General Trend
- Japanese Financial and Health Care firms trade generally lower amid ex-dividends; Over 1,000 Topix-listed companies trade ex-dividend today
- NTT Docomo indicated to rise over 15%, co. confirmed it is discussing a buyout offer from NTT; Docomo’s competitors decline
- Topix Information/Communication, Electric Appliances and Transport indices rise
- Hang Seng Property and Financial indices decline, while Tech index rises; Utilities trade mixed
- Shanghai Composite rises 0.5% during morning session; IT firms rise, financials lag
- Consumer Staples, Resources and Financial firms decline in Australia, gainers include Telecom and Energy firms
- China official Sept PMI data is due to be released on Wed (Sept 30th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) Australia PM Morrison: Oct 6th budget is one of the most important since WWII
- (AU) Victoria state (Australia) reports 10 additional coronavirus cases v 5 prior; 7 additional deaths v 3 prior
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 95.0 v 93.5 prior (4th consecutive rise)
China/Hong Kong
- Hang Seng opened +0.5%, Shanghai Composite +0.5%
- (CN) China Cabinet Adviser Lin: China Dual Circulation model is not a short term measure to cope with pandemic or friction with the US
- (CN) There is speculation that certain banks in China might be limiting mortgages – Chinese press
- (CN) China PBOC sets Yuan reference rate: 6.8171 v 6.8252 prior (First stronger yuan fix in 7 sessions)
- (CN) China Copper TC/RC price floor for Q4 expected to be set at $58/ton v $53 q/q – financial press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 14-day reverse repos v Injects CNY40B in 14-day reverse repos prior; Net drain CNY100B v Net drain CNY60B prior
- (CN) China PBoC reiterates stance to maintain flexible prudent monetary policy and maintain ample liquidity – Quarterly policy meeting comments (from Sept 28th)
- (CN) China Cabinet Adviser Yao: FX reserves will not rise as fast as before, foreign trade will be more balanced; China faces a very arduous task to achieve its new growth model, it must rely on reforms
- (CN) China national legislature to hold its 4th annual plenary session between Oct 26-29th – financial press (from Sept 28th)
- (HK) Hong Kong Chief Exec Lam: Hong Kong will extend ‘most’ social distancing measures
- (CN) China issues guidelines for the development of the horse racing industry: to target hosting additional horse racing competitions by 2025 – US financial press
Japan
- Nikkei 225 opened -0.4%
- NTT DoCoMo [9437.JP]: Reportedly NTT Domomo to be taken private by NTT in $38B deal – Nikkei
- NTT DoCoMo [9437.JP]: Discussing buyout offer from NTT today; To make announcement when decision is made
- (JP) Bank of Japan (BOJ) Summary of Opinions from Sept 16-17th policy meeting: Monetary easing measures since March have had positive effects
- (JP) Japan said to be lifting travel warnings from October – Nikkei
- (JP) Japan Fin Min Aso: Tax Hike hurt sentiment but it is good for the economy overall
- (JP) Japan MOF sells ¥3.0T v ¥3.0T indicated in 0.1% 2-year JGBs: avg yield: -0.141% v -0.1150% prior, bid to cover 4.02x v 4.66x prior
Korea
- Kospi opened +1%
- LG Chem [051915.KR]: Electrek blog highlighted report that Tesla is looking to acquire up to 10% stake in LG Chem’s battery business
- *(KR) SOUTH KOREA AUG INDUSTRIAL PRODUCTION M/M: -0.7% V 0.0%E; Y/Y: -3.0% V -3.0%E
- (KR) South Korea Oct Business Survey Manufacturing: 68 v 68 prior; Non-Manufacturing: 62 v 69 prior
- (KR) South Korea Aug Retail Sales M/M: +3.0%
- (KR) South Korea Aug Cyclical Leading Index Change: 0.6 v 0.4 prior
- (KR) South Korea and China may extend currency swap deal for 3 additional years [the agreement was due to expire in Oct 2020], the current swap agreement is worth $56B – press
- (KR) South Korea confirms 38 additional coronavirus cases v 50 prior; 1 additional deaths
Other Asia
- (IN) India Central Bank (RBI) reschedules planned MPC meeting that was set for Thursday (Oct 1st)
- (VN) Vietnam Q3 GDP Y/Y: 2.6% v 2.7%e
North America
- (US) Speaker Pelosi: The stimulus proposal is worth $2.2T (as speculated), will provide new funding to avert catastrophe for schools, small businesses, Restaurants, performance spaces, airline workers, and others
Europe
- (UK) EU negotiators are said to have indicated for the first time that they are prepared to start writing a joint legal text of a trade agreement with the UK – UK press
Levels as of 1:20 ET
- Nikkei 225, +0.3%, ASX 200 -0.2% , Hang Seng -0.6%; Shanghai Composite +0.4% ; Kospi +0.9%
- Equity S&P500 Futures: +0.4%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.3%
- EUR 1.1683-1.1662 ; JPY 105.54-105.34 ; AUD 0.7097-0.7067 ;NZD 0.6571-0.6549
- Gold +0.2% at $1,886/oz; Crude Oil -0.6% at $40.37/brl; Copper -0.4% at $2.9903/lb
