General trend
- Hang Seng has pared rise [Financials trade generally higher; COVID restrictions weigh on Casino names ].
- Property index has weighed on the Shanghai Composite.
- Nikkei 225 has pared gain [Automakers gain after recent rise in USD/JPY; Banks gain; Travel-related cos. also rise; Marine Transportation firms decline after prior rise].
- S&P ASX 200 has been supported by Energy, Resources, Financial and Travel-related cos.
- Fitch updated cash adjustments for China property developers, cited new disclosures.
- PBOC continues to only conduct 14-day OMOs ahead of upcoming holiday [Reminder: Shanghai markets will be closed for holiday from Oct 1-7 (Fri-Thurs); HK will be closed on Oct 1st].
- German elections see SPD with a very slim majority, now the bartering for a coalition starts, Merkel to remain until it is resolved. some speculation that it could last to New Year.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened 0.0%.
- (AU) Australia PM Morrison has not committed to phasing out the use of fossil fuels – press.
- API.AU Received unsolicited offer from Sigma Healthcare, A$0.35//shr cash and 2.05 shares per API share; value of A$1.57/shr.
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.
Japan
- Nikkei 225 opened +0.1%.
- (JP) Election of the next PM of Japan likely go to a run-off as neither of the two main candidates (Kono and Kishida) look able to secure an outright majority in the first round of voting (taking place on Wed) – press.
- (JP) Japan said to be planning to lift emergency measures in all areas at the end of the month – press.
- (JP) Japan said to begin trial of easing coronavirus restrictions related to sporting events – Press.
Korea
- Kospi opened -0.1%.
- (KR) South Korea and US hold regular defense talks amid North Korea sending conciliatory signs – press.
- (KR) South Korea FSC Chairman Koh: Prolonged low interest rates and asset bubble cannot last much longer, To take strong preemptive measures against household debt.
China/Hong Kong
- Hang Seng opened -0.3%; Shanghai Composite opened +0.4%.
- 1918.HK Said to be seeking policy support from government of Shaoxing, Zhejiang; due to property sales being week in the region.
- (CN) China PBOC sets Yuan reference rate: 6.4695 v 6.4599 prior.
- (CN) China PBOC Open Market Operation (OMO): injects CNY100B in 14-day reverse repos v CNY120B prior; Net inject CNY100B v Net inject CNY60B prior.
- China Evergrande Electric Vehicle Unit. 0708.HK Cancels plans to issue A-shares.
- 2378.HK Prices offering at HK$143.80/shr v HK$172/shr indicated for HK$18.5B (prior HK$22.5B).
- 3333.HK Reportedly Chinese cities seize Evergrande presales to block potential funds misuse – FT.
- (CN) Macau tightens Covid restrictions ahead of Golden Week celebration in early Oct, cancelling ferry service and will hold 3 days of mass COVID testing.
- Guangdong, China has asked people to turn off lights they don’t need and use their air conditioning less as energy crisis spreads from the factories to homes – press.
- (CN) China PBOC auctioned CNY70B in Ministry of Finance Deposits on Sun (Sept 26th) [as expected], interest rate 3.55%.
- (CN) China State Planner NDRC: Declares all crypto related activities and transactions illegal; To strictly prohibit financial support for new cryptocurrency mining projects (Friday after the close).
Other
- (SG) Singapore Fin Min Wong: 6-7% GDP Growth is still achievable for 2021, if economy grows on track, should live within our means, but won’t hesitate to use past reserve if needed.
- (PH) Philippines Central Bank (BSP) Gov Diokno: Stimulative fiscal policy crucial to reviving demand.
North America
- TSLA Shanghai factory expected to produce 300K vehicles from Jan-Sept even with chip shortage – press.
- EDU Said to be planning to layoff 40,000 employees by the end of 2021, will gradually close its teaching sites – press citing founder.
- (US) Speaker Pelosi sets Thursday (Sept 30th) to vote on $1.0T infrastructure bill (Prior vote was scheduled for Monday).
- XLRN Said to be in advanced talks to be acquired for ~$180/shr in $11B deal – press.
Europe
- (DE) Germany Election Final Update: Social Democrats (SPD) Scholz 25.7%; CDU/CSU Laschet 24.1%; Greens Baerbock 14.8% – Federal Returning Officer.
- BP.UK Updates on shortage of deliver drivers in UK: 30% of UK fuel stations have nearly no gas to supply, 1.2K locations are running out of the 2 main fuel types.
- ZO1.DE EQT launches voluntary public takeover offer at €470/shr (update Sept 25).
Levels as of 01:15ET
- Hang Seng +0.2%; Shanghai Composite -1.3%; Kospi +0.1%; Nikkei225 -0.0%; ASX 200 +0.6%.
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.3%, Dax +0.3%; FTSE100 +0.5%.
- EUR 1.1727-1.1716; JPY 110.81-110.54; AUD 0.7316-0.7236; NZD 0.7034-0.7005.
- Commodity Futures: Gold +0.4% at $1,759/oz; Crude Oil +1.4% at $74.97/brl; Copper -0.3% at $4.29/lb.
