Asian Indices Trade Mixed Amid More Disappointing US Data

Oct 04 19, 06:20 GMT

General Trend:

Nasdaq Futures rise on speculated Apple iPhone 11 production increase
Financials weigh on markets in Japan
HP [HPQ] declines over 5% in afterhours trading; announced thousands of job cuts and initial FY20 EPS guidance
US dollar trades generally lower in Asia amid focus on data and Fed outlook
China and HK markets are closed on Oct 7th (Monday)
US and China trade negotiators are expected to hold high-level talks in Washington DC Oct 10-11 (Thurs-Fri)
India Central Bank due to hold rate decision on later today, expected by analysts to cut rates

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.3%
(AU) AUSTRALIA AUG RETAIL SALES M/M: 0.4% V 0.5%E
(AU) RESERVE BANK OF AUSTRALIA (RBA) FINANCIAL STABILITY REVIEW: HOUSEHOLDS REMAINS WELL PLACED TO SERVICE DEBT; PICKUP IN LOANS AND APPROVALS; RISKS FROM FALLING HOUSING PRICES HAVE REDUCED BUT STILL EXIST
(AU) RBA Assistant Gov Ellis: Have factored strong manufacturing into forecasts but grappling with how long it will run; upswing most evident in scientific instruments, medicinal, and pharma products; impact of structural change in retail sector on pricing models has been profound
(AU) Westpac analyst reiterates sees next RBA cut in Feb 2020 but Dec 2019 rate cut is a ‘real possibility’; Sees bets related to Nov 2019 RBA rate cut as being too high

China/Hong Kong

Hang Seng opened +0.2%, Shanghai closed
(US) President Trump: if China doesn’t do what we want we have lots of options regarding China
(HK) US Pres Trump reportedly told China Pres Xi that he would remain quiet on Hong Kong amid trade talks; discussed Biden and Warren – US Press
(CN) US Dept of Commerce issues preliminary determination that China is dumping wooden cabinets and vanities into US markets
(HK) Hong Kong Sep PMI: 41.5 v 40.8 prior (18th consecutive contraction)

Japan

Nikkei 225 opened -0.1%
(JP) Japan Foreign Min Motegi: US-Japan Trade deal to take effect on Jan 1st – Japan Press
(JP) Bank of Japan (BOJ) Dep Gov Wakatabe: will act appropriately if more accommodation is needed; Do not want ‘lower for longer’ rate policy to turn into ‘lower forever’
(JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged
(JP) Japan Sept Car Sales in South Korea: -60% y/y – Japan Press
(JP) Japan Find Min Aso: Not seeing any major issues related to the sales tax hike; reiterates no need to take stimulus steps now
(JP) BoJ Gov Kuroda to speak in Nagoya on Nov 5th (Tuesday)

Korea

Other

(ID) Indonesia Sep Consumer Confidence Index: 121.8 v 123.1 prior
(MA) Malaysia Aug Trade Balance (MYR) 10.9B v 10.7Be; Exports to China -2.8% y/y
(PH) Philippines Sept CPI Y/Y: 0.9% v 1.1%e (2nd consecutive reading below target)

North America

Apple [AAPL]: To increase production of the iPhone 11- Japanese press
(US) Sept ISM Non-Manufacturing Index: 52.6 v 55.0e (lowest since Aug 2016)
(US) Fed Vice Chair Clarida (moderate, voter): Job market in healthy place, no one job report is definitive; FOMC will discuss appropriate reserve levels and balance sheet plans at Oct meeting; Will certainly be discussing standing repo facility at future meetings; won’t comment on probability of additional rate cuts
(US) Fed Evans (dove, voter): Two recent rate cuts by Fed were appropriate but will be open minded in case adjustment is needed
WeWork [WE]: Reportedly planning to cut ~2K jobs – US Financial Press

Europe

(UK) PM Johnson reportedly has a backup plan if the EU turns down his deal; Johnson said to have not ruled out accepting the backstop with a time limit – press
(UK) PM Johnson said to have been given one week by the EU to revise Brexit offer or face postponement of Brexit – press

Levels as of 01:20ET

Hang Seng -0.5% ; Shanghai Composite closed; Kospi +0.3%; Nikkei225 +0.5%; ASX 200 +0.6%
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 +0.7%
EUR 1.0985-1.0963 ; JPY 106.93-106.73 ; AUD 0.6760-0.6738; NZD 0.6329-0.6296
Commodity Futures: Gold +0.1% $1,514/oz; Crude Oil +0.5% at $52.72/brl; Copper -0.6% at $2.539/lb