General Trend:
- Chipmakers rise in South Korea, Hynix is expected to issue Q3 results on Thursday
- Financials decline in Shanghai after gains seen on Monday; IT and Telecom Services shares rise
- China Resources Land announced ~HK$6.7B stock placement, property developers trade generally lower in Hong Kong
- Gainers in Australia include Resources and Energy companies
- Australia’s Whitehaven Coal rises over 5% after issuing quarterly production update
- Keppel Corp rises over 16% in Singapore on takeover offer from Temasek
- PBOC makes largest daily injection in open market operation (OMO) since late May amid focus on tax payments
- Japanese markets to return from holiday on Wednesday
- US companies expected to report results during the NY morning include, Biogen, Hasbro, Harley Davidson, JetBlue, Kimberly-Clark, Lockheed Martin, McDonald’s, Nucor, Paccar, Procter & Gamble, PulteGroup, Sherwin-Williams, Travelers, UPS and UTX
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- FCG.NZ Raises FY20 forecast milk price to NZ$6.55-7.55/kg (prior NZ$6.25-7.25/kg)
- OSH.AU Reports Q3 production 6.81 MMBOE v 7.5 MMBOE y/y; Rev $361.1M v $474.9M y/y
- RIO.AU Plans to invest $50M to supply EV battery market and produce lithium carbonate in California; Agreed to enter rare earths supply chain in Madagascar
Japan
- Nikkei 225 closed for holiday
- (JP) Japan to probe the market positions of online platforms in the digital advertisement market – Japanese press
- (JP) Japan Meteorological Agency warns of two tropical storms to hit central and southern Japan this week while north and central Japan still recovers from tyhpoon Hagibis
Korea
- Kospi opened +0.6%
- (KR) South Korea Sept PPI M/M +0.1% v +0.2% prior, Y/Y: -0.7% v -0.6% prior (3rd consecutive decline)
- (KR) South Korea and China held to their first strategic defense talks in 5-years; agreed to make joint efforts for the denuclearization of the Korean Peninsula and for deeper bilateral ties
- (KR) South Korea President Moon: Fiscal policy needs to play bold role more than ever; fiscal and economic strength is very sound
China/Hong Kong
- Hang Seng opened +0.3%; Shanghai Composite opened +0.2%
- (CN) China Foreign Min Wang Yi: Confident in reaching an investment deal with EU and would like to move ahead on trade agreement talks as soon as possible – speaking from Pairs
- (CN) China PBoC Open Market Operation (OMO): Injects CNY250B v injects CNY50B prior in 7-day; Net injects CNY250B v injects CNY50B prior (largest injection since May)
- (CN) China PBOC sets Yuan Reference Rate: 7.0668 v 7.0680 prior
- 941.HK Reports 9M (CNY) Net 81.8B v 92.1B y/y; EBITDA 225.5B v 214.1B y/y; Rev 566.7B v 567.7B y/y
- 762.HK Reports 9M (CNY) Net 9.8B v 8.8B y/y, EBITDA 73.2B v 66.3B y/y, Rev 217.1B v 219.7B y/y
- (CN) China Vice Foreign Min: China economy is a source of confidence for the international community; US and China have achieved some progress in trade talks, hopeful that an agreement will be reached; Reiterates that China will continue to preserve the multilateral system
- (CN) China Min of Industry and Technology (MIIT) spokesperson Huang Libin: China will meet 2019 industrial targets of 5.5-6% despite industrial downward pressure increasing
Other Asia
- INFO.IN One board member received 2 anonymous complaints and they are being dealt with an objective manner; CEO and CFO have been recused from this matter
North America
- (US) White House advisor Kudlow: there is a chance we can get Dec tariffs on China off the table if Phase 1 trade talks go well
- (CA) Canada Election Results: PM Trudeau to remain with his Liberal Party of Canada wining the most seats in Parliament but failing to get an outright majority
- (US) Pres Trump: Deal with China is coming along very well; China sent a statement that they expect a trade deal; Issues that would need to be addressed in Phase 2 of US-China trade talks would be in many ways a lot easier than Phase 1 issues – remarks at cabinet meeting
Europe
- (UK) Opposition parties held informal talks about amendments to customs union to find support from enough parliament members to block PM Johnson Brexit deal – UK press
Levels as of 1:20 ET
- Nikkei 225, closed, ASX 200 +0.3%, Hang Seng +0.2%; Shanghai Composite flat; Kospi +1.1%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 flat
- EUR 1.1159-1.1144 ; JPY 108.72-108.48 ; AUD 0.6884-0.6862 ;NZD 0.6436-0.6399
- Gold flat at $1,487/oz; Crude Oil flat at $53.51/brl; Copper -0.1% at $2.643/lb
