Equity Indices Trade Generally Higher

Nov 12 21, 06:42 GMT

General trend

USD index slightly extended gain.
US equity FUTS remained modestly higher in Asia.
Japanese cos. expected to report earnings include Mizuho Financial, Sumitomo Mitsui Financial Group, Toshiba, Tokyo Electron, Yamato Holdings, Japan Display, Japan Post Holdings, Dai-ichi Life, Dentsu, Shinsei Bank, Suruga Bank, Aozora Bank.
Hon Hai is expected to report results.
Companies expected to report during the NY morning include Coupang, Spectrum Brands.
Japan PM Kishida said to have ordered coronavirus measures be compiled by Friday (Nov 12th).
China PBOC may conduct MLF operation around Nov 15th.
Reportedly virtual meeting between Biden and Xi has been tentatively scheduled for Monday (Nov 15th) – press.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2025 bonds, avg yield 1.3045%, bid to cover 6.5x.
(NZ) New Zealand Oct Manufacturing PMI: 54.3 v 51.6 prior.

Japan

Nikkei 225 opened +0.4%.
(JP) Nikkei 225 Nov options to settle at 29,388.
(JP) Japan said to consider an extraordinary diet session starting around Dec 6th – Press.
(JP) Japan Chief Cabinet Matsuno: Policies on increases in oil prices will be included in stimulus package; Want to respond actively on the economy, including on prices.
(JP) Japan Econ Min Yamagiwa: Will allocate budgets for raising Govt set wages in nursery and care workers in stimulus package.
(JP) Japan government stimulus draft does not mention the size of spending.

Korea

Kospi opened +0.7%.
(KR) South Korea sells 50-year bonds: avg yield 2.320% v 2.270% prior.
(KR) South Korea Oct Export Price Index Y/Y: 25.3% v 20.2% prior; Import Price Index Y/Y: 35.8% v 26.8% prior.

China/Hong Kong

Hang Seng opened 1.1%; Shanghai Composite opened flat.
(CN) Analysts in China said to warn about the risks related to indebted property developers that are reliant on USD denominated debt – Chinese press.
(CN) China Economic Daily: Warns against speculating with Metaverse stocks, investors shouldn’t be hasty when entering into a new and immature concept.
(CN) Guangzhou and Shenzhen to ease curbs related to car purchases, the governments will ease limits related to car license applications.
(CN) China PBOC sets Yuan reference rate: 6.4065 v 6.4145 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY100B prior; Net CNY0B v Net inject CNY50B prior.
(CN) China Official: Common prosperity first needs high quality development, China should raise the share of direct taxes; encourages entrepreneurs to participate in redistribution.
(CN) Former PBOC Adviser Yu Yongding: Evergrande problem is controllable; China Capital Market has limited impact on the global markets; China has very strong macro adjustment capabilities.
(CN) China Ministry of Finance (MOF) sells 3-month bills and 30-year bonds.
(CN) China State Planner (NDRC): To increase the exploration of oil, Natural gas, and rare earth minerals during 2021-2025; to enhance reserve building related to oil and rare earths.
Komatsu: Reports Oct China usage of its machines Y/Y: -20.0% v -18.3% prior [7th straight decline].

North America

(MX) Mexico Central Bank (BANXICO) Raises Overnight Rate by 25BPS TO 5.00%; as expected ; Split decision.

Europe

(EU) Belarus threatens to halt gas supply to EU if sanctions are imposed over migrant crisis – Press.
(RU) US has privately warned Europe that Russian troops could plan an invasion of Ukraine – press.
(UK) Brexit Min Frost: Will signal to EU that the Govt is ready to renew efforts on Northern Ireland Protocol Deal.

Other:

(MY) Malaysia Q3 GDP Q/Q: -3.6% v -2.0%e; Y/Y: -4.5% v -2.6%e.
OPEC Monthly Oil Report 2021 Outlook: Cuts 2021 global oil demand growth from 5.8M bpd to 5.7M bpd (total consumption seen at 96.4M bpd), 2022 Outlook: Maintains 2022 global oil demand growth at 4.2M bpd (100.6 bpdM v 100.8M bpd prior).

Levels as of 00:20 ET

Nikkei 225, +1%, ASX 200 +0.9% , Hang Seng +0.1%; Shanghai Composite +0.1% ; Kospi +1.5%.
Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 flat.
EUR 1.1452-1.1436 ; JPY 114.30-114.03 ; AUD 0.7300-0.7274 ;NZD 0.7038-0.6997.
Gold -0.3% at $1,858/oz; Crude Oil -0.7% at $81.03/brl; Copper -0.4% at $4.3870/lb.