south korea is also in the top 10. this week's data expected to show cpi will rise above 2%, which would bolster the case for a rehike this year. shery: and of course we continue to watch as those implications on inflations, central-bank decisions, mean for the broader market. as we continue to head down across asia we are talking about the nikkei. being at the lowest level since august. it is seeing its worst day since june already and falling for a seventh consecutive session. we're seeing the japanese yen holding at that 110 level while the kospi is now on track for a correction, falling about 10% from its july record, its worst day since february. not surprising given we continue to see that pressure on tech with valuation concerns, not to mention those ongoing hearings in parliament. also downside for the asx 200 and stocks. coming up, we get the outlook for china's real estate sector amid fears of evergrande contagion with the head of property research. haidi: that is it from daybreak asia. markets coverage conti

>> south korea -- the company share is rising 1% today. it has since given up half of the gains since the market opened. analysts -- despite the sharp fall from its peak. we -- they also have a 12 month price target that represents 40% of returns from the current price. the reason behind the rating is they see that samsung will continue to see strong demand for its chips recovery and foundry business will also continue. the expensive smartphones are also seeing strong sales. the key for the samsung share is whether the foreign investors will make a comeback to south korea and given that the weakness in the local currency, we may have to wait and see until that happens. and if the long term, that is the way the analysts see the stock has reached the bottom should shery: they be the only way is up. great to have you on our ages stocks reporter with the latest on samsung. let's get to su keenan the first word headlines. su: we start with former u.s. treasury secretary steve mnuchin. he is warning about the risk of breaching the u.s. debt ceil

you want to watch south korea. it matches what we saw on official export data as well that missed expectations showing slowing in momentum for the south korea export story. that generally is seen as a bellwether for where global trade is going. but for the rest you mentioned vietnam, it has obviously rebounded out of contractionary territory. that reflects the easing of lockdowns there. factories were shut down there, and are now getting up and running again. taiwan pushing higher as well, suggesting the technology demand story rains in play. when you step back from the pmi's you have to say, hang on, china's manufacturing sector is cooling, south korea's manufacturing sector is cooling. the two bellwethers as far as the trade store is going. haidi: there is that confluence of factors putting stress on the chinese recovery. are we expecting the same picture to play out with the taper numbers today? enda: i think so. the dynamics at play in china are pretty powerful. you have this energy function which is hurting ma

in countries like south korea and china, to see any connection with the government is a --. by making an offering there, it sends -- it causes concern in other parts of asia about -- what they often whitewashing japan's past militarism. it is not a good start for diplomatic relationship this early on. >> we saw the -- after shinzo abe lost. what other big challenges? what are the issues as we see the recovery from the pandemic of the multiple rounds of state of emergency. >> for the voters, the voters are looking for new types of leadership growing the economy and containing coronavirus. kishida is basing his campaign so far on economic redistribution, but in terms of the -- you mentioned earlier, people are much more interested in economic growth than his redistribution policy. it does not seem to be resonating with voters. he asked just a few days of turning things around and he will see if he can get more people on board but these policies to boost salaries and make sure the fruits of the economic gains are spread more widely. >> john herskovitz with the latest. here's a

kathleen: busy earnings counted from south korea. sophie: bitterness production partner for the co-vaccine in south korea paid we are expecting we could see some weakness what it comes to profit on the supply chain disruptions of hit the auto industry. we are keeping an eye on this and so after they missed their earnings miss to third quarter two to the recall for batteries and the impact from chip shortages on shipments for the company. going forward, we expect they will have soaring prices. we are looking at the wider ev space. battery makers after test was hurts order speaks to the broadening access to ev. you're watching suppliers like panasonic in particular, after announced plans to roll out a cheaper battery. haidi: market opens comes up next. we will have the latest. we will see how investors are taking a look at those sk hynix results as well as gdp numbers from korea. this is bloomberg. ♪ kathleen: hello and welcome to daybreak asia. sophie: i am in hong kong. haidi: taking a look at the major markets opening in asia. our

