• Asian stock market, economy and companies update (September 14, 2015)

    Index Snapshot (as of 02:30 GMT)
    - Nikkei225 -0.5%, S&P/ASX +0.1%, Kospi -0.4%, Shanghai Composite -1.6%, Hang Seng +0.1%, Dec S&P500 +0.3% at 1,954

    Commodities/Fixed Income
    - Dec gold +0.4% at $1,107/oz, Oct crude oil -0.4% at $44.44/brl, Dec copper -0.6% at $2.44/lb
    - (CN) China MoF sells 2-year bonds at 2.65%
    - (KR) South Korea sells 10-yr bonds at 2.29%

    Market Focal Points/FX
    - Markets in China and across the Asia region were generally higher at the open but quickly reversed those initial gains. After rising 0.7%, Shanghai Composite subsequently entered midday break at its worst level, down by over 3%. Economic data released over the weekend reflects continued headwinds for China economy. Industrial output rebounded from July but still missed expectations and urban asset investment growth hit multi-year lows, although retail sales were a welcome surprise. Inside the industrial output components, China power generation actually rose 1% - the biggest gain in 5 months. After the release, NBS economist said downward pressure on industrial production is still big amid soft market demand at home and abroad. Separately, economists with ANZ noted the data reinforces that 2015 GDP target is at risk, while ING pointed to interruptions related to Tianjin explosion and Sept 3rd parade in Beijing as factors in disappointing output.

    - Also of note over the weekend, China State Council unveiled much anticipated SOE (state-owned enterprises) reform, dividing enterprises into Commercially-Oriented and Not-for-Profit ones. Additionally, the govt called for more private sector investment in SOE as part of its continued push toward mixed-ownership economy. Furthermore, the management and executive compensation of SOEs would be more market driven to help boost performance. Skeptics of the announcement were quick to point out that the draft does not provide an update on prior speculation that China is considering merging a number of its biggest state firms and also does not address whether underperforming state firms will be allowed to fail.

    - Ahead of tomorrow's BOJ policy decision, a financial press report speculated that while Gov Kuroda has the necessary support to ease monetary policy again if needed, no easing would be announced since the benefits of more QE are put in question. Analysts cited in the report also noted politicians are against excessive JPY weakness. Separately, the CIO of Japan's main pension fund GPIF said this is the "moment of truth" for Abenomics.

    - In Australia, Oil Search walked away from A$11.6B offer from Woodside Petroleum, potentially holding out for a higher bid, and analysts anticipate WPL to improve its offer. Australia's Macquarie reaffirmed FY16 to be an improvement relative to FY15 in an investor presentation, with H2 also seen in line with H1. MQG shares were up over 3% in the morning hours.

    - FX markets reflected initial optimism that gave way to risk off sentiment. USD/JPY tested above 120.80 before sliding below 120.30. AUD/USD and NZD/USD were up over 40 and 30 pips respectively above 0.7130 and 0.6340 before erasing those early gains to trade unchanged.

    US equities / ADRs:
    - SLH: Confirms to be acquired by Vista Equity Partners for $55.85/shr or $6.5B

    Notable movers by sector:
    - Consumer discretionary: Stockland SGP.AU -1.3% (speculation to spin off unit); AMA Group AMA.AU +18.3% (acquisition)
    - Financials: Shimao Property 813.HK +0.9%(Aug result); Longfor Properties 960.HK +2.1% (Aug result); Macquarie Group MQG.AU +2.6% (guidance); Haitong Securities 600837.CN -7.1% (punishment)
    - Industrials: Sany Heavy Equipment International 600031.CN +10.0% (cooperation agreement); China Communications Construction 1800.HK +3.1% (SOE reform); China Railway Construction Corp 1186.HK +3.3% (peer group restricting plan); China National Chemical Engineering 601117.CN +0.9% (YTD contract)
    - Technology: Acer 2353.TW -0.7% (speculation to lower shipment target)
    - Energy: Woodside Petroleum WPL.AU -1.5% (Oil Search has rejected the bid); Cofco Biochemical 000930.CN +1.1%, SDIC Xinji Energy 601918.CN +2.1% (SOE reform)
    - Telecom: KDDI Corp 9433.JP -6.6%, Softbank 9984.JP -4.9%, NTT DoCoMo 9437.JP -9.0% (Abe calls for cutting cellphone fees)

    Economic Data
    - (CN) CHINA AUG INDUSTRIAL PRODUCTION Y/Y: 6.1% V 6.4%E; Power generation: +1.0% y/y v -2.0% prior; 5-month high
    - (CN) CHINA AUG YTD FIXED URBAN ASSETS Y/Y: 10.9% V 11.1%E (multi-year low)
    - (CN) CHINA AUG RETAIL SALES Y/Y: 10.8% V 10.5%E; 7-month high
    - (NZ) NEW ZEALAND AUG PERFORMANCE SERVICES INDEX: 58.2 V 56.5 PRIOR; highest since July 2014

    Contributed by Trade The News
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