General Trend:
- Hang Seng underperforms
- Nikkei 225 outperforms amid Monday’s holiday and focus on trade talks
- Japanese steelmakers outperform on hopes regarding US/Japan trade talks
- NY Copper declines over 2%, later pares loss
- (CN) China likely will not send trade delegation to Washington following US announcement on new round of tariffs (HK Press)
- China Securities Regulator official plays down stock market declines
- China HNA Group announces executive changes
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.2%
- (AU) Reserve Bank of Australia (RBA) Sept Meeting Minutes: Reiterates next move in cash rate more likely to be an increase, sees no strong case for near-term adjustment in policy
- (AU) Australia Q2 House Price Index Q/Q: -0.7% v -0.7%e; Y/Y: -0.6% v -0.7%e
- (AU) Australia Debt Agency (AOFM): Priced A$3.75B in Feb 21 2050 Indexed Bonds through syndication, yield 1.16%
- (NZ) New Zealand Aug Non Resident Bond Holdings: 58.2% v 58.7% prior
China/Hong Kong
- Shanghai Composite opened -0.3%, Hang Seng -0.3%
- (CN) USTR publishes tariffs list related to $200B in China goods
- (CN) China Commerce Minister: China has confidence and ability to achieve 2018 targets; Cooperation between the US and China is the only correct choice on trade
- (CN) China Vice Premier said to convene tariff response meeting
- (CN) China Securities Market (CSRC) Official Fang: China has ample fiscal and monetary policy tools to cope with the impact from trade frictions with the US; China preparing for worst scenario on trade issue, sees tariffs negative impact on China GDP of about 0.7 ppt
- (CN) PBoC Advisor Liu: trade war has relatively big impact on expectations; trade war’s impact on domestic economy not ‘very big’, but should watch impact on equity and currency markets
- (CN) According to analysts, China PBoC may announce targeted RRR cut around Oct – China Securities Journal
- (CN) China may announce additional measures to stabilize investment – Chinese Press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY200B in 7 and 14-day reverse repos v skipped prior: Net: CNY200B injection
- (CN) China PBoC set yuan reference rate: 6.8554 v 6.8509 prior
- (HK) Hong Kong Finance Sec Chan: Reiterates Hong Kong dollar (HKD) currency peg is ‘very strong’
Japan
- Nikkei 225 opened -0.2%
- (JP) Japan Fin Min Aso: Reiterates specific monetary policy up to BoJ to decide; Understands BoJ Gov Kuroda’s view that premature debate on exit strategy will cause market confusion
- (JP) Japan to offer measures to reduce trade surplus with US in upcoming talks in order to avoid tariffs on autos, which is expected to hit Japan the hardest if implemented – Nikkei
- (JP) Japan Economy Min Montegi: No country wants ‘tit-for-tat’ tariff retaliation; Japan and the US are making final adjustments on the date for bilateral trade meeting, will likely make an announcement ‘shortly’
Korea
- Kospi opened -0.7%
- (KR) South Korea President Moon trip to N. Korea today to focus on peace and a new economic relationship on the basis of denuclearization – Korean press
North America
- US equity markets ended lower: Dow -0.4%, S&P500 -0.6%, Nasdaq -1.4%, Russell 2000 -1.1%
- (CA) Canada PM Trudeau: Moving ‘close to a decision point on NAFTA’, might be days or weeks away
Europe
- (UK) UK Brexit Minister Raab expects the EU to make concessions – German Press
- (UK) UK Prime Min May: under a no-deal Brexit, there would be disruptions but UK has to make a success of a potential no-deal Brexit – BBC interview
- (EU) EU Commissioner Dombrovskis: Trade conflict is raising downside risks to the economy
Levels as of 01:30ET
- Nikkei 225, +1.5%, ASX 200 -0.4%, Hang Seng -0.8%; Shanghai Composite +0.2%; Kospi +0.3%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 flat
- EUR 1.1703-1.1666 ; JPY 112.04-111.66 ; AUD 0.7211-0.7143 ;NZD 0.6603-0.6561
- Dec Gold -0.3% at $1,202/oz; Oct Crude Oil -0.5% at $68.33/brl; Dec Copper flat at $2.648 /lb