in south korea, lgl electronics do to release earning guidance for the third quarter. there is also samsung electronics vice chair accused of using illegally. preliminary export data do around the top of the hour. plus, we are expecting a policy decision from the be ok front and center. the bank of korea decision expected to keep policy on hold after stepping out in front of most other central banks in august to raise its key interest rate. kathleen hays is here with the preview. what matters most today? kathleen: clearly, it's what the bank of korea says what they signaled to us about a future rate hike. at this point, they are not expected to do anything but to rest after their rate hike. astana's -- it's not a complete surprise, but they went ahead with the 25 basis hike. let's take a look at the chart. the bond market. you look along the top, that orange line along the bottom is there key rate at 0.75%. look with the three year bond yield is doing. steadily climbing, suggesting that investors are saying, we know you will raise rates again. maybe not in october, but

shery: the open in japan and south korea. take a look at downside pressure on the nikkei and topics at the moment as we are now seeing some markets, some sectors leading the decline. health care consumer staples leading the decline. energy and real estate is gaining ground. we are reversing two sessions of gains already in the week but still at around those three weeks highs. the japanese yen still holding at that four year low against the u.s. dollar. traders really adding rate hikes and higher oil prices weighing on the yen given that japan is a net energy importer. that could be expanding japan's deficit. we are watching the jd bees as well because we have seen 10 year yields around the highest level since april, given the global bond selloff. take a look at the kospi right now. also under pressure. this coming out a time when the korean won has risen to a three week high. we are seeing against the u.s. dollar, losing ground as the kospi in the cossack fluctuating between games -- gains and losses. health care amtek weighi

we do have some data to digest from south korea cpi. coming in at 2.5% boosting the case for a be ok rate hike. the korean you on is -- the korean yuan is gaining ground. ahead of the rbnz decision, we have the kiwi dollar slightly under pressure. we could see declines should the rbnz choose to delay an anticipated rate. in sydney, adding 210 seven percent. financials are under pressure after the banking relator tweaked criteria around loan buffer requirements. check out what is going on with loan prices extending a rally at a 70 year high. while we are seeing the rsi for brent among 70, there is momentum that could be extended. goldman saying we could see the appetite for a $650,000 barrels a day going into the end of the year. food prices are seen hurting consumer spending. headaches for policymakers from around the world including japan. shery: our next guest has been adding exposure to japanese markets. valuations in korea look more reasonable given the recent correction. james is head of the multi-asset for aipac. great to have you

japan and south korea coming online. take a look at what is happening with the markets, the nikkei unchanged. real estate weighing on the index, but also energy and health care gaining ground. we have wti above $82 a barrel. the topics unchanged, but we have the japanese yen holding at the 100 13 level. a narrow range trading this week when it comes to the japanese yen. we have seen jgb's rallying along with overseas debt markets. overnight we had the boj holding steady on policy, but lowering growth and inflation forecast. we did get japan's september industrial output really underperforming estimates. a contraction of 5% month on month. similar story in south korea. industrial output fell 1.8% year on year, missing expectations. the kospi is gaining 0.5% after two sessions of losses already. the korean won gaining ground against the u.s. dollar. a bit of a difficult week for the won. it will be difficult to rise as stagflation fears are there. we did see bond yields surging. we continue to watch the gyrations in the bo

shery: ongoing tech hearings in south korea, the talk of the new capitalism in japan. how spooked should investors be, given we have to the common prosperity drive in china? >> with japan in particular, it is almost like back to the future. we've had this notion of capitalism locally. this goes back to the 10,000 yen notes coming next year. he was in favor of this idea of capitalism with a human face. collective capitalism. good countries should not just look after the shareholder, but employees, immunity, and society. it really ties in with esg. i think investors can clear it, but they need to be mindful shareholders would not be the only priority. for that reason, dividends will become more important whether to be invested or not. shery: how important is dividend growth, especially when we talk about equality, also prices rising for consumers? that is really not helping. when you have inflation concerns, how important is dividend growth? >> from our perspective, if you've got a bunch of policyholders looking to receive an annuity income as a hedge of inflation, in co

