General Trend

  • Australian equities trade broadly higher [underperformed during prior session], ASX 200 Resources index rises over 2%
  • Offshore yuan (CNH) rises amid China and HK holiday
  • Hong Kong markets to close Oct 1-2nd for holiday, Shanghai markets to close Oct 1-8th for holiday
  • Australia 3-yr bond yield rises toward 20bps, AUD/USD also rises; Aussie final Aug retail sales due on Friday (Oct 2nd); Australia budget and RBA decision both due on Oct 6th (Tuesday)
  • US weekly jobless claims, Aug Personal Spending and Sept ISM Manufacturing data due on Thursday; Sept payrolls report due on Friday

Headlines/Economic Data

Australia/New Zealand

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  • ASX 200 opened +0.3%
  • (AU) Australia Sept Final PMI Manufacturing: 55.4 v 55.5 prelim (Confirms 4th month of expansion)
  • (AU) Australia Aug Job Vacancies: +59.4% v -43.2% prior
  • (AU) Australia PM Morrison: No tax increases in budget
  • (AU) Australia Sept AiG Performance of Manufacturing Index: 46.7 v 49.3 prior
  • (AU) Australia Sept Corelogic House Price Index M/M: -0.2% v -0.5% prior
  • (NZ) New Zealand DMO sells NZ$600M v NZ$600M indicated in 2023, 2029 and 2033 bonds

China/Hong Kong

  • Hang Seng closed for holiday, Shanghai Composite closed for holiday
  • (HK) Macau Sept Casino Rev (MOP): 2.2B v 1.3B prior; Y/Y: -90.0% v -94.5% prior
  • (US) President Trump: Signs executive order to expand rare earths mining in the US citing threat from China
  • (CN) China PBoC said to set counter-cyclical buffer at 0.00% (zero)

Japan

  • (JP) Tokyo Stock Exchange (TSE): probing reports of network issues; JPX is halting trade of all shares due to network issues; Unsure when system will be restored; Suspension due to disruption in distribution of price information; Osaka Exchange ‘trading as usual’
  • (JP) Follow up as of 2:46 GMT: JPX: Nikkei trading is halted for full day due to network issue; To announce trading schedule tomorrow; Identifies system glitch as a hardware issue
  • Fujitsu [6702.JP]: Says investigating Tokyo Stock Exchange system issue; declines further comment
  • *(JP) JAPAN Q3 TANKAN LARGE MANUFACTURING INDEX: -27 V -24E; OUTLOOK SURVEY: -17 V -16E (First improvement in 11 quarters)
  • (JP) Japan Sept Final PMI Manufacturing: 47.7 v 47.3 prelim (Confirms 17 months of contraction)
  • (JP) Japan said to consider additional stimulus to deal with coronavirus, stimulus could be partially funded with 3rd extra budget – Nikkei
  • (JP) Japan PM Suga reportedly unlikely to call for snap election in 2020 – Japanese press
  • (JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.024% v 0.034% prior; bid to cover 4.06x v 3.15x prior

Korea

  • Kospi closed for holiday
  • (KR) South Korea Sept Trade Balance: $8.9B v $8.9Be; Exports Y/Y: 7.7% v +3.5%e (First expansion in 7 months)
  • (KR) South Korea confirms 77 additional coronavirus cases v 113 prior; 2 additional deaths

Other Asia

  • (ID) Indonesia Central Bank (BI) Revises rules on short term liquidity loans effective Sept 29th
  • (ID) Indonesia Sept PMI Manufacturing: 47.2 v 50.8 prior
  • (MY) Malaysia Sept Manufacturing PMI: 49.0 v 49.3 prior
  • (PH) Philippines Sept PMI Manufacturing: 50.1 v 47.3 prior (1st expansion in 7 months)
  • (VN) Vietnam Sept PMI Manufacturing: 52.2 v 45.7 prior (1st expansion in 3-months)
  • (VN) Reportedly Trump Administration plans to open investigation of Vietnamese currency practices – press

North America

  • (US) US Treasury Sec Mnuchin: Had a productive meeting with Pelosi, Made a lot of progress, but still no stimulus; Stimulus deal is in neighborhood of $1.5-2.2T; Have agreed on direct payments to Americans; Proposed $400/week in unemployment benefits; Offered Pelosi additional aid for state and local governments; Will probably speak with Pelosi again later tonight, Does not expect progress to be made until Thurs (Oct 1st)
  • (US) White House Chief of Staff Meadows: Reiterates Stimulus offer is >$1.5T; Stimulus offer includes $20B in stimulus for airline, extends aid for airlines for 6 months
  • (US) Fed extends restrictions on large banks’ dividends and buybacks into Q4 (for firms with over $100B in assets)
  • (US) Senate passes the stopgap spending bill to keep the govt operating through Dec 11 (as expected)

Europe

  • (FR) France govt official Beaune: Brexit agreement is possible by end of November – financial press
  • (IE) Ireland Sept PMI Manufacturing: 50.0 v 52.3 prior
  • (IT) Italy considering extending state of emergency to Jan 31st 2021 – Press

Levels as of 1:20 ET

  • Nikkei 225, halted, ASX 200 +1.4% , Hang Seng closed; Shanghai Composite closed ; Kospi closed
  • Equity S&P500 Futures: +0.4%; Nasdaq100 +0.4%, Dax +0.7%; FTSE100 +0.3%
  • EUR 1.1747-1.1717 ; JPY 105.55-105.40 ; AUD 0.7184-0.7154 ;NZD 0.6633-0.6609
  • Gold +0.1% at $1,898/oz; Crude Oil -0.2% at $40.16/brl; Copper +0.5% at $3.0383/lb
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