Asia Mid-Session Market Update: Focus shifts from US political contest to
***Top US session headlines***
- (IR) Iran Oil Min Zanganeh: We need more time for more consultations; Not willing to freeze output at current level - comments from Algiers
- (SA) Saudi Oil Min Al-Falih: not expecting agreement at Weds talks in Algiers; consensus is possible by Nov - comments in Algiers
- (US) SEPT CONSUMER CONFIDENCE: 104.1 V 99E (highest since Aug 2007)
- (US) Fed Vice Chair Fischer: best thing Fed can do is get unemployment down - Q&A
***US markets on close: Dow +0.6%, S&P500 +0.7%, Nasdaq +0.9%***
- Best Sector in S&P500: Technology
- Worst Sector in S&P500: Utilities
- Biggest gainers: FSLR +4.9%, LUV +4.5%, NAVI +4.4%, REGN +4.3%, RCL +4.1%
- Biggest losers: CHK -5.9%, EQT -5.6%, SWN -4.2%, RRC -4.1%, NFX -3.9%
***VIX 13.10 (-1.4pts); Treasuries: 2-yr 0.75% (+1bp), 10-yr 1.56% (-3bp), 30-yr 2.28% (-5bp)***
***US movers afterhours***
- CTAS +4.0%; Reports Q1 $1.26 v $1.09e, R$1.29B v $1.29Be; Raises FY17 $4.55-4.63 v $4.42e, R$5.16-5.32B v $5.16Be (prior $4.35-4.45, R$5.15-5.23B)
- NKE -2.6%; Reports Q1 $0.73 v $0.56e, R$9.06B v $8.85Be; Worldwide Futures orders y/y +5% v +8% q/q, v +9% y/y; guides Q2 Rev to grow in mid single digit range; Affirms FY17 Rev to grow in high single digits - earnings call
- FL -1.7%, UA +1.4% in sympathy with Nike
- GALT -50.0%; Phase 2a pilot trial (NASH-FX) with GR-MD-02 in NASH patients with Advanced Fibrosis did NOT meet endpoints
***After extended session***
- ARRY: Prices 18.4M shares of common stock at $6.25/shr (12.7% of shares outstanding)
***Equity Futures (00:30ET): S&P e-mini -0.2%, Dax -0.2%, FTSE100 -0.3%***
***FX / Commodities ranges (00:30ET):***
- EUR 1.1200-1.1200; JPY 100.25-100.65; AUD 0.7665-0.7680, NZD 0.7265-0.7305
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6681 v 6.6646 PRIOR
- Gold -0.1% at 1,329/oz; Oil flat at $44.67/brl; Copper +0.1% at $2.17/lb
***Asian Equity Markets (00:30ET)***
- Nikkei -1.6%, Hang Seng -0.6%, ASX -0.1%, Shanghai -0.3%, Kospi -0.4%
***Key economic data:***
- (CN) China Sept Westpac Consumer Confidence Index: 115.2 v 111.5 prior
- (CN) China Q3 Beige Book: Q3 growth seen exclusively from old engines
***Speakers / Press / Key Themes***
China:
- (CN) China Q3 Beige Book: Q3 growth seen exclusively from old engine; Retail, services and transportation sectors all weakened; Corporate finances strained by weaker profits and cash flow
- USD/CNY: (CN) China state researchers suggest govt should allow bigger moves in CNY amid pressure for depreciation - Chinese press
- (CN) China govt has limited ability for currency intervention - financial press
- (CN) China 2016 retail sales may rise by 10.3% y/y - China Daily
- (CN) China Academy of Social Sciences (CASS): Sees China growing 6.7% in Q3 and 6.6% in Q4 - financial press
Japan:
- (JP) Japan PM Abe: Japan has not escaped from deflation yet; Govt and BOJ to continue to work together to boost growth via all policy measures
- (JP) Japan PM Abe's Economic adviser Hamada: JPY strength is damaging confidence in economy and may hurt BOJ - financial press
Australia:
- (AU) Australia MoF (AOFM) sells A$1B in 2.25% 2028 Bonds; avg yield: 2.0815%; bid-to-cover: 1.84x
- (AU) UBS Global Real Estate Bubble Index report: Sydney market has been overheating since becoming a target for foreign investors several years ago - AFR
***Asia movers***
- Consumer discretionary: Coca- Cola West Co 2579.JP +8.4%, Coca-Cola East 2580.JP +4.2% (SMBC raised to overweight); CyberAgent 4751.JP +5.2% (JPMorgan raised to overweight); Nitori Holdings 9843.JP +1.0% (Q2 result)
- Financials: Evergrande Real Estate Group 3333.HK +1.5% (asset disposal)
- Industrials: Mazda Motor Corp 7261.JP -1.9% (Aug result); Suzuki Motor Corp 7269.JP -0.9% (Aug result); Nippon Express 9062.JP -3.6% (may miss H1 forecast)
- Technology: Toshiba Corporation 6502.JP +1.0% (raises guidance); Yahoo Japan Corp 4689.JP -1.0% (JPMorgan cuts PT)
- Materials: Mitsubishi 8058.JP +1.6% (Goldman raised to buy); Resolute Mining RSG.AU -6.6% (resumes trading after capital raising)
- Energy: AGL Energy AGL.AU +5.0% (guidance)