General Trend:
- Property shares and financials weigh on Shanghai market in early trading
- Real estate firms also weigh on Hang Seng; Sportswear company XTEP declines over 9%, said sales growth moderated in Sept
- Iron/Steel firms are among the gainers in Japan
- Declines in consumer stocks weigh on Australian equity market
- China Stats Bureau official: Able to keep growth steady and ensure stable trend in Q4, to front-load some 2020 special local government bond issuance to this year
- Japan CPI slows further in Sept, some are expecting BoJ to ease policy at Oct meeting [Oct 30-31st]
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Do not agree that RBA has a lot of work to do to reach its inflation target
China/Hong Kong
- Shanghai opened +0.2%, Hang Seng +0.2%
- (CN) CHINA Q3 GDP Q/Q: 1.5% V 1.5%E; Y/Y: 6.0% V 6.1%E (lowest annual reading since 1992)
- (CN) CHINA SEPT INDUSTRIAL PRODUCTION Y/Y: 5.8% V 4.9%E
- (CN) CHINA SEPT RETAIL SALES Y/Y: 7.8% V 7.8%E; YTD Y/Y: 8.2% V 8.1%E
- (CN) CHINA SEPT FIXED URBAN ASSETS Y/Y: 5.4% V 5.5%E
- (CN) China PBoC Gov Yi Gang met with US Fed Chairman Powell, discussed China and US economy and monetary policy
- (CN) China PBoC Open Market Operation (OMO): Injects CNY30B v skip prior in 7-day; Net injects CNY30B v skip prior
- (CN) China PBOC sets Yuan Reference Rate: 7.0690 v 7.0789 prior
- (CN) China Finance Ministry sells 30-year upsized government bonds: yield 3.7991% v 3.6862% prior, bid to cover: 2.11x
Japan
- Nikkei opened +0.3%
- (JP) JAPAN SEPT NATIONAL CPI Y/Y: 0.2% V 0.2%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.3% V 0.3%E (lowest core y/y rise since 2017)
- (JP) Bank of Japan (BOJ) Gov Kuroda: Japan exports are weakening through domestic demand remains firm
- (JP) Japan Fin Min Aso: No discussion now among G20 nations to take coordinated and immediate action to fend off shock – comments from Washington D.C.
- (JP) Japan Government: Previously announced US/Japan trade deal to increase Japan’s GDP by ~0.8%, contribution to Japan GDP estimated at about ¥4.0T based on FY18 GDP
- (JP) Japan MOF confirms exemptions related to foreign investment law: foreign securities companies trading on their own account will be exempted from the law
Korea
- Kospi opened +0.2%
- (KR) Treasury Sec Mnuchin: will consider South Korea’s position on auto tariffs
- (KR) South Korea reportedly willing to enter talks with Japan to settle bilateral tensions over wartime labor issues – Nikkei
North America
- (US) Fed’s Williams (moderate, voter): open market operations have stabilized the markets; balance sheet actions don’t change monetary policy stance
Europe
- (US) USTR Official: [Previously announced] tariffs of 10-25% on EU goods to take effect on Oct 18 (as expected)
- (TR) US VP PENCE: WE REACHED A DEAL WITH TURKEY FOR A CEASEFIRE IN NORTHERN SYRIA
- (EU) ECB Visco (Italy): Starting to see spillovers to service sector; would have been better to name dissenters in ECB account
- (FR) ECB’s Villeroy (France): we must be vigilant about the evolution of global debt – comments in DC
- (EU) ECB’s Knot (Netherlands): on balance the effects of negative rates have been positive
- (UK) Scotland court will hear a legal bid to halt Brexit deal – UK Press
Levels as of 1:20 ET
- Nikkei 225, +0.2%, ASX 200 -0.5%, Hang Seng -0.2%; Shanghai Composite -0.7%; Kospi -0.4%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.4%
- EUR 1.1131-1.1121 ; JPY 108.68-108.52 ; AUD 0.6839-0.6820 ;NZD 0.6377-0.6342
- Gold -0.2% at $1,495/oz; Crude Oil -0.2% at $53.81/brl; Copper -0.2% at $2.595/lb
