General Trend
- Tech firms rise in Hong Kong after over 3.5% gain on the Nasdaq; Alibaba is expected to report earnings after the market close; Geely rises over 6% in Hong Kong [extends recent gains], BYD rises over 10% [OCT NEV sales +84% y/y]; China Oct passenger vehicle sales rose by 10% y/y
- Early gainers in Shanghai included Consumer and Property firms, financials lagged
- Kweichow Moutai’s parent downsized its bond sale
- Japanese equities rise, but sectors trade mixed; Topix Pharma, Information/Communication and Electric Appliances indices rise; Iron/Steel, Bank and Marine Transportation indices are among the decliners; Mitsubishi Motors drops over 5% post earnings
- Japan companies expected to report earnings include Nintendo, Nikon, Eisai, Mitsui Fudosan, Kobe Steel, SUMCO, Suzuki Motor, Showa Denko
- Telecom, Consumer and Financial firms are among the gainers in Australia; Resource and Energy names lag.
- NAB rises over 3% following earnings report
- Offshore Yuan (CNH) declines after gain on Wed
- PBOC is planning to conduct MLF operation based on market demand (Nov 16th)
- RBA is expected to release its quarterly Statement on Monetary Policy (SOMP) on Nov 6th (Friday)
- US companies expected to report earnings during the NY morning include AmerisourceBergen, Becton Dickinson, Bristol-Myers, Cardinal Health, CIGNA, GM, Canada Goose, New York Times, Papa John’s, Regeneron, Teva, Triumph Group, DENTSPLY
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.5%
- (AU) Australia Treasury Sec Kennedy: Slower global GDP growth will drag on Australia; state govt can play a bigger role in recovery, monetary policy support is limited
- NAB.AU Reports FY20 (A$) adj Cash Earnings 4.7B v 3.8Be v 6.4B y/y, Net Op Rev 17.3B v 17.2B y/y
- (AU) China wine anti-dumping duty on Australia wines, that could be as high as 200% and implemented as soon as next week – SCMP
- (AU) Reserve Bank of Australia (RBA) Offers to buy $2.0B in 7-10 year Govt bonds
- (AU) Australia Sept Trade Balance (A$): 5.6B v 3.7Be
Japan
- Nikkei 225 opened +0.3%
- (JP) Japan Oct Final PMI Services: 47.7 v 46.6 prelim (confirms 9th straight contraction); PMI Composite: 48.0 v 46.7 prelim (confirms 9th straight contraction)
- (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Raises purchases of 1-3 year and 3-5 year JGBS
- (US) Japan PM Suga: Will meet with China and US leaders if they come to Tokyo Olympics
- (JP) Bank of Japan (BOJ) Gov Kuroda: BOJ ETF Purchases are meant to support the economy and prices; Purchases are not meant to make BOJ a real shareholder or increase stock prices
Korea
- Kospi opened +0.7%
- (KR) North Korea holds meeting of Supreme People’s Assembly (not common) – Yonhap
- (KR) South Korea Sept Current Account: $10.2B v $6.6B prior (2-yr high); Balance of Goods (BOP): $12.0B v $7.0B prior
- (KR) Bank of Korea (BOK) official: South Korea current account surplus may hit ~$60.0B in 2020, above the prior projections
- (KR) South Korea Vice Fin Min: Reiterates South Korea will deploy stabilizing measures for the market if needed; FX and Fin Market volatility to be limited
China/Hong Kong
- Hang Seng opened +2.5%; Shanghai Composite opened +0.9%
- JD JDHealth expected to announce $3.0B IPO in Hong Kong as soon as next week – HK press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY30B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos prior; Net drain CNY110B v Net inject CNY0B prior
- (CN) China PBOC sets Yuan reference rate: 6.6895 v 6.6771 prior
- (CN) China PBOC to rollover Medium Term Lending Facility (MLF) due Nov 16th, size to be decided by market demand
- (CN) China President Xi: Global uncertainty has increased; need cooperation to face challenges; Willing to sign more high quality trade agreement with other countries; deepen bilateral trade cooperation (overnight)
Other
- (SG) Singapore Trade Min Chan: Seeing hit from re-imposition of lockdowns in EU; Recovery will be gradual and uneven
- (ID) Indonesia Q3 GDP Q/Q: 5.1% v 5.6%e; Y/Y: -3.5% v -3.2%e (2nd consecutive annual contraction, confirms 1st recession in 20-years)
North America
- (US) FORMER VP BIDEN WINS MICHIGAN AND ITS 16 ELECTORAL VOTES, ACCORDING TO CNN (FLIP)
- COST Reports Oct SSS +14.4% v +11.6%e
- (US) Pennsylvania Gov Wolf: Will be days before ballots are counted
- AAPL Said to be shortage of power chips for iPhone 12 [no specific companies were initially mentioned] – press
Europe
- (UK) Bank of England (BOE) reportedly plans to announce tomorrow £150B of QE, and the bank could go as high as £200B – UK’s Sun
- AZN.UK Reportedly has missed target of 30M Covid vaccine doses deliveries to UK by end of Sept, expected to deliver only 4.0M doses – press
- AZN.UK COVID vaccine expected to start clinical trial in China this year – China press
Levels as of 1:15ET
- Hang Seng +2.5%; Shanghai Composite +0.8%; Kospi +2.0%; Nikkei225 +1.7%; ASX 200 +1.3%
- Equity Futures: S&P500 +0.7%; Nasdaq100 +1.4%, Dax +0.5%; FTSE100 +0.2%
- EUR 1.1742-1.1711; JPY 104.56-104.22; AUD 0.7189-0.7146; NZD 0.6709-0.6680
- Commodity Futures: Gold +0.6% at $1,908/oz; Crude Oil -1.7% at $38.50/brl; Copper +0.0% at $3.10/lb
