General Trend:
- China Securities regulator issues response to market concerns
- South Korea regulator said equity market decline is ‘excessive’ (local press)
- Chipmakers in South Korea rise, US Commerce Dept. block sales to Chinese chip firm Fujian Jinhua
- Chinese automakers trade generally higher, China speculated to cut the car purchase tax
- Chinese liquor maker Kweichow Moutai extends post earnings declines
- Japan’s Daiwa Securities drops over 3%, reported profit decline
- PBOC fixes the yuan at weakest level since May 2008
- Yuan is not likely to fall below 7 to the US dollar (Chinese Press)
- Japan auto earnings in focus: Honda and Hino Motors expected to report
- Japan electric appliances firms seen reporting later today include Nintendo, Sony and Sharp
- Steelmakers Kobe and JFE also seen reporting
- Chinese firms expected to report earnings include ICBC and Baosteel
- Bank of Japan decision expected on Wed
- US companies expected to report earnings (including afterhours) are 3D Systems, Aetna, Allergan, Amgen, Anadarko Petroleum, Autonation, Baidu, Coca-Cola, Cummins, Eaton, Electronic Arts, Facebook, FireEye, GE, Lumber Liquidators, Mastercard, Pfizer, Under Armour, eBay
Headlines/Economic Data
Japan
- Nikkei 225 opened -0.5%
- Sony, 6758.JP To invest ¥600B over 3-yrs in chip making – Nikkei
- (JP) Japan Finance Ministry (MOF) said to consider dealing with the issue of tax avoidance in cryptocurrency trading – Japanese Press
- (JP) JAPAN SEPT JOBLESS RATE: 2.3% V 2.4%E; Job to applicant ratio 1.64 v 1.63e (highest since Jan 1974)
- (JP) Japan Fin Min Aso: PM Abe talked to China president Xi and was agreed for yen/yuan swap agreement
- (JP) Japan Economy Min Motegi: TPP-11 trade agreement to take effect by as early as the end of 2018 or early 2019 at the latest
- (JP) Former BOJ Exec Dir Miyanoya: reporting losses may become widespread for Japanese banks in the near future as their bottom lines suffer from a shrinking population and interest rates kept at ultra low levels
- 8698.JP Coincheck unit to resume new account opening; resumes deposit, purchases of Bitcoin and Bitcoin cash
Korea
- Kospi opened -0.5%
- (KR) South Korea Nov Business Survey: Manufacturing: 72 v 78 prior; Non-Manufacturing: 75 v 77 prior
- (KR) South Korea Financial Regulator Chief has told staff to prepare steps to stabilize markets
- (KR) Bank of Korea (BOK) held meeting to discuss financial markets, will take measures to stabilize markets if needed
- (KR) South Korea Sept Department Store Sales y/y: 4.7% v 2.4% prior; Discount Store Sales y/y: +8.1% v -1.2% prior
- (KR) South Korea sells KRW1.25T v KRW1.25T indicated in 30-yr bonds; Avg yield 2.11% v 2.565% prior; bid to cover 2.79x
China/Hong Kong
- Hang Seng opened -0.2%, Shanghai Composite -0.1%
- (CN) US said to implement next round of China tariffs if Trump talks with Xi fail (expected to meet at G20 on Nov 30th) – press
- (CN) China yuan not likely to fall below 7 to the USD – Chinese press
- (CN) Multiple companies in China said to consider conducting IPOs in London – Chinese Press
- (CN) China PBoC Open Market Operation (OMO): skips v skips prior in 7-day reverse repos prior: Net: CNY120B drain v CNY120B injection prior
- (CN) China PBOC sets Yuan midpoint rate at 6.9574 v 6.9377 prior (lowest level since May 2008)
- (HK) Hong Kong Monetary Authority (HKMA): Did bank stress tests based on economy and trade war
- (CN) China Foreign Exchange Trade System (CFETS) planning to develop swaps involving overseas currencies, also looking to build reference rates in onshore markets for dollar borrowing across the maturity spectrum – financial press
- (CN) China Securities Regulator (CSRC) issues statement in response to market concerns: will encourage value investment in stock market; encourage buybacks by listed companies
Australia/New Zealand
- ASX 200 opened -0.2%
- VOC.AU Affirms FY19 Underlying EBITDA A$350-370M; do not expect Net to grow
- RIO.AU CEO Jacques: mining sector faces risk of disruption; Chinese Govt putting more money into the system, Order books from China are full
- (AU) AUSTRALIA SEPT BUILDING APPROVALS M/M: 3.3% V 3.8%E; Y/Y: -14.1% V -9.0%E
- (AU) Reserve Bank of Australia (RBA) Assist Gov Bullock: Direct financial impact on major banks from Royal Commission probe has been relatively modest so far
Other Asia
- (TH) Thailand Sept Manufacturing Index y/y: -2.6% v +0.7% prior (weakest since 2016)
North America
- (US) US President Trump: Predicts ‘great deal’ with China on trade; could see a trade deal with Brazil happening
- AKAM Guides Q4 $0.97-1.03 v $0.91e, Rev $692-709M v $704Me – earnings call
Europe
- (UK) Chancellor of the Exchequer Hammond (Fin Min): Era of austerity coming to an end; Increasing Brexit provision o £2.0B in 2019; Launches 2% digital tax – Budget Speech
- (UK) UK has rolled over only 14 of 236 EU international treaties – financial press
Levels as of 01:30ET
- Hang Seng +0.4%; Shanghai Composite +1.7%; Kospi +1.5%; Nikkei225 +1.6%; ASX 200 +1.3%
- Equity Futures: S&P500 +0.7%; Nasdaq100 +0.7%, Dax +0.1%; FTSE100 -0.0%
- EUR 1.1361-1.1416; JPY 112.31-112.74 ; AUD 0.7054-0.7096;NZD 0.6521-0.6555
- Dec Gold +0.1% at $1,229/oz; Dec Crude Oil +0.2% at $67.18/brl; Dec Copper -0.4% at $2.73/lb