Headlines/Economic Data
Japan
As of the time of writing, the Nikkei 225 is higher by over 0.7%, after opening down by 0.2%. Nikkei heavy component Fast Retailing has gained over 0.8%.
In the technology space, Canon has moved higher following press speculation that it may raise its annual dividend by ~7%. Meanwhile, shares of Softbank have risen by more than 0.9%.
Casualty insurers are lower amid press speculation that their FY profits may miss forecasts on exposure to hurricanes in the US. USD/JPY has traded steady ahead of the US House vote on its tax bill, expected later on Thursday.
(JP) Japan GDP seen at 1.6% for FY17 v 1.3% in FY16; lifted by strong exports and businesses investing in labor-saving measures – Nikkei
(JP) JAPAN Q3 HOUSING LOANS Y/Y: 2.9% V 3.3% PRIOR
(JP) Japan MoF sells ¥800B v ¥1.0T offered in 0.6% 20-yr JGBS; avg yield 0.573%; bid-to-cover 4.13x
(JP) Japan PM Abe top economic advisory panel in a draft will suggest they see economy closer to deflation exodus – financial press
Korea
The Kospi has gained over 0.3%, amid more than 0.5% gains in shares of Samsung Electronics.
More action has, however, been seen in the currency markets, as the Korean Won has hit the highest level against the US dollar since Oct 2016. On Wednesday, the Bank of Korea and Bank of Canada announced a bilateral currency swap agreement.
The agreement is expected to have limited direct impact on FX rates, says a Bank of Korea Deputy Gov. Even still, South Korea’s Finance Ministry reiterated that it would closely monitor markets in cases of ‘severe volatility.’
USD/KRW Onshore opens at KRW1,106 (13-month high) v KRW1,112 prior close
China/Hong Kong
The Shanghai Composite opened the session -0.3%, while the Hang Seng opened +0.4%. The Information Technology index in Hong Kong has risen by over 1%. Component, Tencent, has gained over 1.7% after reporting better than expected Q3 results.
The Hang Seng Energy index is trading lower by over -0.1%. Gasoline and diesel prices may be raised in China by as soon as Friday, according to a press report.
The Hang Seng Property Index is little changed. Banks in China are said to be conducting stress tests related to loans made to the property sector, according to a local press report.
China Legislature Official Huang said China should levy a property tax as it curbs speculation. China should also reform its FX reserves system and have the MOF play a larger management role, says the official.
Separately, the PBoC’s Research Head said there could be the risk of a ‘big crisis’ if economic reforms are too slow.
(CN) China port names moving higher on chatter that China could cut shipping fees
(CN) China may raise gasoline prices by CNY265/ton and diesel prices by CNY250/ton as of Friday
USD/CNY (CN) PBOC sets yuan reference rate at 6.6286 v 6.6263 prior
(CN) China PBoC Open Market Operations (OMO): CNY330B v CNY330B injected in 7, 14 and 63-day reverse repos prior; Net injection CNY310B v CNY220B prior
(CN) China Oct YTD Outbound Investments $86.3B, -40.9% y/y in USD terms
Australia/New Zealand
(AU) AUSTRALIA OCT EMPLOYMENT CHANGE: +3.7K V +18.8KE; UNEMPLOYMENT RATE: 5.4% V 5.5%E
Full-Time Employment Change: 24.3K v +6.1K prior
Part-Time Employment Change: -20.7K v +13.7K prior
Participation Rate: 65.1% v 65.2%e
AUD was little changed after an initial spike higher, little reaction in the bond market
(AU) Australia Nov Consumer Inflation Expectation y/y: 3.7% v 4.3% prior
(NZ) New Zealand Nov ANZ Consumer Confidence Index: 123.7 v 126.3 prior; M/M: -2.1% v -2.8% prior (7-month low)
(NZ) New Zealand sells NZ$200M in Apr 2025 bonds; avg yield 2.6711%
Other Asia
In the Philippines, the Peso currency and equity markets are moving higher following Q3 GDP data. The y/y figure rose by a better than expected 6.9%.
The economy is still not overheating, according to the Philippines Central Bank Chief Espenilla.
North America
(CA) Bank of Canada (BOC) Wilkins: Reason for caution is desire to avoid policy reversal, motivated by lower than expected inflation
(US) Christie’s auction sells last privately held Leonardo da Vinci painting entitled ‘Salvator Mundi’ for record $450M (expected $100M+)
Ahead of the expected vote, US President Trump said tax cuts are getting ‘close.’
Various US companies have priced secondary offerings following the NY close and ahead of the expected tax vote (including JELD, STKS, NCLH, ACHN and GDI). Floor & Décor Holdings also priced a 6.5M share secondary, which was below the originally planned 9M shares.
Levels as of 23:00ET
Nikkei +0.7%, Hang Seng +0.5%; Shanghai Composite -0.1%; ASX200 +0.1%, Kospi +0.5%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.2%; FTSE100 +0.1%
EUR 1.1792-1.1769; JPY 113.05-112.76; AUD 0.7609-0.7569;NZD 0.6878-0.6850
Dec Gold +0.1% at $1,278/oz; Dec Crude Oil +0.0% at $55.34/brl; Dec Copper +0.2% at $3.06/lb
Equities notable movers
Australia/New Zealand
STO.AU Not currently engaged in talks, received earlier takeover approach from Harbour Energy at A$4.55/shr; +11%
RKN.AU Sells Accountants Practice Management business to MYOB (as expected) for A$180M cash; to pay special dividend; +33%
Hong Kong/China
700.HK Reports Q3 (CNY) Net 18.0B v 15.7Be, Rev 65.2B v 61Be; +1.5%
410.HK Approves special interim dividend of CNY0.576; +8.7%
4.HK Announces share price adjustment after spinoff of Wharf Estates; -63%
US
TIME Said to be in talks regarding selling itself to Meredith – US press
