(TradeTheNews.com Staff)
Asia Market Update: Equities drop after losses on Wall St.; China Communist Party Congress started on Sun; Key CN data due on Tues [including Q3 GDP].
General trend
– GBP rises during Asia [UK Chancellor Hunt met with BOE’s Bailey; Bailey said that a “stronger response” would be needed to deal with inflationary pressures].
– (UK) Newly appointed Chancellor of the Exchequer Hunt said to make statement on medium-term fiscal plan today – financial press.
– NZ Q3 CPI due on Tues.
– RBA Minutes also due on Tues; RBA Dep Gov Bullock to deliver speech.
– Continuing to await China’s Sept Trade Data.
– Companies due to report during the NY morning include Bank of America, Charles Schwab, Bank of NY.
Headlines/economic data
Australia/New Zealand
-bASX 200 opened 0.0%.
– CSL.AU Guides FY23 Net A$2.7-2.8B, including Vifor; Affirms FY23 Net ex-acquisition A$2.4-2.5B; deal to provide low to mid teens per share accretion in medium term.
– MTS.AU Reports YTD (23 weeks to Oct 9) Rev +7.7% y/y – Investor day.
– EDV.AU Reports Q1 (A$) Rev 3.03B v 2.94B y/y.
– (AU) Australia Treasurer Chalmers: Australian’s cost of living will rise due to floods being in the primary food growing areas.
Japan
– Nikkei 225 opened -1.1%.
– (JP) Japan Top FX Diplomat Kanda: Nations have recognized volatility increase in currencies; G20 shared understanding on currencies for the first time, agreed on monetary tightening pace adjustments.
– (JP) Japan Cabinet approval rating -3.1ppt to 33.1% – ANN poll.
– (JP) Japan Fin Min Suzuki: Reiterates will take appropriate actions against speculative moves.
– (JP) Bank of Japan (BOJ) Gov Kuroda: Inflation is likely to continue to accelerate toward year end, affirms sees CPI below 2% starting FY23/24 – comments to Parliament.
– (JP) Japan PM Kishida: Specific monetary policy up to BOJ to decide, must decide most appropriate person to succeed Kuroda – speaking to Parliament.
– (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Raises >25-year offer to buy (as expected).
Korea
– Kospi opened -1.1%.
– (KR) Bank of Korea (BOK) Gov Rhee: BOK Board member sees terminal rate above 3.5% – Korean press.
– (KR) South Korea Fin Min Choo: Affirms important to keep “consistency” between financial and monetary policies as countries tackle global inflation – Yonhap citing comments from G20 finance chiefs meeting.
– (KR) South Korea President Yoon office on 24 hour standby in case of possible North Korea nuclear test.
– 035720.KR Exec: On Sunday restored 40% of its data center’s servers after fire; hard to tell exactly how long it will take before KakaoTalk and other services can be fully restored.
– 005930.KR Meta CEO Zuckerberg met with senior officials to talk about possible business cooperation, met with device experience and mobile experience execs – Yonhap.
– (KR) South Korea Finance Ministry: To begin exempting taxes on interest income and capital gains from foreigners’ investment in government bonds this week, in line with efforts to cope with the volatility in FX. market
China/Hong Kong
– Hang Seng opened -0.7%; Shanghai Composite opened -0.4%.
– (CN) China party congress spokesperson Sun: China capable of greater miracles going forward; China has entered new normal of slower growth; China more focused on fixing long-term issues than growth.
– 883.HK Guides 9M (CNY) Net 107.8-109.8B v 53B y/y.
– (CN) China PBOC conducts CNY500B V CNY500B maturing IN 1-year meduium-term lending facility (MLF) AT 2.75% V 2.75%E.
– (HK) Proposal made to raise minimum wage in Hong Kong to HK$40/hour (from HK$37.50 currently) starting May 2023, if approved – press.
– (CN) Hong Kong delegate: Quarantine for cross border travel with China could be reduced to 4 days by the end of the year – press.
– (CN) China Pres Xi: Declares new core mission of the party is to lead a China united in struggle to be a powerful, modern socialist nation by 2049 – 20th Communist Party Congress speech.
– 486.HK There is a certain ambiguity that may possibly affect dividend transfer, talks with respective state authorities is ongoing.
– (CN) China PBOC sets Yuan reference rate: 7.1095 v 7.1088 prior.
– (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior.
– (CN) Reportedly China govt officials backpedaling efforts to organize face-to-face meeting between US Pres Biden and China Pres Xi on the sidelines of the G-20 summit in mid-Nov – Politico.
– (CN) Major China state-owned banks seen swapping Yuan for USD in the forwards market; the move is aimed at stabilizing the yuan (CNY) – financial press.
– (CN) Former PBOC official Sheng Songcheng says China has the policy tools to guide yuan expectations – financial press.
– (CN) China Energy [NEA] official Ren Jingdong: Will greatly increase domestic energy supply capacity; to allow coal to play a cornerstone rol.
– (CN) China [commodities] Reserves Chief: To further increase reserve capacities for key commodities.
– (CN) China NDRC Vice Head Zhao Chenxin: China economy shows significant recovery in Q3 [Q3 GDP data due on Oct 18th (Tues)].
Other
– OPEC Sec Gen al-Ghais: Oil markets are going through a stage of great fluctuations; Our and producers’ outside OPEC goal is to maintain market stability.
– (SG) Singapore Sept non-oil domestic exports M/M: -4.0% V 2.50%E; Y/Y: 3.1% V 8.2%E; Electronic Exports Y/Y: -10.6% v -4.5% prior.
-(VN) Vietnam Central Bank ‘adjusts’ VND/USD Exchange rate; widens Dong trading band to 5% (prior 3%); effective Oct 17th.
North America
– (US) US Treasury Dept is asking primary dealers whether the gov’t should buy back some of its bonds – financial press [update].
– (CN) Reportedly China govt officials backpedaling efforts to organize face-to-face meeting between US Pres Biden and China Pres Xi on the sidelines of the G-20 summit in mid-Nov – Politico.
– (CA) Bank of Canada (BOC) Gov Macklem: Notes recent CAD depreciation against USD, and if it persists we are going to have more work to do on interest rates; There is no clear turning point in underlying inflation [from Oct 14th].
Europe
– (UK) Oct Rightmove House Prices M/M: 0.9% v +0.7% prior; Y/Y: 7.8% v 8.7% prior.
Levels as of 01:20 ET
– Nikkei 225, -1.3%, ASX 200 -1.4% , Hang Seng -0.6%; Shanghai Composite +0.1% ; Kospi +0.1%.
– Equity S&P500 Futures: +0.7%; Nasdaq100 +0.7%, Dax +0.5%; FTSE100 +0.3%.
– EUR 0.9752-0.9720 ; JPY 148.80-148.42 ; AUD 0.6236-0.6197 ;NZD 0.5590-0.5551.
– Gold +0.4% at $1,655/oz; Crude Oil +0.8% at $85.30/brl; Copper +0.3% at $3.4173/lb.