China Markets Fluctuate After Monday’s Plunge

Oct 09 18, 06:38 GMT

General Trend:

Shanghai Composite moves between gains and losses during morning session
China listed Luxshare rises on profit forecast upgrade
IT index underperforms in Australia
Equities in New Zealand decline for 7th straight session
Electric Appliances and Marine Transportation stocks weigh on Japan equity markets
Tokyo Stock Exchange having problems with server related to equity trading, which caused some trade delays
Papa John’s rises in the afterhours on takeover speculation
IMF cuts world 2018 and 2019 GDP forecast by 0.2% to 3.7% (first cut since 2016); risk of balance has shifted to the downside due to escalating trade conflicts and tighter financial conditions
No ‘trade’ talks expected between top US and China officials at this week’s global meetings (HK Press)
China continues to weaken the yuan following recent holiday
Questions about the yuan (CNY) would be addressed in the US Treasury’s next Foreign Exchange Report, likely to be released during the week of Oct 15th (US Treasury Official)
China money market rates continue to rise despite recent RRR cut
China is expected to hold its roadshow for planned US dollar denominated bond issuance today
US Treasury yields rise in Asian trading
Hong Kong Chief Executive Lam expected to issue policy speech on Wed

Headlines/Economic Data

Japan

Nikkei 225 opened -1.0%
(JP) Japan Aug Adj Current Account: : ¥1.43T v ¥1.52Te; Current Account: ¥1.84T v ¥1.89Te; Trade Balance: -¥219.3B v -¥208.0Be
8358.JP Japan Post Bank to limit its efforts to promote loans offered by Suruga – US financial press [-8%]
(JP) JAPAN SEPT ECO WATCHERS CURRENT SURVEY: 48.6 V 47.0E; OUTLOOK SURVEY: 51.3 V 50.8E

Korea

Kospi closed for holiday
Kakai, 035720.KR Blockchain subsidiary, Ground X, announced plans to launch a testnet version of its proprietary blockchain platform Klaytn
(NK) North Korea hackers said to have broke into banks and sought $1.1B – financial press (US session)

China/Hong Kong

Hang Seng opened 0.0%, Shanghai Composite -0.1%
(CN) Top trade negotiators from China and the US are unlikely to meet this week during the IMF and World Bank annual meetings – Hong Kong Press
(CN) China Daily editorial: Recent RRR cut together with previous three cuts this year, help channel funds into the country’s real economy and boost the growth of the Chinese economy
(US) US Treasury Dept Official: US is concerned about China currency depreciation and is monitoring developments – IMF event (US session)
(CN) China PBoC Open Market Operation (OMO): Skips OMO v skipped prior: Net: CNY60B drain v CNY100B drain prior (drains liquidity for the 8th straight session, 3rd consecutive skip)
(CN) China offering 16% tax rebate to exporters – HK press
(CN) China state-backed Global Times: China must take ‘strong’ stimulus measures to support growth, country is in a critical period of stabilizing its economy
(CN) S&P: China recent RRR cut is not enough to boost select lending, does not signal significant change in monetary policy

Australia/New Zealand

ASX 200 opened -0.3%
(NZ) New Zealand 2017/18 operating surplus NZ$5.53B v NZ$3.14B forecasted; debt to GDP 19.9% v 20.8% forecasted
(NZ) New Zealand Sept ANZ Truckometer Heavy m/m: -2.6% v +1.0% prior
(AU) Australia sells A$150M v A$150M indicated in 0.75% 2027 indexed bonds, avg yield 0.8078%, bid to cover 4.97x
(AU) Australia Sept NAB Business Conditions: 15 v 14 prior; Confidence: 6 v 5 prior
(NZ) New Zealand Sept ANZ Inflation Gauge M/M: +0.3% v 0.6% prior; Y/Y: 2.9% v 2.8% prior

North America

PZZA Trian Fund Management said to be in early stages of putting together a possible bid; also has interest from possible strategic buyer – financial press [+16.6% afterhours]

Europe

(UK) UK Sept Barclaycard Consumer Spending Y/Y: +3.9% v +4.5% prior (slowest rise since April)
(NO) Norway Central Bank (Norges) Gov Olsen: Reiterates view of suggesting cautious approach to rate setting

Levels as of 01:30ET

Hang Seng +0.2%; Shanghai Composite +0.3%; Kospi closed for holiday; Nikkei225 -1.3%; ASX 200 -1.0%
Equity Futures: S&P500 -0.1%; Nasdaq100 +0.0%, Dax -0.1%; FTSE100 -0.3%
EUR 1.1503-1.1485; JPY 113.22.-112.93; AUD 0.7093-0.7066;NZD 0.76459-0.6443
Dec Gold -0.5% at $1,194/oz; Nov Crude Oil +0.4% at $74.61/brl; Dec Copper +0.4% at $2.78/lb