Asia Market Update: Equity markets trade generally higher, only tepid reaction seen to the Evergrande news; Nasdaq FUTs drop amid Tech earnings; RBA finally comes in.
- Hang Seng has remained modestly higher; China Merchants Bank is expected to report earnings.
- Shanghai Composite ended morning trading fractionally higher; Property index outperformed amid the Evergrande news.
- Nikkei has moved higher after the lower open; Tokyo Steel is due to report earnings.
- S&P ASX 200 has traded roughly flat.
- Chinese coal FUTs continue to drop amid comments from officials.
- Companies due to report during the NY morning include Autoliv, American Express, Cleveland-Cliffs, HCA, Honeywell, Regions Financial, Schlumberger, Seagate, VF Corp.
- ASX 200 opened -0.1%.
- *(AU) RBA OFFERS TO BUY A$1.0B IN GOVT SECURITIES IN UNSCHEDULED OPERATIONS (FIRST PURCHASE SINCE FEB TO DEFEND YIELD CURVE).
- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Expanding foreign exchange objective would severely compromise other goals.
- *(AU) AUSTRALIA OCT PRELIMINARY PMI MANUFACTURING: 57.3 V 56.8 PRIOR; PMI Services: 52.0 v 45.5 prior (1st expansion in 5 months).
- (NZ) New Zealand PM Ardern: Target for vaccinations is 90% before easing restrictions.
- Hang Seng opened +0.4%, Shanghai Composite flat.
- Evergrande [3333.HK] *SAID TO HAVE PAID $83.5M IN INTEREST DUE ON SEPT 23RD; GRACE PERIOD WOULD HAVE ENDED ON OCT 23RD - China Securities Times.
- (CN) Mortgage rates in 20 cities in China have fallen in Oct [first decline in 2021] - China Press.
- (CN) Fitch Downgrades Sinic [property co.] to Restricted Default After Missed Payments; Withdraws Ratings.
- (CN) China PBOC Gov Yi Gang: Keeping normal monetary policy and retaining interest margin within reasonable range will help promote banks to better serve real economy [from Oct 21st].
- (US) Said that the US Is seeking a virtual summit between US President Biden and China President Xi in Nov - Press.
- (CN) China Commerce Ministry (MOFCOM) Reiterates China and US should work together to create conditions for implementation of the phase-1 trade agreement.
- Huawei: Said that the US Commerce Dept has issued >$100B in export licenses to Huawei and SMIC suppliers [issued between Nov 2020 and Apr 2021] – Press.
- (CN) China Ministry of Commerce (MOFCOM): Expects FDI to hit CNY1.0T in 2021.
- (CN) China State Planner (NDRC): Studying methods to keep Coal companies from seeking excessive profits.
- (CN) China State Planner (NDRC): To investigate coal production and distribution, as well as circulating costs and selling prices [from Oct 21st].
- (CN) China said to have suspended tax collection from Coal miners and Heating companies.
- (CN) China FX Regulator (SAFE): Market expectations are relatively stable and conducive to maintaining stable CNY; Breach of 6.4000 vs USD was normal.
- (CN) Hog farmers in China said to be using derivatives in order to hedge losses - China press.
- (CN) China Ministry of Finance (MOF): 9M Fiscal Rev +16.3% y/y; Expenditures 2.3% y/y.
- (CN) Beijing asks residents to avoid outbound trips that are unnecessary.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY100B prior; Net inject CNY90B v Net inject CNY90B prior.
- (CN) China PBOC sets Yuan reference rate: 6.4032 v 6.3890 prior.
- Nikkei 225 opened -0.5%.
- (JP) Bank of Japan (BOJ) said to be discussing phasing out of pandemic support [COVID loan program] if virus cases continue to decline; no decision is expected before Dec – Press.
- (JP) IMF Japan Mission Chief Salgado: Capital gains tax is an option for Japan.
- *(JP) JAPAN SEPT NATIONAL CPI Y/Y: 0.2% V 0.2%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.1% V 0.1%E (First y/y increase since Mar 2020).
- *(JP) *(JP) JAPAN OCT PRELIMINARY PMI MANUFACTURING: 53.0 V 51.5 PRIOR; PMI Services: 50.7 v 47.8 prior (1st expansion in 53 months).
- Kospi opened -0.1%
- (KR) South Korea Vice Fin Min Lee: Korea to temporarily cut fuel taxes, Tariff reduction on LNG imports; Will formally announces cuts next week.
- (US) Fed's Williams (FOMC voter): Longer run inflation expectations in line with 2.0% goal - Comments at China 40 Forum.
- (US) US President Biden: Thinks close to deal [referring to economic agenda]; does not expect broad corporate tax rate hike to be in [reconciliation] bill; Confirms minimum corporate tax proposal could help pay for the bill.; ability to use tax incentives on climate; Would consider getting rid of filibuster on debt limit.
- (US) Fed to limit active trading and have timelier reporting of trades for Fed officials.
- (US) SEMI Sept North America-based Manufacturers of Semi Equipment Billings: $3.72B, 1.7% m/m and 35.5% y/y (near record high set in July).
- Puerto Rico Senate President: Do not have votes to pass Debt Restructuring bond bill.
- AerCap [AER]: Announces pricing of $21B in bonds due 2023, 2024, 2026, 2028, 2032, 2033 and 2041 [9-tranche offering].
- (UK) Said that the UK may accept the role of the EU Court in North Ireland Protocol.
- (EU) European Commission to look into possible speculation into Carbon market.
- (UK) Oct GfK consumer Confidence: -17 v -16e.
- (IE) Ireland Oct Consumer Confidence Index: 86.8 v 86.4 prior.
- (NL) Netherlands Sept House Price Index M/M: 1.6% v 2.1% prior; Y/Y: 18.5% v 17.8% prior.
Levels as of 01:20 ET
- Nikkei 225, +0.4%, ASX 200 flat , Hang Seng +0.5%; Shanghai Composite +0.3% ; Kospi flat.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.5%, Dax +0.4%; FTSE100 +0.3%.
- EUR 1.1631-1.1621 ; JPY 114.20-113.81 ; AUD 0.7490-0.7452 ;NZD 0.7173-0.7145.
- Gold +0.3% at $1,787/oz; Crude Oil -0.3% at $82.27/brl; Copper +0.8% at $4.5920/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.