Morning Report APAC: Asia continues US equities surge
- Asan equities are extending the highs begun over night in the US
- Benchmarks advanced in Tokyo and Sydney in early trading
- USD holds onto gains ahead of US inflation data later this week
- USDJPY traded at 110.18 after sliding 0.7% on Tuesday
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
0100: EC – ECB executive board member Praet speaks in Frankfurt
0715: AU – RBA’s Debelle gives remarks in Sydney
UK: UK inflation is on the rise again, accelerating more than forecast in August after the biggest surge in clothes prices in almost three decades. CPI rose from -0.1% to +0.6% MoM (Exp. 0.5%) and 2.9% from 2.6% (Exp. 2.8%). PPI rose to 0.4% MoM (Exp. 0.1%) and 3.4% YoY (Exp. 0.1%).
The inflation pickup in August was led by clothing and footwear, which surged 4.6 percent compared with a year earlier.
The Bank of England is meeting on September 14 and the market is pricing an 88.8% chance of No Change in the rates due to GDP still depressed at +0.3% quarter on quarter.
Equities: Expensive birthday present: Apple rolled out its much-anticipated iPhone X, a redesigned product of glass and stainless steel with an edge-to-edge display that CEOTim Cook called “the biggest leap forward since the original iPhone”.
The phone features wireless charging, an infrared camera and hardware for facial recognition, which replaces the fingerprint sensor for unlocking the phone. The home button found on previous iPhones is also gone, and users instead tap the device to wake it up.
The phone, which is priced at $999 and ships on November 3, as well as the holiday shopping season that follows are the most important for Apple in years.
The new phone’s ship date raised questions about possible supply constraints ahead of the holidays. The share price dropped 0.4%.
UK yields surged on highest inflation rates since 2011, and partially contributed by risk-off movement continue to wane.
Teva Pharmaceuticals surged 4.49% as it sells Paragard IUD to CooperSurgical in a $1.1 billion cash deal to reduce debt. Teva Pharmaceuticals new CEO was announced on Monday which already saw the Israel health care stock jumped 13% on Monday’s trading.
M Science, a data-tracking company pessimism on McDonald’s Corp store sales saw McDonald share price fell more than 3.2% to close at $156.34. The fast food chain just hit historical high earlier this week, breaking the $160 mark and is up 28% this year.
Asia Pacific Stocks
- Anta Sports (2020 HK): Anta Sports Upgraded to Buy at UBS; PT Raised to HK$35
- Avic Aviation Engine (600893 CH): Avic Aviation Engine Upgraded to Buy at Citic Securities
- Hysan Dev (14 HK): Hysan Dev Raised to Equal-weight at Morgan Stanley, PT HK$38
- New World Dev (17 HK): New World Dev Raised to Overweight at Morgan Stanley
- Tongwei (600438 CH): Tongwei Initiated at Citic Securities with Buy; PT 10.30 Yuan
- Bank of Qingdao (3866 HK): Bank of Qingdao $1.203b AT1 Perp NC5 Bond 5.5%
- Casino sector: Macau September Daily Revenue Trending Lower vs. August, Nomura
- China Merchants Bank (3968 HK): CMB Financial Leasing Units Markets Up to $115m Loan
- China Merchants Bank (3968 HK): Royce Says U.S. Should Target Chinese Banks on North Korea
- Glencore (805 HK): S. Africa’s Numsa Seeks 15% Wage Increase at Glencore Coal Mine
- Hong Kong Stocks Edge Higher Again With Automakers Standing Out
- HSBC (5 HK): HSBC Bought Back 2.7M Shares at Avg 735.24 Pence Each Sept. 12
- Ping An Insurance (2318 HK): Ping An Jan.-Aug. Life Insurance Premium 286.2B Yuan
- Shimao Property (813 HK): Shimao Property Says Unit Issues Asset-Backed Notes
- Sino-Ocean (3377 HK): Sino-Ocean Group $600m Perp NC5 5%
- Yuexiu Property (123 HK): Yuexiu Property Acquired Wuhan Land Parcel for 979.3m yuan
- Dip (2379): Initiated at Jefferies with buy
- Hitachi (6501): Raised to buy from neutral at UBS
- Kyushu Electric (9508): Cut to neutral from buy at Nomura
- Lixil (5938): Rated new Outperform at Tokai Tokyo Securities
- Tokai Carbon (5301): Raised to outperform from neutral at Daiwa
- Japan Post Holdings (6178): To buy back as much as 72.8m shares from Finance Ministry today
- Japan Tobacco (2914): To expand sales area for Ploom Tech starter kit and tobacco capsules in Tokyo from Oct. 30
- Fuji Electric (6504): To acquire Kubota’s stake in Metec Semarang
- Kobe Bussan (3038): 9-month operating profit +36% y/y to 11.2b yen
- Kyushu Electric (9508): Forecasts full-year operating profit 95b yen vs analyst est. 127.6b yen; expects to restart Genkai No. 4 reactor in March
- Moresco (5018): Ends talks to acquire AML Industries, AML Realty
- Nintendo (7974): Plans to ship Super NES Classic Edition into 2018 due to "incredible demand"
- Toshiba (6502): Agrees with 20th Century Fox to settle arbitration case
- Toyota Motor (7203): Sees 1m deliveries in Europe this year
- ILU AU: Iluka Cut to Neutral at Credit Suisse, PT A$9.85
- SKT NZ: Sky Network TV Cut to Hold at Morningstar
- AJQ AU: Uganda Set to Award Oil Concession to Armour Energy Australia
- BHP AU: Project Pipeline Replenishing in Top Copper Nation: Association
- GNC AU: GrainCorp Should Consider Closing Newcastle Port: Credit Suisse
- MGR AU: Aussie Developer Mirvac Mulls Dollar Bond for Asia Buyers
- STU NZ: Steel & Tube CEO Dave Taylor to Step Down Sept. 22
- TRA AU: Turners Automotive to Raise NZ$25m From Share Placement
– Edited by Adam Courtenay
This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter
All material contained herein is provided for your general information. The information and commentaries are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Saxo Capital Markets Pte. Ltd. (“SCM SG”). Any expression of opinion (which may be subject to change without notice) is personal to the presenter and/or author; they do not reflect the view or opinion of SCM SG or its affiliates, neither do they constitute an endorsement of SCM SG’s view or analysis of the same.
None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. SCM SG does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment based on any commentaries or information provided here.
For further information, please click here.
Saxo Capital Markets Pte Ltd ("Saxo Capital Markets") is a licensed subsidiary of Saxo Bank A/S, an online trading and investment specialist. Saxo Capital Markets serves as the APAC headquarters and holds a capital markets services licence under the Monetary Authority of Singapore; and a commodity broker licence issued by the International Enterprise Singapore. Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading multi-asset online trading platforms.
Trading risks are magnified by leverage - losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us. Please see full General Disclaimer.
Thousands of serious traders receive free news and analysis from Saxo Capital Markets each day. Saxo Capital Markets never sends these emails unsolicited; they are sent following acceptance of your membership and subscription request by Saxo Capital Markets at saxomarkets.com.sg. If you do not wish to receive any emails from Saxo Capital Markets in the future, please reply to this email with the word "UNSUBSCRIBE" in the subject header.
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M