Asia Summary

Asian equity markets opened higher after stronger China PMI over the weekend and a RRR cut. China (closed all week), Hong Kong, India and South Korean markets closed for holidays so liquidity remained light. Indonesia stock market reached a fresh record high of 5,929. According to analysts today’s Japan Tankan survey could be a leading indicator signaling an improvement in earnings of Japanese companies, which will start reporting later this month. USD remained stronger against the yen and slightly weaker against A$ and NZ$. US 10-yr treasury yield up over 1.0% in the session.

Over the weekend China’s PBOC cut reserve requirement ratio (RRR) for some banks that meet certain requirements for lending to small business and agricultural sector (1st cut since Feb 2016); affirms prudent and neutral monetary policy. Should be noted this is different from previous changes to RRR in that it was a delayed cut that will not go into effect until next year. (See headline at 10:12:56ET for full details) Markets seemed to have little reaction. China also released Sept Caixin PMI manufacturing remaining in expansion at 51, tracking in line with the official figure of 52.4 (14th month of expansion and highest level since 2012) released on Friday.

- advertisement -

EUR/USD fell to 1.1770 as Spain’s Catalonia is now on track towards a declaration of independence. According to regional officials, results showed 90% of voters backed independence (with a turnout of 2.3M vote, 42%). This is notable as the mock referendum also showed 2.3M votes. Catalan President Puigdemont vowed to declare independence in the event of a ‘yes’ vote, and later stated that Catalonia had won the right to become an independent state. There were reports of police entering various polling stations to try to seize materials related to the voting and more than 800 injured in clashes with Spanish riot police.

Key economic data

(CN) CHINA SEPT CAIXIN PMI MANUFACTURING: 51.0 V 51.5E

(JP) JAPAN Q3 TANKAN LARGE MANUFACTURING INDEX: 22 V 18E; MANUFACTURERS OUTLOOK: 19 V 16E; ALL-INDUSTRY CAPEX: 7.7% V 8.4%E

(JP) JAPAN SEPT FINAL PMI MANUFACTURING: 52.9 V 52.6 PRELIM

(HK) Macau Sept Gaming Rev MOP21.4B, +16.1% y/y v 14.5%e

(SG) Singapore Q3 URA Private Home Prices Q/Q: +0.5% v -0.1% prior (1st rise in 4-yrs)

(AU) Australia Sept CoreLogic House Price m/m: 0.3% v 0.1% prior; Prices of detached housing in Sydney -0.3% (first decline in 1.5 years)

(TH) Thailand Aug CPI M/M: 0.6% v 0.3%e; Y/Y 0.9% v 0.5%e; Core Y/Y: 0.5% v 0.5%e

Speakers and Press

China/Hong Kong

(CN) PBOC Q3 meeting of monetary policy committee: To cut reserve requirement ratio (RRR) for some banks that meet certain requirements for lending to small business and agricultural sector (1st cut since Feb 2016); affirms prudent and neutral monetary policy

Korea

(KR) Sec State Tillerson has been encouraged to not talk with North Korea by President Trump – Korean press

Japan

(JP) Japan ruling Liberal Democratic Party will pledge to raise the consumption tax as planned to 10% in 2019 in its manifesto for the general election on Oct 22

(JP) Moody’s: Even if Japan govt raises the sales tax to 10% (from 8%) in 2019, as scheduled, its overall fiscal balance won’t change materially

Asian Equity Indices/Futures (00:00ET)

Nikkei +0.2%, Hang Seng closed; Shanghai Composite closed; ASX200 +1.1%, Kospi +0.9%

Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.2%, FTSE100 +0.1%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.1816-1.1770; JPY 112.91-112.40; AUD 0.7847-0.7816;NZD 0.7226-0.7189

Dec Gold -0.5% at $1,278/oz; Nov Crude Oil -0.3% at $51.53/brl; Dec Copper +0.8% at $2.97/lb

Equities notable movers

Australia/New Zealand

BPT.AU Completes A$201M rights offering, take-up rate over 98%; +15%

A2M.AU Receives CFDA registration to allow exports of a2 Milk Co’s China label infant formula to China to continue; +5.5%

Japan

7201.JP Suspended new auto registrations because domestic factories did not follow processes agreed with the Japanese Ministry of Land, Infrastructure and Transport; now fixed and registrations have resumed; -3.4%

7649.JP Reports H1 Net ¥8.7B v ¥7.4B y/y; Op ¥12.6B v ¥11.7B y/y; Rev ¥229.5B v ¥217.8B y/y; -5.2%

Previous articleEuropean Open Briefing: Asia-Pacific Equity Markets Opened Higher On Monday
Next articleDaily Wave Analysis: EUR/USD, GBP/USD Bounce Or Break Spot At 23.6% And 38.2% Fibs
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.