Asia Market Update: Equity volatility seen at the start of the new quarter; Financials and DAX FUTs lag amid bank rumors; GBP fluctuates; Oil rises on OPEC+ speculation.
- Commodity currencies rebound [RBA and RBNZ to meet this week].
- Oil currencies also rise.
- Brazil Presidential Elections headed for runoff.
- HSBC and Standard Chartered decline in HK.
- HK Property names supported by stimulus [China said to have required large state-owned banks to add at least CNY600B ($85B) in net financing to the real estate sector in the last four months of 2022 – press; PBOC cuts personal housing fund (provident fund) loan rate by 0.15 ppt, effective from Oct ].
- Shanghai markets are closed this week for holiday; Hong Kong is closed on Tues (Oct 4th).
- US ISM Manufacturing data due.
- ASX 200 opened flat.
- (AU) Australia Sept Final PMI Manufacturing: 53.5 v 53.9 prelim.
- (AU) Australia Sept Corelogic House Price Index M/M: -1.4% v -1.6% prior.
- (AU) Australia Sept Final PMI Manufacturing: 53.5 v 53.9 prelim (confirms 29th month of expansion).
- Nikkei 225 opened -0.6%.
- (JP) Japan Sept Final PMI Manufacturing: 50.8 v 51.0 prelim (confirms 20th month of expansion).
- (JP) Japan Fin Min Suzuki: Overall size of Japan PM Kishida price measures to be decided; Electricity price measures to be considered at METI; Reiterates will watch FX moves with sense of urgency, FX stability important.
- (JP) Japan Chief Cabinet Sec Matsuno: Tankan survey reflects modest economic recovery; To compile economic package taking into consideration risk of global economic slowdown.
- (JP) Japan Q3 Tankan large manufacturing index: 8 V 10E; outlook survey: 9 V 11E.
- (JP) Japan to ease rules related to corporate debt restructuring - Japanese press.
- (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].
- SONY 6758.JP Said to be targeting 2.0M sales of Playstation VR2 units by Mar 2023 (end of FY) - Press.
- Kospi closed for holiday.
- Hang Seng opened -1.0%; Shanghai Composite closed for the week for holiday.
- (CN) PBOC cuts personal housing fund [provident fund] loan rate by 0.15 ppt, effective from Oct [first cut since 2015] (from Sept 30th).
- (CN) China said to have required large state-owned banks to add at least CNY600B ($85B) in net financing to the real estate sector in the last four months of 2022 – press [from Sept 30th].
- (CN) Traders circulating several photo reports suggesting some senior Chinese leaders, including China Pres Xi were not wearing masks at crowded gatherings during China's National Day celebration events.
- (HK) Macau Sept Casino Rev (MOP) 3.0B v 2.2B prior; Y/Y -49.6% v -50.7% prior [from Oct 1st].
- (SG) Singapore prelim Q2 URA Private Home Prices Q/Q: 3.4% v 3.5% prior.
- (TW) Taiwan Sept PMI Manufacturing: 42.2 v 42.7 prior (4th straight contraction).
- (US) Trade Rep Tai to hold a consultation on US Trade policy on Oct 5th and 6th.
- (US) US reportedly willing to support Ukraine’s finances with $1.5B/month in aid regularly throughout the war; US said to be pushing its European allies to commit to similar amounts - press.
- CSGN.CH Bank of England (BOE) 'monitors' co. amid market turbulence - UK Telegraph.
- (AU) ABC Australia correspondent David Taylor tweets: Credible source tells me a major international investment bank is on the brink.
- OPEC+ said to consider production cut of more than 1Mbpd on Oct 5th; To hold in-person meeting (first since early 2020) - press.
- (UK) PM Truss: I do accept we should have laid the ground better, but I do stand by the fiscal package we announced; I will not publish OBR forecasts early, want to work with OBR.
- (UK) S&P revises UK outlook to Negative from Stable; Affirms AA rating.
- (UK) Chancellor of the Exchequer (Fin Min) Kwarteng pledges to publish a credible plan to bring spending under control in November - Telegraph.
- NOVN.CH California Court told Novartis to pay $177.8M in daamages plus 9.0% royalty on Tafinlar sales until Patent expiration.
- (CH) Swiss National Bank (SNB) President Jordan: CHF is no longer 'clearly' elevated despite nominal rise, SNB will not comment on every move - Swiss Press.
Levels as of 01:15 ET
- Nikkei 225, +0.5%, ASX 200 -0.3% , Hang Seng -1.6; Shanghai Composite Closed; Kospi Closed.
- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.7%, Dax -0.9%; FTSE100 flat.
- EUR 0.97824-0.98287; JPY 44.497-145.325; AUD 0.64000-0.64900; NZD 0.559400-0.564900.
- Gold flat at $1,671/oz; Crude Oil +2.7% at $81.62/brl; Copper -0.4% at $3.3750/lb.
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