Index Snapshot (as of 02:30 GMT)
- Nikkei225 closed, S&P/ASX +0.6%, Kospi +0.3%, Shanghai Composite +1.0%, Hang Seng +0.7%, Dec S&P500 -0.2% at 1,959
Commodities/Fixed Income
- Dec gold flat at $1,133/oz, Nov crude oil -0.9% at $46.53/brl, Dec copper -0.2% at $2.38/lb
- (CN) PBoC to inject CNY50B in 7-day reverse repos (25th consecutive injection)
- USD/KRW: Onshore opens at KRW1,178 v KRW1,174 prior close
- USD/CNY: PBoC sets yuan mid point at 6.3721 v 6.3676 prior setting
- (ID) Indonesia to allow rice imports this year; specific volume has not been decided yet - press
Market Focal Points/FX
While Monday's losses were not entirely in the rearview most of Asia managed to recoup some gains as the US Fed's mixed signals (4th Fed member talked about a possible hike in 2015) create further confusion. Fed Chair Yellen's speech later this week should be highly watched as the markets look for a clear signal on policy. Though Fed fund futures see a hike in Oct 20th meeting at less than 25%.
Australia's ASX held some marginal increase led by energy names riding the kite supplied by oil prices rebounding during US hours. Korea's Kospi rose 0.3% and Hong Kong 0.2% at the open, markets continued to rise further as China Conference Board Leading Economic Index came in higher than prior 0.9% to 1%. This supplied some cautious optimism despite the blanket of Fed uncertainty. China and Hong Kong expected to continue their slightly erratic movements ahead of Wednesday release of Sept flash PMI. China bank names were up on the news that London and Shanghai are exploring a way to connect markets.
Currencies were subdued in the session EUR/USD remaining little changed at the $1.12 level after declines of 2% in the prior days. Addition decline expected if EU follows through on action to address inflation concerns. Japan remained closed another day but the Yen saw some gains to 120.3250.
A$ seemed unconcerned (ranged from 0.7150-0.7121) with Australia's rising housing prices, which have been a concern to policy makers, who are fretting about a correction's impact on consumer sentiment and confidence. Many analysts expect that the housing sector has peaked and tighter mortgage rules and housing restraints have done their job.
Indonesia Central Bank Gov Martowardojo noted that the country will not issue any more debt in 2015 despite growing deficit and has asked for a $4.2B loan from World Bank and ADB to cover 2015 deficit.
IMAX China Holding announced a $280M IPO in Hong Kong, to trade under 1970.HK, 62M shares expected to price in range of HK$29.80-34.50/shr. Asian Development Bank (ADB) lowers 2015 developing Asia GDP to 5.8% from 6.1%, lowers 2016 to 6.0% from 6.2%
Equities
US equities / ADRs:
- RHT: Reports Q2 $0.47 v $0.44e, R$504M v $495Me; +0.9*% afterhours
- MOS: Cuts production of Potash at Colonsay mine; sees volumes at low end of prior guidance; cites current crop nutrient market conditions; -2.6% afterhours
- THO: Reports Q4 $1.31 v $1.31e, R$1.06B v $1.16Be; -4.6% afterhours
Notable movers by sector:
- Consumer discretionary: 361 Degrees International 1361.HK +2.8% (summer trade fair result);Li Ning Co 2331.HK -0.6% (chairman comment); Lotte Shopping 023530.KR +2.3% (Q1 result, plans to list hotel unit)
- Consumer staples: Yashili International Holdings 1230.HK +2.0% (to acquire asset from Mengniu)
- Financials: Ping An Insurance 2318.HK +1.5% (to boost lending platform IPO): Greenland Hong Kong 337.HK +1.3% (to invest in Japan); CITIC Securities 600030.CN +3.9%, Haitong Securities 600837.CN +4.6% (CSRC to remove assistant chairman)
- Industrials: Hyundai Motor 005380.KR +2.8%, Kia Motors 000270.KR +3.7% (South Korea to probe VW and Audi diesel cars)
- Materials: New Hope Corporation NHC.AU +6.5% (FY15 result); Northern Star Resources NST.AU +1.1% (guidance); South32 S32.AU +1.0% (update)
- Healthcare: Pharmaxis PXS.AU +9.8% (drug result)
- Telecom: TPG Telecom TPM.AU -2.2% (FY15 result); China Telecom 728.HK +1.3% (Aug operation data)
- Utilities: DUET Group DUE.AU +0.7% (update on acquisition)
Economic Data
- (AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: 4.7% V 2.3%E; Y/Y: 9.8% V 8.0%E
- (CN) CHINA AUG CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 1.0% V 0.9% PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 114.5 v 105.3 prior
- (TW) Taiwan Aug Unemployment rate Y/Y: 3.7% v 3.8%e
Contributed by Trade The News