Sell the news, then rebound?

Asia market update: Sell the news, then rebound?; Trump/Xi hold talks; BOJ again leaves rates unchanged with 2 hawkish dissenters; large-cap tech EPS in focus; US Fed seen as ‘hawkish’.

General trend and developments

- Trump: Thought meeting with Xi was 'amazing' and 'outstanding'; 'a lot' of decisions made; will be providing conclusions on very important things; confirms soybean purchases will start 'immediately'; Confirms agreed to reduce China fentanyl tariff to 10%; No 'roadblock' on rare earths, 'all' of the rare earths have been settled; Says 'we have a deal'; To visit China in Apr [2026].

- USTR Greer: Postponing shipbuilding probe; variety of tariffs still remain on China.

- US Equity FUTs decline after Trump/Xi meeting.

- China President Xi: US and China relations have maintained stability; confirms trade teams have reached basis consensus.

- US Treasury Sec Bessent: Today's announcement after Trump/Xi meeting with be a 'resounding victory' for US farmers.

- Samsung rises >3% after results/outlook [Reports Final Q3 (KRW) Net 12.0T v Te, Op 12.2T v Te (v 12.1T prelim), Rev 86.0T v Te (v ~86T prelim); semiconductor market is expected to remain 'strong', driven by ongoing AI investment momentum in Q4; Guides FY25 (KRW) Capex at 47.4T, Chip Capex 40.9T (2024 Capex 53.6T; 2024 chip CAPEX 46.3T); Says chip prices to extend gains in Q4].

- Hyundai reported results.

- (KR) Pres. Trump: South Korea has agreed to pay the $350B in exchange for reduced tariffs [**Reminder Oct 22nd: (KR) US and South Korea said to discuss $200B investment paid over 8 years - press, following Washington DC meeting with Commerce Sec Lutnick].

- US Commerce Sec Lutnick: Confirms semiconductor tariffs are NOT part of agreement with South Korea.

- OpenAI: Reportedly plans to raise at least $60B; Prepares for IPO at a potential valuation of ~$1T; Considers filing with securities regulators as soon as H2, 2026; Listing in 2027 – press.

- (US) President Trump: Instructed the Dept of Defense to begin testing nuclear weapons, the process will begin 'immediately'.

- Panasonic [6752.JP]: Reportedly to cut EV battery prices by 40% by 2035 – press [expected to report earnings later on Thurs]- Former BOJ Gov

Kuroda sees 'Yen rally' toward 120-130 per dollar [why?].

- BOJ Gov Ueda to hold post rate decision press conference at 6:30 GMT.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens -0.3% at 8,898.

- Australia Q3 Export Price Index Q/Q: -0.9% v -4.5% prior; Import Price Index Q/Q: -0.4% v -0.8% prior [ Metalliferous ores and metal scrap (-0.5%), driven by falling alumina and bauxite prices as supply tightness eased this quarter.].

- Former RBA Gov Lowe: The inflation data has 'spoken' in Australia [comments after Q3 and Sept data].

- China said to partially remove ban related to iron ore purchases from Hankock - financial press.

- New Zealand Oct ANZ Business Confidence: 58.1 v 49.6 prior.

China/Hong Kong

- Hang Seng opens +0.8% at 26,545.

-Shanghai Composite opens -0.2% at 4,007.

- China PBOC sets Yuan reference rate: 7.0864 v 7.0843 prior.

- China PBOC Open Market Operation (OMO): Injects CNY342.6B in 7-day Reverse Repos; Net injects CNY130.1B v CNY412B prior.

- Hong Kong Monetary Authority (HKMA) cuts base rate by 25bps to 4.25% (as expected), tracking the US Fed.

Japan

- Nikkei 225 opens -0.4% at 51,188.

- Bank of Japan (BoJ) leaves policy rate unchanged at 0.50%; as expected; Vote to keep policy steady was 7-2 (Tamura and Takata dissented for 25bps hike).

- Japan PM Takaichi and China Pres Xi to hold first meeting on Oct 31st - press.

- Japan releases weekly flows data [period ended Oct 17th]: Foreign buying of Japan equities: ¥752.6B v ¥1.89T prior; Japan buying of foreign bonds: -¥669.7B v +¥601.3B prior.

Korea

- Kospi opens +0.6% at 4,105.

North America

- (US) FOMC cuts target range by 25BPS to 3.75-4.00%; as expected; vote was 10-1-1, KC Fed pres schmid preferring no cut, miran sought 50bps cut.

- (US) Fed Chair Powell: Another cut in Dec is far from assured; Dec will enter the next balance sheet phase and hold steady for a while; There is a growing chorus who support a pause in Dec.

Levels as of 01:20 ET

- Nikkei 225, -0.4%, ASX 200 -0.5% , Hang Seng -0.7%; Shanghai Composite -0.7% ; Kospi -0.3%.

- Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax flat; FTSE100 -0.3%.

- EUR 1.1637-1.1597 ; JPY 153.13-152.16 ; AUD 0.6597-0.6567 ;NZD 0.5788-0.5755.

- Gold -0.5% at $3,981/oz; Crude Oil -0.5% at $60.16/brl; Copper -0.8% at $5.1577/lb.