South Korean Yields Decline After BoK Rate Decision

Nov 29 19, 07:58 GMT

General Trend:

Financials weigh on Hang Seng, drug companies decline after China’s recently disclosed price cuts
Healthcare companies also drop in Shanghai
Aussie equities continue to outperform after Tuesday’s speech from RBA Gov Lowe, ASX 200 hits record high amid gains in Telecom and Energy companies
One BoK member called for rate cut at today’s policy decision, central bank statement removed the reference to watching the effects of recent rate cuts for the time being
Japan Oct prelim industrial production declined more than expected, government noted ‘weakness’ in industrial production
US markets to close early on Friday after Thursday’s Thanksgiving Day holiday
Bank of Japan (BOJ) may release its Dec bond purchase schedule after today’s market close
Reserve Bank of Australia (RBA) due to meet on Tuesday (Dec 3rd)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(AU) Australia Oct Private Sector Credit M/M 0.1% v 0.3%e; Y/Y: 2.5% v 2.7%e (slowest growth pace since 2010)
(NZ) New Zealand Nov Consumer Confidence Index: 120.7 v 118.4 prior; M/M: 1.9% v 4.0% prior
(NZ) New Zealand Oct Building Permits m/m: -1.1% v 7.4% prior
(NZ) New Zealand 4-month Financial Statements through end of Oct 2019: Operating balance before gains and losses (OBEGAL): -NZ$1.1B v +NZ$843M forecast [Core Crown tax revenue for the four months to October 2019 was $1.4 billion (4.9%) below the BEFU 2019 forecast, mainly owing to below-forecast corporate tax revenue ($1.5 billion below forecast)]
(NZ) New Zealand Finance Min Robertson said there is space for infrastructure investment, strong debt position gives us space to invest – US financial press

China/Hong Kong

Shanghai Composite opened -0.1%, Hang Seng -0.7%
(CN) China PBoC Dep Research Head: China still has room in monetary policy; monetary policy room cannot be squandered
(CN) China Global Times Editor-in-chief Hu Xijin: Based what I know, out of respect for President Trump, the US and its people, China is considering to put the drafters of the Hong Kong Human Rights and Democracy Act on the no-entry list, barring them from entering Chinese mainland, Hong Kong and Macao.
(US) USTR lists products eligible for Chinese tariff exclusion for tariffs imposed on Chinese products in September 2018 – press
(CN) China State Council: Will probably resolve trade frictions; To step up punishment for intellectual property infringement (from Nov 28th)
(CN) China PBOC sets Yuan Reference Rate: 7.0298 v 7.0271 prior
(CN) China PBoC Open Market Operation (OMO): Skips for 8th consecutive session; Net drains CNY0B v CNY0B prior
(CN) China plans nationwide 3-month safety inspections of coal mines – press

Japan

Nikkei 225 opened +0.4%
(JP) Japan Oct Preliminary Industrial Production M/M: -4.2% v -2.0%e (matches weakest figure since Jan 2018); Y/Y: -7.4% v -5.2%e
(JP) Japan Nov Tokyo CPI Y/Y: 0.6% v 0.6%e; CPI Ex-Fresh Food Y/Y: 0.6% v 0.6%e
(JP) JAPAN OCT JOBLESS RATE: 2.4% V 2.4%E
(JP) Japan BOJ Gov Kuroda: Reiterates economy is expanding moderately as a trend, currently appropriate to carry out policy with easing in mind – speaking in Parliament
(JP) Bank of Japan Exec Maeda: BOJ would have unrealized loss with Topix at 1,350 – speaking to Diet
(JP) Senior Bank of Japan (BOJ) Official: BOJ is guiding easy monetary policy with eye on risk that excessive decline in super-long bond yields could hurt public sentiment
(JP) JAPAN NOV CONSUMER CONFIDENCE INDEX: 38.7 V 36.8E
(JP) JAPAN OCT ANNUALIZED HOUSING STARTS: 879K V 880KE; Y/Y: -5.6% V -7.0%E

Korea

Kospi opened +0.3%
(KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 1.25%; AS EXPECTED
(NK) North Korea said to have launch two projectiles but likely fell outside the EEZ (exclusive economic zone) of Japan- financial press (from Nov 28th)
(KR) South Korea Trade Min: Has agreed to hold senior level talks with Japan during the third week of Dec
(KR) South Korea Oct Industrial Production M/M: -1.7% v -0.3%e ; Y/Y: -2.5% v -2.5%e

Other Asia

(VN) Vietnam Nov Trade Balance: $0.1B v $0.5Be; Exports Y/Y: 3.8% v 7.3%e
(VN) Vietnam Nov CPI Y/Y: 3.5% v 2.9%e
(VN) Vietnam Nov Industrial Production Y/Y: 5.4% v 9.2% prior
(TH) Thailand Dep Premier Samkid and Hong Kong Chief Exec Lam have signed MOUs at first meeting of the Hong Kong-Thailand High-Level Joint Committee; hopes to see two-way trade volume increase to $20B in 2020 v $15B in 2019

Europe

(EU) ECB’s Lane (Ireland, chief economist) said rate normalization can be accelerated by fiscal policy
(EU) ECB’s Coeure (France) said climate change will impact conduct of monetary policy
(UK) Nov GfK Consumer Confidence: -14 v -14e

Levels as of 12:15ET

Hang Seng -2.2%; Shanghai Composite -0.8%; Kospi -1.4%; Nikkei225 -0.5%; ASX 200 -0.3%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.4%, Dax -0.3%; FTSE100 -0.3%
EUR 1.1024-1.1007; JPY 109.59-109.45; AUD 0.6777-0.6764; NZD 0.6429-0.6416
Commodity Futures: Gold +0.2% at $1,464/oz; Crude Oil -0.3% at $57.96/brl; Copper -0.2% at $2.67/lb