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asia coming to you live from new york, sydney and hong kong. /dear coming down t we are counting down to asia's major market open. >> on worries of middle east tensions and higher for longer interest rates traders are on watch for yen intervention. humanitarian aid trickles into gaza as the death toll rises. aid may be delayed as israel backs diplomatic efforts. they're working with china following tax audits. annabelle: at the open of the asx 200 you can see we are in the red. trading lower for a third straight session just tells you how much of an impact what is

going on in the middle east is having on markets because the moves we have seen in treasury yields after stabilizing you are seeing muted action in the australian three year and 10 year and earnings as well because we are in the thick of earnings season. better-than-expected numbers coming out of u.s. companies, we're seeing the index moving in tandem which tells us again it is geopolitical concerns in the middle east, other parts of the world, that is the primary focus for investors. asx 200 into a third straight day of gains. we are not seeing action in the aussie versus the greenback, flat off of a weekly game snapping a three-week loss. sensitive to what's happening in china as well. let's change on because we seeing moves in currency this morning. fluctuation is in the japanese yen because 149.87, barely

touching the 150 mark, moving back off of that raises the risk of intervention again likely to hear anything from the boj and government officials over the course of the morning given that it is a level we would watch for intervention as well. shery: interesting to see those moves given that we saw the u.s. dollar losing ground for the first week but we are following moves in the treasury space and the risks being factored in. it's all about volatility leading the fear gauge leading the march high. we saw u.s. futures rebounding and gaining ground after the s&p 500 saw the worst week in about a month. we continue to watch the treasury space because we saw safe haven seeking on the friday session so yields used but only after the 10 year yield surged mere the 5% level earlier in the week.

we will watch where they yields go in order to get more clarity on what we are thinking the fed will do. we have pce data out of the u.s. this week as well and we might see sentiment. we seen earnings season being more positive, more than 80 companies have reported more than 70% beat expectations but it's about the geopolitical risk around the israel hamas war that we are seeing with oil prices fluctuating all week. we saw two weeks of gains for crew prices and we are seeing the wti holding around $88 a barrel level. paul: the timing of a ground invasion into gaza does remain uncertain as the release' is has been altered.

let's bring in bloomberg's michael heath. how does this change the picture on the front of getting hostages released? >> on friday and american woman and her daughter were released and it is possible to get people out potentially before any attack potentially has reshaped the calculus of the route. it's more than 200 people who have been taken hostage in various states of health. some are wounded, some are old, some are young that seems to be the word coming out that israel is prepared to allow things to take their course and perhaps reshape its ground campaign based on the idea. shery: we are finally seeing the rafah crossing into gaza, how much aid have we seen trickle in and what is the situation? michael: there's been two loads

that have gone through and they're saying this is a drop in the ocean compared to what is needed. there's about 40 trucks that are supposed to come through and today is the hope for that. hundred passing through a day would meet the requirements of the humanitarian crisis but a lot of people went down to the south and these people were displaced, they do not have access to food in water in a normal home environment so it is very difficult. the fact of the crossing is open is good news but still a lot of death is going on from the campaign going on. one hospital said they had a hundred 70 dead people so civilian casualties are very high. in north israel and southern lebanon, they are not going to

allow israel to achieve its goals in terms of rooting out hamas. and of course hezbollah is backed by iran so this comes down to a question of whether we see a widening conflict. there is a lot going on at the moment. paul: the crossing is open kind of in one direction. why the hesitation from egypt to allow refugees to flow the other way? michael: in that area israel -- sorry, egypt to set a lot of instability there with militants who have been there. they are afraid that if they get an influx of palestinians that will exacerbate their problem so no one is coming out, only aid is going in there to sort of control the area treated shery: michael heath with the latest on the war. other geopolitical news, india

saying it has cut canada's diplomatic presence in the country due to concerns about interference in affairs. canada relocated over 40 staff members from the embassy and consulates. the indian government had threatened to revoke the immunity. they took a hit after justin trudeau accused the government of orchestrating the killing of an activist on canadian soil. the philippine says to vessels collided with chinese boats during a mission to a -- an outpost. chinese authorities have called it irresponsible and illegal. china accused filipino coast guard ships of entering disputed waters and accuse them of sending quote illegal building materials to warships. israeli and prime minister is kicking off diplomatic engagements.

year rise on monday with a delegation of leaders who will meet with president biden. he is due in beijing where he will meet with chinese president xi jinping and the premier as well and attend the pacific island forum in the cook islands before returning to the u.s. for the apec summit in san francisco. the world's biggest maker of apple iphones is under investigation in china. taiwan's foxconn will collaborate with chinese authorities on the unspecified probes and for the latest let's bring in stephen engle. in hong kong, what do we know may be behind these investigations? stephen: the company in taiwan is not saying the nature of these investigations other than to say that they will cooperate with authorities for unspecified probes. global times, the state media newspaper essentially saying

foxconn is being investigated by attacks authorities for their subsidiaries just across the border where they make a lot of products in large factories as well as another province. they are looking to land use according to state media in hunan province. it is right in the middle of china along the yellow river and known as iphone city, that is their biggest maker location for making iphones read so again, it is too early to say whether these investigations will lead to any disruptions of these factories but it is worth watching when you have a factory being the largest producer of iphones globally. again, they are saying they will collaborate but no other details. the big question going forward is is this tied to terry gold's

presidential candidacy? paul: with this have anything to do with the run for president? stephen: it is highly speculative at this point but there is no doubt that it might be used as a political lever by rivals or even those who might want to saddle up to him because there are four main candidates. terry is the founder who did resign from his position on the board when he ran from president but he is known for being pro-china, pro-doing business in china and some of said he is a china appeaser. to that point during these campaign rallies in august when he announced his candidacy he was quoted as saying i will not bow to china's threats. again, is this a reprisal?

it is only speculative right now but the vice president of the democratic progressive party is the candidate known to be more of a supporter of the status quo and de facto independence from china. he has come out and said in light of the investigation china should not force taiwanese companies to declare their position when an election is taking place. china should acknowledge that companies contribute to the economy greatly in china. stay tuned to this one obviously. paul: cheap north asian correspondent stephen engle in hong kong. still to come, the vice chair will join us live from the singapore international energy week and discuss his outlook or the lng market in asia. we will preview key central bank decisions with amp australia's economists. that is up next, this is bloomberg. . ♪

