Asian equities advanced for a fifth day as the Nikkei traded at levels not seen since 1996 and the regional index traded at a fresh 10yr high (Nikkei +0.43%, Hang Seng +0.26%, Shanghai Comp -0.17%, S&P/ASX +0.32% & Kospi +0.46%). Bond markets were mixed with UST's and Aussie markets opening lower but recovering to trade near session highs at the close, while JGB's on the other hand broke the previous days highs on the open but spent the rest of the session drifting down towards Wednesday's low. Volumes were moderate with around 72k TYZ7s changing hands. The Dollar came under further selling pressure vs most pairs as the DXY approached the 50% retracement of its recent up moves. This after the FOMC minutes revealed concern over whether low inflation may persist and talk circulated that the actual amount of repatriation under Trumps proposals may fall well short of expectations. Elsewhere Gold continued higher gaining $8.50 since the US close and Oil was $0.25, giving back most of yesterdays gains.
Key Headlines:
-UK RICS House Price Balance (Sep) +6 versus +4 expected, previous +6
-Japan PPI Data M/M +0.2% vs +0.2% exp, prvs 0.0%. Y/Y +3.0% vs +3.0% exp, prvs +2.9%
-Japan Bank Lending Data Incl. Trusts +3.0%, prvs +3.2%. Excl. Trusts +3.0%, prvs +3.2%.
-New Zealand ANZ Consumer Confidence (Oct) 126.3, previous 129.9
-Australia Consumer Inflation Expectations (Oct) +4.3%, previous +3.8%
-Australia Home Loans M/M (Aug) +1.0% versus +0.5% expected, previous +2.9%
-Australia Credit Card Data Purchases +A$26.9 Bln, prvs +A$25.6 Bln. Balances +A$51.3 Bln, prvs +A$51.3 Bln.
-US President Trump said they are looking at repatriation tax rate around 10%
-The PBoC set the yuan mid-point at 6.5808 against the Dollar and injected 20 Bln yuan via 7-day reverse repos
-China’s Commerce Ministry said new trade rules from the EU lack awareness of WTO rules and urges EU to abide by rules set by the WTO
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