Asian Indices Trade Mixed Ahead Of US Jobs Report

Nov 05 21, 06:01 GMT

General trend

South Korea bond yields drop ahead of later today bond repurchase operation.
Japanese cos. due to report earnings include Honda, JFE Holdings, Kobe Steel, Asics, Inpex, Olympus.
Companies due to report earnings during the NY morning include American Axle, DraftKings, Elanco Animal Health, Fluor Corp, Canada Goose, Goodyear, Johnson Controls, Magna International, Revlon, Tenneco.
China Oct Trade Balance due on Nov 7th (Sunday, Shanghai time).

Headlines/Economic data

Australia/New Zealand

ASX opened flat.
(AU) Reserve Bank of Australia (RBA) Statement on Monetary Policy (SOMP): Committed to keeping highly supportive monetary conditions; Forecasts for cash rate broadly in line with recent market pricing.
(AU) Australia sells A$1.0B v A$1.0B indicated in 3.25% Apr 2025 bonds, avg yield 1.0468%, bid to cover 3.25x.

Japan

Nikkei 225 opened +0.2%.
Softbank [9984.JP]: Said to be under pressure from investors to ‘prop up’ share price with a share buyback [Q2 earnings are due on Mon, Nov 8th] – FT.
(JP) Japan expected to issue ¥100K (~$879) cash handout to people under the age of 18 – Japanese press.
(JP) Japan Govt said to be including SPACs in its ‘new capitalism’ plan.
(JP) Japan Sept Household Spending M/M: +5.0% v +2.8%e; Y/Y: -1.9% v -3.5%e.
(JP) Japan Fin Min Suzuki: Kishida told us to look for tax breaks to pay for hikes; Will firmly pursue FY25 primary balance goal (in line).
(JP) Japan Econ Min Yamagiwa: Declines to comment on size or content of stimulus package.

Korea

Kospi opened +0.7%.
(KR) South Korea Sept Current Account (BOP): $10.0B v $7.5B prior (17th consecutive surplus); Balance of Goods (BOP): $9.5B v $5.6B prior.
(KR) South Korea Vice Fin Min: To repurchase KRW2.0T in 5-10 year bonds on Nov 5th; Will preemptively act to stabilize local bond markets [comments from Nov 4th].

China/Hong Kong

Shanghai Opened -0.2%; Hang Seng opened -1.1%.
(CN) China PBOC sets Yuan reference rate: 6.3980 v 6.3943 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY50B prior; Net Drain CNY100B v Net drain CNY150B prior.
(CN) China State Planner (NDRC): Coal Inventory at power plants are at a normal level again.
(CN) PBOC expected to keep market liquidity ample – China Press.
(CN) China has told certain smaller banks to limit wealth products – Chinese press.
(CN) Follow Up: China MOF issues mandate related to planned issuance of EUR denominated bonds.
(CN) China Tax Bureau: 9M Tax and Fee reductions amounts at CNY910.1B.
Kaisa Group [1638.HK]: Company and units Halted after Wealth Management Product misses payments.
(CN) China Press: PBOC Vice Gov Chen: has urged China to prevent systemic financial risks when further opening up the sector.
Shanghai Shimao [600823.CN]: CNY bonds due 2022 halted after price decline.

North America

(US) Initial Jobless Claims: 269K V 275KE (new post-pandemic low); CONTINUING CLAIMS: 2.11M V 2.15ME.
(US) Weekly EIA Natural Gas Inventories: +63 BCF VS. +64 BCF TO +68 BCF Indicated range.
(AR) Argentina Central Bank tells financial firms not to raise US dollar reserves, congressional elections are due to occur on Nov 14th (Sun) – financial press.
(US) Senate proposed bill aimed at cutting US Dependence on foreign pharmaceuticals – Press.
(US) White House has asked senators to meet with Fed Chair Powell – Axios.
(US) House Democrats propose increasing SALT deduction cap to $80K (up from $10K).
(US) House said to not hold any votes on Economic spending packages today, will vote tomorrow (Nov 5) – Press.

Europe

(UK) BOE Gov Bailey: Not our job to steer markets on rates, I am not surprised to see correction in markets; Market rate pricing was puzzling, pricing for rate hikes was overdone – Media interview.
(EU) ECB’s Schnabel (Germany): We take people’s concerns over high inflation very seriously; Conditions for a rate hike are unlikely to be met next year.
OPEC+ JMMC reportedly supports no change to OPEC policy – Energy Intel’s Bakr.

Other

Levels as of 01:20 ET

Nikkei 225, -0.6%, ASX 200 +0.4% , Hang Seng -1%; Shanghai Composite -0.4%; Kospi -0.7%.
Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax flat; FTSE100 -0.1%.
EUR 1.1557-1.1541 ; JPY 113.86-113.55 ; AUD 0.7410-0.7378 ;NZD 0.7110-0.7080.
Gold flat at $1,796/oz; Crude Oil +0.9% at $79.50/brl; Copper -0.1% at $4.3165/lb.