♪ >> regardless of the decision made in our next meeting if the economy evolves as anticipated we will be at a holding point on the fed funds rate as we accumulate more information on economic and financial development and assess the back -- affects that already occurred. shery: let's take a look at the week ahead on wednesday. hong kong's chief executive john lee will give his policy address. growing doubt about his administrations ability to navigate in increasingly challenging business and macroeconomic environment. the central bank said bloomberg is expecting the ecb to keep interest rates on hold. we will get rate decisions from

turkey and canada. we will be getting inflation readings throughout asia. bloomberg expects price gains to slow in singapore and australia. rising rent, insurance and household utility bills continue to remain extra points in australia's inflation basket that will keep the rba on edge. other data, gdp figures from south korea in the u.s., japan's pmi data, numbers from south korea and industrial profits from china. paul: thanks. joining us now in the studios, the deputy chief economist at amp australia read plenty of data to impact but i want to start in australia. we have cpi numbers for the third quarter coming out. is there a risk of upside surprise and it has been outdated in terms of events. >> cpi data decatur so it is

very important. the number i would focus on is the underlying measure of inflation. we expect it will rise by 1.1% over the quarter which is in line with the forecast but if we get a 1.3 or above that, the rba will have to hike rates in november because it will mean that the inflation forecast would be pushed out in terms of meeting the two to 3% target they told us from the minutes that they have a low tolerance for inflation remaining a sustained high. paul: concerns -- it seems that the last meeting the data was mixed. a slow up in the participation rate, have them not happen we would have higher employment so it is a fine balance. >> i don't think the rba should

raise rates but when i look at the communication from the past few weeks i would say it has been hawkish read we had commentary from the new governor last week. she sounded i thought she sounded in concern. we had agreements running up as well. that would concern the central bank so if we see surprise i would say 50 or 60% chance. shery: despite the global risk that we saw the australian dollar being supported by the fact that we got stronger than expected numbers out of china. what are you expecting in

industrial profits or the broader economy given what is happening on the are pretty sector? >> chinese data has been turning up over the past few months. the economy looks to have stabilized so it probably does go toward the point that policymakers have been doing piecemeal policy measures. we have not seen a bazooka type of stimulus for consumers like we were hoping for, not to say that it cannot come. there is a chance for consumer stimulus out of china but the measures in place have helped to support the economy apart from the property sector because we know there is a lot of weakness there. shery: we saw volatility in treasuries given the fact that we saw chair powell's commentary. there seems to be in agreement and narrative that higher yields can lead to the fed meeting to

hike less. do you think the narrative will hold? >> higher yields are doing the work of higher interest rates or the central bank. even though we have seen a large increase in bond yields we haven't seen a tightening in financial conditions which could make the fed concerned. there is still a risk from the fed, it depends on how the labor market forms. if we see further weakening in how inflation data comes out because we know it has started to take up over august and september. if we see sticky inflation in the services space there is a risk of another fed hike despite the fact that officials have tried to talk down expectations. shery: we will get more indications from the data this week, the super court gauge that

chair powell likes to look at, what have you seen in terms of all the data from the u.s. in terms of where the fed goes from here russian mark >> while the part of the inflation story in the u.s. that worries me is rent, services, retail data has been stronger than expected so clearly consumers are still using their accumulated savings, they have not drawn them down so that is keeping consumption data elevated and services spending is strong. if you look at the gdp forecast, they continue to be revised higher so the strength of the u.s. economy has been surprising in that could worry the fed and lead to a hike in the coming months. paul: we've got a read coming out of korea for the third quarter but what do you see the be ok doing in terms of trying

to support growth because we have household debt and china the country next door having growth issues as well. >> global growth has held up better than expected and i think that that should support asian economies as well. china has not perform as strongly as it would have liked but they're going to have growth of 5%, that is decent, stronger than last year and that supports other asian economies in the region. paul: deputy chief economist in austria, thank you for joining us and we have plenty more to come on daybreak asia. this is bloomberg. ♪ ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection.

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♪ shery: welcome back. the vote count is underway as argentina confronts mounting

economic challenges. our bureau chief patrick joins us now and we are talking triple digit inflation, poverty on the rise, 63 session a decade. many challenges for argentina's next president. >> absolutely. many challenges in we started with a tight three-way race in argentina's election. it looks like we'll will be going to a head-to-head battle between the top two candidates. what is not clear is who the candidates are. we have the incumbent and the pro-market candidate. we are expecting official results in one or two hours. authorities have not been clear when the numbers will come in but the next president will be facing titanic challenges from triple digit inflation, recession, a $44 billion agreement that argentina has with the international monetary fund read how they will repay

that and reset the economy are major questions awaiting the next leader of the country. paul: if we go to a runoff how do we expect markets might react? >> it is going to be a different reaction between the different scenarios. if we have the outsider facing off against the incumbent that is the most polarizing scenario. they are not well-known, only got into politics two years ago. the other is a lifetime politician who changed sides, zigzagging in his career throughout the decades. that would be the most market concerning scenario whereas a pro-market candidate, patricia and masa would be more positive for markets in the sense that those candidates are well known, there economic teams are well-known and they would have relatively conventional and

orthodox economic policies. we know there are more dramatic policies on the table. shery: tell us about the proposals because they really made global headlines. >> absolutely. i'll candidates have pledged to reel in argentina's root problem which is a chronic fiscal deficit. they are proposing on the currency to change the peso to the u.s. dollar as argentina's national currency, a radical plan that has drawn a lot of concerns. mainstream economists are worried it would create hyper ration because there are not enough dollars nor in the central bank to shift argentina from pesos to dollars overnight or in the near future. they are betting that billions of dollars hidden in backyards and underneath wine sellers would come into the formal economy and help him reset but were looking situation with the

exchange rate, argentina has multiple exchange rates. the parallel exchange rate could be under pressure if we have a very politically polarizing scenario but we are hoping to have official numbers within the next hour or two. shery: patrick joining us live from buenos aires as we get you results from the argentinian president. take a look at how treasury futures are trading on friday. we saw safe haven seeking, treasuries gaining ground with yields falling slightly and paring back the weekly increase to push t you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? have we piqued your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees.

