HomeContributorsFundamental AnalysisAnother Mixed Session For Asia, Few Notable Macro Headlines Seen

Another Mixed Session For Asia, Few Notable Macro Headlines Seen

General Trend

  • Australian equities supported by the rise in Financials; Consumer stocks rise as South Australia announced lockdown measures
  • NAB temporarily closed all of its branches in Australia, cited ‘physical security threat’
  • Financials trade generally higher in Shanghai, gov’t bond yields rise; Consumer firms lag
  • Property and Financial firms rise in HK; Geely extends gains after hitting 52-week high, announced collaboration with Daimler; China auto dealer group commented on possible industry support
  • Japanese equities decline amid the overnight rise in the Yen; Transports and Financials are among the decliners, automakers also trade generally lower
  • Japanese officials continue to push for regional bank mergers
  • Tokyo expected to raise its COVID-19 alert level
  • Australia Q3 wage data missed ests, annualized pace declined to historic low; Australia Oct jobs data due on Thursday
  • RBA Gov Lowe: Economy is on the road back in recovery, though it is uneven
  • China set the initial pricing guidance for EUR-denominated bond offering [3-tranches]
  • BOK again sells more monetary stabilization bonds than indicated
  • RBNZ to conduct probe following data leak
  • US FDA: Authorizes first COVID-19 Test for Self-Testing at Home
  • Shanghai Exchange said it will launch international copper contract on Nov 19th (Thurs)
  • Australia NSW goes into strict 6 day lockdown to combat COVID

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened slightly lower
  • (AU) AUSTRALIA Q3 WAGE PRICE INDEX Q/Q: 0.1% V 0.2%E; Y/Y: 1.4% V 1.5%E (lowest level since data set started)
  • (NZ) New Zealand Q3 PPI Input Q/Q: +0.6% v -0.9% prior; PPI Output Q/Q: -0.3% v -0.2% prior
  • (NZ) RBNZ buys NZ$330M v NZ$325M prior in government bonds as part of QE v N$330M sought
  • (AU) Reserve Bank of Australia (RBA) Gov Lowe: bond buying is lowering costs of Govt borrowing, but also rates across economy; right to borrow against future income with pandemic and re-pay through growth; Need to keep strong trade relations with China
  • (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.0B in Semi Govt bonds v A$1.0B prior
  • (NZ) Reserve Bank of New Zealand: Has engaged Deloite on internal process review after information was disclosed to financial services firms before being made public in Nov

Japan

  • Nikkei 225 opened -0.6%
  • (JP) Bank of Japan (BoJ) Gov Kuroda: New Deposit facility is prudence policy, not monetary; New deposit facility is for stability of financial system; ETF purchases are conducted as part of bold monetary easing; see CPI remaining below 0% for now
  • (JP) Japan Oct Trade Balance: ¥872.9B v ¥300.0Be; Adjusted Trade Balance: ¥314.3B v ¥117.4Be
  • (JP) Japan Govt ruling coalition looking at spending ¥12T over 5-years, starting FY21/22, for disaster proofing infrastructure – Nikkei
  • (JP) Japan Fin Min Aso: Japan will continue to target balanced budget in FY25; Subsidies for regional bank consolidation is an option being considered
  • (JP) Japan Chief Cabinet Sec Kato: Ministry will appropriately address support for airlines; Closely watching movements on gasoline vehicles in foreign markets
  • Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.4% 20-year JGBs: avg yield: 0.3880% v 0.3940% prior; bid to cover 3.6x v 3.9x prior

Korea

  • Kospi opened +0.4%
  • 005380.KR Expected to face lawsuit over fires in electric vehicles (EV) amid recall – press
  • (KR) South Korea Oct foreign currency deposits at banks $93.32B v $85.43B prior (record high)

China/Hong Kong

  • Hang Seng opened +0.1%; Shanghai Composite opened -0.1%
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v Injects CNY50B in 7-day reverse repos prior; Net drain CNY50B v Net drain CNY70B prior
  • (CN) China PBOC sets Yuan reference rate: 6.5593 v 6.5762 prior ( Strongest since June 27th 2018)
  • (CN) China Finance Ministry (MOF) sets initial pricing guidance for 5-year, 10-yer and 15-year EUR-denominated bonds
  • (CN) General Office of the China State Council has issued guidelines aimed at stabilizing grain production – Xinhua

Other

  • (TW) Trade officials from the US and Taiwan are scheduled to hold talks on November 20th – Taiwan press

North America

  • (US) FDA: Authorizes First COVID-19 Test for Self-Testing at Home
  • (US) Weekly API Crude Oil Inventories: +4.2M v -5.1M prior
  • (US) SEPT NET LONG-TERM TIC FLOWS: $108.9B V $27.8B PRIOR; TOTAL NET TIC FLOWS: -$79.9B V $86.3B PRIOR; China Total holding of US Treasuries: $1.061T v $1.068T prior; Japan Total Holdings of US Treasuries: $1.276T v $1.278T prior (net seller for 3rd consecutive month, largest sale since 2018)
  • (US) Key county, Wayne, in Michigan has failed to certify vote by deadline; deadlock to be referred to Michigan Board – press

Europe

  • (UK) PM Johnson said to back real budget increase for defense – Press
  • (IE) Ireland PM Martin: EU and UK can see “the landing zones” on a trade deal, but UK will have to compromise – Daily Mail

Levels as of 12:15ET

  • Hang Seng +0.5%; Shanghai Composite +0.4%; Kospi +0.3%; Nikkei225 -0.8%; ASX 200 +0.5%
  • Equity Futures: S&P500 -0.2%; Nasdaq100 -0.0%, Dax -0.1%; FTSE100 -0.2%
  • EUR 1.1894-1.1844; JPY 104.22-104.05; AUD 0.7301-0.7272; NZD 0.6900-0.6875
  • Commodity Futures: Gold -0.4% at $1,878/oz; Crude Oil -0.1% at $41.39/brl; Copper 0.0% at $3.21/lb

 

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