Asia Mid-Session Market Update: Japan headline and core CPI remain negative going into next week's BOJ meeting;
***US Session Highlights***
- (US) SEPT PRELIMINARY DURABLE GOODS ORDERS: -0.1% V 0.0%E; DURABLES EX TRANSPORTATION: 0.2% V 0.2%E
- (US) INITIAL JOBLESS CLAIMS: 258K V 255KE; CONTINUING CLAIMS: 2.04M V 2.05ME
- (US) SEPT PENDING HOME SALES M/M: 1.5% V 1.0%E; Y/Y: 2.0% V 4.0%E (wage increases are encouraging more households to consider buying a home)
- NXPI: Confirms to be acquired by Qualcomm for $110.00/shr in cash valued at ~$47B
- Banks continue to get help from higher rates
***US markets on close: Dow -0.2%, S&P500 -0.3%, Nasdaq -0.7%***
- Best Sector in S&P500: Healthcare
- Worst Sector in S&P500: REITs
- Biggest gainers: LVLT +10.6%, CTL +9.7%, FFIV +9.6%, ALXN +8.0%, CELG +6.4%
- Biggest losers: FOSL -8.7%, ORLY -8.7%, TDC -8.1%, NOV -7.8%, LLL -7.4%
- At the close: VIX 15.4 (+1.1pts); Treasuries: 2-yr 0.88% (+1bp), 10-yr 1.84% (+5bp), 30-yr 2.60% (+7bp)
***US movers afterhours***
- CRUS: Reports Q2 $1.35 v $1.05e, R$428.6M v $396Me; +7.7% afterhours
- BHI: GE said to be talks to buy Baker Hughes; GE spokesperson: Not discussing outright purchase, Only in talks about partnerships - financial press; +7.2% afterhours
- LOGM: Reports Q3 $0.56 v $0.53e, R$85.1M v $84.3Me; +6.7% afterhours
- HBI: Reports Q3 $0.56 v $0.56e, R$1.76B v $1.77Be; +5.3% afterhours
- SYK: Reports Q3 $1.39 v $1.37e, R$2.83B v $2.81Be; +2.5% afterhours
- EXPE: Guides FY16 Adj EBITDA to approach midpont 35-45% y/y (prior 35-45%) with continued risk to the downside - earnings call; +1.5% afterhours
- GOOGL: Reports Q3 $9.06 v $8.58e, R$22.5B (includes $ TAC) v $22.1Be; +1.0% afterhours
- AMGN: Reports Q3 $3.02 v $2.79e, R$5.81B v $5.74Be; -1.4% afterhours
- BIDU: Reports Q3 $1.28 v $0.87e (unclear if comp), R$2.74B v $2.59Be; -2.1% afterhours
- AMZN: Reports Q3 $0.52 v $0.85e, R$32.7B v $32.6Be; -5.7% afterhours
- NSR: Reports Q3 $2.18 v $1.34e, R$300.1M v $310Me; -11.0% afterhours
- SYNA: Reports Q1 $0.96 v $1.00e, R$386.2M v $379Me; -11.5% afterhours
- MCK: Reports Q2 $2.94 v $3.05e, R$50.0B v $51.4Be; -12.2% afterhours
***Asia Session Notable Observations, Speakers and Press***
- (CN) China State Administration of Foreign Exchange (SAFE): Forex moves won't affect convertibility reform - China Daily
- (CN) China said to be planning to make a major push to increase private business - financial press
- (JP) BOJ Gov Kuroda: BOJ is forbidden from buying debt directly from govt; QE is to achieve inflation target, not underwrite govt debt - press
- (JP) Japan Fin Min Aso: No comment on currency levels; monetary policy is not to underwrite govt debt
- (AU) According to one survey, 92% of economists forecast RBA to leave rates on hold at 1.50% next week - press
***Asia Key economic data:***
- (JP) JAPAN SEPT NATIONAL CPI Y/Y: -0.5% V -0.5%E; CPI EX FRESH FOOD (CORE) Y/Y: -0.5% V -0.5%E
