General Trend:
- Japan financials outperform amid focus on end of Oct BoJ decision [Oct 30-31st]
- Japan Display rises over 8%, CEO said aiming to return to profit in Oct-Dec quarter
- Softbank’s shares remain weaker after recent confirmation of funding package for Wework
- Tesla rises over 20% in afterhours trading, reported surprise profit in Q3
- Shanghai Composite trades flat in early trading; IT shares decline, while banks rise
- Kospi lags as Samsung drops
- Qantas declines over 3% in Australia, raised FY20 fuel cost estimate
- Fortescue rises after quarterly production update, affirmed guidance
- JB Hi-Fi (Aussie home products retailer) rises over 6% after quarterly sales update
- Aussie debt agency fails to sell full amount in 3-month bill auction, says today’s auction result is in NO way a default by Australia
- Bank of Korea Gov said not easy to reach 2% GDP growth [comments came as prelim q/q Q3 GDP missed ests]
- PBOC daily liquidity injection declines vs prior 2 sessions
- NY Fed announced it would increase its overnight repo operations to at least $120B (vs $75.0B prior), effective Thursday (Oct 24th); to also increase amount offered at term repo operations
- ECB rate decision due later today, consensus is for unchanged policy
- US companies expected to report earnings during NY morning include American Airlines, Comcast, Citrix Systems, Danaher, Dow Inc, Southwest Airlines, MMM, Twitter and Valero Energy
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- QAN.AU Reports Q1 (A$) Rev 4.56B v 4.41B y/y; Protests in Hong Kong will negatively impact the group’s H1 profit performance by A$25M, with ongoing capacity reduction in place to minimize H2 impact
- FMG.AU Reports Q1 iron Ore Shipments 42.2Mt v 42.0Me
- (AU) Australia Oct Preliminary PMI Manufacturing 50.1 v 50.3 prior
Japan
- Nikkei 225 opened +0.4%
- (JP) JAPAN OCT PRELIMINARY PMI MANUFACTURING: 48.5 V 48.9 PRIOR (shrinks at fastest rate since June 2016); PMI Services 50.3 v 52.8 prior (slowest growth rate since Sept 2018)
- (JP) Japan Foreign Min Motegi: Auto tariff cut with US may come sooner than under TPP
- 6740.JP Apple reportedly among group of backers that plan to give as much as $368M in support for Japan Display – Nikkei
- (JP) BOJ Gov Kuroda: prepared to keep policy steady at its Oct meeting as global risks have eased, feeling more favorably about monetary easing – financial press
- (JP) Japan PM Abe and South Korea premier Lee agree that bilateral relations must be improved
- (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.30% 20-year bonds; avg yield 0.245% v 0.2050% prior; bid to cover 3.91x v 3.48x prior
Korea
- Kospi opened +0.4%
- (KR) SOUTH KOREA Q3 PRELIMINARY GDP Q/Q: 0.4% V 0.5%E; Y/Y: 2.0% V 2.0%E
- (KR) Bank of Korea Gov Lee: Not easy to achieve 2% GDP growth for now [comments follow prelim Q3 GDP data]
- (KR) South Korea Fin Min Hong: need to make efforts to boost private investment and consumption; completely respects BOK independence on policy – Parliament
- (KR) Bank of Korea (BOK): Possibility of housing bubble due to rate cut remains latent
- 000660.KR Reports Q3 (KRW) Net 493.2B v 297.2Be; Op 473B v 418Be; Rev 6.84T v 6.3Te
- (KR) South Korea and US hold new round of talks on defense cost sharing for the upkeep of US troops in S. Korea
China/Hong Kong
- Hang Seng opened +0.3%; Shanghai Composite opened +0.1%
- (CN) China PBOC sets Yuan Reference Rate: 7.0727 v 7.0752 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY60B v injects CNY200B prior in 7-day; Net injects CNY60B v injects CNY200B prior
- (CN) China to tighten rules regarding auto loans to address financial risks – press
- (CN) China Premier Li: Cooperation between China and US enable healthy growth in bilateral relations on the basis of mutual respect and equality
- (CN) China Sept Swift Global Payments CNY: 1.95% v 2.22% prior
Other Asia
- (SG) Singapore Central Bank (MAS) Gov Menon: Singapore slowdown may bottom out around year end. still have policy space to act if needed
- (SG) Singapore Central Bank (MAS): See some increase in flows from Hong Kong, getting inquiries about re-allocating assets from HK to Singapore
- (PH) Philippines Central Bank Chief Diokno: BSP is monitoring swine fever risk for Philippine CPI
- INFO.IN Confirms in touch with the SEC on whistleblower complaint, will defend itself vigorously in lawsuit in US
North America
- TSLA Reports Q3 +$1.86 v -$0.15e, Rev $6.30B v $6.52Be
- HPE Guides initial FY20 $1.78-1.94 v $1.79e; adj Op +4-6% y/y; negative currency impact to sales 1-2%; raises dividend to $0.12/shr (3.00% indicated yield) – analyst day comments
- PYPL Reports Q3 $0.61 v $0.60e, Rev $4.38B v $4.34Be
- MSFT Reports Q1 $1.38 v $1.25e, Rev $33.1B v $32.2Be
Europe
- (UK) Chancellor of the Exchequer Javid (Fin Min): process is on track to appoint successor to BOE’s Carney
- (UK) PM Johnson said to be close to calling for elections – Times
Levels as of 1:20 ET
- Nikkei 225, +0.6%, ASX 200 +0.3%, Hang Seng +0.4%; Shanghai Composite -0.4%; Kospi flat
- Equity Futures: S&P500 -0.1%; Nasdaq100 +0.2%, Dax flat; FTSE100 -0.2%
- EUR 1.1143-1.1126 ; JPY 108.70-108.57 ; AUD 0.6858-0.6843 ;NZD 0.6425-0.6407
- Gold flat at $1,495/oz; Crude Oil -0.9% at $55.47/brl; Copper -0.1% at $2.666/lb
