• Asian stock market, economy and companies update (September 21, 2015)

    Index Snapshot (as of 02:30 GMT)
    - Nikkei225 closed, S&P/ASX -2.5%, Kospi -1.6%, Shanghai Composite +0.5%, Hang Seng -1.3%, Dec S&P500 -0.5% at 1,940

    Commodities/Fixed Income
    - Dec gold flat at $1,137/oz, Nov crude oil +0.7% at $45.37/brl, Dec copper -0.2% at $2.38/lb
    - (AU) Australia MoF (AOFM) sells A$700M in 4.25% 2026 Bonds; avg yield: 2.8083%; bid-to-cover: 2.12x
    - (CN) China MOF sells 20-yr bonds, avg yield 3.74%
    - (KR) South Korea sells 20-yr bond, avg yield 2.325%
    - USD/CNY: (CN) PBoC sets yuan mid point at 6.3676 v 6.3607 prior setting
    - USD/KRW: Onshore opens at KRW1,172 v KRW1,162 prior close

    Market Focal Points/FX
    Asian markets remained decidedly pessimistic carrying a risk adverse tone after the FOMC held off on any action in the US on Friday. Saw some flow out of riskier assets and into debt vehicles, Australian and New Zealand bonds saw yields decline ~3-5bps.LME copper fell to a 2-week low of $5,240/ton as worries continue that China is truly slowing and will not be consuming at prior rates.

    Greece elections held over the weekend saw the Syriza party take yet another victory and plan to form a government within 3-days. EUR/USD seemed unconcerned even gaining slightly to 1.1318 with a bottom of 1.1282 on a glimmer of reduced turmoil.

    New Zealand consumer confidence fell to a 3-year low causing the kiwi to drop 0.2% to 63.67. Yen was little changed with Japan closed until Wednesday session. The USD/Won fell nearly 0.8% to 1,172.55

    Australia new PM Turnbull announced his new cabinet, with former Treasurer Hockey vowing to step down from Parliament with no plans to seek a front bench position in the new government. Strength in Asciano was attributed to him being replaced and the FIRB will approve takeover by Brookfield Infrastructure for A$12B in cash and stock (announced in Aug).

    The independent survey, China Q3 Beige Book, indicated that Chinese companies are too pessimistic over economy and that the country is not collapsing. The survey attributes the excessively negative view to the June stock market collapse and unexpected currency action in August. The survey said, "Those touting China's sudden fragility are either exaggerating current problems or have entirely missed the slowdown of the past several years."

    US equities / ADRs:
    - XRS: To acquire Firstleap Education, financial terms not disclosed
    - PETCO.IPO: Renewed talk that KKR, Friedman and Hellman have made prelim offers - NY Post
    - BABA: $105B (63% of shares) lockup period has ended

    Notable movers by sector:
    - Consumer discretionary: COFCO Tunhe Co 600737.CN +10.0% (updates on SOE reform); Fonterra FCG.NZ +1.8% (updates on job cut)
    - Financials: Sunac China Holdings 1918.HK +5.5% (not to proceed agreement with Yurun); China Vanke 000002.CN +0.2% (first batch of share repurchase); Suning Universal Co 000718.CN +7.2% (sets up jv for tv and game business)
    - Industrials: China Railway Group 601390.CN +7.0% (restructuring plan); Hubei Aviation Precision Machinery Technology 002013.CN +10.0%, AVIC Aircraft 000768.CN +5.1%, Sichuan Chengfei Integration Technology 002190.CN +4.3% (China boosts SOE reform in several sectors); Worley Parsons WOR.AU -4.3% (contract signed)
    - Technology: Coolpad Group 2369.HK +12.9% (updates on jv with Qihu); Hon Hai Precision Industries 2317.TW -1.5% (speculation that Hon Hai bids for LCD unit)
    - Materials: China Polymetallic Mining 2133.HK -4.6% (leadership changes); Lynas Corp LYC.AU -1.3% (FY15 result); Beadell Resources BDR.AU -1.9% (H2 guidance); Gold Road Resources GOR.AU +1.2% (speculation on bid)
    - Energy: Santos STO.AU -1.1% (CEO's comment)
    -Telecom: China Mobile 941.HK +0.1% (Aug operation data)
    - Utilities: China National Nuclear Power Corporation 601985.CN +2.8% (UK Fin Min's comment)

    Economic Data
    - (NZ) NEW ZEALAND Q3 WESTPAC CONSUMER CONFIDENCE: 106.0 V 113.0 PRIOR (lowest level since Sept 2012)
    - (UK) SEPT RIGHTMOVE HOUSE PRICES M/M: 0.9% v -0.8% PRIOR, Y/Y 6.4% v 6.4% PRIOR
    - (TH) Thailand Aug Auto Sales y/y: -9.9% v -12.5% prior
    - (CO) Colombia July Trade Balance: -$1.97B v -$1.0Be (highest since Jan)

    Contributed by Trade The News
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