Article / 23 September 2016 at 2:30 GMT

Morning Report APAC: Asian stocks falter in early trade

APAC Sales Trading Desk / Saxo Capital Markets
Singapore
  • Oil retreats from 2-week high, stymieing early Asian shares trading 
  • The MSCI Asia Pacific Index was down 0.3% in early trade
  • JPY down 0.4% to 101.12 per dollar, cutting weekly advance to 1.2%
  • WTI trading at $45.80/barrel at 0151 GMT, down 52 cents


By Saxo APAC Sales Trading

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Speeches

14:10 – SEK – Riksbank’s Ingves speaks at ESRB Conference in Frankfurt
22:00 – EUR – ECB’s Weidmann speaks at ESRB Conference in Frankfurt
 
Overnight news

US: Initial jobless claims falls to 252,000 and continuing claims fell to 2,113,000. Existing home sales declined by -0.9% versus an expected +1.1%. Kansas City Fed manufacturing rose unexpectedly to 6 against -3 expected. Overall a missed set of B grade US data overnight.


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USD recouped some of the Asian session losses through the US session. There is a descending USDJPY triangle formation taking place, with support below the 100 level and resistance coming in near post BoJ highs at 102.60. This sets a broad range that should be traded with a bias to selling USDs.

Emerging markets: Most emerging market currencies lost ground after strong moves in the Asia time zone yesterday, however they remain broadly firmer post the Bank of Japan and Federal Reserve meetings this week.

Foreign exchange movementsxxx

 















G10 vols once again sold off with the only buyers around the NFP data in 2 weeks’ time. USDMXN US election dates has once again seen buyers re-emerging.
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US government bonds continued to strengthen after the both Fed kept rates unchanged and pointed to one rate hike this year.

US Treasuries 5s30s flattened for fifth straight day to the lowest since September 9, retracing almost 50% of gains this month from a peak of 130bps to 117 basis points.

Commodities


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Equities

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Red Hat (RHT:xnys) was up $2.98 to $80.02. The cloud computing and open source software company reported sales that beat analysts' forecasts and forward guidance that indicates better earnings. However, profit taking could be seen as Red Hat opened higher before a weaker close.
 
Amazon (AMZN:xnas) trades above $800  for the first time in history as it announced it will be launching an artisanal market place which would be launched in Europe. Amazon stocks has risen more than 19% this year and closed 15 dollars higher to $804.70.


Asian markets preview

China highlights

- Healthcare Co. (603313 CH): To sell shrs at 15.41 yuan apiece in Shanghai IPO
- HKEx (388 HK): To hold Shenzhen-Hong Kong link investor roadshow Oct. 13
- Tencent (700 HK): Open platform lures 6m startup entrepreneurs: QQ.com
 
Japan highlights

- Sumitomo Chemical (4005 JP): Plans plastic compound in India: Nikkei
- NTT Data (9613 JP): To comb globe for Fintech startups: Nikkei
- Universal Entertainment (6425 JP): Okada Manila casino on track to open by yr-end: Star
 
Southeast Asia highlights

- Singapore Exchange (SGX SP): Chairman Chew Choon Seng retires
- Carimin Petroleum (CARIP MK): To diversify into construction
- United Tractors (UNTR IJ): To pay 143 rupiah/share interim dividend
- PAL Holdings (PAL PM): Philippine Airlines to get 258m- peso tax refund: BusinessWorld
 
Information sources: Bloomberg

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 Both US crude and Brent are down this morning based on "technical reasons". Photo: iStock


– 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

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