Asia Summary
During yesterday’s NY session, equities ended mixed amid the release of the US Fed statement. In Asia, Nasdaq Futures have declined by over 0.2%. Shares of tech firms Facebook, Symantec and Tesla declined in the US afterhours, following their most recent earnings reports.
-As of the time of writing, equity markets are trading mixed. Financials in China and Australia are trading generally weaker, following earnings. Standard Chartered has declined by more than 5% amid weaker than expected Q3 results. National Australia Bank (NAB) has declined by over 2% after reporting FY17 cash earnings below market expectations.
At the same time, Boral, which produces building and construction materials in Australia, has gained over 3% after it said Q1 earnings were better than expected.
-In the auto sector, Honda has gained over 4% after the company reported financial results and raised its FY sales forecast. Steel maker Kobe Steel has continued to rise after the company issued its earnings report on Monday, while JFE has gained over 1% following its earnings release.
The Aussie has gained over 0.3%, following better than expected Sept Trade Balance and Building Approvals data with Sept retail sales due for release on Friday. Overall, the US dollar is trading with a generally weaker tone following the most recent FOMC statement.
At the same time, US government bond yields are lower, with Long Bond Futures up over 0.1%. Later on Thursday (at 3:00 PM EST), US President is expected to confirm that Jay Powell will be named as the next Fed Chair.
On the tax front, the US House GOP members are also expected to release their tax plan at 9:00 AM EST. The plan may include a 12% repatriation tax on cash held overseas and 5% tax for non-cash foreign holdings, according to a press report. Under the 2016 GOP tax blueprint, a tax rate of 8.75% was proposed for cash and cash equivalent profits repatriated from overseas and 3.5% on other overseas profits.
US corporate earnings expected for Thursday include, Apple. Earlier in the Asian session, retailer Costco reported better than expected Oct US SSS.
Japanese companies expected to report earnings later today include Asahi Group, Asics Corp, Furukawa Electric, Marubeni, Mazda Motor, Mitsubishi Chemical, Mitsui & Co, Nippon Sheet Glass, Renesas Electronics, Sapporo Holdings, Suntory Beverage, Suzuki Motor, Tokai Carbon and Yamaha Motor.
Key economic data
(AU) AUSTRALIA SEPT TRADE BALANCE: $1.75B V $1.2BE
(AU) AUSTRALIA SEPT BUILDING APPROVALS M/M: +1.5% V -1.0%E; Y/Y: +0.2% V -2.4%E
(JP) Japan investors net sold ¥1.08T in foreign bonds v bought ¥10.9B in prior week; Foreign investors net bought ¥697B in Japan stocks v bought ¥686B in prior week; Japan sold most foreign bonds on weekly basis since April.
Speakers and Press
Japan
(JP) Japan govt reportedly plans to widen tax on foreign online retailers – Nikkei
(JP) Follow Up: Japan PM Abe seeking ¥2T supplementary budget – Japan press
Korea
(KR) North Korea said to be working on an ‘advanced’ version of its KN-20 intercontinental ballistic missile (ICBM) which could possibly reach the US – CNN
(JP) Japan Chief Cabinet Sec Suga: Watching for possible of collapse at North Korea nuclear site
China/Hong Kong
(CN) PBoC official Zeng Hui calls for stronger regulations related to public-private partnership (PPP) projects
(HK) Hong Kong HKMA: Announces USD bonds eligible yuan liquidity facility collateral, effective immediately
(HK) Macau Oct Gaming Rev MOP22.6B, +22.1% y/y v 14.5%e (yesterday)
US
(US) President Trump to announce Fed Chairman nominee Thursday 15:00ET
Asian Equity Indices/Futures (00:00ET)
Nikkei +0.2%, Hang Seng -0.2%; Shanghai Composite -0.6%; ASX200 -0.1%, Kospi -0.5%
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 -0.1%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1672-1.1614; JPY 114.21-113.73; AUD 0.7726-0.7672;NZD 0.6942-0.6883
Dec Gold +0.3% at $1,280/oz; Dec Crude Oil +0.0% at $54.30/brl; Dec Copper +0.3% at $3.15/lb
(CN) PBoC OMO: skips v injects CNY240B combined in 7-day, 14-day and 63-day reverse repos prior; Net injection CNY140B v CNY0B prior
USD/CNY *(CN) PBOC SETS YUAN REFERENCE RATE AT 6.6196 V 6.6300 PRIOR
Equities notable movers
Australia/New Zealand
ASH.AU Reports Q1 (A$) net 1.1M v v 1.2M y/y; EBITDA 1.9M v 2.7M y/y; Rev 81.7M v 78.4M y/y – AGM; +29%
MBE.AU Guides FY18 well placed to deliver improved EBITDA y/y +14%
Japan
4091.JP Reports H1 Net ¥17.7B v ¥16.5B y/y; Op ¥29.6B v ¥26.0B y/y; Rev ¥305.7B v ¥268.8B y/y; +7.5%
7951.JP Reports H1 Net profit ¥19.6B v ¥27.2B y/y, Op profit ¥23.9B v ¥24.7B y/y, Rev ¥210B v ¥199B y/y; -10.5%
Hong Kong/China
1378.HK Chairman raises stake to 81.65%; +12%
