General Trend
- Hang Seng Financials index rises over 2% [HSBC rises over 6%], Tech index trades mixed
- Energy and Financial firms are among the gainers in Australia
- Topix Iron/Steel index rises over 3%, Nippon Steel said to plan to restart idled furnace; Topix financial-related, Information/Communication and Transport indices also rise
- CHF/JPY rises over 0.5% amid expected M&A flows
- The Oct RBA rate decision and Australia Federal Budget announcement are both due to be released on Oct 6th (Tuesday). The RBA rate decision is due at 330 GMT, budget expected to be released at 830 GMT
- Shanghai markets to close Oct 1-8th for holiday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- (AU) Australia Sept NAB Business Confidence: -4 v -8 prior; Conditions: 0 v -6 prior
- (AU) Australia Sept Final PMI Services: 50.8 v 50.0 prelim
- (AU) Australia Sept AiG Performance of Construction Index:45.2 v 37.9 prior
- (AU) Australia Sept Melbourne Institute Inflation M/M: 0.1% v 0.1% prior; Y/Y 1.3% v 1.3% prior
- (AU) Australia to increase transportation infrastructure spending by ~A$7.5B – Press
- (AU) Victoria will reopen schools beginning next week (Week beginning Oct 11th)
- (AU) Victoria state (Australia) reports 9 additional coronavirus cases; 0 additional deaths
- Australia started daylight savings time on Oct 4th (Sunday)
- (NZ) New Zealand PM Ardern: Auckland to move to coronavirus alert level 1 on Oct 7th
- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$380M v NZ$295M prior in government bonds as part of QE v NZ$380M sought
- (NZ) New Zealand Sept ANZ Commodity Price M/M: -0.2% v -0.9% prior
China/Hong Kong
- Hang Seng opened +2.5% [after 2 day holiday], Shanghai Composite closed
- SMIC [981.HK]: Notes US export curbs may have potential material adverse impact on future production and operations; confirms US has issued letter to certain suppliers on restrictions on sale of certain raw materials
Japan
- Sony [6758.JP]: Sony and Kioxia are seeking license from the US so they can continue to sell to Huawei – Japanese press
- Nippon Steel [5401.JP]: Said to plan to restart idled blast furnace due to rising orders from domestic autos and consumer electronics industries – Nikkei
- NEC Corp [6701.JP]: Confirms acquisition of Avaloq [Switzerland based financial software firm] for ~CHF2.05B
- USD/JPY: (JP) Note: Japan Gotobi day in focus, refers to the 5th day of the month and dates that are multiples of 5 (for example July 20th)
- (JP) Japan Sept Final PMI Services: 46.9 v 45.6 prelim (confirms 7th straight contraction)
Korea
- Kospi opened +0.1% [after 3 day holiday]
- Samsung [005930.KR]: Expected to report Q3 Op $8.8B (+33.7% y/y), Sales at $54.5B (+3.1% y/y); expected to announce Q3 earnings guidance later this week – Yonhap
- (KR) South Korea Sept PMI Manufacturing: 49.8 v 48.5 prior (9th straight contraction)
- (JP) Japan and South Korea to restart business travel between the countries (in line) – Nikkei
- (KR) South Korea sells KRW1.3T in 3-year bonds: Pre issuance yield 0.89%
Other Asia
- (SG) Singapore Retail Sales M/M: 1.4% v 1.5%e; Y/Y: -5.7% v -5.8%e
- (TW) Taiwan Sept PMI: 55.2 v 52.2 prior (3rd straight expansion, highest since March 2018)
North America
- (US) Pres Trump’s Medical team: Trump’s condition continues to improve; he could be discharged as soon as Monday, Oct 5th
- (US) Pres Trump reportedly plans to empower Pence to take over some duties in the event his coronavirus symptoms worsen; national security is said to be a top priority – Fox News (from Oct 2nd)
- Regeneron Pharmaceuticals [REGN]: White House: Pres Trump has taken Regeneron polyclonal antibody cocktail to treat his coronavirus (from Oct 2nd after market close)
- (US) Senate cancels legislative work until Oct 19th after at least three Senators test positive for COVID – press
- (US) New York City to close schools in certain neighborhoods amid rising COVID-19 cases; the move will impact 9 zip codes [in Brooklyn and Queens], takes effect on Wed (Oct 7th) – press
Europe
- (FR) France govt put Paris on maximum COVID-19 alert level; Paris bars said to be shut down as of Tuesday, Oct 6th – press
- (UK) UK government said to plan ‘three-tier’ lockdown for England, affirms the restrictions would include the closure of pubs- UK press
- Cineworld [CINE.UK]: Reportedly will close all of its theaters in the US, UK and Ireland this week; the move is expected to impact all of the co’s 543 US theaters; Notes the possible impact of the delay to the new James Bond film – press
- (IE) Ireland Aug Services PMI: 45.8 v 52.4 prior (1st contraction in 3 months)
- (NO) Norway Oil Industry Association (NOG): Oil workers begin expansion of strike on Monday, the move to cut Norway’s petroleum output capacity by up to 8%
- (SA) Saudi Arabia Sept production 8.97M bpd [flat m/m], oil exports 6.1M bpd – US financial press
Levels as of 1:20 ET
- Nikkei 225, +1.2%, ASX 200 +2.6% , Hang Seng +1.2%; Shanghai Composite closed ; Kospi +1.3%
- Equity S&P500 Futures: +0.7%; Nasdaq100 +1%, Dax +0.6%; FTSE100 +0.9%
- EUR 1.1735-1.1706 ; JPY 105.60-105.27 ; AUD 0.7218-0.7157 ;NZD 0.6655-0.6632
- Gold -0.5% at $1,898/oz; Crude Oil +2.5% at $37.98/brl; Copper -0.5% at $2.9688/lb
