Asia Market Update: GBP declines as traders digest move by the BOE; CNH, AUD and NZD also drop; German CPI in focus; CN PMIs due on Fri [Official and Caixin Manufacturing].

General trend

- Another quiet session seen for USD/JPY [remains below ¥145].

- Terrible NZ bond auction?

- Quarter-end in focus.

- Vietnam Q3 GDP missed ests.

- Equity markets rise after BOE move.

- Japanese equity gains capped by ex-dividends.

- Hang Seng pares gain [Mainland Properties Index extends decline, CIFI Holdings remains in focus].

- Commodity-sensitive indices outperform in Australia.

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.

- South Korea Vice Fin Min will conduct KRW2.0T in Korean bond buybacks on Sept 30th (Fri)

- Reserve Bank of New Zealand (RBNZ) Gov Orr to speak on Sept 30th

Headlines/economic data

Australia/New Zealand

- ASX 200 opened +0.4%

- (NZ) New Zealand Sept Business Confidence: -36.7 v -47.8 prior

- (AU) Australia Resources Min: Reached agreement with east coast on LNG

- (AU) Australia July CPI Y/Y: 7.0%; (AU) Australia  Aug CPI Y/Y: 6.8% V 7.0% prior

- (AU) Australia Q2 Job Vacancies Q/Q: -2.1% v 14.4% prior

- (NZ) New Zealand sells N$400M v NZ$400M indicated in 2027, 2032, and 2041 bonds.


- Nikkei 225 opened +0.4%.

- (JP) Japan Investors Net Buying of Foreign Bonds: -¥1.10T v -¥140.7B prior; Foreign Net Buying of Japan Stocks: -¥1.18T v -¥609.7B prior.

- (JP) Tokyo is not expected to immediately participate in the nationwide travel program, needs 1 month to prepare for the program - Japanese press.

- (JP) Japan PM Kishida said to have promised steps on easing cost of power - Nikkei.

- (JP) Japan Bank for International Cooperation (JBIC) to offer low interest loans to procure LNG.

- (JP) Japan MOF sells ¥2.8T v ¥2.8T indicated in 0.005% 2-year JGBs: Avg Yield: -0.0460% v -0.0830% prior; bid-to-cover: 4.78x v 3.61x prior.

- (JP) Japan Fin Min Suzuki: Coronavirus has made Asia debt situation difficult; Enhancing debt transparency is important.

- (JP) Japan Chief Cabinet Sec Matsuno: Will consider additional steps on power costs.

- (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].


- Kospi opened +1.4%.

- (KR) South Korea President Yoon: Govt will appropriately deal with various economic shocks.

- (KR) South Korea Oct Business Manufacturing Survey: 75 v 82 prior; Non-Manufacturing Survey: 81 v 82 prior.

- (KR) South Korea, US, and Japan to hold military drills on Friday, Sept 30th.

China/Hong Kong

- Hang Seng opened +1.9%; Shanghai Composite opened +0.7%.

- (CN) China PBoC official: Warns against one-way bets on CNY currency (Yuan) on either side; Stresses that currency has solid foundation to stay basically stable; Asks banks to safeguard authority of CNY-fixing; Top priority to keep forex market stable, calls for stepping guidance in Forex market - press [from Sept 28th].

- (CN) China Securities Times Commentary encourages CNY traders to stay rational amid the swings in the USD/CNY.

- (CN) China Vice Foreign Min Ma: Commitment to true multilateralism remains unchanged.

- (CN) China State Planner (NDRC) Criticizes We Media for spreading rumor of Hog Price Increases; Vows to continue limiting fabrication of Hog Price increases.

- (CN) China MOF said to plan Q4 bond issuance of ~CNY2.5T (~$347B) - financial press.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY105B in 7-day reverse repos v CNY133B prior; Sells CNY77B in 14-day reverse repos v CNY67B prior; Net inject CNY180B v Net inject CNY198B prior.

- (CN) China PBOC sets Yuan reference rate: 7.1102 v 7.1107 prior.

- (CN) China PBOC tested digital currency use to settle trades with various partners [Hong Kong, Thailand and UAE] - SCMP.

- (CN) Power Management IC (PMIC) suppliers in China said to cut prices; notes declining demand for consumer electronics in China - Digitimes.


- (TW) Taiwan Central Bank Gov Yang: FX management measures sufficient to maintain market if there are large FX outflows; Central bank capable of coping with capital flows; FX outflows due to fed rate hikes.

- (TH) Thailand Central Bank Gov Sethaput: Open to special rate meeting if necessary; Ready to adjust tightening pace if needed; Rate hikes to be gradual; Approach is gradual and measured.

North America

- (US) Over 2.0M Floridians are without power after Hurricane hits Florida.

- (US) Fed's Evans (non-voter): We need to address inflation; Expect to be at the peak Fed funds rate around March 2023.

- (US) NY Fed takes $2.37T in RRP program at 3.05%; 101 participating and accepted counterparties (record high dollar amount).

- (US) Fed's Bowman (voter): We should review Fed approach to defining banking markets.

- (US) Aug pending home sales M/M: -2.0% V -1.5%E; Y/Y: -22.5% V -24.5%E.

- (US) Aug preliminary wholesale inventories M/M: 1.3% V 0.4%E.


- (UK) BOE  to carry out temporary purchases of long-dated UK Gilts' at whatever scale needed to restore order'; Delays quantitative Tightening (QT) until Oct 31st [from Sept 28th].

- (UK) Aug Car Manufacturing 49.9K units v 58.0K prior, Y/Y: 34% v 8.6% prior (4th consecutive increase) - SMMT.

- (UK) CBI's Danker: Concerned about the inflationary pressures and national debt levels following government’s tax cuts.

Levels as of 01:20 ET

- Nikkei 225, +1%, ASX 200 +2% , Hang Seng +1%; Shanghai Composite +0.5% ; Kospi +1%.

- Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax +0.7%; FTSE100 +0.5%.

- EUR 0.9738-0.9674 ; JPY 144.52-144.06 ; AUD 0.6525-0.6470 ;NZD 0.5737-0.5672.

- Gold -0.5% at $1,661/oz; Crude Oil -0.4% at $81.83/brl; Copper -0.5% at $3.3650/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.

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