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♪ annabelle: i'm annabelle with a check on the markets as we count down a new start of trading week in asia, quite risk off as we head to the open in tokyo at the top of the next hour. this chart really tells us why that is the case because you take a look at the vix and s&p 500 index. the line and why it is the vix and you can see how that has been moving higher this is the fear gauge on wall street versus u.s. stocks aligned in blue. a downtrend for the s&p index, closing below its 200 day moving average. another signal to investors. the vix is sitting at its highest level since march, not a

great outlook for u.s. stocks into a new trading week so let's change on take a look at futures because japanese futures in singapore, the contract is online. pointing to a flat start to trading, keeping our eyes on the japanese yen because we crossed above the 150 mark, we touched a key line for us. one to watch closely for intervention. australian stocks are down 9/10 of 1% and it is really the sectors that are sensitive to raids talk, fears around recession. geopolitical headwinds, and focus on material stocks and declines in energy names coming through this morning as well. shery: what a perfect time to go to the international energy week annual event gathering professionals and policymakers within global energy to share

insights. our next guest is a speaker and a cofounder of lng terminal developer. vice chair martin houston joins us now. great savvy with us, thank you for your time. let me start with the ongoing tensions in new york and the middle east. are you seeing any impact on your business? >> no. the answer to your question is no. i think the move we've seen in oil prices is indicative since the beginning of the conflict, 8% increase in oil price gives you a sense of how markets are reacting not so dramatically. if you compare that to what we saw in the russia ukraine crisis we saw an uptick and slightly following that right now, it is business as usual. we will see what the week does

this week but it is pretty stable. >> the ukraine crisis led to inflationary concerns and rising prices have you seen that affecting construction cost? what are you doing to mitigate the risk? >> so if i speak for our project, we have turnkey contracts with bank tell to build our driftwood terminal which means costs are contained with one estimate. the industry has seen inflation across the globe not just in energy were construction but by managing it with a blue-chip contractor, someone that my cofounder and i have worked with over many decades, we have a lot of confidence our project will be built on time and on budget but in the sector we are seeing

inflation. it is important for developers to have quality contractors with strong balance sheets able to take the risks of major projects. these are large pieces of infrastructure developing new sources of energy for long-term energy security alongside the energy transition we are hoping for as well. paul: how many buyers are willing to sign long-term contracts of around 20 years? >> were working on our portfolio. across the industry you've seen buyers willing to commit and the trend is that we are seeing longer-term contracting, contracts as long as 27 years signed for long-term supplies of lng. that is important as we look at

the energy mix going forward, gas will be a crucial partner of renewables in the energy transition so we are seeing a move to longer-term contracts as people recognize the need for gas on a long-term basis. the notion a few years back was that the energy transition would see a runoff of hydrocarbons and that has never been the case. we are consuming gas and hydrocarbons for a long time to come, people recognize not to make long-term commitments and contracts as they look at the competitive forces that ultimately will arise as you see growing demand and shrinking supply on the oil side. on the gas side, regions, europe on one hand and asia on the other hand are competing for the same sources of supply.

paul: what is your outlook for gas prices and what profits are you generating from the rigs in operation now? >> ok, well we are seeing pretty stable u.s. gas prices. the word producer of gas from the onshore in the united states, we have seen prices range bound up to $3.50. what is important is what happens in the buyer market, what happens to jk m prices if we have cold winters in europe and either separately or at the same time in asia because that will impact the demand and whilst we have relatively full storage in both continents it will affect the prices of the end-user market so we could see prices run up.

$25 would not be out of the question in a cold winter in one or the other of the buyer markets. paul: martin houston, vice chairman joining us from singapore international energy week, thank you for your time. we will continue live coverage at singapore international energy week this monday morning. we will speak with edp renewables ceo pedro and renewable energy ceo. plenty more to come on daybreak asia, this is bloomberg. . ♪

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shery: japanese markets looking like this, futures pointing downwards 3/10 of 1% after two sessions of losses. we are looking at the japanese yen very close to the 150 level against the dollar. it touch that level in early asian trading, 15011. we have a wild gap between japan and the u.s. weighing on the currency the yen went to 15016 at one point earlier in october

and before it recovered to the 147 level there was a lot of speculation japan had entered the market to prop up the currency so we will watch for potential intervention signs. local media reporting that japan's liberal democratic party has lost at least one of two special elections on sunday. politics reporter isabel reynolds joins us from tokyo. how politically consequential what this before the prime minister? >> this comes at a very bad time for the prime minister, that's the problem. he's got the worst support since he took office two years ago and there seems to be very little he can do. one of the results was a loss, a severe loss on an island. we've heard that the other was a very narrow victory so he has avoided the worst but with the

past few months of shown is he is trying to find ways to bolster popularity to hold a general election but he has not found anything that has done the trick so far. paul: what does this mean in terms of calling a general election? >> yes, it is mixed signals obviously and when you look at special elections you have local factors which can affect things a lot. on an island the previous candidate step down because of a scandal so their image was bad in that constituency but i think it will be hard to call an election before the end of the year as had been speculated. if he chooses to do that he risks losing seats which will annoy his party and make it even more difficult for him to control these powerful factions

within the long ruling party. paul: politics reporter isabel reynolds in tokyo. chip equipment maker is expected to begin trading after japan's against ipo in five years. their listing comes as policymakers see semi conductors as key to national security so let's bring in a japan equity strategist. thank you for joining us. i'm wondering what interest you are anticipating for this ipo that is is toward the top of the range? >> it was oversubscribed by the foreign investors. it is not a hugely big thing. it is somewhere around 420 billion yen given the existing

ipo indications. it is fairly small compared to the other big ones like tokyo electron and medium-sized ones like screen which is around ¥700 billion. so it appears in semi conductor space, it is -- the outlook is good because they've been in the business for a long time, they've got a big market share. a good position on the silicon used for memory. memory is going 3d and stacking vertically so that's the kind of hearing that they have which is good for them in the long term. in the short-term the question remains what is happening. we've seen asml and lam research working out that the chinese are

hoarding everything they can get their hands on ahead of the export restrictions that are now stricter. we think there is a substantial downside in revenues from china over the next year and they expect that. paul: maybe we can come back to the china question but in terms of the ipo i'm curious as to what you make of the timing because it seems pretty good. the nikkei is on a bull run, chips essential to national security, they picked a sweet spot here. >> in the midst of one to be honest, the best thing they could have done is to may be list it three or four months ago when the demand for aia was still there, very strong but things have changed.

the sentiment has changed. yes the semi conductor industry has become a vital industry for the japanese and that will continue but as far as market timing, i think they missed the sweet spot by three or four months. shery: to your point of china hoarding does that mean you are not expecting a semi conductor slump to bottom out? i'm talk about the broader industry because there were high hopes that we had seen the worst already. >> this has been our stance, i think the investors have somewhat overlooked the growth coming from china, ignoring it saying restrictions are not broad enough.

