General Trend:
- Energy shares drop following declines in oil prices on Tuesday’s session
- Japanese megabanks trade lower
- Asian tech shares rise, pare some of the recent losses
- Mitsubishi Electric declines over 5%, said to have shipped certain rubber products without inspection (Japanese Press)
- Nissan and Mitsubishi Motors rise after Tuesday’s declines; Situation related to the Nissan Chairman still fluid
- US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn’t modified its unfair trade practices – USTR report
- Renewed press speculation that the China PBoC will continue to not follow rate hikes by the US Fed
- Crude Oil rises over 1.9% after declines on Tuesday
Headlines/Economic Data
Japan
- Nikkei 225 opened -1.4%
- Mitsubishi Electric, 6503.JP Said to have shipped certain rubber products without inspection – Japanese Press; Late denies press report: no quality issues with unit’s rubber products
- Honda, 7267.JP To recall ~107K Odyssey units in the US in relation to door latch – US financial press
- 8233.JP Planning to issue ¥60B in convertible bonds overseas [-15%]
- Nissan, 7201.JP Said to consider revising alliance with Renault, including stake – Local Media
Korea
- Kospi opened -1.2%
- (KR) South Korea and US held working group on North Korea in Washington DC, discussed UN Security Council resolutions
- (KR) South Korea holding public hearing today on trade deal with UK, in a move to cushion risks posed to Korean firms doing business in the UK after Brexit – Korean press
- (KR) South Korea Nov 1-20 Exports Y/Y: +5.7% v 26.0% prior; Imports Y/Y: 12.8% v 31.4% prior
- (KR) South Korea sells KRW1.8T in 2-yr Monetary Stabilization Bonds (MSBs) at 1.945%
China/Hong Kong
- Hang Seng opened -1.3%, Shanghai Composite -1.0%
- (CN) US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn’t modified its unfair practices
- 173.HK Expects the Hong Kong property market to become active again after March of 2019 – Local Press
- (CN) According to some analysts, the impact of the US/China trade tensions and higher costs of doing business have led to some concerns among investors regarding a ‘flash crash’ – HK Press
- (CN) China PBoC said to be less likely to lower money market rate due to foreign exchange concerns – China Securities Journal
- (CN) China PBoC Open Market Operation (OMO): v skipped prior (19th straight skip)
- (CN) China PBoC sets yuan reference rate: 6.9449 v 6.9280 prior
- (CN) Moody’s: Expect China 2019 GDP to slow to 6% v 6.6% expectation in 2018
- (CN) Hebei (largest steel making province in China) issues second level pollution alert from Nov 22 – Local Media
- (HK) Official: No plan to ease property curbs at this time – press
Australia/New Zealand
- ASX 200 opened -1.2%
- APA.AU Australia Treasurer Frydenberg officially rejects CK’s bid for APA; deal terminated
- WOW.AU Guides FY19 priorities mostly consistent with FY18; Customer and brand metrics to remain stable; Starting to build momentum into festive season – AGM
- (AU) Australia ACCC launches inquiry into supply of electricity in the National Electricity Market
- (AU) Australia sells A$1.0B v A$1.0B indicated in May 2030 bonds, avg yield 2.7486% v 2.729% prior, bid to cover 3.31x v 4.04x prior
- (NZ) Reserve Bank of New Zealand (RBNZ) Analytical Note: Expects labor force participation to remain broadly flat
- (AU) RBA Gov Lowe: Workers do not feel happy or confident about future prospects despite unemployment level
- (NZ) New Zealand Oct Credit Card Spending m/m: -0.1% v +0.8% prior; y/y: 6.3% v 7.8% prior
Other Asia
- (PH) China and Philippines sign deals relating to oil and gas exploration; signed a total of 29 deals on state visit – SCMP
North America
- (US) Pres Trump has submitted written responses to some of Special Counsel Mueller’s questions, according to Trump attorney Rudy Giuliani – press
- (US) Outgoing Senator Corker (R-TN) demands President Trump make determination on the Saudi Crown Prince; Congress will consider law to push the President on Saudi Arabia
- TME Thought to be considering moving Tencent Music Entertainment Group IPO to early 2019 – US financial press
Europe
- (UK) PM May suggests that Brexiters’ customs plan could be solution to Ireland boarder issue – press
- (ES) China President Xi Jinping is expected to visit Madrid (Spain) next week, infrastructure investment is expected to be a topic – HK Press
- (IT) Italy Fin Min Tria reiterates concerned about bond spread – Italy Press
Levels as of 12:50ET
- Hang Seng -0.2%; Shanghai Composite +0.3%; Kospi -0.3%; Nikkei225 -0.2%; ASX 200 -0.5%
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.5%; FTSE100 +0.7%
- EUR 1.1364-1.1379; JPY 112.65-112.94 ; AUD 0.7203-0.7236;NZD 0.6782-0.6807
- Dec Gold +0.1% at $1,222/oz; Jan Crude Oil +1.6% at $54.27/brl; Dec Copper +0.5% at $2.77/lb
