Oct 26 Asian markets slightly lower, but Taiwan just positive. HK closed. Europe and US head lower
HSI Market Closed re-opens Tuesday
EUROPE markets opening lower as covid concerns rise with France, Spain and Italy seeing significant increases in cases and ordering additional measure to try and contain the outbreaks.US Futures were -300pts as the US also record covid cases.
SAP opened down 16% as it pulled its medium term profit targets and warned that business would take longer to recover. I think a number of investors are repositioning for this and looking at which Tech names can continue to grow and which have hit saturation.
Data out at 5pm HK time
German Ifo Data
Business Climate Oct 92.7 vs 93.4 Sept (F/cast was 91.1)
Expectations Oct 95.0 vs 97.7 Sept (F/cast was 97.5)
Current Conditions Oct 90.3 vs 89.2 Sept (F/cast was 87.9)
Slight +VE but not enough to outweigh the covid concerns.
US Futures Opened Dow -150pts in Asian time and sold down to -307pts as Europe came on line, with the US seeing a record number of covid cases.
Data Chicago Fed National Activity, New Home Sales, Dallas Fed Manufacturing.
Key Earnings Otis, NXP Semiconductors, Twilio.
CHINA Closed -27pts (-0.6%) @ 4,691
CSI 300 opened lower @ 4,684 ahead of the start of the Fifth Plenum of the Nineteenth Communist Party Congress. It initial sold down to 4,639 before working higher to 4,713 just short of Friday’s closed and then eased back into lunch. PM saw the market traded sideways in a tighter range. Sentiment cautious as China reports a covid out break in Xinjiang and cases in Europe and the US spike which could hit the exporters recovery. Investors also watching for soundbites from the Fifth Plenum which runs until Thursday.
Shanghai Comp traded in the same pattern closed -27pts (-0.8%) @ 3,251
Shenzhen Comp traded in a similar pattern but broke into the green and upto 13,242 before easing back into lunch. PM saw it test Friday’s closing level but closed +63pts (+0.5%) @ 13,191
ChiNext traded the same way as Shenzhen to close +17pts (+0.7%) @ 2,618
HSI Closed Govt reported 8 new covid cases all imported.
JAPAN opened flat and traded sideways in a tight range (23,573/23475) during the morning session and closed flat. PM session opened lower traded sideways seeing a slight rise as the Leading Economic Index and Coincident Index data showed continued improvement although short of f/casts. Market closed -0.1% @ 23,484
Leading Economic Index Final Aug 88.4 vs 86.7 Jul (F/cast was 88.8)
Coincident Index Final Aug 79.2 vs 78.3 Jul (F/cast was 79.4)
The Leading Economic index which is a gauge of the economy a few months ahead and is compiled using data such as job offers and consumer sentiment, rose by 1.7 points in August 2020, the highest since February. The improvement in the index followed the reopening of business units amid the loosening of coronavirus pandemic restrictions but was short of forecasts.
Coincident Index which consists of a range of data including factory output, employment, and retail sales, was at 79.2 in August, compared with the flash figure of 79.4 and a final 78.3 in July. This marked the highest reading since March, with the government upgrading the assessment for the index moved to "Halting to fall" from "Worsening", the first time since May 2019, suggesting the economy stops contracting following the COVID-19 shock.
S KOREA Shares of companies tied to Samsung saw increases as investors expect them to increase their dividends to help the family members pay inheritance tax on the estate of Lee Kun-hee. There are also expectations that the group may see corporate governance changes but those could be delayed as Lee Jae-yong currently has his own legal difficulties.
But overall Sentiment weak on rising covid cases globally and the lack of a US stimulus package. Which outweighed some good local results
Kospi opened higher @ 2,367 and saw a small uptick before reversing and trending lower for the rest of the session to close at the day lows -0.7% @ 2,344.
Kosdaq opened flat trended lower through the day and closed just off the day lows -30pts (-3.7%) @ 778.
TAIWAN opened higher (12,923) and initially rallied to 12,971 but then sold down to flat at about 9:45pm. Since then it worked back to 12,940 and traded sideways to closed +10pts (+0.1%) @ 12,909