General Trend:

  • Nikkei outperforms amid earnings from Toyota
  • Toyota raises FY outlook on FX factors
  • RBA comments on economic forecasts ahead of Friday’s Quarterly Statement on Monetary Policy
  • Japan Sept Household spending unexpectedly declined amid earthquake
  • China PBoC expected to sell yuan-denominated bills in Hong Kong on Wednesday’s session

Headlines/Economic Data

Japan

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  • Nikkei 225 opened +0.6%
  • (JP) Japan Sept Household Spending y/y: -1.6% v +1.5%e (weakest since May)
  • Toyota Motors, 7203.JP Reports H1 Net ¥1.24T v ¥1.07T y/y, Op ¥1.26T v ¥1.1T y/y; Rev ¥14.67T v ¥14.2T y/y; To buyback 1.44% of shares for ¥250B, Raises guidance
  • 7203.JP Considering JV with Mazda on parts at Alabama plant – Japan press
  • Softbank, 9984.JP Reports H1 Net ¥840.1B v ¥102.6B y/y; Op ¥1.42T v ¥874.8B y/y; Rev ¥4.65T v ¥4.41T y/y (yesterday after the close)
  • (JP) Japan Finance Min Aso: Japan reduced its oil buying from Iran in order to gain exemption from the US government, to continue talks on Iran exemption
  • (JP) Japan Trade Min Seko: US took into account stable energy supply and impact to Japan firms in granting waiver from Iran sanctions
  • LINE, 3938.JP To suspend 8 mobile games for 1-month for repair work – Nikkei

Korea

  • Kospi opened +0.4%
  • (KR) South Korea Sept Current Account Balance: $10.8B v $8.4B prior; Good Balance: $13.2B v $11.2B prior
  • (KR) Economist warn that the slowing South Korea economy, investment declining and employment worsening, a simultaneous fall in stock and real estate prices could see the country go through something similar to Japan’s “two lost decades” spanning the 1990s and 2000s – Korean press
  • Posco, 005490.KR Chairman: Will expand sales volume of auto steel up to 120Mt/yr by the 2025 to ultimately reach revenue of over KRW100T and Op profit of KRW13T by 2030 – Korean press
  • (KR) South Korea targeting to attract KRW80T in investment from domestic and foreign companies at free economic zones by 2027 – Korean press
  • (KR) US Sec of State Pompeo to meet with North Korea Kim Yong Chol in New York City on Nov 8th

China/Hong Kong

  • Hang Seng opened +0.5%, Shanghai Composite -0.2%
  • (CN) China and Singapore complete talks to increase free trade agreement (FTA) – Caixin
  • (CN) China to launch a Nasdaq style board in Shanghai and play with registration based IPOs – Caixin
  • (CN) China Shanghai Stock Exchange to allow delisted state owned Nanjing Tanker Corp to re-list (1st time to allow a re-listing) – Caixin
  • (CN) China PBoC Adviser Ma Jun: USD/CNY rate of ‘7’ is NOT a key level
  • (CN) China Securities Regulatory Commission (CSRC) said to have urged mutual funds to support certain companies and limit risks related to share pledge agreements – financial press
  • (CN) China VP Wang Qishan: Reiterates unilateralism threatens the global economy, global economy faces biggest change since Cold War
  • (CN) China PBoC Open Market Operations (OMO): Skips OMO v skipped prior; Keeps neutral position
  • (CN) China PBoC sets Yuan reference rate at: 6.9075 v 6.8976 prior
  • (CN) China PBOC Official Pan: Reiterates internationalization of yuan is market driven; see big potential for foreign investment in China financial markets

Australia/New Zealand

  • ASX 200 opened +0.1%
  • (NZ) New Zealand shadow board continues to recommend no change in the Official Cash Rate (OCR)
  • SPK.NZ Pleads guilty to Commerce Commission proceedings on two operational and billing issues; Affirms FY19 guidance
  • (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 116.8 v 114.6 prior
  • LNK.AU PEXA accepts Link consortium takeover offer at enterprise value of up to ~A$1.6B
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 1.50% (AS EXPECTED): Reiterate low rates supporting the economy

Other Asia

  • (PH) Philippines Oct CPI m/m: 0.3% v 0.8% prior; y/y: 6.7% v 6.6%e
  • (PH) Philippines sells PHP15B v PHP15B indicated in 10-year Bonds; Avg Yield: 8.035% v 6.350% prior; bid to cover 1.89x (1st successful sale since May)

North America

  • (US) President Trump: Think will make a deal with China President Xi
  • AMZN One of the company’s second headquarters’ locations said to be Long Island City (NY)and Arlington, VA – NYT
  • (US) Former Fed Chair Yellen: Discontent with capitalism in US is due to inequality; US economy at full employment shows benefits

Europe

  • (UK) Cabinet Ministers to tell PM May that she needs to stand firm on Ireland border issue or face Brexit deal failing – UK press
  • (EU) EU reportedly to offer compromise on the Irish border – UK’s Times
  • (UK) Brexit Min Raab and Foreign Min Hunt said to insist on control of any Brexit backstop – UK’s Sun
  • (IE) Ireland PM Varadkar: Ireland is willing to examine ways in which a “backstop” to keep the Irish border open after Brexit could be reviewed so long as it does not permit Britain to unilaterally walk away from it – press
  • (UK) UK citizens would support remaining in the EU if there were another vote by a 54% to 46% margin, according to a study by Survation – UK Media

Levels as of 01:30ET

  • Hang Seng -0.2%; Shanghai Composite -0.9%; Kospi -0.4%; Nikkei225 +1.2%; ASX 200 +1.0%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 -0.0%, Dax +0.1%; FTSE100 +0.1%
  • EUR 1.1357-1.1424; JPY 113.17-113.36 ; AUD 0.7205-0.7220; NZD 0.6645-0.6669
  • Dec Gold -0.1% at $1,231/oz; Dec Crude Oil -0.2% at $62.98/brl; Dec Copper +0.3% at $2.76/lb
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