General Trend:
- Asian equity markets generally move between gains and losses in early trading
- MSCI Asia Pacific index nears bear market territory
- Japan TOPIX index hits lowest level since Sept 2017, marine transportation firms decline
- Markets later pare losses as Shanghai rises
- China steelmakers rise, Henan Province comments on environmental checks
- Recent China bank earnings in focus, CCB and Ping An Bank
- China liquor names extend declines amid regulatory concerns
- LG Display moves been gains and losses, reported Q3 results
- Australian gold miner Newcrest rises over 2%, issued quarterly production update
- Tokyo Steel rises over 6%, raised FY profit guidance
- Automaker Subaru declines over 5%, cut H1 guidance
- Komatsu declines following earnings form Caterpillar
- Chip-related name SUMCO declines over 9% amid broker downgrade
- China State Planner pledges to support employment in trade impacted regions
- Japan Oct PMI Manufacturing hits the highest since April, trade-related concerns noted
- Ford announces management shakeup in China ahead of earnings
- Upcoming European bank earnings in focus Deutsche Bank, Barclays
- US companies expected to report earnings on Wed (including afterhours) include AMD, AT&T, Boeing, Ford, Freeport-McMoran, Microsoft, UPS, Visa and Whirlpool
- Japan PM Abe’s upcoming trip to China in focus (Oct 25-27th)
Headlines/Economic Data
Japan
- Nikkei 225 opened +0.7%
- 8606.JP Planning a partnership with CITIC and Sinosure in 3rd markets – Nikkei
- 8001.JP Makes investment into UK based car sharing start up, Hiyacar; no financial terms disclosed – Nikkei
- (JP) JAPAN OCT FLASH PMI MANUFACTURING: 53.1 V 52.5 PRIOR FINAL
- (JP) Japan Fin Min Aso: Supplementary budget aimed at disaster relief, does not know the specific numbers for the disaster damage as of yet
Korea
- Kospi opened +0.6%
- (KR) South Korea Fin Min Kim: With increasing trade war between China and US, South Korea should further diversify its trade channels and seek multilateral ties
- LG Display, 034220.KR Reports Q3 (KRW) Net 3.4B v 7.0Be; Op 140B v 79Be; Rev 6.1T v 6.3Te; Guides Q4 panel prices to fall q/q
- (KR) South Korea to cut transportation fuel tax by 15%, effective Nov 6th for 6 months
- (KR) South Korea to provide more financial assistance and tax incentives to boost sluggish facility investment, accelerate deregulation, stimulate innovation-led growth and create jobs
China/Hong Kong
- Hang Seng opened +0.2%, Shanghai Composite -0.6%
- (CN) Certain companies in Shenzhen (China) have received funds from the government – China Securities Times
- (CN) Said to be a shift in comments from China officials, who are now talking less about a potential peace with the US and more about stabilizing relationship to avoid escalation – US press
- (CN) China President Xi and Japan PM Abe to meet Friday, deals to be signed between Chinese and Japanese companies – Nikkei
- (CN) China PBoC Open Market Operation (OMO): To inject CNY150B in 7-day reverse repos v CNY120B prior: Net: CNY150B injection v CNY120B prior
- (CN) China PBOC sets Yuan Reference Rate: 6.9357 v 6.9338 prior
- (CN) China State Planner (NDRC): Approved fixed asset investment projects worth CNY697.7B in Jan-Sept
- (CN) China NDRC: Reiterates prices remain within a reasonable range, no signs of a rising trend in consumer inflation; to increase support to support to stabilize jobs in regions most impacted by US/China trade war
- (CN) China has halted special approval process for new video games, weighing on video gaming stock names (Tencent, NetEase, Shanda, Kongzhong, The9, Netdragon, Giant Interactive, Perfect World, ChangYou)
- (CN) China State Council: Industrial sector facing downward pressure, but overall operation of the industrial economy is still in a reasonable range, and there is no need to worry too much – Chinese press
Australia/New Zealand
- ASX 200 opened 0.0%
- (AU) Australia Oct Prelim CBA Manufacturing PMI: 54.3 v 54.0 prior; Services: 50.8 v 52.2 prior; Composite: 51.2 v 52.5 prior
- (AU) Australia Sept Skilled Vacancies m/m: -0.6% v -0.2% prior
- (AU) Australia Treasury Sec GAETJENS: A lot of household debt is held by wealthy, get some comfort from debt distribution
Other Asia
- (PH) Philippine Central Bank (BSP): CPI to ease 0.2% if oil tax halted for entire 2019
North America
- US equity markets ended lower: Dow -0.5%, S&P500 -0.6%, Nasdaq -0.4%, Russell 2000 -0.8%
- (US) Weekly API Oil Inventories: Crude: +9.9M v -2.1M prior
- (US) SEMI: Sept North America Billings $2.09B v $2.24B prior, -6.5% m/m and 1.8% y/y
- (US) US President Trump reiterates criticism of Fed Chairman Powell, says too early to tell if he regrets hiring Fed Chair Powell – US financial press interview
Europe
- (UK) Cabinet reportedly warned that Brexit transition to last for years; could have long-running multi-year transition; Northern Ireland to be in separate VAT area
- UK press
- (IT) Italy PM to meet with Russia’s Putin and Medvedev to discuss bilateral cooperation
- (IT) Italy Cabinet Undersecretary Giorgetti: Reiterates govt view that BTP/Bund 10-year spread near 400bps would mean bank recap – press
Levels as of 01:30ET
- Hang Seng +0.1%; Shanghai Composite +0.9%; Kospi -0.4%; Nikkei225 +0.4%; ASX 200 -0.2%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax +0.9%; FTSE100 +0.5%
- EUR 1.1462-1.1475; JPY 112.32-112.65 ; AUD 0.7080-0.7106;NZD 0.6546-0.6567
- Dec Gold -0.2% at $1,234/oz; Dec Crude Oil +0.2% at $66.61/brl; Dec Copper +1.4% at $2.78/lb
