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Daily Scan: Fears return; Asia takes a dive

By NexChange
Capital Markets

Updated throughout the day

September 10

So much for yesterday's soaring optimism. Concerns over China, fueled by producer prices falling for the 42nd month straight, and a surprise drop  in Japanese machinery orders, a gauge for capital spending in the country, helped put Asia's markets in reverse today.

The Shanghai and Shenzhen Composite indices closed down 1.39% and  1,58%, respectively, while the Hang Seng expand its losses in the morning to close down 2.57%. The Nikkei meanwhile - after gaining nearly 8% yesterday on hope Japan would expand its stimulus program - was down 2.7%.  The other Asian markets:

Straits Times: -1.37%
Seoul Composite: +1.44%
Jakarta Comp: -0.09%
KLSE Comp: +0.66%
Taiwan Weighted: -0.22%
AS51:-2.29%

Here is what else you need to know:

Yen falls on stimulus speculation. The Japanese yen fell as much as 0.7% against the dollar today following Kozo Yamamoto’s – one of Shinzo Abe’s closest political allies – calls for more stimulus. The world has been jonesing for more stimulus from the land of the rising sun lately, seeing it as practically needed at this point. Financial Times (paywall)

Aussie unemployment falls to 6.2%. Bumps in full-time male and female employment down under helped the Australian unemployment rate drop to 6.2% from 6.3% in August, in line with the Australian Bureau of Statistics’ expectations and probably the only positive news we've had all morning. The majority of the increase came from full-time employment for males, which punched in at 10,100 of the 17,000 jobs added last month. Sydney Morning Herald

Chinese core price inflation hits 13-month high. Chinese CPI came in at 2% for August – its fastest rate since July 2014 – versus a 1.6% climb from the month before. It’s still well below the PBOC’s 3% target though, and pork prices – which surged nearly a fifth from the year before – appeared to be the main driver responsible for the increase. Financial Times (paywall)

Bombardier rejects offer for railway unit. Canada’s Bombardier, the makers of Learjets and Global Express planes, rejected an offer from the state-owned Beijing Infrastructure Investment Co to buy 60% to 100% of its prized Bombardier Transport unit, one of the world’s largest suppliers of monorail and high-speed trains. SCMP (paywall)

The Donald shows up in a Mexican soccer ad. He may be trying to rally the U.S. behind him, but Donald Trump’s controversial remarks on immigration are being used to rally something completely different; the Mexican soccer team. The Mexican team is set to play against the U.S. next month in Cali, and a local TV station has been splicing Trump’s remarks to make it look like the U.S. team is in for a world of hurt. CNN

The new iPad Pro is gigantic. Featuring an enormous 12.9 inch screen and an optional keyboard, the new iPad Pro seems to be quite a pivot from the previous models. Wall Street Journal (paywall)

RBNZ cuts rates. The Reserve Bank of New Zealand slashed its official cash rate by 25 basis points to 2.75

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