Asian indices trade mixed ahead of US jobs report
|Asia Market Update: Asian indices trade mixed ahead of US jobs report; Little fresh news seen in the RBA’s SOMP; Gov’t bond yields generally decline after BOE decision.
General trend
- South Korea bond yields drop ahead of later today bond repurchase operation.
- Japanese cos. due to report earnings include Honda, JFE Holdings, Kobe Steel, Asics, Inpex, Olympus.
- Companies due to report earnings during the NY morning include American Axle, DraftKings, Elanco Animal Health, Fluor Corp, Canada Goose, Goodyear, Johnson Controls, Magna International, Revlon, Tenneco.
- China Oct Trade Balance due on Nov 7th (Sunday, Shanghai time).
Headlines/Economic data
Australia/New Zealand
- ASX opened flat.
- (AU) Reserve Bank of Australia (RBA) Statement on Monetary Policy (SOMP): Committed to keeping highly supportive monetary conditions; Forecasts for cash rate broadly in line with recent market pricing.
- (AU) Australia sells A$1.0B v A$1.0B indicated in 3.25% Apr 2025 bonds, avg yield 1.0468%, bid to cover 3.25x.
Japan
- Nikkei 225 opened +0.2%.
- Softbank [9984.JP]: Said to be under pressure from investors to 'prop up' share price with a share buyback [Q2 earnings are due on Mon, Nov 8th] - FT.
- (JP) Japan expected to issue ¥100K (~$879) cash handout to people under the age of 18 - Japanese press.
- (JP) Japan Govt said to be including SPACs in its 'new capitalism' plan.
- (JP) Japan Sept Household Spending M/M: +5.0% v +2.8%e; Y/Y: -1.9% v -3.5%e.
- (JP) Japan Fin Min Suzuki: Kishida told us to look for tax breaks to pay for hikes; Will firmly pursue FY25 primary balance goal (in line).
- (JP) Japan Econ Min Yamagiwa: Declines to comment on size or content of stimulus package.
Korea
- Kospi opened +0.7%.
- (KR) South Korea Sept Current Account (BOP): $10.0B v $7.5B prior (17th consecutive surplus); Balance of Goods (BOP): $9.5B v $5.6B prior.
- (KR) South Korea Vice Fin Min: To repurchase KRW2.0T in 5-10 year bonds on Nov 5th; Will preemptively act to stabilize local bond markets [comments from Nov 4th].
China/Hong Kong
- Shanghai Opened -0.2%; Hang Seng opened -1.1%.
- (CN) China PBOC sets Yuan reference rate: 6.3980 v 6.3943 prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY50B prior; Net Drain CNY100B v Net drain CNY150B prior.
- (CN) China State Planner (NDRC): Coal Inventory at power plants are at a normal level again.
- (CN) PBOC expected to keep market liquidity ample - China Press.
- (CN) China has told certain smaller banks to limit wealth products - Chinese press.
- (CN) Follow Up: China MOF issues mandate related to planned issuance of EUR denominated bonds.
- (CN) China Tax Bureau: 9M Tax and Fee reductions amounts at CNY910.1B.
- Kaisa Group [1638.HK]: Company and units Halted after Wealth Management Product misses payments.
- (CN) China Press: PBOC Vice Gov Chen: has urged China to prevent systemic financial risks when further opening up the sector.
- Shanghai Shimao [600823.CN]: CNY bonds due 2022 halted after price decline.
North America
- (US) Initial Jobless Claims: 269K V 275KE (new post-pandemic low); CONTINUING CLAIMS: 2.11M V 2.15ME.
- (US) Weekly EIA Natural Gas Inventories: +63 BCF VS. +64 BCF TO +68 BCF Indicated range.
- (AR) Argentina Central Bank tells financial firms not to raise US dollar reserves, congressional elections are due to occur on Nov 14th (Sun) - financial press.
- (US) Senate proposed bill aimed at cutting US Dependence on foreign pharmaceuticals - Press.
- (US) White House has asked senators to meet with Fed Chair Powell - Axios.
- (US) House Democrats propose increasing SALT deduction cap to $80K (up from $10K).
- (US) House said to not hold any votes on Economic spending packages today, will vote tomorrow (Nov 5) - Press.
Europe
- (UK) BOE Gov Bailey: Not our job to steer markets on rates, I am not surprised to see correction in markets; Market rate pricing was puzzling, pricing for rate hikes was overdone - Media interview.
- (EU) ECB’s Schnabel (Germany): We take people's concerns over high inflation very seriously; Conditions for a rate hike are unlikely to be met next year.
- OPEC+ JMMC reportedly supports no change to OPEC policy - Energy Intel's Bakr.
Other
- (ID) Indonesia Q3 GDP Q/Q: 1.6% v 1.9%e; Y/Y: 3.5% v 3.9%e.
- (PH) Philippines Oct CPI Y/Y: 4.6% v 4.9%e.
- (SG) Singapore Sept Retail Sales M/M: 6.0% v 0.9%e; Y/Y: 6.6% v 2.0%e.
Levels as of 01:20 ET
- Nikkei 225, -0.6%, ASX 200 +0.4% , Hang Seng -1%; Shanghai Composite -0.4%; Kospi -0.7%.
- Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax flat; FTSE100 -0.1%.
- EUR 1.1557-1.1541 ; JPY 113.86-113.55 ; AUD 0.7410-0.7378 ;NZD 0.7110-0.7080.
- Gold flat at $1,796/oz; Crude Oil +0.9% at $79.50/brl; Copper -0.1% at $4.3165/lb.
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