Nikkei Declines After Holiday

Sep 21 21, 06:14 GMT

General trend

US equity FUTS rise after prior decline.
Asian financials trade generally lower after US declines.
Travel-sensitive cos. trade generally higher; (US) White House Covid adviser Zients: Confirms U.S to reopen travel to fully vaccinated foreign nationals, CDC to determine what will be deemed fully vaccinated.
Hang Seng has pared the opening decline ahead of holiday [Financials trade mixed, Ping An Insurance extends decline; Evergrande’s Chairman issued statement; Casino names rise after meeting with Macau official].
S&P downgraded another Chinese property developer (Sinic Holdings).
Nikkei trades modestly lower following holiday [Elliot Management said to cut stake in Softbank Group].
S&P ASX 200 has traded slightly higher [Slight rebound seen for the Resources index after prior drop; Financials decline].
CAD gains amid election results, oil prices also rise.
AUD/JPY rises after prior decline.
Generally quiet session for metals after prior declines.
Central banks in focus this week.
NZD lags amid RBNZ comments.
RBA released minutes.
Sept 22nd Fed decision in focus (Wed).
BOJ decision also due on Wed, PBOC to set loan prime rates (LPRs).

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
(NZ) New Zealand Q3 Westpac Consumer Confidence: 102.7 v 107.1 prior.
(NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: least regret is to reduce stimulus, in Aug MPs noted more confidence in meeting goals, given uncertainty central banks move in 25bps increments.
AST.AU APA notes disappointing that AST entered into period of exclusivity with Brookfield, offered A$2.60/shr in cash and shares v A$2.50/shr from Brookfield.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$363.8B v A$362.4B prior (record high).
(AU) RESERVE BANK OF AUSTRALIA (RBA) SEPT MEETING MINUTES: REITERATES CENTRAL SCENARIO IS CONDITIONS FOR RATE RISE WILL NOT BE MET UNTIL 2024.

Japan

Nikkei 225 opened -1.6%.
(JP) Japan Securities Dealers Association (JSDA) global funds have purchased the most ultra long Japan bonds since 2014.
(JP) Japan Foreign Minister Motegi: Japan welcomes the establishment of AUKUS (trilateral security pact between Australia, UK and US).
Daiichi Sankyo and AZN.UK ENHERTU demonstrated robust and durable tumor pesponse of 54.9% in patients with HER2 mutant metastatic non-small cell lung cancer.
(JP) Japan Chief Cabinet Sec Kato: Cabinet decided to hold extraordinary diet session Oct 4th.
9984.JP Elliot Management said to reduce stake – NY Post.
(JP) Japan Fin Min Aso: Coronavirus likely to delay reaching primary balance target, fiscal stability requires Rev and spending balance.

Korea

China/Hong Kong

Hang Seng opened -0.1%; Shanghai Composite closed for holiday.
3333.HK Chairman: will fulfill responsibilities to buyers, investors, partners, and financial institutions.
3333.HK S&P Does not expect China Govt to provide support for Company.
LI Cuts Q3 deliveries ~24.5K (prior 25-26K) citing chips shortage due to COVID-19 situation in Malaysia.
(HK) Hong Kong Real estate Association: Unaware of a meeting between China and Developers – local media.
(CN) China State run newspaper notes that coal fired power plants may struggle to provide power this winter, due to prices being so high for coal and inability to buy enough, they are also said to be having large operating losses.
(HK) Hong Kong Chief Exec Lam to visit China on Sept 22nd ahead of annual policy address.

North America

(CA) Canada PM Trudeau projected to win 3rd term; Liberal party to form minority Govt – CTV.
FDX Shipping rates to increase on average by 5.9% for US domestic, US export, US import services; Effective Jan 3 ,2022.
(US) NIH’s Fauci: Mix and match strategy for COVID boosters still on the table.
LEN Reports Q3 $3.27 v $3.24e, Rev $6.94B v $7.27Be; Q4 guidance implies FY21 deliveries 60K (guided 62-64K).
(US) SEMI Aug North America-based Manufacturers of Semi Equipment Billings: $3.65B, -5.4% m/m and +37.6% y/y.
(US) Speaker Pelosi: Hops for $3.5T bill to pass, but there may be adjustments; Top line number may change.

Europe

(UK) PM Johnson: Would prefer a great free trade agreement (FTA) over a quick trade deal – comments on the way to US.
(EU) Some talk that Europe runs the risk of running out of natural gas this winter, amid limited supplies from Russia and tight inventories – press.

Levels as of 01:20 ET

Nikkei 225, -1.8%, ASX 200 +0.2% , Hang Seng -0.4%; Shanghai Composite closed ; Kospi closed.
Equity S&P500 Futures: +0.6%; Nasdaq100 +0.5%, Dax +0.6%; FTSE100 +0.7%.
EUR 1.1740-1.1723 ; JPY 109.63-109.34 ; AUD 0.7277-0.7243 ;NZD 0.7036-0.7001.
Gold -0.1% at $1,761/oz; Crude Oil +1% at $70.84/brl; Copper +0.3% at $4.137/lb.