Nasdaq FUTs rise on results from Apple and Amazon

Asia Market Update: 2-yr JGB auction supported by dovish BOJ; Nasdaq FUTs rise on results from Apple and Amazon, Nikkei hits another record high; Yen firms on Katayama; Month-end flows in focus.

General trend and developments

- Japan Fin Min Katayama: Recently seeing one-sided and rapid [FX] moves; Closely watching FX moves with 'high sense of urgency'; Bessent did not say we can't do something during talks.

- BOJ rate hike expectations declined after Thursday’s Ueda press conference.

- China said to have purchased at least 4 additional soybean cargoes from the US - US financial press.

- US Treasury Sec Bessent: Expect another delay with China one year from now; We'll be back at the negotiating table with China next year.

- Corporate earnings still in focus: Hitachi rallies on guidance, outlook weighs on Nissan.

- Japan companies expected to report earnings include Murata Manufacturing and Tokyo Electron.

- Chinese equities lag after Trump/Xi summit; chipmakers drop.

- US Oct Chicago PMI due later today.

- BOJ to release the Nov bond buying schedule.

Headlines/economic data

Australia/New Zealand

-ASX 200 +0.4% at 8,922.

-AGL [AGL.AU]: Said to be preparing to cut 'hundreds' of jobs - Australian press.

-ANZ [ANZ.AU]: Expects H2 cash profit to be impacted by items of A$1.10B.

- Australia Q3 PPI Q/Q: 1.0% v 0.7% prior; Y/Y: 3.5% v 3.4% prior; The rise was primarily driven by growth across the Services industries and the Construction industry.

-Australia Sept Private Sector Credit M/M: 0.6% v 0.6% prior; Y/Y: 7.3% v 7.3% prior.

- Australia sells A$800M v A$800M indicated in 3.25% Apr 2029 Bonds: Avg Yield: 3.6321%; bid-to-cover: 3.94x.

- New Zealand Oct ANZ Consumer Confidence Index: 92.4 v 94.6 prior.

- RBNZ External Member Gai: Shocks appear to have offset some of our easing; tariffs have acted as negative demand shock in NZ.

China/Hong Kong

-Hang Seng opens -0.1% at 26,263.

- Shanghai Composite opens flat at 3,985.

- CHINA OCT MANUFACTURING PMI (GOVT OFFICIAL) 49.0 V: 49.6E (7th month of contraction, lowest level since Apr).

- China PBOC Gov Pan Gongsheng: To narrow short term rate corridor; study policy tools for market volatility.

-China President Xi: Calls for the promotion of trade and investment liberalization; China to keep door open and 'wider' - APEC comments.

-China Iron and Steel Association (CISA): Expects 2025 apparent steel consumption to decline for the 5th straight year; sees 2025 China annualized steel production at 998M mts.

- China Top Trade Negotiator/Vice Commerce Min Li Chenggang: Export volume of EVs >2.0M units for the first time in 2024; will continue to adapt to global trend of green and low carbon development.

- China NDRC [state planner]: Out of the CNY500B fund allocated to support local gov't finances and expanding investment, CNY200B went towards the new local gov't special bonds quota.

-China PBOC Open Market Operation (OMO): Injects CNY355.1B in 7-day Reverse Repos; Net injects CNY187.1B v injects CNY130.1B prior.

Japan

- Nikkei 225 opens +0.6% at 51,613.

-JAPAN OCT TOKYO CPI Y/Y: 2.8% V 2.4%E; CPI (EX-FRESH FOOD) Y/Y: 2.8% V 2.6%E.

-Japan Government Official: Still cannot be optimistic about production situation as it needs to be monitored closely.

-JAPAN SEPT PRELIMINARY INDUSTRIAL PRODUCTION M/M: 2.2% V 1.5%E; Y/Y: 3.4% V 1.8%E.

-JAPAN SEPT RETAIL SALES M/M: 0.3% V 0.8%E; Y/Y: 0.5% V 0.7%E.

-Japan Sept Jobless Rate: 2.6% v 2.5%e.

-JAPAN SELLS ¥2.7T VS. ¥2.7T INDICATED IN 2-YEAR JGB BONDS; Avg Yield: 0.9320% v 0.9490% prior; Bid-to-cover: 4.35x v 2.81x prior.

-Japan sells ¥4.3T vs. ¥4.3T indicated in 3-Month Bills Avg Yield: 0.4690% v 0.4945% prior; Bid-to-cover: 3.63x v 3.71x prior.

-Bank of Japan (BOJ) Research: Sticky Discount Rates: We present evidence that firms’ nominal discount rates (i.e., their required returns to capital) are sticky in the short run, so that they do not fully incorporate expected inflation for many years. Changes in expected inflation therefore directly impact firms’ real discount rates and investment.

-Japan Chief Cabinet Sec Kihara: Continuing to prepare for PM Takaichi to meet with China President Xi; to boost communication with China in various areas.

- UA Zensen [Japan Labor Union] said to seek 6.0% wage hike - Nikkei.

Korea

- Kospi opens flat at 4,083.

North America

-(US) President Trump continues to call for the filibuster to be ended amid the continuing gov't shutdown - Press.

-(US) Office Properties Income Trust Enters into Restructuring Support Agreement with Noteholders to Reduce Debt and Strengthen Balance Sheet; has entered into a Restructuring Support Agreement (“RSA”) with an ad hoc group (the “September 2029 Ad Hoc Group”) of certain holders of its senior secured notes due September 2029 (the “September 2029 Notes”) to restructure its corporate debt and allow the Company to substantially deleverage its balance sheet.

Europe

- (UK) Oct Lloyds Business Barometer: 50 v 42 prior.

Levels as of 01:20 ET

- Nikkei 225, +1.9%, ASX 200 -0.1% , Hang Seng -0.9%; Shanghai Composite -0.7% ; Kospi +0.6%.

- Equity S&P500 Futures: +0.7%; Nasdaq100 +1.2%, Dax -0.1%; FTSE100 -0.2%.

- EUR 1.1577-1.1564 ; JPY 154.16-153.65 ; AUD 0.6560-0.6545 ;NZD 0.5746-0.5725.

- Gold -0.2% at $4,006/oz; Crude Oil -0.8% at $60.11/brl; Copper -0.4% at $5.0847/lb.