Asian Equity Markets Trade Mixed Amid Holiday In China

Oct 01 18, 07:13 GMT

General Trend:

Australia ASX 200 Financials index drops over 1% following gains on Friday
China official manufacturing PMI hits 7-month low, Caixin manufacturing PMI declines to 16-month low
Japan Q3 Tankan Large Manufacturing Index and outlook miss ests
Chinese markets are closed for Golden Week (Oct 1-5th)
Reserve Bank of Australia (RBA) expected to leave rates unchanged at Tuesday’s meeting

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.4%
(AU) Australia Treasurer said to be wary of new rules on banks hurting the economy – Press
(AU) S&P: Australia bank ratings not impacted by the interim report by the Royal Commission into banking
(AU) Australia Sept Corelogic House Price Index M/M: -0.6% v -0.4% prior (12th straight decline)
(NZ) New Zealand Treasury: Outlook for Q3 growth remains solid

China/Hong Kong

Shanghai Composite closed, Hang Seng closed
(CN) CHINA SEPT CAIXIN PMI MANUFACTURING: 50.0 V 50.5E (16-MONTH LOW)
(CN) CHINA SEPT OFFICIAL GOVT MANUFACTURING PMI: 50.8 V 51.2E (7-month low)
(CN) China PBoC: Yuan exchange rate and market expectations are generally stable – Comments after Quarterly Meeting of Monetary Policy Committee
(CN) China said to have canceled high-level security talks with the US – NY Times
(HK) Hong Kong Macau Sept Gambling Rev: 22.0B, +2.8% y/y v 6.5%e
Tencent [700.HK]: Announced first restructuring in 6 years – US financial press

Japan

Nikkei 225 opened +0.2%
(JP) JAPAN Q3 TANKAN LARGE MANUFACTURING INDEX: 19 V 22E (weakens for 3rd straight quarter, lowest since June 2017); OUTLOOK: 19 V 20E; LARGE ALL INDUSTRY CAPEX: 13.4% V 13.9%E
(JP) BoJ Official comments on Q3 Tankan survey: Trade friction not having big impact on sentiment, may be weighing on outlook; Bad weather, natural disasters, rising raw material costs largely behind the worsening of sentiment
(JP) Japan Sept Final Manufacturing PMI: 52.5 v 52.9 prelim
(JP) Bank of Japan (BOJ) announces Bond purchases for month of Oct (from Sept 28th)
(JP) On Sunday, Typhoon Trami made landfall near Osaka Japan – Press

Korea

Kospi opened +0.3%
(KR) South Korea Sept Trade Balance ($): 9.7B v 8.0Be
(KR) South Korea Sept Manufacturing PMI: 51.3 v 49.9 prior (first reading above 50 in 7 months)
(KR) South Korea sells KRW500B v KRW500B indicated in 3-year bonds: avg yield 2.010%

Other

(IN) Reserve Bank of India (RBI): To inject durable liquidity through open market operation (OMO) purchase auctions in Oct; to inject INR360B in Oct through OMOs
On Friday (Sept 28th), a magnitude 7.5 earthquake and tsunami struck near Palu, Indonesia
(ID) Indonesia Sept CPI M/M: -0.2% v -0.1% prior; Y/Y: 2.9% v 3.2% prior
(PH) Philippines Stats Agency to hold a CPI briefing on Oct 5th
(TH) Thailand Sept CPI M/M: 0.3% v 0.2%e; Y/Y: 1.3% v 1.2%e
(TW) Taiwan Sept Manufacturing PMI: 50.8 v 53.0 prior (slowest growth in over 2 years)

North America

(US) US and Canada Joint Statement: Reached new trilateral trade deal with Mexico which will be called ‘USMCA’
Tesla [TSLA]: On Saturday, the SEC settled fraud charges with CEO Musk; under the agreement Musk to relinquish the Chairman role – US financial press
Facebook [FB]: Under the general data protection regulation (GDPR), the company could face a maximum EU fine of up to $1.63B in connection with the data breach that was announced on Friday – US financial press
Meg Energy Corp [MEG.CA]: Husky Energy proposes to acquire the company for C$11/share in cash and stock or C$6.4B (enterprise value)

Europe

(IT) Italy Economy Min Tria: government sees the debt/GDP ratio declining to 127% of GDP in 2021 – financial press
(IT) Italy President Mattarella and CB Gov Visco warn govt over deficit plan – financial press
(EU) ECB’s Rehn (Finland): interest rates will remain at this low level at least until after summer 2019
(EU) ECB’s Hansson hasn’t even remotely thought about succeeding President Draghi – German Press

Levels as of 01:30ET

Nikkei 225, +0.5%, ASX 200 -0.7%, Hang Seng closed; Shanghai Composite closed; Kospi -0.2%
Equity Futures: S&P500 +0.5%; Nasdaq100 +0.7%, Dax +0.5%; FTSE100 +0.1%
EUR 1.1618-1.1591 ; JPY 113.98-113.70 ; AUD 0.7233-0.7208 ;NZD 0.6629-0.6609
Dec Gold -0.3% at $1,193/oz; Oct Crude Oil +0.3% at $73.52/brl; Dec Copper -0.4% at $2.791/lb