General Trend:

  • Japanese equities opened almost flat; Transports and financials trade generally lower, Topix Information/Communication index rises
  • Consumer, Resource and Financial firms are among the gainers in Australia
  • HK Financials index declines, Property and Tech indices rise
  • Shanghai Composite declined by ~0.2% during morning session, Consumer and IT firms declined
  • Taiwan Semi rises after Apple event
  • China’s 5-yr yield continued to decline after recent MLF operation; China sold 1 and 10-year bonds at lower than expected yields
  • New Zealand Q2 GDP data due on Thurs. (Sept 17th), along with Australia’s Aug jobs data
  • BoJ is also due to conclude 2-day policy meeting tomorrow

Headlines/Economic Data

Australia/New Zealand

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  • ASX 200 opened +0.2%
  • (AU) Australia Aug Westpac Leading Index M/M: 0.5% v 0.1% prior
  • (AU) Australia sells A$2.0B v A$2.0B indicated in 1.50% June 2031 bonds, avg yield: 0.9395%, bid to cover 4.9x
  • (AU) Reserve Bank of Australia (RBA) Skips offering to buy bonds v skips prior (3 straight skips)
  • (AU) Victoria state (Australia) reports 42 additional coronavirus cases v 42 prior
  • (NZ) New Zealand Treasury publishes Pre-election Fiscal Update: Cuts 2021 GDP growth forecast from +0.6% to -0.5%; Forecasts Q2 GDP Q/Q -16.0% (-12.5%e); Cuts FY21 borrowings from NZ$60B to NZ$50B; To issue new 2028 bond before the end of 2020; The initial economic impact of COVID-19, while still large, has been less severe than anticipated in the Budget Update
  • (NZ) New Zealand Q2 Current Account (NZ$): 1.8B v 0.7Be; Decline in imports drove current account surplus.
  • (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$460M v NZ$440M prior in government bonds as part of QE v NZ$460M sought

China/Hong Kong

  • Hang Seng opened +0.4%, Shanghai Composite -0.1%
  • (CN) China PBOC sets Yuan reference rate: 6.7825 v 6.8222 prior (Strongest yuan fix since May 9th, 2019)
  • (CN) China has raised the attendance cap for movie theaters to 75% of maximum seating capacity (from 50% currently), effective as of Sept 25th – Xinhua
  • SMIC [981.HK]: Applies to renew license from the US to supply Huawei – SCMP
  • (CN) WTO rules that US tariffs on China violate trade rules; recommends US brings its measures into conformity
  • (CN) US Trade Rep Lighthizer: WTO decision has no effect on US-China ‘Phase 1’ trade agreement
  • (US) Pres Trump: I’m not aware of today’s WTO ruling but will take a look at it; I ‘may do something’ about the WTO after today’s ruling
  • Reported that CFIUS reviewed TikTok deal with Oracle, but did not provide recommendations
  • (CN) US Treasury Dept blacklisted Union Development Group Co (China state-owned firm), relates to China’s dealings in Cambodia – press
  • (US) Department of Justice (DOJ): Will announce charges and arrests in Computer intrusion campaigns in regards to China on Sept 16th (Weds); a news conference is expected to be held at 11 a.m. ET (1500 GMT) – Statement
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY120B in 7-day reverse repos v skips 7-day reverse repos; Net drain CNY0B v Net drain CNY170B prior
  • (CN) China NDRC (State Planner): Approved 6 Fixed asset investment projects totaling CNY88.2B in Aug

Japan

  • Nikkei225 opened -0.1%
  • Sony [6758.JP]: Said press report on sales forecasts is false
  • (JP) Japan Lower House formally elects Yoshihide Suga (LDP party leader) as its new PM; as expected
  • (JP) Japan Aug Trade Balance: +¥248.3B v -¥37.5Be; Adjusted Trade Balance: +¥350.6B v -¥34.8B prior; Exports to China +5.1% y/y

Korea

  • Kospi opened -0.1%
  • (KR) South Korea confirms 113 additional coronavirus cases v 106 prior; 0 Additional deaths (14 straight days of <200 cases)

North America

  • FedEx [FDX] rose by over 8% in afterhours trading after quarterly results
  • Facebook [FB]: FTC reportedly has been investigating Facebook acquisition and treatment of App Developers, May be considering Anti-trust lawsuit by end of 2020 – Press [Reminder: CEO Zuckerberg reportedly had been questioned by the FTC amid an antitrust investigation (Politico from Aug 20th)]
  • (US) Group of House Democrats and Republicans said to put together $1.52T stimulus plan to be unveiled on Tuesday, Sept 15th – press
  • (US) House Maj Leader Hoyer (D-MD): going below $2T on coronavirus stimulus would not be responsible

Levels as of 1:20 ET

  • Nikkei 225, flat, ASX 200 +1% , Hang Seng -0.2%; Shanghai Composite -0.2% ; Kospi -0.3%
  • Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax -0.1%; FTSE100 -1.2%
  • EUR 1.1853-1.1828 ; JPY 105.44-105.25 ; AUD 0.7323-0.7287 ;NZD 0.6732-0.6702
  • Gold +0.2% at $1,969/oz; Crude Oil +1.8% at $38.97/brl; Copper +0.2% at $3.0623/lb

 

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