investing heavily in everything will be fined by next year, that's on the case. even cutting edge tools from asml which has nothing to do with china because china is banned from receiving these tools, we've seen a notable decline. we seem ts's he coming out and saying the capital intensive has come to an end. what it seems to indicate with that capital expense next year, it will be down. we think the market has been completely overtaken by excitement over ai and what that means in terms of semi conductors which in fairness at this stage is smaller in volume terms to make up for the down turn are seeing. obviously memory which is their big forte, capital expenditure

recovery must be probably two years out given that we've seen sam some and others cutting out as we speak. there is no need for a big recovery in the semi conductor lines or extra lines. shery: our samsung, sk hynix and tsmc direct competitors? i wonder if they could get relative competitive edge given the japanese yen at 150. will that fade depending on boj policy? >> yes, going towards the bank of japan's ongoing policy errors which have needlessly weekend japanese currency and weakened the nation's purchasing power. also invited imported inflation

of the country, so there are many aspects for why the policies are just wrong. look at yield differentials in the fact that bank of and is conceding that inflation could go down but will start picking up again. that is the new narrative that they introduced over the last few weeks and the other thing they said on friday as they're looking at credit unions and asking them to prepare for rising interest rates and risk management read all the indications are that bank of japan has. inflation wrong and they are trying to create an offramp. how much have exporters benefited and how much will that dissipate? the weaker yen has masked what

has been going on in volume. volume of exports. we're seeing that in electronics. and recovering from its shoes because of the chip shortages of the last few years, that is actually playing out now and we think by the first quarter of next week -- next year, that could start mobilizing in terms of supply and demand. weaker demand has not masked what has been going on and what has been going on is that volumes of exports have cooled. if you look at the key components of the nikkei, most of these guys are big exporters, multinationals the question is where we going to be the bank of japan moves in and we see access from japanese institutional investors which are starving for

yields. shery: we might see global implications. japan equity strategist at of advisors, good to have you back read more to come. this is bloomberg. ♪

paul: asia is earning spotlight

shifts to banks and tech companies this week so let's get a preview from gareth allen. what are we expecting this week? who are we going to hear from? >> good morning from tokyo and welcome to second-quarter earnings. a big week this week tonight we've got mostly analysts are saying that there is going to be a rebound as infrastructure kicks in and we have slow sales from demand in terms of electric vehicles. the other thing is the ongoing succession issue. 79-year-old chief is still set to choose who will be his successor so probably not today but soon we're going to have to have some updates on how that is looking. in japan this week we had some earnings. we've got -- coming out on

thursday on the back of a settlement with irish revenue over the shire deal, they have said they are going to possibly announce a revision of 40 year forecasts. shery: we just had an analyst from asymmetric advisors talking about how he does not expect the slump to ease. what indications are going to get from sk hynix as we get results from south korea question --? >> wednesday sk hynix is going to announce its third-quarter revenue that probably grew in terms of what analysts have been saying. we've seen that dram sales have been strong. while the business is still pretty flat. paul: how about japanese financials in nomura? are their fortunes looking any

better? >> numero will be reporting on friday. analysts see being flat. u.s. business has been lackluster, so numero is trying to reinvent itself but has not done it yet. the jury is still out on that one. shery: breaking news editor gareth on the results we are expecting this week out of asia and right now take a look at how we are setting up for the market opens in japan and south korea. we have markets on holiday including hong kong, new zealand and thailand. a mixed future, u.s. futures rebounding from the worst week in a month for the s&p where it breached the key 200 day moving average signaling downside pressure for u.s. stocks did nasdaq 100 futures are pointing

higher while we have asian futures under pressure with the asx 200 down 7/10 of 1%. we could see it fall at the open as we have make a futures pointing down 3/10 of 1%. but were keeping our eyes on the japanese yen holding closely to the 150 level which it actually touched in early trading. a level we are watching for potential intervention from authorities. paul: that's right. it did ruefully break through 150 level and a story of dollar strength. we've seen the dollar spot index grinding higher for the past month off the back of the conflict in the middle east as well. taking a look at the aussie dollar showing strength relatively speaking, 63 93 against the greenback. the offshore yuan 72. market opens in tokyo next. this is bloomberg.

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>> this is daybreak asia we are counting down to major market opens as we see a little bit of upside in u.s. futures early in the session. this as we brace for geopolitical risk coming from the middle east, not to mention corporate results as well. >> worth keeping a close eye on the yen is well as we mentioned a mom -- moment to go did breach 150 so once again we are on watch for any potential intervention from the ministry of finance. we are obviously watching the open in japan. annabelle what are we anticipating? >> certainly 150 is the line we watched for any sort of formal intervention coming through from the boj, or japanese government officials. we have the opens now for south korea and the start of trading in tokyo. at the start it is that focus on the japanese yen it given it just touch at 150 mark. it was early sunday or monday morning but late sunday night in the wall street session. that is really a period where you have low liquidity coming through and we can see some

outsized moves. not exactly clear what triggered that but we have seen it falling below that level. again what we did hear from the japanese finance minister on friday saying it is important for fx markets to be stable and also reflect fundamentals so that is something making traders cautious and testing that line any further but it does come down to that yields cap you see between the boj 10 year yield counterpart in the u.s. because cash markets are just coming online. you can see fairly steady but still within a whisk of that 5% mark and that is about six -- higher for the bank of japan so it is no surprise to see that yen weakness as we have contended -- continue to monitor that interest in havens. the nikkei 225 is down as we get trading underway. we just had trade numbers coming out for korea, exports for the first 20 days of october. the numbers here crossing, exports down -- gaining a 4.6%

on the year. that did reverse the trend we had seen in the first 10 days of the month because that was a decline of 1.7% but exports are bettering boosting their rising 4.6% on the year. imports as well higher .6 of a percent. we have seen them 8.4% higher in the first 10 days of october this is watched very closely. in south korea for its export numbers. we want to know the breakdown of the chip exports in particular and the exports to china. that will tell us firstly whether we are seeing the worst for the semi conductor slump. some analysts and companies out there saying it has passed and also the recovery in the chinese economy. wait for those breakdown of numbers but the korean won you can see, a little firmer against the greenback. it has been trading fairly mixed so far the dollar versus its peers in early trading but generally asian fx has been under pressure of late against the dollar strength and we are on watch now for the dollar index to all to its lowest on

record. a little higher than that at that point. let's take a look at the open for oil markets because we have brent crude just starting to trade, and came online this morning and has been trading for the last couple hours. we are seeing a bit of weakness coming through in oil markets but fairly steady as we see israel continuing to delay that gaza invasion, not necessarily taking it off the table. we do understand it will take place in delaying it so energy markets trading sideways at this point but energy stocks are one of the big layabout's of the asx 200. it is weaker, energy materials are the big losses so far. shery: let's bring in our next guest who says the yen remains to cheap and is inconsistent with japan's fundamentals. with us now senior micro strategist -- always good to have you with us. but of course given the wide rate differentials with the u.s. it is not surprising we are