- (JP) JAPAN OCT TOKYO CPI Y/Y: +0.1% V -0.4%E; CPI EX-FRESH FOOD Y/Y: -0.4% V -0.5%E
- (JP) JAPAN'S BOJ SEPT NATIONAL CPI EX FRESH FOOD, ENERGY (CORE-CORE) Y/Y: 0.2% V 0.3%E; BOJ's trimmed Mean CPI -0.1% (negative for 1st time in over 3 years)
- (JP) JAPAN SEPT OVERALL HOUSEHOLD SPENDING Y/Y: -2.1% V -2.7%E; 7th consecutive decline
- (JP) JAPAN SEPT JOBLESS RATE: 3.0% V 3.1%E; matches lowest rate since 1995
- (AU) AUSTRALIA Q3 PPI Q/Q: 0.3% V 0.1% PRIOR; Y/Y: 0.5% V 1.0% PRIOR
- (AU) AUSTRALIA SEPT HIA NEW HOME SALES M/M: 2.7% V 6.1% PRIOR
- (TW) TAIWAN Q3 PRELIMINARY GDP Y/Y: 2.1% V 1.8%E
***Asian Equity Markets (00:30ET)***
- Nikkei +0.5%, Hang Seng -0.4%, Shanghai Composite flat, ASX200 -0.2%, Kospi -0.2%
***FX ranges/Commodities/Futures/Fixed Income (00:30ET):***
- EUR 1.0890-1.0910; JPY 105.05-105.30; AUD 0.7580-0.7605; NZD 0.7115-0.7145
- Dec Gold +0.2% at 1,272/oz; Dec Crude Oil +0.1% at $49.78/brl; Copper +0.1% at $2.17/lb
- SLV: iShares Silver Trust ETF daily holdings fall to 11,218 tonnes from 11,395 tonnes prior
- Equity Futures: S&P e-mini +0.2%, Dax -0.1%, FTSE100 -0.2%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.7858 V 6.7736 PRIOR; lowest CNY setting since 2010
- (CN) PBOC to inject CNY95B in 7-day reverse repos, CNY65B in 14-day reverse repos, and CNY35B in 28-day reverse repos; for the week injects net CNY595B v CNY95.5B injection last week
- (CN) China MoF sells CNY12B in 3-month bills at avg yield 2.011% v 2.201% prior
- (CN) China MoF sells CNY19B in 30-yr bonds at avg yield 3.106% v 3.10%e
- (JP) BOJ offers to buy ¥410B in 5-10yr JGBs, ¥100B in floating rate JGBs, and ¥1T in T-bills
***Asia movers***
- Consumer discretionary: China Eastern Airlines 670.HK -2.0% (Q3 result); Anta Sports Products 2020.HK +6.5% (Q3 result); PMP PMP.AU +35.4% (to merge with IPMG); Ricoh Co 7752.JP -3.9% (H1 result); Kao Corp 4452.JP -5.2% (9-month result)
- Consumer staples: Woolworths WOW.AU -1.4% (Q1 result); WH Group 288.HK -7.4% (holder may cut stake)
- Financials: China CITIC Bank 998.HK -0.6% (YTD result); AMP Capital AMP.AU -9.5% (Q3 result); Macquarie Group MQG.AU +1.8% (H1 result)
- Industrials: Air China 753.HK -1.0% (Q3 result); GWA Group GWA.AU +1.4% (Q1 result); Kawasaki Heavy Industries 7012.JP +1.0% (H1 result); Toyota Industries Group 6201.JP -1.3% (H1 result)
- Technology: Denso Corp 6902.JP +1.7% (H1 result); LG Electronics Inc 066570.KR -2.5% (Q3 result); FujiFilm Holdings Corp 4901.JP -2.1% (H1 result)
- Materials: Regis Resources RRL.AU +2.5% (JPMorgan raised to overweight)
- Energy: New Zealand Oil & Gas NZO.NZ +1.0% (Q1 result); Tohoku Electric 9506.JP -0.8% (H1 result); SK Innovation Co 096770.KR +0.7% (Q3 result)
- Healthcare: Medical Developments International MVP.AU +8.2% (Oct YTD result); Regis Healthcare REG.AU +3.1% (affirms guidance)
- Telecom: KT Corp 030200.KR -0.2% (Q3 result)