General Trend:
- Equity markets in Asia track Wednesday’s gains in the US
- Toshiba rises over 9%, confirmed stock buyback and resumption of dividend
- Bridgestone cut operating profit forecast
- Japan regional bank Suruga up over 15%, commented on press report related to ¥90B in losses
- Lenovo’s Q3 profits and sales beat ests
- Wynn Macau declines over 10% after Q3 results
- Australian gas company APA declines over 8%, government official raised concerns about merger agreement
- Building materials firm James Hardie drops over 14%, Q2 results missed ests
- Australia prudential regulator issues paper about higher capital requirements for big banks
- Reserve Bank of New Zealand (RBNZ) Gov leaves rate cut on the table
- China Oct forex reserves have largest monthly drop since late 2016
- China Oct trade balance misses ests, trade surplus with the US narrows from prior record
- China 1-week offshore yuan (CNH) HIBOR declines over 60bps following Wednesday’s PBoC bill sale in Hong Kong
- Japan Sept Core Machine Orders have largest drop on record amid earthquake
- Reserve Bank of Australia (RBA) is due to release its Quarterly Statement on Monetary Policy (SOMP) on Friday
Headlines/Economic Data
Japan
- Nikkei 225 opened +1.6%
- (JP) JAPAN SEPT CORE MACHINE ORDERS M/M: -18.3% V -9.0%E; Y/Y: -7.0% V +7.7%E
- (JP) JAPAN SEPT CURRENT ACCOUNT (BOP BASIS): ¥1.82T V ¥1.79TE; CURRENT ACCOUNT ADJ: ¥1.33T V ¥1.35TE; TRADE BALANCE (BOP BASIS): -¥323.3B V ¥334.2BE
- (JP) Japan Oct Bank Lending Ex-Trusts y/y: 2.2%v 2.3% prior; Incl Trusts y/y: 2.2% v 2.3% prior
- (JP) Bank of Japan (BoJ) Summary of Opinions for Oct 30-31 Monetary Policy Meeting: Uncertainty over global economy is heightening
- (JP) In Oct Japan life insurance companies have sold the most foreign bonds since 2015
- Suruga Bank, 8358.JP Says not the source of report related to ¥90B loss, is considering increasing reserves [+20%, daily limit]
- Toshiba, 6502.JP Reports H1 Net ¥1.08T v -¥49.8B y/y; Op ¥6.9B v ¥36.2B y/y; Rev ¥1.78T v ¥1.87T y/y; to pay ¥20 special dividend; to buyback ¥700B in shares; confirms to sell LNG operations
Korea
- Kospi opened +1.5%
- (KR) South Korea Pres Moon could nominate a new Fin Min as soon as this weekend – Korean press
- (CN) China Commerce Ministry (MOFCOM) to impose anti-dumping tax for some rubber products imported from Japan and South Korea: anti-dumping tax rates to range from 12% to 56.4%, effective from Nov 9th
- (KR) US State Dept: Sec State Pompeo’s meeting with North Korean leaders was postponed due to scheduling issues
China/Hong Kong
- Hang Seng opened +1.3%, Shanghai Composite +0.7%
- (CN) China should raise fiscal deficit ratio – China Securities Times
- (CN) China Foreign Min Wang Yi: China and Australia reached $10B worth of deals at China import fair
- (CN) CHINA OCT FOREIGN RESERVES: $3.053T V $3.059TE (largest monthly decline since Dec 2016)
- (CN) China PBoC Open Market Operations (OMO): Skips OMO v skipped prior
- (CN) China PBoC sets Yuan reference rate at: 6.9163 v 6.9065 prior
- Tencent, 700.HK Said to plan to cut game marketing budget – US financial press
- (CN) CHINA OCT TRADE BALANCE: $34.0B V $35.2BE; Exports Y/Y: 15.6% v 11.7%e, Imports Y/Y: 21.4% v 14.5%e
- (CN) CHINA OCT TRADE BALANCE (CNY): 233.6B V 237.0BE; Exports Y/Y: 20.1% v 14.2%e; Imports Y/Y: 26.3% v 17.7%e
- Lenovo, 992.HK Reports Q2 Net $168M v $139M y/y, Rev $13.4B v $11.76B y/y
Australia/New Zealand
- ASX 200 opened +0.1%
- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 1.75%; AS EXPECTED; Brings forward rate hike forecast to Q2 2020 (from Q2 2020); Below target CPI requires continued supportive monetary policy
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: would consider a rate cut if GDP fall short of forecast, not taking rate cut off the table; no view on NZ$ level
- (NZ) RBNZ Deputy Gov Bascand: Consideration of easing LVR restrictions will be included in November financial stability report, will explicitly consider it
- (NZ) RBNZ Gov Orr: Comfortable with foot still on the accelerator – parliament
- FCG.NZ Affirms FY19 farmgate milk price NZ$6.25-6.50/kgMS; EPS NZ$0.25-0.35 – AGM
- APA.AU Comments on Treasurer Frydenberg’s preliminary view on CK Group deal; notes expectations are that the market will read the preliminary view as a ‘no’ but finds it interesting that FIRB was unable to reach a unanimous recommendation
- JHX.AU Reports Q2 adj Op $80.9M v $81Me; Rev $644.6M v $659Me; issues positive outlook
- ECX.AU To merge with McMillan Shakespeare in cash and share deal with implied value A$2.85/share
- (AU) Australia Foreign Min Payne: Committed to deepening China relations
Other Asia
- (PH) Philippines Q3 GDP q/q: 1.4% v 1.9%e; y/y: 6.1% v 6.2%e
North America
- US stocks gain amid post election risk-on sentiment: Dow +2.1%, S&P500 +2.1%, Nasdaq +2.6%, Russell 2000 +1.7%
- (US) Pres Trump: hopes to work with Democrats on drug prices and infrastructure; dealmaking may be easier with a Democratic House; Won’t rule out another govt shutdown
- (US) JEFF SESSIONS RESIGNS AS ATTORNEY GENERAL AT THE REQUEST OF DONALD TRUMP; ACTING AG WHITAKER TO TAKE OVER MUELLER INVESTIGATION – PRESS
- CVNA Reports Q3 -$0.40 v -$0.37e, Rev $535M v $507Me [+19.6% after hours]
- ALRM Reports Q3 $0.36 v $0.25e, Rev $111.8M v $96.8M [+17.6% after hours]
- KRO Reports Q3 $0.28 v $0.64 y/y, Rev $410.3M v $464.5M y/y [-15.2% after hours]
- (US) DOE CRUDE: +5.8M V +2ME
Europe
- (UK) OCT RICS HOUSE PRICE BALANCE: -10% V -2%E
- (DE) Germany CSU Party Head Seehofer (interior Min) said to be considering resigning in coming days – financial press
- (UK) According to Sun’s Schofield: sources say draft agreement does not include Irish backstop, as that has not yet been agreed; emerging meeting now looking like next week
- Prosiebensat [PSM.DE]: Reports Q3 Net €75M v €78Me; adj EBITDA €175M v €176Me, Rev €892M v €895Me; Cuts FY18 Rev to be lower than prior low to mid single-digit growth
Levels as of 01:30ET
- Hang Seng +0.8%; Shanghai Composite +0.1%; Kospi +1.4%; Nikkei225 +1.9%; ASX 200 +0.5%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 -0.2%
- EUR 1.1396-1.1500; JPY 113.47-113.73 ; AUD 0.7265-0.7286;NZD 0.6771-0.6795
- Dec Gold -0.3% at $1,225/oz; Dec Crude Oil +0.1% at $61.73/brl; Dec Copper -0.3% at $2.73/lb