General Trend
- Japanese equities underperform in Asia, USD/JPY declined on Monday; Topix Iron/Steel, Air Transportation, Insurance and Real Estate indices are among the decliners.
- Financials decline in Australia amid market expectations for rate cut
- Gaming, Property and Financial firms move higher in HK; Tech index trades mixed amid losses in shares of Xiaomi
- Shanghai Composite rose by 0.3% during morning session, Consumer firms rise amid better retail sales figures; Financials move higher after MLF operation
- Offshore yuan (CNH) rises amid stronger yuan fix, better Chinese data; USD Index FUTs decline before start of Fed meeting
- AUD/JPY rises amid the release of RBA minutes and China data
- The new US sanctions on Huawei are due to take effect on Tuesday (Sept 15th); The new sanctions will ban the supply of chips made with US components to Huawei [without prior approval from the US
- US Fed due to hold policy meeting Sept 15-16th (Tues-Wed), BOJ to hold policy meeting Sept 16-17th (Wed-Thurs.)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) RESERVE BANK OF AUSTRALIA (RBA) SEPTEMBER MINUTES: Considering how further monetary measures can support recovery; Weaker AUD would provide more assistance to economic recovery
- (AU) Australia interest rate futures are predicting a rate cut to 0.1% at the RBA’s Oct 6 policy meeting [current cash rate is 0.25%] – financial press
- (AU) Westpac Chief Economist: Unlikely RBA will cut rates to 0.1% at this stage, Expects RBA will be patient
- (AU) Victoria state (Australia) reports 42 additional coronavirus cases v 35 prior; 0 additional deaths (reports zero additional deaths for first time in 2 months)
- (AU) Victoria State PM Andrews: Regional Victoria to have eased coronavirus restrictions (as expected)
- (AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: -1.8% V -1.3%E; Y/Y: 6.2% V 6.8%E
China/Hong Kong
- Hang Seng opened -0.1%, Shanghai Composite -0.1%
- (CN) CHINA AUG INDUSTRIAL PRODUCTION Y/Y: 5.6% V 5.1%E; YTD Y/Y: 5.6% V 0.2%E
- (CN) CHINA AUG RETAIL SALES Y/Y: 0.5% V 0.0%E (First increase in 8 months); YTD Y/Y: -8.6% V -8.8%E
- (CN) CHINA AUG FIXED ASSETS INVESTMENT (EX-RURAL) YTD Y/Y: -0.3% V -1.6%E
- (CN) CHINA PBOC CONDUCTS CNY600B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: RATE 2.95% V 2.95% PRIOR [the injection was greater than the CNY200B in MLF funds due to mature in Sept]
- (CN) China PBOC sets Yuan reference rate: 6.8222 v 6.8361 prior (strongest yuan fix since May 13, 2019)
- (CN) China PBoC Open Market Operation (OMO): skips 7-day reverse repos v Injects CNY80B in 7-day prior; Net drain CNY170B v Net drain CNY20B prior
- Xiaomi [1810]: Comments on lock-up agreement related to Vice Chairman: The officer announced 5 year lock-up agreement; lock-up undertaking does not apply to a total of 470M Class B shares
- (CN) China Global Times: The (coronavirus) vaccine may reach the Chinese Global Public in Nov
- (HK) Hong Kong expected to announce new round of virus relief measures, latest social distancing measures later today
- (CN) China to extend tariff exemption on some US goods (16 products) by 1 additional year, the exemption will now last until Sept 16 2021 – US financial press
- (HK) US State Dept issued Level 3 travel advisory related to Hong Kong [2nd highest alert level]; Relaxed travel advisory related to China to Level 3 from Level 4
- (CN) China Aviation Regulator: Aug Passengers Y/Y: -25.6% v -34.1% prior
- (CN) China Aug Surveyed Jobless Rate: 5.6% v 5.6%e
- (CN) CHINA AUG PROPERTY INVESTMENT YTD Y/Y: 4.6% V 4.1%E
Japan
- Nikkei225 opened -0.5%
- Sony [6758.JP]: Reported to reduce PS5 sales forecast to 11M v 15M units prior citing supply issues on Chips – Press
- (JP) Incoming Japan PM Suga to reappoint Taro Aso as Deputy PM and Fin Min – press
- (JP) Japan Fin Min Aso: New Cabinet must respond swiftly to coronavirus; Should think about early dissolution of Parliament due to Olympic games held next year
- Tokyo Steel [5423.JP]: Maintains H-Beam Steel Prices at ¥81K/t for October; Raises Hot-Rolled coil price to ¥67K/t
- (JP) Japan Cabinet Approves ¥1.6T in extra virus response funds – Press (In line)
Korea
- Kospi opened +0.3%
- LG Chem [051910.KR]: Reported to supply batteries for Amazon Warehouse Robots – Press
- (KR) South Korea confirms 106 additional coronavirus cases v 109 prior; 4 Additional deaths (13 straight days of <200 cases)
Other Asia
- Asia Development Bank (ADB) cuts Developing Asia Countries GDP to -0.7% v +0.1% prior (First overall contraction since 1962)
Europe
- (UK) PM Johnson’s govt wins initial vote on proposed internal markets bill that would change Brexit deal; House of Commons votes 340-263
- (UK) UK reported to be extending ban on commercial evictions – FT
Levels as of 1:20 ET
- Nikkei 225, -0.5%, ASX 200 -0.1% , Hang Seng +0.5%; Shanghai Composite +0.4% ; Kospi +0.5%
- Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 -0.5%
- EUR 1.1899-1.1858 ; JPY 105.75-105.60 ; AUD 0.7331-0.7266 ;NZD 0.6729-0.6683
- Gold +0.7% at $1,977/oz; Crude Oil flat at $37.23/brl; Copper +0.4% at $3.0768/lb