testing that 150 level. when do you expect a change from boj policy and the trajectory for the japanese currency to go from here. homin: our base case is the bank of japan will and its yield curve control in april of next year and do the first rate hike in december next year. but there is always a risk that they make the move earlier potentially due to the weakness of the yen. and i sound like a broken record here but we still think that the currency is too cheap and inconsistent with japan's fundamentals. and that yields gap is primarily a result of the policy difference, policy at least on the japanese side is beginning to change so in the near term markets will continue to test

both japan's bond markets and currency markets. we don't deny that given the strength of the u.s. economy and speculation of the u.s. rate trajectory in the next three to five years the currency will be challenged in the near term. but if you look ahead and think about the medium to long-term fundamentals we do believe the currency is likelier to appreciate from the current levels as opposed to depreciate. so in terms of the timing we do think the end of the year and early next year will be a very interesting window to test this thesis. shery: in the meantime how do you stay invested in japan we have some corporate results coming out and ranks as well. in japanese markets is there anything that interests you? homin: in the medium to long-term if you assume that the currency will appreciate a little bit, the appeal of the large-cap might be slightly undermined.

so we do look for opportunities to invest into small medium size companies in the medium-term. but as long as you have a bit of challenge on the currency front it is difficult to make that move right away. so our current petition continues to focus on large-cap with -- within the japanese equity space but we should not forget about slow mid-caps space in the future. if you have a policy normalization it could be beneficial to some well-managed japanese banks as well and they tend to react quite sensitively to this type of move and in fact we highlight that the sector has actually outperformed the broader japanese market this year already in the middle of the widening of the y cc and the continued chatters about the policy normalization in the future. paul: if you are correct on your

view of the yen what then would be your outlook for the nikkei because that would perhaps invite some profit from foreign buyers. homin: that is the likely outcome. the timing is quite tricky. our perspective here is think of the overall allocations of the japanese equities where basically keeping it at a neutral level. we are not trying to be overexposed compared to our own benchmark to the market because we do believe that the normalization chatter will continue to strengthen in the remaining months of the year. so it could be more range bound and directionless environment for nikkei. for the medium to long-term this small and mid-cap will continue to look quite interesting and once you make a decision about the timing it might be an

interesting universe to look at. paul: i know you also have a preference for bonds over u.s. equities, we are seeing a huge amount of volatility in that space. the 10 year has been swinging through 40 basis points just in the past month. in terms of timing how do you get that trade right? homin: we have to say the time it is difficult. obviously we are seeing some historic moves here for global yields and it is not easy to be a hero. to receive the falling knives here in the global fixed income market. what we can observe is the relative returns promised by the equity asset class especially the u.s. compared to bonds, they are quite low at this point. just in terms of margin for error and especially if you think about having asset classes in a portfolio, diversified portfolio, it is no longer an

attractive. under the bond asset class is no longer unattractive especially compared to the other asset classes. we are facing a lot of risks related to geopolitics and economic cycles. so timing is difficult, but at least having a portfolio, having a new portfolio for instance right away instead of doubling down or going all in on equities, it makes sense to pair that with a bit of bonds. they could potentially serve as a diversifier. finally after two years a very difficult correlation we do think the asset class will actually start behaving better for the diversified portfolios and we continue to look forward to that outcome. we think the next asset to own after this volatility starts dying down is bonds. paul: all right senior micro strategist for the lombard, thank you for joining us. let's get to annabella for a look at what is moving on

markets. are you having a look at energy stocks? annabelle: that's right. we are about 10 minutes into the session so far and there are really two sectors standing out in particular. one of them is energy. we are seeing oil trading fairly sideways, a little weaker as we come online to start the week. brent crude and wti given that israel has delayed its ground offensive into gaza. fairly steady trading at this point but it is the energy names that are dropping so far. what also we can't lose sight of it is we are in earnings season and this week there is a very busy week coming out for oil names. you have the likes of exxon, chevron, tou thao energies and those are some of the big companies will hear from. that could set the tone for energy stocks over the course of this week. let's take a look at what is happening in the metal space because newmont the world's top gold producer are reporting this coming thursday, we have

actually seen shares dropping below their 50 day moving average ahead of that release and that is a bearish signal. likewise we are seeing a lot of the miners that are dropping so far, particularly in australia you can see that bhp is leading the decline for the asx 200, just over an hour into the session for aussie stocks. let's change on because one name that is moving higher so far in trading in sydney is treasury wine, it did earlier advance about 5% or thereabouts. essentially what is driving that move for treasury wine, over the weekend it was announced that the aussie prime minister will be traveling to china ahead of that trip australia has dropped its case for tariffs on australian wine imports or suspend its case against those at the wto because australia says china will be undertaking a five-month review into the tariffs. because of that treasury wine

saying if the tariffs are removed they are in a good position to rebuild their china business. a lot of investors and analysts liking the sound of that de-escalation and tensions between beijing. paul: the fall continues thank you very much still to come the latest on the conflict in the middle east amid speculations that the timing of a ground invasion into gaza could be delayed. details next, this is bloomberg. ♪

paul: the timing of a ground invasion into gaza remains uncertain as israel support for diplomatic efforts to release hostages is said to possibly delay or alter its plans.

let's bring in michael heath for more on this. how has the developments on the hostage front change the picture in terms of a land invasion? michael: what we understand is this american mother and daughter were released on friday with qatar negotiating that. we understand there is more than 200 hostages in gaza at the moment and i think that release has just amped up pressure that perhaps it is possible to get more people out. on one side people are saying this was just a propaganda move, there is not really that opportunity. but i think there is efforts to explore that. this also comes into the u.s. and its allies pressing israel to create safe areas in gaza for civilians to get aid in as well. a lot of it is putting back the military side of it trying to bring the humanitarian side of it under control. shery: this as we continue to see diplomacy really working in overdrive. a few minutes ago we heard from the white house that the

president has held conversations with leaders from around the world in order to restrict this israel and hamas conflict from widening. how involved has the united states been in trying to mitigate the humanitarian crisis in gaza, not to mention help israel in military planning as well. michael: it has been really significant. the caliber of the people involved in the conversation for the white house is high. the prime minister of the u.k., chancellor of germany, the french president and others. they are all quite serious and committed in the biden administration has been heavily involved in both standing by israel in terms of the military and bringing in ships and aircraft carriers that would deter iran and its proxies from trying to open up a second front but also to encourage israel to make sure that it tries to abide by the laws of war and tries to

do better than authoritarian states do. that there is more pressure on democracies to look after civilians and minimize casualties. to try to fight your enemy without too much fallout but in such a built-up area like gaza it is an exceptionally difficult thing to do. but the u.s. and the white house has been quite influential from our understanding. paul: at the other end of the country israel evacuated about 65,000 civilians from the border of the towns around lebanon. what is the escalation risk with hezbollah? michael: israel, prime minister netanyahu has put out a strongly worded warnings to hezbollah not to escalate for more things are now. at the moment the fighting is seen below the threshold where it could escalate we have also had the u.s. send a warning as well and we know in 2006 when israel invaded lebanon to try to weed out hezbollah it did in norma's to lebanon.

