Asia Market Update: Equity markets generally reverse gains; Evergrande’s silence continues; HK policy address in focus; NZD drops after widely expected RBNZ rate hike, vague policy outlook?; 10-yr UST yield extends rise, US ADP data due later today.

General trend

- US equity FUTS decline in Asia.

- Nikkei has declined by over 1.5% after the higher open [Heavyweights continue to weigh on the index (Fast Retailing and Softbank Group)]; Topix Marine Transportation index drops again, Banks rise.

- Hang Seng has also reversed the opening gain, has currently pared loss [TECH and Property indices drop, but pare declines during morning trading].

- S&P ASX 200 has been weighed down by Financials.

- Copper FUTs extend decline.

- Companies expected to report during the NY morning include Madison Square Garden, RPM International, Constellation Brands.

- Shanghai markets are closed for holiday from Oct 1-7 (Fri-Thurs).

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened +0.1%.


- MFG.AU Reports Sept FUM (A$) 113.3B v 118.0B prior; Outflows A$1.53B.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 1.75% Nov 2032 bonds, avg yield %1.6137, bid to cover: 5.88x.

- (NZ) Reserve Bank of New Zealand (RBNZ) Appoints Assitant Gov Hawkesby as Deputy Gov, replacing Bascand who is leaving in January.

- (CN) China said to have released coal from Australia that has been "trapped in storage" - FT.


-Nikkei 225 opened +0.8%.

- 4502.JP Safety signal emerged in its phase 2 study of investigational oral orexin agonist TAK-994; suspended dosing of patients as a precautionary measure.

- (JP) Japan PM Kishida approval rating at 59% (3rd lowest for inaugural ratings among 9 prime ministers going back to 2002.

- (JP) Japan Chief Cabinet Sec Matsuno: Stopping decline in Japan R&D Capability is important; CPI not as weak as headline numbers indicate.

- (JP) Bank of Japan (BOJ) Gov Kuroda: Economy has picked up led by exports and manufacturing, high US GDP Growth has supported global economic growth).

- (JP) Japan Fin Min Suzuki: PM has instructed me to be flexible on policy; will seek a new type of capitalism and peruse fiscal health and growth at the same time (yesterday after the close).

- (JP) Japan Econ Min Yamagiwa: Govt will take all necessary measures to support the economy "in a flexible manner without hesitation" (yesterday after the close).

- (JP) Japan Industry Min Hagiuda: Nuclear power is indispensable to decarbonizing Japan (yesterday after the close).


-Kospi opened %.

- (KR) SOUTH KOREA SEPT CPI M/M: 0.5% V 0.4%E; Y/Y: 2.5% V 2.4%E (6th straight month above target); CPI Core Y/Y: 1.9% v 1.8%e (fastest increase since 2017).

- (KR) Japan spotted North Korea ship carrying missiles in June off the coast of Ishikawa prefecture - Japan press.

China/Hong Kong

-Hang Seng opened +0.6%; Shanghai Composite closed for holiday.

- (HK) Hong Kong Aug PMI (Whole Economy): 51.7 v 53.3 prior (8th consecutive expansion).

- 880.HK Said to shut down 1 Macau casino ops due to a coronavirus patient visiting – Press.

- 2393.HK Updates on debt restructuring: Proposed new offshore debt restructuring and Agreement for $200M 6.9% notes due 2021; to issue new notes under the agreement.

- (HK) Hong Kong Chief Exec Lam: Hong Kong to continue with Article 23 National Security Legislation, confirms housing project in the North - Annual Policy Address.


- (TW) US President Biden: Spoke with China President Xi on Taiwan; Agreed to abide by Taiwan agreement.

- (TW) Taiwan Ministry of National Defense (MND): China is unsure if an attack on Taiwan would succeed, could be ready for full scale invasion of Taiwan by 2025 - Taiwanese Press.

North America

- (CN) USTR seeking public comment on tariff exclusions for 549 China import categories - press.


- (UK) PM Johnson reportedly plans to announce a 'significant' boost to minimum wage within next few weeks - UK's Times.

- (IE) Ireland Central Bank raises 2021 GDP outlook to 15.3% (prior 8.3%) due to a stronger than expected surge in consumption that will add to inflationary pressure; also raises modified domestic demand outlook.

Levels as of 01:00ET

- Hang Seng -0.9%; Shanghai Composite closed for holiday; Kospi -1.5%; Nikkei225 -1.3%; ASX 200 -0.7%.

- Equity Futures: S&P500 -0.6%; Nasdaq100 -0.6%, Dax -0.7%; FTSE100 -0.7%.

- EUR 1.1604-1.1583; JPY 111.76-111.43 ;AUD 0.7297-0.7254; NZD 0.6980-0.6919.

- Commodity Futures: Gold -0.4% at $1,753/oz; Crude Oil +0.1% at $78.97/brl; Copper -1.0% at $4.14/lb.

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