Asian Market Update: Stock indices drop after US losses; The deadline for paying the debt of Evergrande in brief; LDP elections are also the focal point; the NDRC commented on coal; CN Seven PMI expected Thursday (Official and Caixin).
– Rise in UST rates in Asia.
– Australian bond yields recover after an earlier gain in US rates.
– The BOJ could publish its bond buying program this week [Rinban announcement].
– Japan GPIF avoids Chinese sovereign bonds denominated in yuan.
– Evergrande demoted by Fitch despite grace period.
– US Equity FUTs rose after previous declines, some impact given news of Evergrande asset sale; Evergrande also has a bond interest payment of $ 47.5 million due on Wednesday, September 29, relating to the 9.5% bond in March 2024. [any grace period?].
– Chipmakers generally trade lower after Micron’s results / guidance.
– AU and Japanese financials fall after US declines.
– The Nikkei has fallen behind on the LDP election results.
– The Hang Seng index reduced the decline [Evergrande and Property index rise; TECH index tracks losses on Nasdaq].
– Shanghai Composite fell more than 2% in morning trading [Utilities declined by >3%].
– S&P ASX 200 weighed down by the Resources, Energy and Financial indices.
– Crude Oil FUTs have extended their declines.
– The NZD fell slightly due to the increase in virus cases; The RBNZ is due to hold the next Monetary Policy Review (MPR) on October 6 (Wednesday).
– Vietnam announces a surprise contraction of GDP in the third quarter.
– The Chinese HNA would have made a proposal to the holders of unsecured debt in CNY.
Titles / Economic data
Australia / New Zealand
-ASX 200 opened -0.3%.
– SIQ.AU receives a non-binding proposal from the consortium of TPG Global and Potentia Capital for A $ 10.35 / shr.
– (NZ) New Zealand will double the border levy to NZ $ 43.73, effective December 1.
– (AU) Australia APRA plans to release macroprudential policy framework paper from September 24 meeting – Board of Financial Regulators (CFR) Quarterly Statement.
– (AU) Reserve Bank of Australia (RBA): excess liquidity on exchange settlement accounts (ES) at A $ 371.0 billion against A $ 369.3 billion previously (record high).
– (AU) Australian Treasurer Frydenberg: COVID payments will end at 80% [of population] is fully vaccinated – press.
-Nikkei 225 opened -1.9%.
– (JP) JAPAN ELECTION RESULTS LDP: KISHIDA 256 VOICES IN TOTAL; KONO 255 VOTES IN TOTAL, TO ENTER RUNOFF (AS PLANNED).
– (JP) JAPAN LEADERSHIP LDP 2ND ROUND ELECTION RESULTS: KONO RECEIVES 39 OF 47 RANK AND FILE VOTES.
– 7201.JP CEO Uchida: On track to meet the operating profit margin target announced in the turnaround plan, despite the shortage of press parts.
– (JP) Niroshi Nagaoka, GPIF official: confirms that GPIF will not invest in Chinese government bonds at this time; To use the benchmark FTSE WGBI without Chinese debt.
– 6723.JP CEO: Expect chip demand to exceed supply until 2022, cannot predict chip shortages end next year.
-Kospi opened -1.4%.
– (KR) North Korea confirms the test firing of a new type of hypersonic sliding vehicle, fired yesterday.
– (KR) North Korea is calling a meeting of the Supreme People’s Assembly without Leader Kim – KCNA.
– (KR) Bank of Korea (BOK) could look to start giving monthly GDP – Korean Press.
China / Hong Kong
-Hang Seng opened -0.9%; Shanghai Composite opened -0.8%.
– 3333.HK has a bond interest payment of $ 47.5 million due on Wednesday (September 29), relates to the March 2024 9.5% bond; co. Still to make a total of around $ 547.6 million in offshore bond coupon payments by Dec. 28 – financial press.
– 2066.HK Evergrande sells 1.75 billion company shares for CNY 10 billion to Shenyang Shengjing Finance Investment Group [subsidiary of the State-owned Assets Supervision and Administration Commission of Shenyang People’s Government (“Shenyang SASAC”)].
– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.4662 against 6.4608 previously.
– (CN) China plans to raise prices for industrial electricity to alleviate shortages, and also plans to raise tariffs for residential users – press.
– (CN) China PBOC Open Market Operation (OMO): injects CNY100B in 14-day reverse repurchase agreements against CNY100B previously; Net Inject CNY40B v Net Inject CNY100B before.
– (CN) China’s PBOC will lead CNY5.0B in 3-month Central Bank Note (CBS) swap operation in today’s session against CNY5.0B forward.
– (CN) China supports waiver of intellectual property for coronavirus vaccines – Xinhua.
– (CN) China State Planner (NDRC): will strengthen the transport of recently released thermal coal capacity; Provide rail capacity for transporting coal.
– (HK) Hong Kong Monetary Authority (HKMA) Managing Director Yue said he is considering expanding the use of the yuan (CNY) in stock trading in Hong Kong.
– (CN) China PBOC Gov Yi Gang: No need to buy assets at this time – interest rate system article (yesterday after close).
– (VN) Vietnam Q3 GDP Y / Y: -6.2% v + 2.3% e (lowest level since the start of calculations).
– MU Q4 reports $ 2.42 vs. $ 2.33, Rev $ 8.27B vs. $ 8.11 Be; Q1 guides below consensus; Confirms initiates a quarterly dividend (announced in August).
– TSLA Elon Musk: Governments Can Slow Down, But Not Destroy Advances In Crypto Assets; Situation in China will improve next year as COVID lifts, things are going well for Tesla in China – comments from Code Conf.
– (United States) Weekly stocks of API crude oil: +4.1 M against -6.1 M previously.
– (US) Fed’s Bullard (non-voting, hawk): we have passed the point of any sort of tantrum, see the start of the reduction in November; see upside risks to inflation.
– (US) Commerce Sec Raimondo: If China does not follow the rules, we will need aggressive measures; We want to do business in China, but they have to give us access.
– AAPL delivery times for the new iPhone 13 are getting longer due to the impact of COVID on suppliers in Vietnam – Nikkei.
– (FR) France accuses the UK of starting a new fishing war, after the UK rejected 75% of requests from small French boats seeking to fish around the UK.
Levels at 01:15 ET
– Hang Seng -0.5%; Shanghai Composite -1.7%; Kospi -1.6%; Nikkei225 -2.0%; ASX 200 -0.9%.
– Equity Futures: S & P500 + 0.6%; Nasdaq100 + 0.6%, Dax + 0.4%; FTSE100 + 0.1%.
– 1.1690-1.1679 euros; 111.68 to 111.35 JPY; AUD 0.7254-0.7227; NZD 0.6964-0.6937.
– Commodity Futures: Gold + 0.0% at $ 1,737 / oz; Crude oil -1.4% at $ 74.22 / brl; Copper -0.3% at $ 4.23 / lb.