China’s MOFCOM May Speak Later Today

Nov 28 19, 07:28 GMT

General Trend:

Shanghai Composite opened flat despite the news related to the US’ HK bills
Hang Seng opened down by 0.7% after Trump signed HK bill, later pares losses as traders assess how the bill could impact the trade talks
Australian equities continue to outperform following recent speech by RBA Gov, rate-sensitive telecom index rises
LG Display rises over 5% amid speculated production cut
Japan retail sales saw largest decline since 2015 as sales tax hike took effect in Oct
NZD rises after improvement in business confidence
Aussie bond yields continue to decline after Tuesday’s speech by RBA Gov Lowe; Q3 private CAPEX unexpectedly declined
China Foreign Ministry has not yet issued any specific retaliatory measures after Trump’s signing of HK bill, reiterated prior threats
China Global Times: Trump may selectively implement provisions of the HK act as leverage in the trade talks
China Commerce Ministry (MOFCOM) sometimes holds weekly press conference on Thursdays (comments generally seen during early European morning)
Bank of Korea (BOK) expected to leave policy unchanged at Friday’s meeting
US markets will be closed on Thursday in observance on Thanksgiving Day, early close seen on Friday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%
(NZ) New Zealand Oct Filled Jobs m/m: -0.4% (new figure)
NWH.AU To purchase BGC Contractors for EV of A$116.4M, consideration funded placement A$120M to assume ~A$194M in debt; Announces A$10M share purchase plan expected pricing of A$2.65-2.85/shr
(NZ) New Zealand Nov ANZ Business Confidence: -26.4 v -42.4 prior; Activity Outlook: +12.9 v -3.5 prior (both the highest reading in 2019 to date)
CBA.AU CommInsure convicted of 87 counts of offering to sell insurance products in the course of unlawful, unsolicited telephone calls; total fine A$700K (as expected)
WBC.AU Names board financial crime committee, names promontory to undertake external review; first priority of the committee will be on LitePay [money transfer service]

Japan

Nikkei 225 opened +0.1%
6752.JP Confirms considering various options for reorganization
(JP) Japan Oct Retail Sales M/M: -14.4% v -10.4%e; Y/Y: -7.1% v -3.8%e (biggest decline since March 2015)
(JP) Japan MoF sells ¥2.0T v ¥2.0T indicated in 0.10% 2-year JGBs, avg yield: -0.189% v -0.208% prior, bid to cover 4.13x v 4.81x prior

Korea

Kospi opened -0.5%
(KR) South Korea Dec Business Manufacturing Survey: 71 v 72 prior; Non-Manufacturing Survey: 74 v 72 prior
005930.KR Awarded CPU manufacturing order from Intel – Yonhap
(KR) South Korea Oct Department Store Sales y/y: -3.0% v -5.6% prior; Discounts Store Sales y/y: -4.8% v -9.6% prior
(KR) South Korea Energy Ministry to close down up to 15 coal fired power plants from Dec to Feb, winter power supply seen as sufficient

China/Hong Kong

Hang Seng opened -0.7%; Shanghai Composite opened 0.0%
606.HK COFCO planning to privatize at HK$4.25/shr
(CN) China Think Tank sees a soft landing for hoe prices in 2020 – China Securities Journal
(HK) Hong Kong Govt: US bill obviously intervenes in internal affairs; hopes US would treat HK as a separate customs territory
(CN) China PBoC Open Market Operation (OMO): Skips for 7th consecutive session; Net drains CNY0B v CNY0B prior
(CN) China PBOC sets Yuan Reference Rate: 7.0271 v 7.0349 prior
(CN) China Foreign Ministry: Reiterates it strongly opposes US bill on Hong Kong and will retaliate; to use firm countermeasures if US continues in this way
(HK) China Hong Kong Affairs Office: US is the biggest “black hand” behind the unrest in Hong Kong
(HK) Hong Kong Monetary Authority (HKMA) Lee: US bill is not welcome news to financial markets; reaction has been calm no immediate impact, haven’t seen outflows in the past few months
(CN) China Ministry of Finance announces CNY1.0T local govt special bond quota, encouraged to use as soon as possible but no set time given
(HK) Hong Kong property names higher as rights to develop the land over the new high speed railway station go for a record HK$42B ($5.0B)

Other

(SG) Singapore Central Bank (MAS): Singapore banking system remains healthy, but banks must be vigilant to pressures on FX liquidity; apartment glut may push down prices

North America

(CA) Canadian Foreign Min Freeland: Good work is being done on USMCA
(HK) White House: US President Trump has signed Hong Kong bill into law; Trump says the bills were enacted in the hope China and HK settle differences
TECD To be Acquired by Funds Managed by Affiliates of Apollo Global Management at an Increased $145/shr cash for $6.0B (prior $130/shr)

Europe

(UK) YOUGOV/TIMES MRP GENERAL ELECTION POLL: TORIES ON TRACK FOR 359 SEATS, LABOUR PARTY ON TRACK FOR 211 SEATS
(FR) ECB’s Villeroy (France): Should review separation of policy and financial stability and clarify symmetry in inflation approach

Levels as of 12:15ET

Hang Seng -0.3%; Shanghai Composite -0.4%; Kospi -0.4%; Nikkei225 -0.2%; ASX 200 +0.2%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.3%, Dax -0.4%; FTSE100 -0.4%
EUR 1.1011-1.0998; JPY 109.58-109.33; AUD 0.6779-0.6759; NZD 0.6434-0.6403
Commodity Futures: Gold +0.2% at $1,463/oz; Crude Oil -0.4% at $57.88/brl; Copper -0.4% at $2.69/lb