Equity markets rise after the gains on Wall Street
|Asia Market Update: Equity markets rise after the gains on Wall St.; USD declines from recent highs; CN inflation data was soft; US CPI due next week [Sept 13th].
General trend
- FX remains volatile.
- USD trades broadly weaker [end of the week profit-taking?; recent ECB decision in focus; Commodity currencies rebound; UST yields trade slightly lower in Asia].
- USD/JPY declines; Japanese officials held meeting on Thurs. [Japan Top Currency Official Kanda said: All options on the table, including FX intervention].
- BOJ Gov met with Japan’s PM.
- BOJ Gov Kuroda said: When JPY moves 2-3 Yen per day this is very sudden.
- Chinese markets outperform [Softer inflation data gives PBOC more room to ease?]; Property companies shine.
- Fed’s Waller [hawkish] to speak later on Fri.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened +0.2%.
- (NZ) New Zealand Aug Truckometer Heavy M/M: 7.0% v -0.1% prior.
- (NZ) New Zealand Aug Total Card Spending M/M: +0.7% v -0.2% prior; Retail Card Spending M/M: +0.9% v -0.2% prior.
Japan
- Nikkei 225 opened +0.5%.
- (JP) Follow Up: Meeting between BOJ Kuroda and PM Kishida was on Domestic and overseas eocnomic and market developments; PM Kishida had no specific requests.
- (JP) Follow Up: Japan said to consider solar panel requirement for homes from 2025 - Japan media.
- (JP) Kansai Airport to increase takeoff and landing limit by 30% - Japanese press.
- (JP) Japan Aug M2 Money Supply Y/Y: 3.4% v 3.4%e; M3 Money Supply Y/Y: 3.0% v 3.0%e.
- Komatsu [6301.JP] China Aug excavator demand -29% y/y; Aug China usage of Komatsu machines Y/Y: -6.9% v -5.8% prior [6th straight decline].
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan PM Kishida: The Govt will do all it can to support restarting nuclear reactors.
- (JP) Japan PM Kishida: Will extend gasoline subsidy to end-2022, will compile economic measures this fall.
- (JP) Japan Chief Cabinet Sec Matsuno: Concerned on abrupt FX moves, speculation is a factor behind recent moves.
- (JP) Nikkei225 Sept Options settle at 28,253.
Korea
- Kospi opened closed for holiday.
- (KR) North Korea Leader Kim: Assembly has adopted law to declare country a Nuclear weapons state; North Korea will never relinquish nuclear arms under US threats.
China/Hong Kong
- Hang Seng opened +0.2%; Shanghai Composite opened +0.2%.
- (CN) China AUG CPI M/M: -0.1% V +0.2%E; Y/Y: 2.5% V 2.8%E.
- (CN) China President Xi: Seeking stronger cooperation with North Korea - North Korea Media.
- (CN) China Guiyang City lockdown will 'mostly' continue [population is ~5.99M] - press.
- (CN) China PBOC sets Yuan reference rate: 6.9098 v 6.9148 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v Net CNY0B prior.
North America
- (US) Fed Chair Powell: The longer long run inflation remains above target the higher the cost; History cautions against prematurely loosening policy - Cato Institute conf comments.
- (US) Said that the US is considering an order that would screen investment into overseas ventures - Press.
- SLAP of gigafactory ops said to have left company - Press.
Europe
- *(EU) ECB raises key rates by 75BPS; as expected; Notes over next several meetings expects to raise interest rates further to dampen demand; To take meeting-by-meeting approach; Suspends the two-tier system by setting the multiplier to zero as deposit rate now above zero, no reverse tiering system announced**.
- (EU) ECB officials do not exclude the possibility for 75bps rate hike at Oct 5th meeting; That plan said to find acceptance among both hawks and doves - press, citing sources.
Levels as of 01:20 ET
- Nikkei 225, +0.6%, ASX 200 +0.6% , Hang Seng +2.4%; Shanghai Composite +0.7% ; Kospi closed.
- Equity S&P500 Futures: +0.4%; Nasdaq100 +0.6%, Dax +0.4%; FTSE100 +0.5%.
- EUR 1.0084-0.9995 ; JPY 144.13-142.44 ; AUD 0.6834-0.6744 ;NZD 0.6112-0.6045.
- Gold +0.7% at $1,731/oz; Crude Oil +0.5% at $83.98/brl; Copper +1.5% at $3.6072/lb.
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