Equity Markets Trade Broadly Lower At Start Of New Month And Quarter Amid Holiday In Shanghai And HK

Oct 01 21, 05:46 GMT

General trend

Equity indices have extended declines.
Shanghai markets will be closed for holiday from Oct 1-7 (Fri-Thurs); HK will be closed on Oct 1st..

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.3%.
(AU) AUSTRALIA AUG HOME LOANS VALUE M/M: -4.3% V -0.5%E; INVESTMENT LENDING M/M: +1.5% V 3.5% PRIOR.
(AU) Australia Sept Final PMI Manufacturing: 56.8 v 57.3 prior (confirms 16th month of expansion).
(AU) Australia Sept AIG Manufacturing Index: 51.2 v 51.6 prior.
(AU) Australia Sept CoreLogic House Prices M/M: 1.5% v 1.5% prior.
(AU) Australia PM Morrison: Australia ready to take next steps to safely reopen to the world; Will roll out 7 day quarantine for vaccinated individuals.
(AU) Australia said to remove international travel curbs on Australians once states move to home quarantine – Press.
(AU) New South Wales Premier Berekjiklian resigns [amid probe].
(AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2028 bonds, avg yield 1.1425%, bid to cover 5.30x.
(NZ) New Zealand Sept ANZ Consumer Confidence: 104.5 v 109.6 prior; M/M: -4.7% v -3.1% prior.

China/Hong Kong

Hang Seng closed, Shanghai closed.
(HK) Macau Sept Casino Rev (MOP) 5.88B v 4.44B prior; Y/Y +165.9% v 200.4%e.
(CN) China said to publish draft rules to regulate accounting treatment of asset management products, cites the Finance Ministry (MOF); The rules are said to be aimed at improving the quality of accounting information related to domestic asset management products; China is also seeking to avoid financial risks..
(CN) China Premier Li: To ensure energy and power supply and will maintain economic operations within a reasonable range; China will maintain the continuity and stability of its macro policies, increase policy effectiveness, and will make preemptive policy fine-tuning.
(CN) China Commerce Ministry (MOFCOM) spokesperson: China-US economic and trade teams are maintaining regular communication.
(US) Trade Chief Tai: To outline Biden China strategy on Monday (Oct 4th).
(CN) US House Panel to hold hearing on China listings on US Exchanges on Oct 26th.
(CN) China Industry Ministry (MIIT): sees pressure to stabilize industrial economic growth.
(CN) China FX Regulator SAFE: Reiterates to continue maintaining flexibility in exchange rate.

Japan

Nikkei opened -0.7%.
(JP) Bank of Japan (BOJ) announces Bond purchases for Oct-Dec period; To keep current pace of JGB buying from Oct to Dec 2021.
(JP) Japan Fin Min Aso to be replaced by former Olympics Minister Suzuki – Japanese press.
(JP) Expected that Japan new PM Kishida will appoint Yamagiwa as Economy Min – Press.
(JP) JAPAN Q3 TANKAN LARGE MANUFACTURING INDEX: 18 V 13E; OUTLOOK SURVEY: 14 V 14E.
(JP) JAPAN AUG JOBLESS RATE: 2.8% V 2.9%E.
(JP) Japan Sept Final PMI Manufacturing: 51.5 v 51.2 prelim (confirm the 8th straight month of expansion).
(JP) Japan Sept Consumer Confidence: 37.8 v 37.5e.
(JP) Bank of Japan (BOJ) Summary of Opinions from Sept 21-22 meeting: Seeing signs of slowdown in China growth.
(JP) Said that Newly Elected LDP Leader (incoming PM) Kishida will dissolve parliament on Oct 14th – Press.

Korea

Kospi opened -0.4%.
(KR) South Korea Sept Trade Balance: $4.2B v $5.1Be.
(KR) South Korea Sept PMI Manufacturing: 52.4 v 51.2 prior (11th month of expansion).
(KR) South Korea extends social distancing measures by additional 2 weeks.

Other Asia

(ID) Indonesia Sept PMI Manufacturing: 52.2 v 43.7 prior (1st expansion in 3 months).
(MY) Malaysia Sept PMI Manufacturing: 48.1 v 43.4 prior (4th consecutive contraction).
(PH) Philippines Sept PMI Manufacturing: 50.9 v 46.4 prior (1st expansion in 2 months).
(TW) Taiwan Sept PMI Manufacturing: 54.7 v 58.5 prior (15th month of expansion).

North America

(US) House Leadership Aide: House will not vote on $1.0T infrastructure bill on Sept 30th, will return Friday (Oct 1st) to attempt to vote on bill.
(US) White House: Closer to agreement than ever on infrastructure bill; Additional time needed to broker deal on Presidential Agenda.
(US) President Biden signs bill to avoid Govt shutdown and fund Govt through Dec 3rd (as expected).
(US) Fed’s Evans (dove, voter): Recent increase in prices has been ‘eye popping’; There is no way to sugarcoat the way higher prices are affecting people.
(US) Fed Chair Powell: Fed finds itself in difficult situation in regards to tension between inflation and employment; Inflation is well above target but we are still far away from full employment – House testimony.
(US) White House Press Sec Psaki: Oil price remains a concern; Been in touch with OPEC.

Europe

OPEC+ reportedly considering options for releasing more oil to the market at next week’s meeting beyond the plan for adding 400K bpd in Nov – press.
(DK) Denmark Central Bank (Nationalbanken) cuts certificate of deposit rate due to sale of foreign currency; Cuts Certificate of Deposit rate 10bps to -0.60% from -0.50%, Cuts lending rate to -0.45% from -0.35%; Keeps all other rates unchanged.

Levels as of 01:20 ET

Nikkei 225, -2.2%, ASX 200 -2% , Hang Seng closed; Shanghai Composite closed; Kospi -1.5%.
Equity S&P500 Futures: -0.5%; Nasdaq100 -0.5%, Dax -0.9%; FTSE100 -0.6%.
EUR 1.1583-1.1563 ; JPY 111.48-111.11 ; AUD 0.7241-0.7215 ;NZD 0.6915-0.6885.
Gold -0.2% at $1,753/oz; Crude Oil -0.1% at $74.97/brl; Copper -1% at $4.0630/lb.