US/Japan Trade Talks Seen Later On Tuesday

Sep 25 18, 06:19 GMT

General Trend:

Equity markets in Asia trade mixed: Hong Kong and Korea closed for holiday
BoJ debated the range of yield movements and communication issues in connection with yield curve control (July minutes)
China Commerce Ministry official said the government is considering zero tariffs on some products
Last week, China local governments were said to have issued ~CNY379B in debt (record weekly high) – Chinese Press

Headlines/Economic Data

ASX 200 opened -0.2%
(AU) Australia corporate regulator AISC: Review found unacceptable reporting delays by finance companies
(AU) Reserve Bank of Australia (RBA) issues discussion paper on wage growth and technology
(AU) Australia Treasurer Frydenberg: Final budget outcome for FY17/18 is A$10.1B deficit (smallest deficit in 10 years); affirms on track to return to budget surplus in 2020
(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: our challenge now is to get inflation up, not down – radio interview
(NZ) New Zealand Shadow Board: Recommends no change in Reserve Bank of New Zealand (RBNZ) cash rate

China/Hong Kong

Shanghai Composite opened -0.8%, Hang Seng closed for holiday
(CN) China NDRC Vice Chairman Lian: Reiterates domestic economy is resilient, to cut taxes and fees to counter impact of trade war
(CN) China Commerce Ministry (MOFCOM) Vice Commerce Min Fu Ziying: Reiterates normal for US/China to have trade disputes, China is always open to trade talks; talks should be based on principle of mutual respect
(CN) China Industry Ministry (MIIT) Official: US tariffs on China to damage global supply chain, posing risks for fragmentation and disorder: likelihood of global trade war is rising
(CN) FTSE Russell said to plan to announce inclusion of China A-shares into index this week – US financial press
(CN) China PBoC Open Market Operation: Injects CNY60B in 14-day reverse repos v skipped prior: Net: CNY90B drain v CNY110B drain prior
(CN) China PBoC set yuan reference rate: 6.8440 v 6.8357 prior
(CN) China said to create a national system to monitor government spending and local government debt; Last week China local governments were said to have issued ~CNY379B in debt (record weekly high) – Chinese Press
(CN) Regulator: China banking sector total assets as of the end of Aug at CNY255.5T, +6.9% y/y

Japan

Nikkei 225 opened flat
(JP) Japan Chief Cabinet Sec Suga: Confirms US/Japan trade talks to occur on Tuesday (Sept 25th)
(JP) Bank of Japan (BoJ) July 30-31 Monetary Policy Meeting Minutes (2 meetings ago): Most said appropriate to continue easing ‘persistently’
(JP) Japan Aug PPI Services Y/Y: 1.3% v 1.1%e

Korea

Kospi closed for holiday
(KR) Pres Trump: a second summit meeting with North Korea’s Kim will happen soon – press

Other

(IN) India Securities & Exchange Board (SEBI) said to tell rating agencies to track bond spreads – Local Media
S&P: Asia Pacific rating uptrend flattens as risks rise
(TH) Thailand Aug Manufacturing Production Index Y/Y: 0.7% v 3.1%e; Capacity Utilization: 65.9% v 67.2% prior
(TW) Taiwan government sells NT$20B in 5-year bonds: avg yield 0.753% v 0.70-0.72%e; bid to cover 1.3x

North America

US equity markets ended mixed: Dow -0.7%, S&P500 -0.4%, Nasdaq +0.1%, Russell 2000 -0.4%
Ford: Executive Hinrichs said the company may increase production of cars in China to avoid new tariffs – financial press
Alphabet [GOOGL]: CEO Pichai said to plan to meet with Republican lawmakers on Friday – US financial press
(US) US Justice Dept Official: DoJ to meet with over 12 state officials on Tuesday at 10 AM EDT to discuss consumer protection and the technology industry
Facebook [FB]: The co-founders of Instagram, Kevin Systrom and Mike Krieger, said to step down; expected to leave the company in the coming weeks – NYT

Europe

(UK) Prime Min May Brexit plan reportedly to be given two weeks to make progress by cabinet – UK press
(UK) Labour Party spokesperson: UK govt has no credible plan for Brexit; Labour is preparing to vote against any Brexit deal reached by PM May as they’re increasingly likely to fail six key requirements
(UK) Cabinet comes to agreement on compromise regime for migration post Brexit – FT
(EU) EU Foreign Policy Head Mogherini: EU will establish a legal entity to facilitate legitimate financial transactions with Iran to allow continued trade

Levels as of 01:30ET

Nikkei 225, +0.1%, ASX 200 -0.1%, Hang Seng closed; Shanghai Composite -0.7%; Kospi closed
Equity Futures: S&P500 flat; Nasdaq100 -0.1%, Dax flat; FTSE100 -0.1%
EUR 1.1759-1.1730 ; JPY 112.99-112.74 ; AUD 0.7265-0.7235 ;NZD 0.6653-0.6630
Dec Gold -0.9% at $1,203/oz; Oct Crude Oil +0.2% at $72.25/brl; Dec Copper -0.7% at $2.804/lb