General Trend:
- Hang Seng rises amid positive broker comments on Geely, earnings from Great Wall Motor
- ICBC rises after results
- HSBC misses Q3 ests, withdraws ROE target
- Shanghai Composite rises in early trading, trade-sensitive IT and Telecom Services sectors outperform ahead of earnings from ZTE; Financial and property shares lag
- Chinese blockchain-related companies rise after comments from President Xi and PBOC
- Japanese equities rise amid gains in the trade-sensitive Marine/Transportation and Electric/Appliance shares, insurance firms and Softbank lag
- Big Japanese earnings in focus: Canon Inc, Fanuc and TEPCO are expected to report on Monday
- Australian equities supported by gains in the Energy and Resource sectors, financials lag
- Sims Metal (Aussie metals recycling firm) drops over 9% on profit warning, noted ‘crash’ in scrap prices
- Key central bank decisions in focus: Fed to meet Oct 29-30th (Tuesday-Wed), BOJ to meet Oct 30-31st (Wed-Thursday)
- Press speculation continues to mount that BoJ may leave policy unchanged at Oct meeting
- Australia Q3 CPI due for release on Wed (Oct 30th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- SGM.AU Guides H1 underling EBIT loss A$30-20M; Guides FY20 underlying EBIT A$20-50M; Short term market fallout from the crash of scrap prices will be worse than originally anticipated
- TOE.AU Announces Gold Intersected at Toro’s Yandal Gold Project
- (AU) Australia APRA proposes looser capital rules for first home buyers
Japan
- Nikkei 225 opened +0.2%
- (JP) Japan Sept PPI Services y/y: 0.5% v 0.5%e
- (JP) Majority of Bank of Japan (BOJ) watchers said to see no additional stimulus in Oct, additional easing is seen by Jan 2020 – US financial press
- 6740.JP Comments on impact of rain in Kanto and Tohoku regions: Mobara plant is gradually resuming production, Mobara plant gas supply resumed today
- (JP) Japan Chief Cabinet Sec Suga: No decision made on a summit between Japan, China and South Korea
Korea
- Kospi opened +0.4%
- 005930.KR China ODM phone production expected to reach 60M units [timeframe uncertain] – South Korean press
- (KR) South Korea Trade Ministry: Parliament passes post-Brexit free trade agreement with the UK
China/Hong Kong
- Hang Seng opened +0.4%; Shanghai Composite opened +0.1%
- (CN) CHINA SEPT INDUSTRIAL PROFITS Y/Y: -5.3% V -2.0% PRIOR; YTD Y/Y: -2.1% V -1.7% PRIOR
- (CN) Xinhua comments that China and US confirmed that the technical consultations on some of the trade agreement text was basically completed; separate report notes that China wants the US to cancel some existing tariffs in return for pledging to boost purchases of US agricultural products
- (CN) China President Xi: China should seize the opportunity of blockchain – speaking to Political Bureau
- (CN) China PBOC sets Yuan Reference Rate: 7.0762 v 7.0749 prior
- (CN) China PBoC Open Market Operation (OMO): Skips v injects CNY30B prior in 7-day; Net drains CNY50B v injects CNY0B prior
- 1299.HK Reports Q3 Value of New Business $980M v $979M y/y
- (CN) PBoC Official: Commercial banks should step up blockchain application to embrace digital finance
- 5.HK Reports Q3 Net $3.0B v $3.9B y/y, adj Pretax $5.35B v $6.2BB y/y, Rev $13.3B v $13.8B y/y
Other
- (AR) Argentina President Macri concedes election; Fernandez now President elect
- (TH) Seafood firms in Thailand decline after US trade move; US President Trump plans to suspend $1.3B in trade preferences related to Thailand
North America
LPT To be acquired by Prologis for $12.6B in an all stock deal including debt
Europe
- (DE) Exit polls for regional election in the eastern state of Thuringia, Germany show far Left party Linke coming in first, the far right Alternative for Germany (AfD) in second beating Chancellor Merkel’s conservatives, who came in third
- (UK) EU looking to approve Brexit delay to January 31, 2020 with the ability to leave earlier – financial press
- (DE) Germany to double its annual payment to EU budget starting in 2027 to €33B – FT
Levels as of 01:00ET
- Hang Seng +1.3%; Shanghai Composite +0.7%; Kospi +0.4%; Nikkei225 +0.3%; ASX 200 0.0%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 -0.2%
- EUR 1.1076-1.1084; JPY 108.68.-108.80; AUD 0.6811-0.6826; NZD 0.6343-0.6361
- Commodity Futures: Gold 0.0% at $1,505/oz; Crude Oil -0.3% at $56.51/brl; Copper -0.2% at $2.68/lb