shery: south korea, big earnings. s oil profit coming in above expectations. samsung engineering reporting and operated profit for the third quarter that beat the average estimate. we are following samsung given the latest results. haidi: we are nearly at the midpoint of earnings season in china. thursday, more than 30 companies will report and banks could see a revenue boost a provision risks. byd carmaker is one to watch. investors will be keeping and i out for the potential of price through from price hikes. and we will be listening to commentary about the global energy crisis. daybreak asia is just about done. at coverage continues. -- market coverage continues. moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for

shery: japan and south korea coming online. sophie, how was the open shaping up? sophie: the nikkei futures higher by .3%. we are seeing the likes of adventist gaining ground. chip related players. yen trading above 114. ahead of of the 20 year bond sale out of japan, we do have it gaining some ground. some reversal that we saw as of late. in korea, laptop and audio component makers. keep an eye on chipmakers. we are coming down to the report card due next week with sales maybe lowered by weak chip prices. the korean won is gaining ground, trading below 1186. ahead of the rba meeting at the bottom of the hour, goldman out with a note saying they predict home prices in australia will peak next year. the property market will be closely watched and whose around the minutes will be anticipated along the tightening path for the rba. with that in focus, we are seeing bear planning for aussie bonds. taking a bit of a breather this morning with a 10 year yield now heading lower by about two basis points. when it comes to cash yields opening from the u.s., the 10 year is l

perth: i think we are continuing to be bullish on taiwan and south korea. they have a very strong export sector so key exports to world manufacturing and tips and other things. they are leading the charge in the decoupling from china by moving manufacturing out of china into other emerging and developed markets and indonesia also has a lot to benefit from this. they have a very favorable demographic and lower debt ratios to help them be more resilient in a market like this. indonesia, taiwan, and south korea would be our top three choices to decouple from china. kathleen: in terms of china, i want to come back to the question of what is going on with evergrande but broaden it out because some people look at this common prosperity coinciding with politics. it this is a way to make sure within the party itself, he is reaching out and getting support for people broadly so that the leaders in the party want to support him as well. is it possible if he does keep his power position next year, he could pile this policy back to say i guess maybe we went too far and

we continue to watch the moves in south korea and japan. of course, we have the be ok rate decision this week in korea as well and we are also waiting on coronavirus cases to get a feeling of what the pandemic, how it is spreading across the region. paul: let's take a look at how they are doing on the asx. a bit of strength, higher by 6/10 of 1%. it has pulled off a little since then. one of the weakest performers on the asx today is an investment company slumping 11%. reporting outflows for the first quarter of $2.3 billion. a lot of volatility giving rise to rebalancing of portfolios. overall, stronger, better in new zealand as well to the tune of 1/5 of 1%. coming off the boil after a bright opening. the dollar, one of the best-performing g10 currencies. $.70 against the greenback right now. not much to change for the aussie. shery: we are seeing a risk on day across asia right now with asian stocks also at a two-week high. let's bring in the asia-pacific senior market analyst. we are seeing bullishness. we had small corporate earnings h

we are getting south korea's august current account numbers. we are seeing goods trade falling to 5.6. we are also seeing the current account narrowing to $7.5 billion. that would be 7.512 billion. this after widening in the previous month. not that surprising given that way -- we have seen export starting to slow down. in the previous month, we had seen double-digit gains but not as high in the 30% gains that we saw in the past few months. the current account balance starting to marrow -- narrow at $7.5 billion. haidi: we are seeing tepid gains in the first few seconds of trading in sydney. let's get you straight to the markets with sophie cameron. sophie: a two day drop for aussie shares. stocks opening higher. a report that china has released australian coal to manage the power crisis. the u.s. may release emergency oil can -- reserves. wti extending losses by 0.5% after launching the biggest drop in two weeks. keeping an eye on energy names in australia. when it comes to the bond space, we are seeing aussie bonds gain for the first time in

