Asian Equity Markets Trade Generally Higher

Oct 30 18, 07:46 GMT

General Trend:

China Securities regulator issues response to market concerns
South Korea regulator said equity market decline is ‘excessive’ (local press)
Chipmakers in South Korea rise, US Commerce Dept. block sales to Chinese chip firm Fujian Jinhua
Chinese automakers trade generally higher, China speculated to cut the car purchase tax
Chinese liquor maker Kweichow Moutai extends post earnings declines
Japan’s Daiwa Securities drops over 3%, reported profit decline
PBOC fixes the yuan at weakest level since May 2008
Yuan is not likely to fall below 7 to the US dollar (Chinese Press)
Japan auto earnings in focus: Honda and Hino Motors expected to report
Japan electric appliances firms seen reporting later today include Nintendo, Sony and Sharp
Steelmakers Kobe and JFE also seen reporting
Chinese firms expected to report earnings include ICBC and Baosteel
Bank of Japan decision expected on Wed
US companies expected to report earnings (including afterhours) are 3D Systems, Aetna, Allergan, Amgen, Anadarko Petroleum, Autonation, Baidu, Coca-Cola, Cummins, Eaton, Electronic Arts, Facebook, FireEye, GE, Lumber Liquidators, Mastercard, Pfizer, Under Armour, eBay

Headlines/Economic Data

Japan

Nikkei 225 opened -0.5%
Sony, 6758.JP To invest ¥600B over 3-yrs in chip making – Nikkei
(JP) Japan Finance Ministry (MOF) said to consider dealing with the issue of tax avoidance in cryptocurrency trading – Japanese Press
(JP) JAPAN SEPT JOBLESS RATE: 2.3% V 2.4%E; Job to applicant ratio 1.64 v 1.63e (highest since Jan 1974)
(JP) Japan Fin Min Aso: PM Abe talked to China president Xi and was agreed for yen/yuan swap agreement
(JP) Japan Economy Min Motegi: TPP-11 trade agreement to take effect by as early as the end of 2018 or early 2019 at the latest
(JP) Former BOJ Exec Dir Miyanoya: reporting losses may become widespread for Japanese banks in the near future as their bottom lines suffer from a shrinking population and interest rates kept at ultra low levels
8698.JP Coincheck unit to resume new account opening; resumes deposit, purchases of Bitcoin and Bitcoin cash

Korea

Kospi opened -0.5%
(KR) South Korea Nov Business Survey: Manufacturing: 72 v 78 prior; Non-Manufacturing: 75 v 77 prior
(KR) South Korea Financial Regulator Chief has told staff to prepare steps to stabilize markets
(KR) Bank of Korea (BOK) held meeting to discuss financial markets, will take measures to stabilize markets if needed
(KR) South Korea Sept Department Store Sales y/y: 4.7% v 2.4% prior; Discount Store Sales y/y: +8.1% v -1.2% prior
(KR) South Korea sells KRW1.25T v KRW1.25T indicated in 30-yr bonds; Avg yield 2.11% v 2.565% prior; bid to cover 2.79x

China/Hong Kong

Hang Seng opened -0.2%, Shanghai Composite -0.1%
(CN) US said to implement next round of China tariffs if Trump talks with Xi fail (expected to meet at G20 on Nov 30th) – press
(CN) China yuan not likely to fall below 7 to the USD – Chinese press
(CN) Multiple companies in China said to consider conducting IPOs in London – Chinese Press
(CN) China PBoC Open Market Operation (OMO): skips v skips prior in 7-day reverse repos prior: Net: CNY120B drain v CNY120B injection prior
(CN) China PBOC sets Yuan midpoint rate at 6.9574 v 6.9377 prior (lowest level since May 2008)
(HK) Hong Kong Monetary Authority (HKMA): Did bank stress tests based on economy and trade war
(CN) China Foreign Exchange Trade System (CFETS) planning to develop swaps involving overseas currencies, also looking to build reference rates in onshore markets for dollar borrowing across the maturity spectrum – financial press
(CN) China Securities Regulator (CSRC) issues statement in response to market concerns: will encourage value investment in stock market; encourage buybacks by listed companies

Australia/New Zealand

ASX 200 opened -0.2%
VOC.AU Affirms FY19 Underlying EBITDA A$350-370M; do not expect Net to grow
RIO.AU CEO Jacques: mining sector faces risk of disruption; Chinese Govt putting more money into the system, Order books from China are full
(AU) AUSTRALIA SEPT BUILDING APPROVALS M/M: 3.3% V 3.8%E; Y/Y: -14.1% V -9.0%E
(AU) Reserve Bank of Australia (RBA) Assist Gov Bullock: Direct financial impact on major banks from Royal Commission probe has been relatively modest so far

Other Asia

(TH) Thailand Sept Manufacturing Index y/y: -2.6% v +0.7% prior (weakest since 2016)

North America

(US) US President Trump: Predicts ‘great deal’ with China on trade; could see a trade deal with Brazil happening
AKAM Guides Q4 $0.97-1.03 v $0.91e, Rev $692-709M v $704Me – earnings call

Europe

(UK) Chancellor of the Exchequer Hammond (Fin Min): Era of austerity coming to an end; Increasing Brexit provision o £2.0B in 2019; Launches 2% digital tax – Budget Speech
(UK) UK has rolled over only 14 of 236 EU international treaties – financial press

Levels as of 01:30ET

Hang Seng +0.4%; Shanghai Composite +1.7%; Kospi +1.5%; Nikkei225 +1.6%; ASX 200 +1.3%
Equity Futures: S&P500 +0.7%; Nasdaq100 +0.7%, Dax +0.1%; FTSE100 -0.0%
EUR 1.1361-1.1416; JPY 112.31-112.74 ; AUD 0.7054-0.7096;NZD 0.6521-0.6555
Dec Gold +0.1% at $1,229/oz; Dec Crude Oil +0.2% at $67.18/brl; Dec Copper -0.4% at $2.73/lb