again a little like gaza. the civilians who tend to be hurt most of all in the militants tend to get away in the situation so that is one to really watch north of israel. paul: let's get to other geopolitical news that we are tracking, india says it has cut canada's diplomatic president -- presidents in the country due to concerns about its interference fears. last week canada relocated over 40 staff members from its consulate and embassy, the government had earlier threatened to revoke their immunity. prime minister justin trudeau accused the modi government of orchestrating the killing of a c activist on canadian soil. the philippine says to of its vessels collided with chinese boats during a supplies mission to a south china sea outpost on sunday. philippine authorities have condemned the incident calling it irresponsible and illegal. china on the other hand accused the philippine coast guard ships

of entering disputed waters and accuse them of sending illegal building materials to warships. the australian prime minister is kicking off a month of diplomatic engagement, he arrives in washington on monday with a delegation of business leaders and he will also meet with president biden. he is also due in beijing where he's going to meet with chinese president xi jinping and the premier, he will attend the pacific islands form in the cook islands before returning to the u.s. for the apec summit in san francisco. shery: the world's biggest maker of apple iphones is under investigation in china. taiwan's hon hai precision known as foxconn says it will collaborate with chinese authorities on the unspecified probes. let's bring in our chief north asia correspondent stephen engle in hong kong. what do we know about the nature of these investigations? stephen: coming from hon hai precision is simply they are going to cooperate with these

investigations for unspecified reasons. these investigations have been launched, however state median china in particular the global times newspaper has indicated citing unofficial or unnamed officials saying that foxconn is under investigation by tax authorities at their affiliates. and also by the natural resource officials for potentially illegal land use in its facilities both in hubei and elsewhere. i circle this province smack in the middle of china along the rail -- yellow river, it's the capital and it is known as iphone city. you are seeing some shots of their big factory there. where they make most of the world's iphones. it is only speculative right now to say that this is going to lead to anything material other

than fines. but it is worth watching in case there are some other production disruptions at iphone city or other foxconn affiliates around the nation as these simultaneous investigations are going forward. paul: of course the foxconn founder is running for president taiwan, coincidence? stephen: i was just going to say, ask that as well. is it a coincidence? any linking to these investigations and terry's campaign for taiwan president is purely speculative and will remain speculative. but again, we are getting into that 11th hour of the taiwan presidential election season where he is running forth. but he is one of four candidates and a bit of a wild card. he is widely considered to be pro business and a pro business with china and many in taiwan

have labeled him a china appeaser. he is widely believed to be pro-china as far as being pragmatic in that taiwan's future needs to be connected to china. however to assuage the fears of the dpp who he also wants to court, he was quoted as saying i will not bow to china's threats going forward. and we have already seen the dpp's candidate latch onto this and say taiwanese companies should not be forced to choose sides. because taiwan companies provide a great boost to the mainland economy. stay tuned for the story. shery: bloomberg's chief north asia correspondent stephen engle joining us from hong kong. we do have breaking news out of argentina. we are getting the first official results rolling in with 76% of the votes counted for the presidential election and right now the economy minister is

leading the election results. he is likely to face -- in the runoff. we have massa with 36% -- with 31% and patricia woolrich with 24% and 76% of the vote is counted. let's turn toward one of cyrus chief joining us for north -- more. how surprising is this result with the economy minister now leading the vote count? patrick: this is a very surprising result because massa as the incumbent, at his coalition finished in third just two months ago in the august primary and now they have surged into first place. it shows that his campaign, he spent heavily in the past two months on raising salaries, increasing handouts. it benefited him at the poll booths today. it is also surprising because he

for the past year has overseen argentina's economic decline. inflation is over 130% the economy is going deeper into recession. of course there are some outside factors that are outside of his control but between the economy's performance in the august primary, this is a really interesting and surprising result right now. like i said to a runoff in the 19th. shery: did bloomberg also learned that he was using about 20 brazilian advisors or so who had beat his opponent in brazil? do you think that help? what was the strategy that got him to the top in this round? patrick: sure. we did learn last week that president lou a in brazil had sent some of his advisors to improve his message to the argentine voters and simplify the message a bit but really i think this came down to massa opening up his pocketbook and

reaching out to argentine voters and saying i know you are angry, i know you're frustrated but here is an huge increase for retirees. here is a huge increase for public sector employees. which is a huge part of the labor force here. of course he has also increased handouts for both informal workers, these are all cash workers. and those who are unemployed. so he really went the full distance. it sprinted to get these votes. but they are going to come at a cost. he spent about 2 billion pesos, and argentine does not have any access to capital so he printed money to get money into people's pocketbooks. so that is going to have a huge impact on inflation down the road. but in the near term we are heading towards, it seems like with 76% of the votes counted we are very likely heading towards a runoff on november 19 between masa and his opponent which is really the most politically polarizing situation for

markets. paul: indeed we are seeing live pictures right now crowds gathered outside the campaign headquarters. and being prescribed a somewhat different -- patrick: absolutely javier is proposing to get rid of the argentine peso and swap it with the u.s. dollar as the national currency. this is a dramatic proposal where he is not outlined a lot of the mechanics and how work but it has drawn a lot of criticism from mainstream economists here and one and abroad. this could create hyper inflation now that we are at such high levels here in argentina and in simple terms argentina does not have the dollars it needs nor the central bank nor formal financial system to switch from one currency to another overnight. a lot of steps need to be in place and even the international monetary fund who has a 44

billion dollar agreement with argentina has said that dollarization under his plan would need to require a lot of steps prior to that. of course we need to see who wins in this november runoff but he is winning in terms of the most dramatic economic proposal in this election which would be dollarization to thwart inflation running over 130% right now. shery: walk us through something you alluded to in terms of how controversial this would be for the markets given that the market favorite patricia woolrich -- bold rich if she is out what does it mean for investors. patrick: it means investors are going to have to see whether the vote goes towards the central left government that has implement it currency controls and capital restrictions, very antibusiness, anti-market rules and restrictions. first is a candidate who has no formal experience at the presidential level or even --

he's been a congressman for two years. just starting to build out a team. although his team is starting to gain a little more credibility in terms of how big it is he is yet to outline key details everyone wants to know. we only have two months before a president takes over, december 10. shery: patrick r bureau chief there joining us with live updates the ongoing vote count in the argentina presidential elections. even get more on that tliv is your function. this is bloomberg. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected

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shery: you're watching daybreak asia, former u.s. treasury secretary larry summers says the fed will have to weigh in at some point on late government's

growing mountain of debt because of its implications for interest rates. concerns about the u.s. fiscal situation have contributed to a run-up in treasury yields. >> you have a supply demand imbalance and that is something that makes markets move. i think it is something that has to be watched very closely and i think the fed has an obligation to be ready to assure the liquidity and the functioning of the treasury market, but as is always true there is a difference between a volatile market in response to new information when there is a lot of new information coming in some of it may not be good, that is one thing. it is a quite different thing when you have a nonvolatile, a

liquid and not functioning market. i have not seen evidence yet that that is where the treasury market is but certainly that is something that the fed and particularly its outpost in new york needs to be watching closely. paul: that was former u.s. treasury secretary larry summers speaking with david westin. we are closely watching the yen this morning it did briefly touch the 150 level where we might expect some intervention over the weekend but let's get more on the yen with our ethics and rates reporter michael wilson. so close to that level with the ministry of finance possibly step again, do you expect we will see any point? michael: i think so close to the bank of japan meeting on friday unless something fundamentally changes i cannot see them coming and before that. and today's effort was pretty

much sabotaged by some large option strikes at 150. the market tried to take them on, we're talking about close to $5 billion were to be sold up there and they got up to about 15011, shy about 150 16 october high and it just came back. as to how far above 155, i think the omf in concert with the boj are setting up their words quite carefully on friday and there is talk of why cc tweaks coming off that was mentioned over the weekend in the nikkei. interestingly the last time they did that there was a reaction in asia. which was bought into but this time they do not fall for it and they have kept it dry. the consequent fall in dollar you would normally expect on an item like that was not

forthcoming so the market is still probably holding its cards, sitting on and 18 or 19 to use a blackjack expression. i think there is a little more of a survey to come back from bloomberg, we did over about 300 investors and also the dollar yen between 140 and 150 by the end of the year. whether that means a quick visit to 155 or something, it will be interesting if it means the boj will tweak their policy, it will be clarified friday. but for now i think the market is still reasonably bullish. the dollar over the yen until something changes like that tenure spread but there is no evidence of that at the moment. so they are just writing this waves long as he keeps going. shery: on the other side of the break we saw the dollar seeing a weekly loss, the first in five weeks for the bloomberg dollar index at least. how much is that to do with where treasuries go from here

and given the volatility in the long and what does that mean for the trajectory of the dollar? michael: for me i think the market might still be overweight treasuries, especially in the 10 year. there was a survey earlier this month which hit on the 8% of their investors seeing a 10 year yield about 5%. so they have also -- obviously bought into this current debt. and if it does keep powering on that's going to turn into the red ink very quickly. and it will be a combination of position unwind in the middle bond market which will push yields higher. adding to the already kicker of the dollar. that in itself will fuel the dollar further above 150 against

the yen probably closer to where it should be. i think the implied interest-rate differential has around 153 or 155 anyway so it's probably lagging a little where it should be. but if the treasuries added to the long end, the further out you go the tougher the call is. but there is some good yield there right now which is tempting but again if the shape of the curve changes and we start seeing some more steepening there will be more -- i don't want to say capitulation but i think there might be more longs to be tossed out in the process while the market rebounds. paul: all right bloomberg market and rates reported their michael wilson. it let's get to latest stories involving global trade, australia it will suspend its case over the wto at the wto over china's wine imports. the prime minister's office said china will undertake a review of

its wind tariffs and in that period they will suspend their dispute. the move comes ahead of his trip to china next month and that is the first by an australian premiere since 2016. iphone assembler hung high says it will collaborate with chinese authorities on unspecified probes. earlier it was reported officials were conducting checks on foxconn subsidiaries, obsidian -- authorities were also looking into the firm's use of land. joining us now is director of geo technology at euro asia group. thank you for joining us. i want to start with that foxconn story. is this a simple matter of a probe investigation or considering that foxconn supplies apple, it is taiwanese and its founder is a candidate in taiwan's elections, is there a political dimension here?

>> i suspect there is a chance that beijing is using this investigation to open a door of communication or jump into the presidential race last minute. and at the moment beijing's favorite candidate already has a low chance of winning, and it looks like -- has the best opportunity among all the candidates and if he stays in the race that will further distract the crowd and potentially -- i think beijing definitely has an incentive to weigh in -- about this presidential race. paul: i do hesitate to dwell too long on politics but the candidate has previously been seen as somewhat pro-china. some of his rhetoric on the campaign trail suggest the opposite but is it just that rhetoric? is he still a candidate that china could work with and is

this probe particularly necessary? xiaomeng: his personality is very peculiar. he is kind of taiwan's trump. taiwan had experience working with trump and maybe that gave them a little confidence they could work with this business tycoon as well. i think they are taking a chance and taking the risk that the same time there is business at stake. because he has a very large footprint in terms of his company foxconn. working with chinese suppliers and creating jobs in china. at the same time very heavily reliant on the government to keep his business going. i think it is a conversation between chinese authority and him will be intense. shery: and it is coming at a crucial time where we continue to see the pressure from washington on china. the restrictions over advanced

chipmaking equipment are being widened. how much is that having an impact on beijing's abilities to really progress on their tech? xiaomeng: i think the most recent round of export controls definitely amped up the pressure for chinese companies to navigate this interesting territory, this very challenging landscape. it is a clear sign that biden administration is doubling down on their strategy of small yard high fence. you could even argue the fence is still high in the yard is growing bigger. in the near term this is a real setback for china's technology ambition but in the long term you could argue these type of moves will motivate china to put in more support for their domestic tech champion. even amid a gloomy economic outlook in china we have seen no

sign of slowing down efforts on that front. shery: and we have seen perhaps the fruit of these efforts with that 5g phone being powered by that smic chip. what do you make of the latest on that front and how much we can glean into the advances that beijing has already made? xiaomeng: i think part of this rule, the section that expanded the previous version -- last october's export control measures -- part of that is tightening control of the critical machine, which is a crucial machine to make high-end chips. and i think will always new phone launch rings alarm bells about washington's stakeholders that even after the previous round of control being placed on chinese companies while way were even able to make very

impressive technology on that front. i think that was one of the big motivators behind this move to even take a step further and put more control on this type of technology tool that is critical to their new chips that power there 5g phone. paul: is that how you see this issue continuing to evolve, china continuing to try to close the tech cap in the united states continuing to try to close the loopholes and tighten the screws even more? what further action would you anticipate from the u.s.? xiaomeng: i think the way you describe it is exactly the cat and mouse game dynamic we are at today. at this moment chinese authorities are very frustrated and u.s. officials are very determined to pursue this route.

