Asian Mid-session Update: China Premier Li sees economy in range amid transition to new growth engines; Rio Tinto releases Q3 output data
***Economic Data***
- (CN) CHINA SEPT M2 MONEY SUPPLY Y/Y: 13.1% (3-month low) V 13.1%E; M1 MONEY SUPPLY Y/Y: 11.4% V 9.8%E
- (CN) CHINA SEPT NEW YUAN LOANS (CNY): 1.05T V 0.9TE (record high)
- (NZ) NEW ZEALAND Q3 CPI Q/Q: 0.3% V 0.2%E; Y/Y: 0.4% V 0.3%E
- (SG) SINGAPORE SEPT ELECTRONIC EXPORTS Y/Y: 5.7% v 1.2%e; NON-OIL DOMESTIC EXPORTS M/M: 2.8% v 0.9%e; Y/Y: 0.3% v -3.9%e
- (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 3.50%, AS EXPECTED
- (CL) CHILE CENTRAL BANK (BCCH) RAISES OVERNIGHT RATE TARGET BY 25BPS TO 3.25%; AS EXPECTED
***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.4%, S&P/ASX +0.5%, Kospi -0.2%, Shanghai Composite +0.5%, Hang Seng +0.4%, Dec S&P500 flat at 2,018
***Commodities/Fixed Income***
- Dec gold -0.7% at $1,179/oz, Dec crude oil +1.2% at $47.41/brl, Dec copper -0.2% at $2.41/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 5.1 tonnes to 700.0 tonnes; 2nd straight increase; 3-month high
- (CN) China MOF sells 1-yr bonds, avg yield 2.41%
- (AU) Australia MoF (AOFM) sells A$800M in 1.75% 2020 Bonds; avg yield: 2.1153%; bid-to-cover: 3.75x
- (JP) Japan investors net bought ¥1.06T in foreign bonds v sold ¥1.26T in prior week; Foreign investors bought net ¥521B in Japan stocks v sold net ¥178B in prior week
***Market Focal Points/FX***
- Asian indices are mixed and searching for catalysts and direction despite a final hour surge on Wall St. Nikkei225 is outperforming, tracking a bounce in USD/JPY pair back above 119 after a rise in core US CPI figures restored some hopes that the FOMC could still move this year. AUD and NZD also consolidated some of their recent gains against the stronger greenback heading into the weekend, falling about 60 and 50 pips respectively from session highs below 0.7280 and 0.6820.
- The focus falls on Monday (Sunday evening US time) release of China Q3 GDP and the balance of Sept economic data. Overnight, China's lending data topped estimates and M2 was in line. Economist with HSBC cited "recovering home market and accelerated infrastructure investment contributing to the growth" in reflecting on China lending data. China Premier Li also spoke, advocating for deeper reform and new growth strategies to stabilize the economy as it transitions from traditional growth methods to new engines. Li also noted plans for coordinated urbanization and agricultural modernization policies, along with further opening up with free trade areas.
- Reserve Bank of Australia put out its semiannual Financial Stability Review which noted rising risks in commercial property lending along with deteriorating outlook for China. Economist with Westpac drew up the case for more RBA easing in response to tighter financial conditions, as more banks tighten their mortgage rates to help achieve their financial compliance standards. Rio Tinto stood out among the miners after reporting Q3 output figures. Iron ore production rose to 86.1Mt (attributable 69.3Mt) v 71.0Mte, as global shipments were up 12%. Copper and uranium output slid double digits, while coking coal and aluminum were up slightly.
***Equities***
US equities / ADRs:
- PTCT: Announces results from Phase 3 ACT DMD clinical trial of Translarna (ataluren) in patients with Duchenne Muscular Dystrophy; +10.3% afterhours
- YUM: Updates FY15 outlook; Nears Conclusion of Strategic Review; Names Keith Meister to the Board; +1.8% afterhours
- AMD: AMD: Reports Q3 -$0.17 v -$0.11e, R$1.06B v $1.00Be ; Enters JV with Nantong Fujitsu Microelectronics Co., Ltd; receives $371M in cash; -0.5% afterhours
- SLB: Reports Q3 $0.78 v $0.76e, R$8.47B v $8.56Be; -0.7% afterhours
- MAT: Reports Q3 $0.71 v $0.79e, R$1.79B v $1.89Be; -2.4% afterhours
- WYNN: Reports Q3 $0.86 v $0.75e, R$996M v $1.03Be; -8.7% afterhours
Notable movers by sector:
- Consumer discretionary: Galaxy Entertainment Group 27.HK -4.0% (Q3 result); Air China 753.HK +1.2% (9-month guidance); Li Ning Co Ltd 2331.HK +2.8% (quarterly result); Nexon Co 3659.JP +3.7% (stake sales); FamilyMart Co. 8028.JP -5.1% (signs basic agreement with Uny)
- Consumer staples: Fortune Ng Fung Food Hebei Co 600965.CN -1.9% (Q3 result)
- Financials: AIA Group Ltd 1299.HK +4.1% (Q3 result); Shimao Property 813.HK -1.2% (Sept result); Sinolink Securities Co 600109.CN +0.4% (Sept result)
- Industrials: Luxshare Precision Industry Co 002475.CN +4.6% (Q3 result); Avic Heavy Machinery Co 600765.CN +10.0% (update on AVIC restructuring plan); Nippon Shokubai Co.4114.JP +3.4%(H1 result speculation)
- Technology: Taiwan Semiconductor Manufacturing Co 2330.TW -2.1% (Q3 result); Nintendo Co 7974.JP +4.7% (investment in Niantic)
- Materials: Regis Resources RRL.AU +0.9% (Q1 result); Rio Tinto RIO.AU -0.9% (Q3 production result)
- Energy: China Coal Energy 1898.HK -1.8% (Sept result)
- Healthcare: REVA Medical RVA.AU +8.1% (positive initial results)
- Utilities: Mitsubishi Electric Corp 6503.JP +0.6% (acquisition); Kyushu Electric Power Co 9508.JP +3.1% (nuclear reactor restarted, on track to report FY net profit)