Equities Trade Generally Lower Amid US/China Headlines

Oct 30 19, 07:14 GMT

General Trend:

Shanghai Composite declines in early trading, Consumer Discretionary and Industrial companies are among the losers
Police in Yichuan County (China) said they have detained 1 individual for spreading ‘false info’ about a rural bank’s imminent bankruptcy
Automakers earnings weigh on the Hang Seng (BYD, Guangzhou Auto)
China Construction Bank declines ahead of expected earnings, Bank of China also expected to report later today
Standard Chartered beat Q3 ests, affirmed ROE target
Japanese equities decline amid weakness in banks and trade-sensitive companies
M&A speculation supports auto parts companies in Japan
Japanese companies expected to report earnings later today include Sony, Hitachi, Line Corp, Komatsu, Daiwa Securities, Eisai and Hino Motors
Consumer Staples weigh on equity markets in Australia amid inflation data, Woolworths and Costa Group decline after business updates
AU Q3 CPI data in line, little initial impact seen on bond market; Probability of Nov RBA rate cut declines
Australia to hold weekly bill auction on Thursday
PBOC continues to allow liquidity to drain, notes additional fiscal spending toward month-end
China official Oct PMI data due on Thursday
US companies expected to report earnings during the NY morning include ADP, Bunge, CROX, GE, Garmin, Hess, McKesson, Moody’s, Oshkosh, Simon Property, Sensata Technologies, Molson Coors, TE Connectivity, Tupperware, Wingstop and Yum Brands

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
(AU) AUSTRALIA Q3 CPI Q/Q: 0.5% V 0.5%E; Y/Y: 1.7% V 1.7%E; CPI Trimmed Mean (core) Q/Q: 0.4% v 0.4%e; Y/Y: 1.6% v 1.6%e
WOW.AU Reports Q1 (A$) Rev 15.9B v 14.8B y/y; Committed to fully pay the 5,700 salaried workers that haven’t been paid in full
GMA.AU Reports Q3 (A$) underlying Net 26.5M v 20.4M y/y; Net Earned Premium 76.2M v 68.1M y/y
(AU) Australia Minister said the government considers funding for rare earth projects – financial press

Japan

Nikkei 225 opened -0.1%
(JP) Japan Finance Ministry: Sept Japan exports of technology-related gas to South Korea -99%, exports of hydrogen fluoride gas were nearly zero during the month [amid ongoing Japan/SK dispute] – US financial press
(JP) Japan PM Abe to skip meeting with South Korea Pres Moon in Nov at the ASEAN or APEC meetings in Thailand and Chile – Japan Press
(JP) Japan Sept Retail Sales M/M: 7.1% v 3.5%e; Y/Y: 9.1% v 6.0%e (largest increase since March 2014, last month before sales tax increase went in place)
7974.JP China State Administration of Press, Publication, Radio, Film and Television said it had approved new Super Mario Bros. U Deluxe to be sold in China
6501.JP Looking to merge Hitachi Automotive Systems with three Honda affiliated suppliers: Keihin Corp, Showa Corp and Nissin Kogyo – press

Korea

Kospi opened flat
(KR) South Korea’s Unification Ministry: North Korea believes it is unnecessary to hold a separate working-level meeting to discuss the removal of South Korea-built facilities at Mt. Geumgang – financial press
(KR) Japan government proposes ‘economic cooperation fund’ with South Korea in a bid speculated to be intended to ease trade tensions – Korea Press
(KR) South Korea Sept Dept Store Sales Y/Y: -5.6% v 5.7% prior; Discount Store Sales Y/Y: -9.6% v -0.8% prior

China/Hong Kong

Hang Seng opened -0.1%; Shanghai Composite opened -0.2%
(HK) Hong Kong Chief Exec Lam: H1 GDP was 0.5%, near term outlook remains dismal, 1st priority is to end violence
(CN) China U.N. Envoy: US criticism of China policy in Xinjiang is not helpful for having a ‘good’ solution to the issue of trade talks
(CN) China Vice Commerce Min Wang Shouwen: China will end all restrictions on foreign investments that aren’t in its “negative lists”, and it will not force foreign investors and companies to transfer technologies – press
(CN) China PBOC sets Yuan Reference Rate: 7.0582 v 7.0617 prior
(CN) China PBoC Open Market Operation (OMO): Skips for third consecutive session; Net drains CNY200B v drains CNY250B prior
(CN) China Commerce Ministry (MOFCOM): Domestic pork prices +11% w/w in week ended Oct 27th
(CN) China Sept YTD Gold Consumption 768.3t, -9.6% y/y
(CN) China National People’s congress passes new cryptography law to go into effect Jan 1, 2020; as it moves closer to launching its own digital currency

Other Asia

(SG) Singapore Central Bank (MAS): See uneven GDP growth through the end of the year, weakness concentrated in trade and manufacturing, before halting its downtrend in 2020; also see soft labor market and weaker wage growth

North America

(US) Treasury Sec Mnuchin: open to looser bank rules in order to help with repo market stress – press
(CN) US OFFICIAL: PHASE 1 US-CHINA AGREEMENT MAY NOT BE SIGNED AT APEC MEETING IN CHILE BUT DOES NOT MEAN TALKS HAVE FALLEN APART; JUST MORE TIME IS NEEDED – PRESS
CAKE Reports Q3 $0.59 v $0.55e, Rev $586.5M v $594Me
YUMC Reports Q3 $0.58 v $0.51 y/y, Rev $2.32B v $2.21B y/y

Europe

Levels as of 1:20 ET

Nikkei 225, -0.5%, ASX 200 -0.8%, Hang Seng -0.3%; Shanghai Composite -0.4%; Kospi -0.8%
Equity Futures: S&P500 -0.1%; Nasdaq100 flat, Dax -0.2%; FTSE100 flat
EUR 1.1116-1.1106 ; JPY 108.90-108.80 ; AUD 0.6872-0.6848 ;NZD 0.6370-0.6344
Gold flat at $1,491/oz; Crude Oil -0.5% at $55.25/brl; Copper -0.4% at $2.682/lb

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