General Trend
- Topix Marine Transportation, Banks, Real Estate and Information/Communication indices are among the gainers, Pharma index declines
- Fast Retailing is due to issue Sept sales figures after the Tokyo close
- Decliners in Australia include Energy, Resources and Financial firms
- Offshore yuan (CNH) declines after gain on Thursday, Chinese holiday continues
- Shanghai markets are closed Oct 1-8th for holiday
- Markets in South Korea and Hong Kong are due to resume trading on Monday (Oct 5th)
- Australia begins daylight savings time on Oct 4th (Sunday)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.2%
- (AU) Australia sells A$500M v A$500M indicated in 3.25% June 2039 bonds, avg yield 1.4339%, bid to cover 2.5x
- *(AU) AUSTRALIA AUG FINAL RETAIL SALES M/M: -4.0% V -4.2%E
- (AU) Australia sells A$500M v A$500M indicated in 3.25% June 2039 bonds, avg yield 1.4339%, bid to cover 2.5x
- (AU) Australia Council of Financial Regulators (CFR) Quarterly Statement: There have been some signs of tightening in availability of Credit, likely reflects changed trading conditions; The majority of loan deferrals expire in September and October
- (AU) Victoria state (Australia) reports 7 additional coronavirus cases v 15 prior
- (AU) Australia: Confirms quarantine free travel between Australia and New Zealand (Trans-Tasman bubble)
- (NZ) New Zealand Sep ANZ Consumer Confidence: 100.0 v 100.2 prior
- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$295M v NZ$399M prior in government bonds as part of QE v NZ$310M sought
- (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$1.05B v NZ$1.35B prior in government bonds next week
China/Hong Kong
- Hang Seng closed for holiday, Shanghai Composite closed for holiday
- (CN) China Ambassador to US: US and China should lose no time in taking bilateral relations onto right track
Japan
- Nikkei 225 opened +0.5%
- (JP) Japan Fin Min Aso: Japan is not considering compiling third extra budget; Now is time to make full use of Emergency budget reserves to take care of coronavirus; still has not used all of the funds in the 2nd extra budget
- *(JP) JAPAN AUG JOBLESS RATE: 3.0% V 3.0%E (highest level since May 2017)
- *(JP) JAPAN SEPT CONSUMER CONFIDENCE: 32.7 V 30.5E
- (JP) Japan Sept Monetary Base Y/Y: 14.3% v 11.5% prior
- (JP) Japan Govt said to be preparing for additional stimulus package – Nikkei
Korea
- Kospi closed for holiday
- (KR) South Korea confirms 63 additional coronavirus cases v 77 prior; 1 additional deaths
Other Asia
- (PH) Philippines Central Bank (BSP) Gov Diokno: Open to more debt financing
North America
- (US) PRESIDENT TRUMP TWEETS: TESTED POSITIVE FOR CORONAVIRUS
- (US) One of President Trump’s aides [Hope Hicks] has tested positive for coronavirus, the aide is said to have previously traveled on Air Force One
- (US) House Speaker Pelosi: Does not expect stimulus agreement tonight; To review Docs Mnuchin sent to her
- (US) Senate Majority Leader McConnell: Support additional stimulus but it must be a narrow package; If Pelosi and Mnuchin agree to a deal, I will take a look
- (US) House Democrats pass $2.2T stimulus bill; Republicans have rejected the bill
- Mesoblast [MSB.AU, MESO]: Receives FDA Letter for recommendation of at least 1 additional randomized controlled study in adults or children for Remestemcel-L
- *(AR) ARGENTINA CENTRAL BANK RAISES REPO RATE BY 500 BPS TO 24.0%; to end daily uniform devaluation mechanism
Levels as of 1:20 ET
- Nikkei 225, -0.9%, ASX 200 -1.4% , Hang Seng closed; Shanghai Composite closed ; Kospi closed
- Equity S&P500 Futures: -1.5%; Nasdaq100 -1.7%, Dax -0.9%; FTSE100 -1%
- EUR 1.1750-1.1695 ; JPY 105.66-105.32 ; AUD 0.7190-0.7130 ;NZD 0.6656-0.6615
- Gold -0.3% at $1,910/oz; Crude Oil -2.5% at $37.78/brl; Copper -1.2% at $2.8425/lb
