MNI China Daily Summary: Wednesday, October 16

MNI: ITALY FINAL HICP +1.2% M/M, +0.7%Y/Y

MNI BRIEF: BOJ's Adachi Sees Conditions For Normalisation

MNI: PBOC Net Injects CNY581.4 Bln via OMO Wednesday

CHINA PBOC CONDUCTS CNY642.4 BLN VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1191 Weds; +2.66% Y/Y

MNI: UK SEP OUTPUT PPI -0.5% M/M, -0.7% Y/Y

MNI: UK SEP CPI +0% M/M, +1.7% Y/Y

Japan Aug Machine Orders -1.9% M/M

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

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ASIA STOCKS: Asian Equities Mostly Lower As Tech Struggles Following ASML's Drop

ASIA STOCKS
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Asian equities are lower today with benchmarks across the region tracking the US markets lower following a drop in the Nasdaq -1%, S&P -0.76% & the Dow -0.75% overnight.

  • China & HK equities markets have seen decent volatility with investors still concerned over the lack of further stimulus measures, however it was announced that there would be a press briefing scheduled for Thursday from the housing minister which saw property stocks jump. The HSI is now +0.65%, CSI 300 -0.25%, while the Mainland Property Index is +4.90%.
  • Tech stocks are underperforming in the region with Tokyo Electron the worst performer, dropping almost 10%, while the likes of Samsung -1.65%, TSMC -0.95%, SK Hynix -0.90% contributing to the move lower.
  • The move lower in tech stocks comes after ASML shares plunged 16%, the most in 26 years, after reporting significantly lower-than-expected bookings of €2.6b in Q3 vs €5.39b expected. The company also cut its 2025 sales guidance, reflecting a slower recovery in the semiconductor industry amid customer caution and ongoing US-China trade tensions.
  • Japan's Nikkei is 2.05% lower, while the TOPIX trades down 1.10%. Earlier BoJ's Adachi emphasized the need for a gradual approach to raising interest rates while maintaining accommodative financial conditions until inflation consistently reaches 2%. His comments suggest the BOJ is likely to keep rates unchanged at its upcoming October meeting, with further rate hikes possibly delayed until 2024.
  • South Korean & Taiwan equity markets are both lower, influenced by weaker tech prices. The KOSPI trades -0.50%, while the TAIEX is -0.60%
  • Australian equities are slightly lower today, very little in the way of headlines out of the region. BHP has led the declines, erasing the past two session's gains, with the ASX200 0.20% lower. New Zealand's CPI came in at the lowest levels since July 2021, rate cut pricing firmed with the market now pricing almost 100bps of cuts across the next two meetings, the NZX50 is down 1.10%.
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Asian equities are lower today with benchmarks across the region tracking the US markets lower following a drop in the Nasdaq -1%, S&P -0.76% & the Dow -0.75% overnight.

  • China & HK equities markets have seen decent volatility with investors still concerned over the lack of further stimulus measures, however it was announced that there would be a press briefing scheduled for Thursday from the housing minister which saw property stocks jump. The HSI is now +0.65%, CSI 300 -0.25%, while the Mainland Property Index is +4.90%.
  • Tech stocks are underperforming in the region with Tokyo Electron the worst performer, dropping almost 10%, while the likes of Samsung -1.65%, TSMC -0.95%, SK Hynix -0.90% contributing to the move lower.
  • The move lower in tech stocks comes after ASML shares plunged 16%, the most in 26 years, after reporting significantly lower-than-expected bookings of €2.6b in Q3 vs €5.39b expected. The company also cut its 2025 sales guidance, reflecting a slower recovery in the semiconductor industry amid customer caution and ongoing US-China trade tensions.
  • Japan's Nikkei is 2.05% lower, while the TOPIX trades down 1.10%. Earlier BoJ's Adachi emphasized the need for a gradual approach to raising interest rates while maintaining accommodative financial conditions until inflation consistently reaches 2%. His comments suggest the BOJ is likely to keep rates unchanged at its upcoming October meeting, with further rate hikes possibly delayed until 2024.
  • South Korean & Taiwan equity markets are both lower, influenced by weaker tech prices. The KOSPI trades -0.50%, while the TAIEX is -0.60%
  • Australian equities are slightly lower today, very little in the way of headlines out of the region. BHP has led the declines, erasing the past two session's gains, with the ASX200 0.20% lower. New Zealand's CPI came in at the lowest levels since July 2021, rate cut pricing firmed with the market now pricing almost 100bps of cuts across the next two meetings, the NZX50 is down 1.10%.