but the upcoming apec summit is a great opportunity for the two presidents to meet and what we heard, the planning of that meeting is going forward. and more likely than not the two presidents will see each other at the sidelines of the summit and the two are also discussing the creation of a new ai dialogue. something which the chinese hope to adjust export control on a i chips, that might be one way for the two parties to negotiate on this issue even further. shery: director of your technology at eurasia group could have you with us. we have more to come on daybreak asia, this is bloomberg. ♪

annabelle: this is daybreak asia, we are coming up to 45 minutes into the trading session for equities in tokyo and seoul. at the start of the day's trading just not a couple things we are watching. first is in the currency space, you're still seeing that signal of dollar strength coming through somewhat on the japanese yen you can see there holding close to that 150 mark. we earlier touched it in the session, no word yet from japanese government officials today but intervention risk is still something to track closely. equities as i said, we are into

trading now for australia, japan and south korea. you can see it as that broad-based decline that is coming through which takes me to the other thing we are watching as well and that is what we have in the commodity space. a lot of commodities are lower today, so far you have got steel, iron ore, copper. they are all trading in the red so far. when you take a look at the sectors or sub indexes that are moving, let's take a look at the imf function because you can see here it is the energy, the material stocks, these are standing out here to the downside. sectors that we know of course are very sensitive to recession fears, to rates, geopolitics, what is going on in the middle east and then earnings as well. that will set the tone over the course of this week because you have got a lot of big oil that is looking to report and then big mining names like newmont in particular. changing on now and taking a look at earnings. another key theme we should not lose sight of because there is a

lot going on, it is the midst of the earnings season in the u.s.. october 23, this week ahead is going to be the busiest for u.s. stocks generally. certainly earning something to track and you are watching some of the big names that are going to be due in asia as well. paul: yeah and margins will be in focus this week with asia's largest bank set to report earnings. joining us now for more, what are we watching with bank earnings in asia this week? >> we are seeing a lot of chinese and broadly asian and indian banks will be reporting through the week we have china construction bank and a bunch of other banks as well as european standard charter which will report towards the latter half of the week. but over the weekend we also had to indian banks, to big private sector lenders which reported

over the weekend. two things we are looking out for, one is the compression in net interest margins since rates appear to have peaked globally and the second is lower treasury income because of what we have seen in bond yields over the last few months. shery: we saw u.s. big bank earnings a little mixed, some of them disappointing. any similar themes that might spill over to asia? harshita: if we are talking about things from the u.s. spelling to asia i think there are broadly two themes that might. first is the invest -- investment banking fees. it is clearly not where it was one or two years back so any banks with exposure to that dynamic will get impacted of course. and the second is treasury income, because we see bond

yields go up pretty sharply. that is expected to reflect poorly on trading income from banks which is something we saw with the two india banks that reported over the weekend as well. we saw sequentially lower treasury income. shery:harshita there with the latest be sure to blue -- tune into bloomberg radio for more on the big newsmakers get in-depth analysis from the daybreak team broadcasting live from our studio in hong kong. this into the app bloomberg plus or bloombergradio.com, plenty more ahead stay with us. ♪

♪ explore endless design possibilities. ♪ to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. shery: we are counting down to market opens in china and mainland stocks have remained under pressure because of the challenges the property sector faces. this despite a slew of market boosting measures. the csi 300 index has now erased all gains from its reopening rally that began late last year. let's bring in our asia stocks reporter john chang in singapore. is this all about those concerns

about the property sector, why are investors -- what are investors watching about mainland stocks? john: when it comes to the property side of things there seems to be very few signs of stabilization, we see property investment dragging on the broader economy despite a better than expected third-quarter gdp data. and also home prices are falling at a faster pace. all of that has contributed to a very weak investor sentiment on shore right now. we see foreigners continuing to sell onshore chinese stocks poised for a third month of net selling and we see the csi 300 index in recent order reopening gains. it is really showing how investors are so bearish about the market right now. paul: so what could some potential catalysts for chinese stocks be going forward? john: it does seem like investors are not expecting a

policy bazooka anymore. but some investors are saying valuation has dropped to a very low level so they are seeing some opportunity for a tactical rebound and it also seems more investors are turning their focus to upcoming events. for example third platinum politburo meeting and there could also be a potential meeting between president joe biden and president xi jinping. that could be a key thing to watch for investors in china. paul: we are also waiting earnings, it is going to be a big week. what are you watching in particular? john: there are a couple of index heavyweights that just reported earnings, -- reported a slightly weaker quarter of earnings and then there is also going to be reporting season for hong kong listed stocks. if you internet names are reporting so those will be closely watched by investors for sure. paul: bloomberg's asia stocks

reporter john chang in singapore. let's take a look at some stocks to watch when the market open does happen in mainland china. it is a holiday in hong kong today. a key iphone assembler says it will collaborate with chinese authorities on unspecified probes. -- reported net income for the third quarter that missed estimates and -- technology reported net income for the third quarter of more than 600 million yuan. that was a jump from a year ago. heck vision also reported income for the third quarter that missed estimates. shery: take a look at how markets are trading right now, kiwi stocks on holiday but we are watching the asx 200 at the moment lose about 8/10 of 1%. it is a third session of losses for the australian stock rocket and seeing a big fall of about 8/10 of 1%.

you are seeing the kospi also losing ground for a third consecutive session. we have the korean won slightly stronger in the previous session given the pboc's latest moves to offer record cash infusion last week. we are seeing the korean won holding steady as the japanese yen is also holding steady but of course that after attaching that 150 level against the u.s. dollar. you can see right now holding at that 14980. the level that it touched early in the asian session it was 150.11 given the widening yield cap between japan and the u.s. and we are watching for any potential market intervention from authorities if we get to that 150 level again. this as the aussie is holding steady and we are seeing as i mentioned the korean won a little strength after rising on optimism for china's recovery. we are also seeing a little risk on sentiment last week given the

geopolitical tensions in the middle east look like they could be contained within the israel hamas war but this week we are still bracing for more news on potentially one that ground incursion into gaza could take place. although bloomberg has learned that remains highly uncertain. that is it from daybreak asia our market coverage continues as we look ahead to the start of trade in shanghai and shenzhen, hong kong is away on holiday. standby for bloomberg markets, china open. this is bloomberg. ♪

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>> 9:00 a.m. in singapore as well as in hong kong, t