HomeContributorsFundamental AnalysisAsia Trades Mostly Higher Amid Japan Holiday, Chipmakers Trade Generally Higher

Asia Trades Mostly Higher Amid Japan Holiday, Chipmakers Trade Generally Higher

General Trend

  • Gainers in Australia include commodity-related firms; Consumer and Financial shares lag
  • Property and Financial indices drop in HK, large-cap tech rises; HK TECH Index FUTs decline over 2.5% after launch; Cathay Pacific declines on the delay related to the HK/Singapore ‘travel bubble’
  • Financial and Industrial firms are among the gainers in Shanghai; Kweichow Moutai rose over 4% after affirming its FY outlook; IT sector lags; Banks rise as officials addressed recent corp. defaults
  • China Corp. Debt Update: China’s Financial Stability Committee meeting addressed the topic of corp. defaults; Yongcheng Coal (state-owned) said to be in debt talks; Tsinghua Holdings’ bonds halted after price rise; Brilliance China Auto downgraded by Dagong after recent defaults; China Merchants Securities said to now face probe related to Brilliance China
  • Asian chipmakers trade generally higher; UMC rises over 9% amid press speculation; South Korean -chipmakers rise after broker comments, SK Nov 1-20th chip exports +21.9% y/y
  • NZ retail sales had record q/q growth in Q3
  • Australia prelim Nov PMI data rises m/m
  • Singapore gave its initial 2021 GDP growth forecast

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.2%
  • (NZ) NEW ZEALAND Q3 RETAIL SALES EX-INFLATION Q/Q: 28.0% V 19.0%E (largest increase on record)
  • (AU) AUSTRALIA NOV PRELIM PMI MANUFACTURING: 56.1 V 54.2 PRIOR (highest level since Dec 2017, 6th consecutive month of expansion)
  • (AU) Reserve Bank of Australia (RBA) Offers to buy A$2.0B in Govt bonds v A$3.5B prior week (buys 4 and 8 year skips 3 year bonds)

Japan

  • Nikkei 225 closed for holiday
  • (JP) Japan PM Suga: Will introduce policies to strengthen economic recovery; Reiterates to create financial center in Japan, will press on mobile fees until public sees change

Korea

  • Kospi opened +0.3%
  • (KR) South Korea reports 5th day with cases over 300, to implement stricter virus restrictions – Yonhap
  • 034220.KR Signed a deal with Panasonic to supply its transparent organic light emitting diode (OLED) panels – Yonhap
  • (KR) South Korea sells 20-year bonds, Avg yield 1.680% v 1.620% prior

China/Hong Kong

  • Hang Seng opened +0.8%; Shanghai Composite opened +0.2%
  • (CN) China Financial Stability and Development Committee: Will have a zero tolerance approach to bond defaulters, will punish all kinds of “debt evasion” to protect investors – Xinhua
  • (CN) US Commerce Department said to be close to declaring 89 China aerospace and other companies as having ties to China military – Press
  • (CN) China PBOC sets Yuan reference rate: 6.5719 v 6.5786 prior
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY40B in 7-day reverse repos v Injects CNY80B in 7-day reverse repos prior; Net inject CNY40B v Net drain CNY80B prior
  • (HK) Hong Kong, Singapore travel bubble launch delayed 2 weeks due to spike in COVID cases (was supposed to start Nov 22)
  • (CN) Analysts note that recent bond defaults in China are not causing contagion in other markets, so far contained to onshore credit market
  • 3333.HK Follow Up: Largest strategic investor, Shandong Hi-Speed, exited investment in unit, Hengda; in response 2 local govt backed companies made CNY30B investment – US financial press
  • (CN) China looking at policy and financial incentives under its 2021-2025 plan that will encourage couples to have children – China press

Other

  • G20 draft statement: Pledge to fund fair distribution of covid-19 vaccines
  • (SG) Singapore Q3 Final GDP (seasonally adjusted) Q/Q: 9.2% v 9.5%e; Y/Y: -5.8% v -5.5%e; Guides 2021 GDP +4-6%
  • (SG) Monetary Authority of Singapore (MAS) Official: Monetary policy remains appropriate
  • (SG) Monetary Authority of Singapore (MAS): Has enhanced CNY liquidity via CN25B initiative for banks

North America

  • (US) HHS Operation Warp Speed chief Slaoui: There is enough coronavirus vaccine doses from Moderna and Pfizer to immunize about 20M Americans during December – NBC
  • PFE Reportedly COVID vaccine might get UK approval by Nov 29th – The Telegraph
  • (US) President Elect Biden expected to announce Cabinet picks Tuesday, Nov 24th: Expected to name Blinken as Sec of State and Jake Sullivan National Security Adviser
  • (US) Nevada to limit casinos to 25% of capacity set by fire codes (Prior restrictions were 50% of capacity)

Europe

  • (UK) Brexit deal said to be 95% agreed; Legal text of agreement to be finalised in ‘almost all areas, covering almost all subjects’ – Sky News
  • (UK) PM Johnson reportedly to announce up to a week of eased COVID-19 restrictions for Christmas (from Dec 22nd to Dec 28th) – Sky News
  • (FR) France Pres Macron said to announce 3-steps plan to ease lockdown measures in his address to nation on Tue, Nov 24th – press
  • (IE) ECB’s Lane (Ireland, chief economist): Reiterates EU Emergency bond purchases will continue

Levels as of 12:15ET

  • Hang Seng -0.1%; Shanghai Composite +1.2%; Kospi +1.8%; Nikkei225 closed; ASX 200 +0.3%
  • Equity Futures: S&P500 +0.2%; Nasdaq100 +0.4%, Dax +0.6%; FTSE100 +0.4%
  • EUR 1.1879-1.1852; JPY 103.86-103.72; AUD 0.7328-0.7299; NZD 0.6964-0.6927
  • Commodity Futures: Gold 0.0% at $1,872/oz; Crude Oil +0.2% at $42.50/brl; Copper -0.1% at $3.28/lb

 

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