General Trend:
- Heavily weighted companies (Softbank, Fast Retailing) decline on the Nikkei
- Energy and Financial shares drive Australian index lower
- Chinese markets remain on holiday, due to resume trading on Oct 8th (Tuesday)
- Aussie Aug exports decline (first time since March), trade surplus misses ests
- AUD/JPY rises after declines seen on Wed
- Aussie Sept retail sales and RBA Financial Stability Review due on Friday
- BoJ due to hold first daily bond buying operation for Oct on Friday (Oct 4th) [Reminder: On Sept 30th, BoJ said it would reduce bond buying ranges in multiple zones in Oct]
- BoJ Funo: No comments on if further easing is needed at Oct meeting, Oct meeting will be a very important meeting [Oct 30-31st]
- India’s Yes Bank opens higher by 10%, multiple executives made comments earlier today
- India Central Bank due to hold rate decision on Friday (Oct 4th), expected by analysts to cut rates
- US Sept ISM Services data due later today, expected to decline vs prior month
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.3%
- (AU) Australia Sept Final PMI Services: 52.4 v 52.5 prelim; PMI Composite: 52.0 v 51.9 prelim
- (AU) Australia Aug Trade Balance (A$): 5.9B v 6.1Be
Japan
- Nikkei 225 opened -1.6%
- (JP) Bank of Japan (BOJ) Funo: No comments if further easing is needed at Oct meeting, Oct meeting will be a very important meeting
- (JP) Japan Investors Net Buying of Foreign Bonds: +¥869.2B v -¥164.8B prior week; Foreign Net Buying of Japan Stocks: -¥221.2B v -¥1.18T prior week
- (JP) Japan Sept Final PMI Services: 52.8 v 52.8 prelim
- 9983.JP Reports Sept domestic SSS -4.2%
- (JP) Bank of Japan (BOJ) Funo: Need to pay closer attention to risks for price momentum, attention needed more than ever to risk momentum to 2% target will be hurt; BOJ should keep easing persistently
Korea
- Kospi closed for holiday
- (KR) North Korea (KCNA) confirms test fired new type of submarine-launched ballistic missile (SLBM) and it was successful
China/Hong Kong
- Hang Seng opened -0.8%; Shanghai Composite closed
- (HK) Macau Oct 1-2 China visitor arrivals +9.6% y/y
- (US) White House Trade Adviser Navarro: Hong Kong unrest ‘is context’ for trade talks
- (HK) Hong Kong Monetary Authority (HKMA) new Chief Exec Eddie Yue: USD PEG is the most suitable system for Hong Kong; no intention to change it (overnight)
- (HK) Hong Kong protesters stage overnight vandalism; digging up bricks, block roads, start fires, vandalize train stations and target mainland Chinese linked businesses
- (HK) Hong Kong said to consider curfew to contain violence related to protests – Local press
- (HK) Hong Kong homeowners cut prices by 20% after protest violence –SCMP
- 161.HK To purchase all H-shares at HK$9.00/shr for up to HK$3.0B; AVIC Intl and AVIC Shenzhen will be merged
Other
- (IR) Reportedly over 20 grain cargo ships are stuck outside Iranian ports due to payment issues – press
- (SG) Singapore Sept PMI: 48.3 v 48.7 prior (lowest level since Aug 2012, 2nd consecutive contraction)
- (TW) Taiwan Central Bank Gov Yang Chin-Long: No plans to cut rates as of yet
North America
- (US) SEPT ADP EMPLOYMENT CHANGE: 135K V 140KE
- TSLA Reports Q3 total production 96.2K v 87.0K q/q; deliveries 97.0K v 95.2K q/q; we achieved record net orders in Q3 and are entering Q4 with an increase in our order backlog
Europe
- (US) WTO grants US the right to target $7.5B in EU imports with trade sanctions as a result of Airbus subsidies
- (UK) EU’s Juncker: acknowledges the ‘positive advances’ in PM Johnson’s Brexit proposal, notably with regards to full regulatory alignment for all goods and control of goods entering Northern Ireland from Britain
- (UK) PM Johnson Brexit proposal released: plan would remove the backstop; “The plan would see Northern Ireland essentially stay in the European single market for goods through the creation of a ‘all-island regulatory zone'”
- (US) USTR official: US will impose retaliatory tariffs of 10% on EU aircraft and 25% on EU agricultural and industrial goods; to take effect Oct 18th
- (UK) UK Minister Gove says he believes PM Johnson’s Brexit plan has a ‘good’ chance of being approved by parliament; will leave the EU on Oct 31st if we do not get a Brexit deal – UK Media
- (UK) EU prepared to bypass PM Johnson to extend Brexit – UK press
Levels as of 01:20ET
- Hang Seng -0.6 ; Shanghai Composite closed; Kospi closed; Nikkei225 -2.1%; ASX 200 -2.2%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax flat; FTSE100 -0.3%
- EUR 1.0967-1.0955 ; JPY 107.22-106.96 ; AUD 0.6718-0.6702; NZD 0.6275-0.6258
- Commodity Futures: Gold -0.2% $1,504/oz; Crude Oil +0.4% at $52.84/brl; Copper +0.2% at $2.576/lb
