Equity Markets In Asia Track Wednesday’s Gains In The US

Nov 08 18, 07:22 GMT

General Trend:

Equity markets in Asia track Wednesday’s gains in the US
Toshiba rises over 9%, confirmed stock buyback and resumption of dividend
Bridgestone cut operating profit forecast
Japan regional bank Suruga up over 15%, commented on press report related to ¥90B in losses
Lenovo’s Q3 profits and sales beat ests
Wynn Macau declines over 10% after Q3 results
Australian gas company APA declines over 8%, government official raised concerns about merger agreement
Building materials firm James Hardie drops over 14%, Q2 results missed ests
Australia prudential regulator issues paper about higher capital requirements for big banks
Reserve Bank of New Zealand (RBNZ) Gov leaves rate cut on the table
China Oct forex reserves have largest monthly drop since late 2016
China Oct trade balance misses ests, trade surplus with the US narrows from prior record
China 1-week offshore yuan (CNH) HIBOR declines over 60bps following Wednesday’s PBoC bill sale in Hong Kong
Japan Sept Core Machine Orders have largest drop on record amid earthquake
Reserve Bank of Australia (RBA) is due to release its Quarterly Statement on Monetary Policy (SOMP) on Friday

Headlines/Economic Data

Japan

Nikkei 225 opened +1.6%
(JP) JAPAN SEPT CORE MACHINE ORDERS M/M: -18.3% V -9.0%E; Y/Y: -7.0% V +7.7%E
(JP) JAPAN SEPT CURRENT ACCOUNT (BOP BASIS): ¥1.82T V ¥1.79TE; CURRENT ACCOUNT ADJ: ¥1.33T V ¥1.35TE; TRADE BALANCE (BOP BASIS): -¥323.3B V ¥334.2BE
(JP) Japan Oct Bank Lending Ex-Trusts y/y: 2.2%v 2.3% prior; Incl Trusts y/y: 2.2% v 2.3% prior
(JP) Bank of Japan (BoJ) Summary of Opinions for Oct 30-31 Monetary Policy Meeting: Uncertainty over global economy is heightening
(JP) In Oct Japan life insurance companies have sold the most foreign bonds since 2015
Suruga Bank, 8358.JP Says not the source of report related to ¥90B loss, is considering increasing reserves [+20%, daily limit]
Toshiba, 6502.JP Reports H1 Net ¥1.08T v -¥49.8B y/y; Op ¥6.9B v ¥36.2B y/y; Rev ¥1.78T v ¥1.87T y/y; to pay ¥20 special dividend; to buyback ¥700B in shares; confirms to sell LNG operations

Korea

Kospi opened +1.5%
(KR) South Korea Pres Moon could nominate a new Fin Min as soon as this weekend – Korean press
(CN) China Commerce Ministry (MOFCOM) to impose anti-dumping tax for some rubber products imported from Japan and South Korea: anti-dumping tax rates to range from 12% to 56.4%, effective from Nov 9th
(KR) US State Dept: Sec State Pompeo’s meeting with North Korean leaders was postponed due to scheduling issues

China/Hong Kong

Hang Seng opened +1.3%, Shanghai Composite +0.7%
(CN) China should raise fiscal deficit ratio – China Securities Times
(CN) China Foreign Min Wang Yi: China and Australia reached $10B worth of deals at China import fair
(CN) CHINA OCT FOREIGN RESERVES: $3.053T V $3.059TE (largest monthly decline since Dec 2016)
(CN) China PBoC Open Market Operations (OMO): Skips OMO v skipped prior
(CN) China PBoC sets Yuan reference rate at: 6.9163 v 6.9065 prior
Tencent, 700.HK Said to plan to cut game marketing budget – US financial press
(CN) CHINA OCT TRADE BALANCE: $34.0B V $35.2BE; Exports Y/Y: 15.6% v 11.7%e, Imports Y/Y: 21.4% v 14.5%e
(CN) CHINA OCT TRADE BALANCE (CNY): 233.6B V 237.0BE; Exports Y/Y: 20.1% v 14.2%e; Imports Y/Y: 26.3% v 17.7%e
Lenovo, 992.HK Reports Q2 Net $168M v $139M y/y, Rev $13.4B v $11.76B y/y

Australia/New Zealand

ASX 200 opened +0.1%
(NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 1.75%; AS EXPECTED; Brings forward rate hike forecast to Q2 2020 (from Q2 2020); Below target CPI requires continued supportive monetary policy
(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: would consider a rate cut if GDP fall short of forecast, not taking rate cut off the table; no view on NZ$ level
(NZ) RBNZ Deputy Gov Bascand: Consideration of easing LVR restrictions will be included in November financial stability report, will explicitly consider it
(NZ) RBNZ Gov Orr: Comfortable with foot still on the accelerator – parliament
FCG.NZ Affirms FY19 farmgate milk price NZ$6.25-6.50/kgMS; EPS NZ$0.25-0.35 – AGM
APA.AU Comments on Treasurer Frydenberg’s preliminary view on CK Group deal; notes expectations are that the market will read the preliminary view as a ‘no’ but finds it interesting that FIRB was unable to reach a unanimous recommendation
JHX.AU Reports Q2 adj Op $80.9M v $81Me; Rev $644.6M v $659Me; issues positive outlook
ECX.AU To merge with McMillan Shakespeare in cash and share deal with implied value A$2.85/share
(AU) Australia Foreign Min Payne: Committed to deepening China relations

Other Asia

North America

US stocks gain amid post election risk-on sentiment: Dow +2.1%, S&P500 +2.1%, Nasdaq +2.6%, Russell 2000 +1.7%
(US) Pres Trump: hopes to work with Democrats on drug prices and infrastructure; dealmaking may be easier with a Democratic House; Won’t rule out another govt shutdown
(US) JEFF SESSIONS RESIGNS AS ATTORNEY GENERAL AT THE REQUEST OF DONALD TRUMP; ACTING AG WHITAKER TO TAKE OVER MUELLER INVESTIGATION – PRESS
CVNA Reports Q3 -$0.40 v -$0.37e, Rev $535M v $507Me [+19.6% after hours]
ALRM Reports Q3 $0.36 v $0.25e, Rev $111.8M v $96.8M [+17.6% after hours]
KRO Reports Q3 $0.28 v $0.64 y/y, Rev $410.3M v $464.5M y/y [-15.2% after hours]
(US) DOE CRUDE: +5.8M V +2ME

Europe

(UK) OCT RICS HOUSE PRICE BALANCE: -10% V -2%E
(DE) Germany CSU Party Head Seehofer (interior Min) said to be considering resigning in coming days – financial press
(UK) According to Sun’s Schofield: sources say draft agreement does not include Irish backstop, as that has not yet been agreed; emerging meeting now looking like next week
Prosiebensat [PSM.DE]: Reports Q3 Net €75M v €78Me; adj EBITDA €175M v €176Me, Rev €892M v €895Me; Cuts FY18 Rev to be lower than prior low to mid single-digit growth

Levels as of 01:30ET

Hang Seng +0.8%; Shanghai Composite +0.1%; Kospi +1.4%; Nikkei225 +1.9%; ASX 200 +0.5%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 -0.2%
EUR 1.1396-1.1500; JPY 113.47-113.73 ; AUD 0.7265-0.7286;NZD 0.6771-0.6795
Dec Gold -0.3% at $1,225/oz; Dec Crude Oil +0.1% at $61.73/brl; Dec Copper -0.3% at $2.73/lb

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