tokyo CPI Y/Y: 0.1% V 0.4%E; CPI (Ex Fresh Food) Y/Y: 0.1% V 0.3%E.

-(JP) Japan Oct Jobless Rate: 2.8% V 2.8%E.

-(JP) Japan Sept Preliminary Industrial Production M/M: -5.4% V +0.2%E; Y/Y: -2.3% V +8.8% PRIOR.

-(JP) Japan Ruling LDP Party said to be on 'defensive' to maintain lower house majority, ruling coalition (includes Komeito) is on track to maintain majority [comes ahead of the Oct 31st general elections] - Nikkei.

-4503.JP [Astellas Pharmaceutical] Reports H1 Net ¥71.6B v ¥72.8B y/y, Op ¥90.2B v ¥86.9B y/y, Rev ¥651.7B v ¥615.5B y/y.

Korea

-Kospi opened +0.5%.

-(KR) South Korea Sept Industrial Production M/M: -0.8% v -0.3%e; Y/Y: -1.8% v 1.4%e.

-(KR) South Korea Sept Cyclical Leading Index Change: -0.3 v -0.3 prior.

-SK Innovation Reports Q3 (KRW) Net +511B v -16.1B y/y; Op +619B v -53.6B y/y; Rev 12.3T v 8.31T y/y.

China/Hong Kong

-Shanghai Opened flat; Hang Seng Opened -0.4%.

-(CN) China PBOC sets Yuan reference rate: 6.3907 v 6.3957 prior.

-3333.HK [Evergrande] Founder Hui's house has been pledged to repay $260M in bonds.

-(CN) China Ministry of Finance (MOF) To sell €4.0B in bonds in Hong Kong on Nov 10th.

-(CN) China PBOC conducted CNY5.0B in 3-month Central Bank Bill Swap (CBS) operation on today's session v CNY5.0B prior.

-(CN) China PBOC Open Market Operation (OMO): Injected CNY200B in 7-day reverse repos v CNY200B prior; Net inject CNY100B v Net inject CNY100B prior.

-(CN) China gas stations said to be rationing Diesel due to shortages - Press.

-Sinopec Official: China gasoline consumption expected to peak in 2025/26.

-(CN) China State Planner (NDRC): Coal production prices are significantly below current spot prices.

North America

- (US) Q3 Advance GDP Annualized Q/Q: 2.0% V 2.6%E; Personal Consumption: 1.6% V 0.9%E.

- (US) Initial Jobless Claims: 281K V 288KE; Continuing Claims: 2.243M V 2.42ME.

- (US) Sept Pending Home Sales M/M: -2.3% V 0.5%E; Y/Y: -7.2% V -3.1%E.

- KO Reportedly near deal to buy controlling stake in sports drink maker BodyArmor, valuing company at $8B - press.

- AAPL Reports Q4 $1.24 v $1.24e, Rev $83.4B v $85.5Be; Supply chain constraints hurt sales by $6B in Q4; Expects continued supply constraints in Q1 resulting in larger headwinds.

- AMZN Reports Q3 $6.12 v $8.71e, Rev $110.8B v $111.8Be; CFO: Seeing inconsistent staffing levels because of labor shortage and has become primary capacity constraint.

Europe

- (UK) UK govt reportedly has convened committee to study potential fallout from triggering Article 16 and suspending Northern Ireland cooperation - Sky News.

- (EU) ECB Policymakers said to be split about second round effect of inflation, some doubt CPI will ease below 2% in 2023.

Other

- (TW) Taiwan announces agreement with the US on cyber security.

- (SG) Singapore Sept M2 Money Supply Y/Y: 4.0% v 3.1% prior; M1 Money Supply Y/Y: 13.4% v 12.9% prior.

- (IN) Reserve Bank of India (RBI) Gov Das reappointed to additional 3-year term (second term).

Levels as of 01:20 ET

- Nikkei 225, flat, ASX 200 -1.2% , Hang Seng -0.5%; Shanghai Composite +0.3%; Kospi -0.9%.

- Equity S&P500 Futures: -0.5%; Nasdaq100 -0.8%, Dax -0.4%; FTSE100 -0.3%.

- EUR 1.1673-1.1690 ; JPY 113.39-113.71 ; AUD 0.7524-0.7556 ;NZD 0.7171-0.7206.

- Gold -0.4% at $1,796/oz; Crude Oil flat at $82.82/brl; Copper -0.1% at $4.4295/lb.