- Equity indices generally pare losses [particularly HK].
- TECH lags after Nasdaq drop.
- Energy cos. trade higher after recent rise in crude oil amid OPEC.
- Hang Seng pares over 1% drop [TECH and Property indices are off the lows].
- News related to HK/CN property developers remains in focus [Fantasia, Sinic Holdings]; Evergrande asset sale uncertainty remains; Various property developers’ USD bonds decline amid Fantasia news.
- Nikkei has dropped by >3% [currently off of the lows]; Heavyweights decline (Fast Retailing and Softbank Group); Topix Marine Transportation index extends drop; Japan’s new PM commented on tax on investments.
- S&P ASX 200 Energy index rises, Resources and Financial indices pare declines.
- Rise seen in USD index after prior drop.
- Japan sells 10-yr JGBs at lowest BTC since 2015, yield rose at the auction.
- Shanghai markets are closed for holiday from Oct 1-7 (Fri-Thurs).
- US ISM Services data due later today.
- ASX 200 opened 0.0%.
- (AU) China said to be still accepting coal deliveries from Australia despite ‘import ban’ – FT.
- (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 0.10%; AS EXPECTED; Maintains weekly bond purchases at
- (AU) Australia Aug Trade Balance (A$): 15.1B v 10.7Be (record surplus).
- (NZ) New Zealand Q3 NZIER Business Confidence: -11% v 7% prior; Capacity Utilization: 96.1% v 92.8% prior.
- (AU) Australia Sept AIG Construction Index: 53.3 v 38.4 prior.
- Nikkei 225 opened -1.4%.
- (JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0490% v 0.0230% prior; bid to cover: 2.45x v 3.36x prior (lowest BTC since 2015).
- (JP) Said that Japan PM Kishida will appoint Miyazawa as Tax Policy Chief – Nikkei.
- (JP) JAPAN SEPT TOKYO CPI Y/Y: +0.3% V -0.1%E; CPI (EX-FRESH FOOD) Y/Y: 0.1% V 0.2%E.
- (JP) Japan Sept Final PMI Services: 47.8 v 47.4 prelim (confirms 20th month of contraction).
- (JP) Japan PM Kishida: Need to think about tax on investments [comments from Oct 4th].
- (JP) Japan PM Kishida: Spoke with Biden he reaffirmed security treaty commitments, they agreed to meet in person soon.
- (JP) Japan Fin Min Suzuki: Affirms goal of primary balance surplus by FY25; Must provide economic support for suffering businesses without interruption.
- (JP) Japan Econ Min Yamagiwa: Wants to unveil new economic package before end of year; Will be nimble in deploying macroeconomic measures.
- (JP) Japan METI: Current Administration will continue prior admin’s ideas on nuclear power.
- (JP) Japan Official Kaneko says to follow Suga mobile phone policy – Japanese press.
- (JP) Japan Chief Cabinet Sec Matsuno: Markets set prices, no comment on market decline today.
- Kospi opened -0.7%.
- (KR) South Korea sells 30-year bonds: avg yield 2.205% v 1.970% prior (Aug 30th).
- (KR) North Korea reports another missile test (4th time in the last few weeks) of an anti-aircraft weapon – press.
- Hang Seng opened -0.1%; Shanghai Composite closed for holiday.
- (CN) China said to shelve ambitions for an anti sanctions law in Hong Kong after executive from Chinese and HK financials raised concerns that it would put them in a difficult situation – Press.
- (HK) Hong Kong Chief Exec Lam: China has no timetable on Hong Kong anti-sanction law.
- (CN) China Foreign Min: China will take all necessary measures to resolutely crush any Taiwan independence plots (US morning).
- Fantasia [1777.HK]: Misses $206M principal payment on 2021 notes due Oct 4th; shares halted until further notice.
- Fitch downgrades property developer Sinic to C from CCC.
- (HK) Macau said to cancel Saturday public casino law consultation due to coronavirus.
- (CN) China Banking and Insurance Regulatory Commission (CBIRC): To ban loans for speculating on luxury goods such as Moutai; places ban on loans to speculate in commodities and certain luxury goods; Urged banks to ensure funding the demand of coal and steel companies.
- (CN) US National Sec Advisor Sullivan and China Official Yang Jiechi to hold talks in Switzerland – SCMP.
- (TW) China again sent 56 warplanes into Taiwan air defense zone Monday, Taiwan called on China to stop “irresponsible provocative actions”.
- (SG) Singapore Sept PMI (whole economy): 53.8 v 52.1 prior (10th consecutive expansion).
- (CN) US Trade Rep Tai: Next steps on China trade will depend on how talks go; Much depends on Chinese response; Will raise concerns about larger industrial policy issues;
- At this point we have not had talks with Chinese officials on intervening issues that have prevented them from meeting ‘Phase 1’ commitments; Will look at all available tools to address US concerns, including Section 301 probes.
- (US) California Gov Newsom declares state of emergency in Orange County due to oil spill off the coast.
- (IE) Ireland Sept PMI Services: 63.7 v 63.7 prior (7th consecutive month of expansion).
Levels as of 01:20 ET
- Nikkei 225, -2.5%, ASX 200 -0.4% , Hang Seng flat; Shanghai Composite closed ; Kospi -2%.
- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax flat; FTSE100 +0.4%.
- EUR 1.1622-1.1595 ; JPY 111.20-110.87 ; AUD 0.7296-0.7259 ;NZD 0.6975-0.6937.
- Gold -0.4% at $1,760/oz; Crude Oil +0.1% at $77.72/brl; Copper -0.5% at $4.2145/lb.