in south korea, kakao pay will fix its price. the ipo price will likely be set at 90,000 won. an interesting story about the generational feud likely to manifest in the upcoming elections and south korea. younger voters calling themselves the "give up generation" as they grow frustrated with the pace of change. in japan, progress on the virus front. cases have significantly dropped nationwide and authorities are looking to open more parts of the economy. we are watching how the yen will move. the fx markets reprice the central bank moves. and another eco-data point to watch out for. pmi coming out from jibun bank. services contracted at 47.8. we will have a big interview in the next hour with ranil salgado . paul: let's stay on japan. a long-standing and sometimes violent position with second and third generation koreans that have been thrust into the spotlight. the fuji employee sued when a homebuilder did not put an end to the distribution of leaflets that had racist content. for more on this, let's bring in hwaji shin, an associate professor at the university of san francis

shery: we start with breaking news out of south korea. we are getting the unemployment rate coming in at 3%, matching expectations for the month of september. this, after we saw the record drop of the jobless rates in the month of august at two point 8%. a slight increase in the rate now. not surprising given the economic recovery may have drawn more workers back into the force. 671,000 jobs were added in september from one year earlier, sending the jobless rate to 3%, matching expectations. haidi: let's take a look at the sydney open. what are you watching? sophie: we get australia's consumer confidence gauge at the bottom of the hour. teeing up the trillion economy for a consumption boost. you have the a6 200 little changed after a two day drop as we saw the iron ore rally being halted amid volatile trading. the aussie dollar looking little changed as well after rising overnight. we see it holding above $80. at ubs, they boosted their price forecast for brent and new york crude. with the spike in energy prices combined with softer globa

we have plenty of data to look out for including south korea's bank of korea deciding on rates on tuesday as we see their currency at the moment. unchanged at that haidi: haidi: anchor: haslinda: after -- shery: that weighing heavily on their minds. the looming pound permits including that from mainland china notes with stupid 50 million dollars outstanding -- 250 million dollars outstanding. that will be there note maturity by three months. we continue to see these trickle of headlines coming from chinese developers, trying to really put off some of those bond payments they have upcoming as we continue to see those distressed firms across the country. haidi: the calendar do is something they are focused on on this per the world. let us look at how we are trading here in australia. it is a day when sydney emerges from some restrictions after 15 weeks. we are seeing broader downside. in fact, the only trading sector in the green is energy. the biggest decline is across consumer and information technology stocks. star entertainment is letting 20% after we saw the report say that the company

checking on the open in south korea, we have a speech later this morning from president moon, downside a third, extending a decline for a fourth straight session. we're going to keep an eye out for earnings today, and also watch reaction to the ipo fundraising. we have the one on the back foot, trading around around against the greenback. we're seeing stocks in australia gain ground, higher by oil and energy prices continuing to gain, brent above $85, wti above $84 a barrel. we do have bonds gaining ground in australia. you got aussie 10 year yields back below 1.79, this is markets consider the pricing for rba pricing. haidi? haidi: sophie kamaruddin in hong kong. analyst investments have fallen to a decade low relative to global peers. further downgrades are on the horizon as china's economic growth slows global supply constraints remain. let's discuss this with tim. so, is the diversions that you see when it comes to expectations in this part of the world and where we see elsewhere fair? and where do you find opportunities in those gaps? tim: we do think it's fair. we have a number o

we just opened for japan and south korea, its turned to sophie for what stocks to watch. sophie: in tokyo, keeping an eye on chip suppliers, pledging to reduce impediments to overseas shipments with funding in the next stimulus package to ensure semiconductor capacity. keeping an eye on vaccine stocks in japan as well, reporting the government will offer three drug companies a total of ¥3.8 billion to support covid drug developer. we are watching fast retailing this thursday which is expected to deliver a rosy forecast for the operating profits on the sales recovery in key markets for this owner and korea's biggest -- posco coming in at nearly $3 billion thanks to high steel prices and strong demand in auto and construction. shery: we have an interview in the next hour, the philippines finance secretary joins us to discuss the nation's economic recovery as inflation surges and the vaccination campaign it rolls ahead. the market opens in seoul and tokyo is next, a mixed picture when it comes to futures. u.s. futures hitting a dutch getting .1% and we could see upside for