• Asian stock market, economy and companies update (September 09, 2015)

    Index Snapshot (as of 02:30 GMT)
    - Nikkei225 +5.7%, S&P/ASX +1.9%, Kospi +2.3%, Shanghai Composite +2.2%, Hang Seng +2.9%, Sept S&P500 +0.6% at 1,978

    Commodities/Fixed Income
    - Dec gold +0.2% at $1,123/oz, Oct crude oil +0.5% at $46.18/brl, Dec copper +1.5% at $2.47/lb
    - (JP) BOJ offers to buy 400B in 5-10yr JGBs, 240B in 10-25yr JGBs, and 140B in JGBs with maturity over 25-yr

    Market Focal Points/FX
    - Broad-based risk appetite on display in the US session has resonated in Asia, where all key regional indices are up some 2% or more. S&P futures also point to another high open, up some 13pts to test 1,980. Nikkei225 rally of over 5% is particularly impressive, as investors cheered Japan PM Abe's announcement to cut corporate tax rates by at least 3.3% or even more in FY16. BOJ dove Shirai also called for continued accommodative environment given expectations of 1% inflation holding over medium-long term, even though the sluggishness in Europe was seen as transitory. Shirai said more work needs to be done to increase public awareness of 2% inflation target. USD/JPY also tracked the risk-on rally, rising over 60pips from the lows above 120.40.

    - Investors in China continued to shrug off the disappointing trade figures released overnight, bidding up markets further going into the release of lending and inflation data later this week. UBS and ANZ economists both noted the trade figures suggest the economy is likely to face growing downward pressure, but did not indicate the figures are crippling. Instead, impending SOE reform was widely cited for boosting sentiment. Moreover, a research note from Fitch suggested China's local debt rise is significant but manageable. In FX, PBoC set Yuan a touch firmer, and offshore currency rallied by over a cent to 6.4450.

    - Australia economic data showed a decline in Westpac consumer confidence and a miss on home loans, but that hardly mattered. RBA Dep Gov Lowe remarks called for more non-mining investment, adding that low AUD and interest rates were not sufficient for a sustainable rise in spending. Lowe added that incoming data outside of China has been mostly positive, estimating 2% rate of growth over medium term or even as high as 3% if non-mining investment is boosted. Also of note, TD Securities economist Beacher called attention to the recovery in iron ore prices, suggesting the AUD/USD currency pair decline is overblown and that the more fair value would be around $0.76. AUD/USD was up as much as 50pips from the lows near $0.7070.

    - With just over a week to go to the pivotal FOMC decision, World Bank chief economist Basu added his voice to other critics urging caution. Basu said the hike would trigger "panic and turmoil" in emerging markets, even though there would be no major crisis.


    Equities
    US equities / ADRs:
    - AKBA: Top-Line results from its Phase 2 study of Vadadustat in dialysis patients with anemia related to chronic kidney disease achieved primary objective; +68.4% afterhours
    - PLAY: Reports Q2 $0.40 v $0.23e, R$217M v $205Me; +9.7% afterhours
    - CLR: Reduces 2015 capital spending to align with projected cash flow until oil prices strengthen; affirms 2015 guidance; +1.6% afterhours
    - M: Plans 35 to 40 underperforming store closings in early 2016 (account for 1% of total Macys revenue); +0.6% afterhours
    - YHOO: IRS declines to grant requested ruling regarding plan for tax free spinoff of Alibaba stake; Yahoo continues to work on the pending Aabaco spin off - filing; -4.0% afterhours
    - MW: Reports Q2 $1.07 v $1.05e, R$920M v $947Me; -4.4% afterhours
    - PSUN: Reports Q2 -$0.06 v -$0.03e, R$195.6M v $205Me; -16.7% afterhours

    Notable movers by sector:
    - Consumer discretionary: TCL Corp 000100.CN +1.9% (Aug result)
    - Financials: Bank of Yokohama 8332.JP +3.7% (merger update); Sunac China Holdings 1918.HK -3.5% (Aug result, strategic partnership); Agile Property Holdings 3383.HK +0.5% (Aug result); Guosen Securities 002736.CN +2.7% (Aug result)
    - Industrials: Fuji Heavy Industries 7270.JP +8.2% (to raise dividend)
    - Technology: Toshiba Corporation 6502.JP -1.0% (Q1 result); Chicony Electronics 2385.TW +0.6% (Aug result); Compeq Manufacturing 2313.TW +0.9% (Aug result)
    - Materials: Paladin Energy PDN.AU +11.3% (share repurchase)
    - Energy: CNOOC 883.HK +3.6% (update)
    - Telecom: Coolpad Group 2369.HK -16.2% (confirms to have received notice to exercise put option)


    Economic Data

    - (AU) AUSTRALIA JULY HOME LOANS M/M: 0.3% V 0.8%E
    - (AU) AUSTRALIA SEP WESTPAC CONSUMER CONFIDENCE INDEX: 93.9 V 99.5 PRIOR, M/M: -5.6% V +7.8% PRIOR
    - (JP) JAPAN AUG M2 MONEY STOCK Y/Y: 4.2% V 4.1%E; M3 MONEY STOCK Y/Y: 3.4% V 3.3%E
    - (KR) SOUTH KOREA AUG UNEMPLOYMENT RATE: 3.6% V 3.8%E
    - (PH) PHILIPPINES JULY UNEMPLOYMENT RATE: 6.5% V 6.4% PRIOR
    - (UK) UK AUG BRC SHOP PRICE INDEX Y/Y: -1.4% V -0.2% PRIOR; 28TH STRAIGHT DECLINE

    Contributed by Trade The News
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