China Banks Start To Cut Mortgage Rates

Oct 25 18, 07:39 GMT

General Trend:

Equities markets plunge lower tracking volatile New York session
Asian chipmakers generally track declines in the US
South Korean chipmaker Hynix declines over 4%, sees slowing DRAM price growth
Panasonic rises over 1%, Tesla gained following its earnings report
Australia’s AMP Ltd declines over 17%, issued quarterly update on wealth management unit
Qantas declines over 3% after quarterly sales report
Iron Ore miner Fortescue drops over 5%, Q1 shipments declined
Data breach weighs on shares of Cathay Pacific
South Korea Q3 GDP misses ests with Nov rate decision in focus
China said to have made its first coordinated move since 2017 to lower mortgage rates in some Tier 1 cities, sparking talk that rates have peaked
Canon Inc is expected to report earnings after the Tokyo close
US companies expected to report earnings on Thursday (including afterhours) include Alphabet, Altria, Amazon, Bristol-Myers, CME Group, Celgene, Chipotle, Comcast, ConocoPhillips, First Solar, Intel, International Paper, KKR, Mattel, Merck, Sherwin-Williams, Snap and Western Digital
ECB is due to hold its policy meeting later today

Headlines/Economic Data

Japan

Nikkei 225 opened -1.9%
(JP) Japan FSA considering capping crypo leverage trading – Nikkei
(JP) Bank of Japan (BOJ) Deputy Gov Wakatabe: Taking strong steps to burst bubble could push economy into serious recession; still talks on feasibility of tightening monetary policy as a preemptive step against rise in asset prices
(JP) Japan Investors Weekly Net Buying of Foreign Bonds: ¥8.1B v +¥1.02T prior; Foreign Buying of Japan Stocks: +¥76.5T v +¥52.4B prior
(JP) JAPAN SEPT SERVICES PPI Y/Y: 1.2% V 1.2%E
Sharp, 6753.JP Reports prelim H1 Net ¥40B v ¥36B guidance, Op ¥46.5B v ¥46.0B guidance; Cuts Rev forecast to ¥1.13T v ¥1.30T prior [-9% in early trade]
(JP) Japan MoF sells ¥2.1T v ¥2.1T indicated in 0.10% 2-yr JGBs, avg yield -0.117% v -0.1120% prior, bid to cover 5.31x v 4.37x prior

Korea

Kospi opened -2.4%
(KR) SOUTH KOREA Q3 PRELIM GDP Q/Q: 0.6% V 0.8%E; Y/Y: 2.0% V 2.3%E
Hynix, 000660.KR Reports Q3 (KRW) Net 4.7T v 4.6Te; Op 6.47T v 6.3Te; Rev 11.4T v 11.8Te
(KR) South Korea Finance Minister comments after weaker than expected Q3 GDP data: Achieving 2.9% GDP growth may not be easy
(KR) Bank of Korea (BoK): Held meeting today to discuss US stock market decline, domestic economic fundamentals are stable
Hyundai Motor, 005380.KR Reports Q3 (KRW) Net 306B v 939B y/y; Op 289B v 1.2T y/y; Rev 24.4T v 2.2T y/y [ -10%]

China/Hong Kong

Hang Seng opened -1.9%, Shanghai Composite -2.4%
(CN) Bank in multiple China cities including Beijing, Guangzhou, Hangzhou, and Foshan have all cut mortgage lending rates, the first coordinated move since 2017 – Chinese press
(CN) China should cut stamp duty for loss making stock investors – Chinese Press
(CN) China has been quietly reducing production of rare earth in H2, seen as a move to drive up prices
1810.HK Guides shipments of smartphones to exceed 100M units by the end of Oct
(CN) China Guangzhou said to seek investments in 20 state-backed companies – Chinese Press
293.HK Cathay Pacific discovered unauthorized access to some passenger data that could affect ~9.4M passengers
(CN) Two China funds, CM Fengqing Flexible Allocation Fund and E Fund Ruihui Flexible Fund, both sold all holdings totaling $4.0B in bonds and stocks during Q3 without giving an explanation – US financial press
(CN) China PBOC sets Yuan Reference Rate: 6.9409 v 6.9357 prior
(CN) China PBoC Open Market Operation (OMO): To inject CNY100B in 7-day reverse repos v CNY150B prior: Net: CNY100B injection v CNY150B prior
(CN) China said to be tightening scrutiny of offshore investment using state assets – China Daily
(CN) China Banking and Insurance Regulator (CBIRC): Will support insurers’ investment in listed companies
(CN) China President Xi: Looking for ways to support small companies – Xinhua

Australia/New Zealand

ASX 200 opened -1.4%
QAN.AU Reports Q1 (A$) Rev 4.41B v 4.19B y/y
(NZ) New Zealand Sept Trade Balance (NZ$): -1.56B v -1.37Be; 12-mnth YTD: -5.19B v -5.02Be
AMP.AU Completes portfolio review: To spin off NZ wealth management unit via IPO next year; to sell ANZ wealth protection and mature businesses to Resolution Life for A$3.3B
FMG.AU Reports Q1 Iron Ore shipped 40.2Mt, -9% y/y; Production 51.9Mt, +14% y/y
(AU) Fitch affirms Australia sovereign rating at AAA; outlook Stable

Other Asia

(TW) Taiwan Cabinet Spokesperson: Major Taiwan Govt funds are ready to defend the stock market if needed

North America

US equity markets ended lower: Dow -2.4%, S&P500 -3.1%, Nasdaq -4.4%, Russell 2000 -3.8%
(US) Fed’s Brainard (voter, dove) no comments on monetary policy in speech

Europe

(UK) Certain technology companies said to have met with the UK government in London to seek assurances about the impact of a no-deal Brexit on jobs and investment – UK Press
(UK) PM May meeting to the 1922 committee of Conservative MPs (back benchers): PM gave several examples of what concessions EU had made to Britain

Levels as of 01:30ET

Hang Seng -2.1%; Shanghai Composite -1.7%; Kospi -2.2%; Nikkei225 -3.4%; ASX 200 -2.8%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.5%, Dax -0.7%; FTSE100 -0.8%
EUR 1.1380-1.1476; JPY 111.82-112.25 ; AUD 0.7056-0.7085;NZD 0.6502-0.6530
Dec Gold +0.7% at $1,239/oz; Dec Crude Oil -1.1%at $66.11/brl; Dec Copper -0.5% at $2.73/lb