General Trend
- Tech firms are among the gainers in HK after rise in the Nasdaq
- Topix Insurance and Iron/Steel indices move higher, Real Estate and Air Transport indices decline
- Energy and Resource firms rise in Australia, Financials lag after recent gain
- Australia’s budget announcement is expected to be released at 830 GMT
- Shanghai markets to close Oct 1-8th for holiday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.3%
- (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 0.25% AND 3-YR BOND YIELD TARGET AT 0.25%, AS EXPECTED; continues to consider how additional monetary easing could support jobs as the economy opens up further; Over the past couple of weeks, 3-year yields have fallen to around 18 basis points as markets price in some probability of further monetary policy easing; Board views addressing the high rate of unemployment as an important national priority
- (AU) Australia Sept Trade Balance (A$): 2.6B v 5.1Be; Exports M/M: -4.0% v -2.0%e; Imports M/M: +2.0% v -5.0%e
- (AU) Australia Sept ANZ Job Advertisements M/M: +7.8% v +2.6% prior
- Saracen Mineral [sAR.AU]: Northern Star [NST.AU] to acquire 100% of Saracen in all stock deal
- (AU) Victoria state (Australia) reports 15 additional coronavirus cases v 9 prior; 1 additional deaths
China/Hong Kong
- Hang Seng opened +0.5%, Shanghai Composite closed
- (HK) Hong Kong Chief Exec Lam: Hong Kong will keep social distancing rules ‘for a while’
Japan
- Nikkei225 opened +0.5%
- Toshiba [6502.JP]: Chip Unit Kioxia said to be considering IPO as soon as Dec – Japan Press
- (JP) BOJ Gov Kuroda: Reiterates view that domestic economy remains in a severe state but starting to pick up; uncertainties remain extremely high (from Oct 5th)
- (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.6% 30-year JGBs, avg yield 0.6380% v 0.6110% prior, bid to cover 3.51x v 3.50x prior
Korea
- Kospi opened +0.5%
- *(KR) SOUTH KOREA SEPT CPI M/M: 0.7% V 0.4%E; Y/Y: 1.0% V 0.5%E (y/y number fastest since Mar)
- (KR) South Korea confirms 75 additional coronavirus cases v 73 prior; 0 additional deaths
- (KR) South Korea sells KRW3.22T in 30-year bonds: Avg Yield: 1.665% v 1.685% prior
Other Asia
- Nanya Technology [2408.TW]: Reports Sept (NT$) Rev 5.55B [highest level since May], +10.9% y/y; said chip prices were relatively flat in Sept m/m; declined to comment on rush orders from Huawei.
North America
- (US) President Trump tweet: “I will be leaving the great Walter Reed Medical Center today (Monday) at 6:30 P.M. Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life. We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!”
- (US) Said that the US House Panel will proposes a break-up of the US Tech Giants – Press
- (US) Said that White House has blocked Federal Guidelines for release of the coronavirus vaccine (As expected) – NYT
Europe
- (EU) EU Commission to allow budget rules to remain suspended in 2021 – financial press
Levels as of 1:20 ET
- Nikkei 225, +0.5%, ASX 200 +0.4% , Hang Seng +0.5%; Shanghai Composite closed; Kospi +0.1%
- Equity S&P500 Futures: flat; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 +0.1%
- EUR 1.1798-1.1779 ; JPY 105.78-105.61 ; AUD 0.7208-0.7171 ;NZD 0.6658-0.6638
- Gold -0.2% at $1,916/oz; Crude Oil +0.4% at $39.36/brl; Copper flat at $2.9647/lb
