• Asian stock market, economy and companies update (October 01, 2015)

    Index Snapshot (as of 02:30 GMT)
    - Nikkei225 +1.7%, S&P/ASX +1.6%, Kospi +0.9%, Shanghai Composite closed, Hang Seng closed, Dec S&P500 +0.7% at 1,920

    Commodities/Fixed Income
    - Dec gold flat at $1,114/oz, Nov crude oil +1.2% at $45.64/brl, Dec copper +1.2% at $2.37/lb
    - JGB: (JP) Japan MoF sells 2.19T in 10-yr 0.4% JGBs; Avg yield: 0.336% v 0.421% prior; bid to cover: 3.03x v 3.52x prior
    - (JP) Japan investors net bought 1.0T in foreign bonds v bought 725B in prior week; Foreign investors sold net 192B in Japan stocks v sold 432B in prior week

    Market Focal Points/FX
    - S&P500 futures are up over 1.5% and JPY is under pressure as risk-on flows emerge after the release of slightly better than expected China PMIs. Official manufacturing PMI was in contraction for 2nd straight month but not as poor as feared, while Caixin also improved and beat out projections. Caixin economist did note that the pressure driving the decline of manufacturing has eased, though there is still tepid demand amid general oversupply of manufacturing. Services PMIs were unchanged for official level and slightly lower for the SME-oriented Caixin gauge. The data also sent JPY lower and commodity FX higher - USD/JPY spiked up about 40pips above 120.20, AUD/USD up about 50pips to 0.7060, and NZD/USD up about 30pips above 0.6420. CAD built on its late US session gains, with USD/CAD falling another 30pips below 1.33. Markets in China were closed for holiday and did not have a chance to react to the data.

    - Japan Q3 Tankan survey from the BOJ came in mixed - Manufacturer Index was actually slightly below consensus and Non-manufacturing topped estimates. Here, traders noted better than expected all-industry CapEx component at 10.9% v 8.7%e. BOJ official said firms appear to be retaining their CAPEX plans despite the slowdown in China, and that the central bank does not anticipate sharp deterioration in conditions ahead. Some of the analysts reflected on the Tankan data, noting the updates will likely keep the BOJ from expanding QE in late September, however there were also some skeptics. Former BOJ Dep Gov Iwata said BOJ Gov Kuroda is too optimistic about the economy, calling for more easing. BOJ critic Yamamoto also said he would still prefer BOJ to announce more policy action in October when it updates projections for growth and inflation.

    Equities
    US equities / ADRs:
    - VRSK: To enter S&P 500 Index, replacing JOY; +5.3% afterhours
    - PBF: Confirms to acquire Torrance refinery (155K bpd) from Exxon for $537.5M; +4.3% afterhours
    - XPO: Price Target cut to $33 from $56 at Oppenheimer, reiterates Outperform rating; -1.5% afterhours
    - CXO: Announces public offering of 7.0M shares of common stock; -4.7% afterhours
    - MDGN: Offering shares of indeterminate amount; -11.1% afterhours

    Notable movers by sector:
    - Consumer discretionary: Adastria Holdings Co 2685.JP +7.8% (raises guidance); Lawson 2651.JP +1.4% (H1 guidance); Mandom Corp 4917.JP -0.1% (Cuts FY15/16 guidance)
    - Financials: ANZ Bank ANZ.AU +1.6% (new CEO)
    - Technology: Samsung Electronics 005930.KR +0.4% (Q3 result speculation); Acer Inc 2353.TW +0.8% (denies layoff speculation); Pegatron Corp 4938.TW +2.1% (OEM orders)
    - Materials: OZ Minerals OZL.AU +17.8% (KKR to buy 10% interest); Newcrest Mining NCM.AU -1.3% (to divest interest in Evolution)
    - Healthcare: Mitsubishi Tanabe Pharma 4508.JP -1.1% (raises H1 guidance)
    - Telecom: Telstra Corp TLS.AU +0.7% (CEO comment); Daum Communications 035720.KR +3.6% (partnership with Tencent)


    Economic Data
    - (CN) CHINA SEPT MANUFACTURING PMI (OFFICIAL): 49.8 V 49.7E (2nd month of contraction); NON-MANUFACTURING (SERVICES) PMI: 53.4 V 53.4 PRIOR
    - (CN) CHINA SEPT FINAL CAIXIN PMI MANUFACTURING: 47.2 V 47.0E; PMI COMPOSITE: 48.0 V 48.8 PRIOR; PMI SERVICES: 50.5 V 51.5 PRIOR; To discontinue issuing Flash PMI
    - (JP) JAPAN Q3 TANKAN MANUFACTURER INDEX: 12 V 13E; LARGE MANUFACTURER OUTLOOK SURVEY: 10 V 10E; All industry CAPEX 10.9% v 8.7%e
    - (JP) JAPAN SEPT FINAL PMI MANUFACTURING: 51.0 V 50.9 PRELIM; 3-month low
    - (AU) AUSTRALIA JUNE-AUG JOB VACANCIES Q/Q: 2.7% V 2.6% PRIOR
    - (AU) AUSTRALIA SEPT CORELOGIC RPDATA HOUSE PRICES M/M: 0.9% V 0.3% PRIOR; 4th straight increase
    - (AU) AUSTRALIA SEPT AIG MANUFACTURING INDEX: 52.1 V 51.7 PRIOR; 3rd month of expansion
    - (NZ) NEW ZEALAND SEPT QV HOUSE PRICES Y/Y: 12.6% V 11.3% PRIOR
    - (KR) SOUTH KOREA PMI MANUFACTURING: 49.2 V 47.9 PRIOR
    - (KR) South Korea Sept Trade Balance: $8.9B v $6.7Be
    - (KR) South Korea Aug Industrial Production M/M: +0.4% v -1.5%e; Y/Y: +0.3% v -1.8%e

    Contributed by Trade The News
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