Asia equities begin mixed with the region cautious following the rate hike bets on Wall Street and heading into the key events including Chinese trade data, US Consumer Price Index and FOMC Minutes. Liquidity might get thinner today as Hong Kong Exchange cancelled morning trade amid a typhoon signal. China’s Guangzhou Nansha Port was reported to shut operations from today evening due to the Typhoon, and all vessels are to stop operations.
On China’s property market front, concerns are mounting about contagion risk among indebted developers. Sinic Holdings Group has become the latest real-estate firm to alert of looming default risk. Looking ahead, traders will be paying attention to the beginning of the quarterly earnings cycle, with JPMorgan and Blackrock both due to report. The US Consumer Price Index could trigger some volatility cross-asset, especially in the Fixed Income and FX space, as traders calibrate inflation bets. Prices are expected to have risen by 0.3% in September, keeping the annual pace a 5.3%.
The FOMC minutes will also be a relevant event for the day, with traders watching for considerations of a November taper of asset purchases. Chinese trade balance data is on the docket for later in the session and is expected a moderate cross-border trade, with the market consensus at $46.8 billion. That would be down from $58.34 billion in August. Additionally, any hints of the impact of stronger Yuan on China’s exports will be watched closely.
