Asian Macro Data And Upcoming Tencent Earnings In Focus

Nov 14 18, 08:03 GMT

General Trend:

Asian equity markets trade mostly lower
Energy sector weighs on the Australian market
Japanese automakers trade broadly higher, US said to be planning to hold off on implementing auto tariffs for now
Tencent shares in focus ahead of upcoming earnings report
Japan Q3 GDP contracts, natural disasters and trade impact cited
Australia Q3 wages rise at the fastest pace since 2015, matches ests
China Industrial Production and Fixed Asset Investments data beat ests, gov’t says support measures are starting to show impact
Some analysts suggest, China government’s policies are not strong enough to be effective; Notes recently released Oct banking data which missed ests (Hong Kong Press)
Sri Lanka Central Bank unexpectedly hikes rates amid currency weakness
Australia Oct labor data due on Thursday

Headlines/Economic Data

Japan

Nikkei 225 opened +0.2%
(JP) Japan considering start of next ordinary Diet session on Jan 4th – Japan press
(JP) JAPAN Q3 PRELIM GDP Q/Q: -0.3% V -0.3%E; ANNUALIZED Q/Q: -1.2% V -1.0%E; NOMINAL Q/Q: -0.3% V -0.3%E; Exports -1.8% q/q (largest decline since Q1 2015); GDP Business Spending q/q: -0.2% v 0.2%e (1st decline since Q2 2016)
(JP) Japan Economy Min Motegi: Q3 GDP contraction due to temporary hit to consumption from natural disasters, export decline; no change to view domestic economy recovering moderately
(JP) Japan said to consider ending 30-month age cap on US beef imports – Japanese Press
(JP) Japan Sept Final Industrial Production M/M: -0.4% v -1.1% prelim; Y/Y: -2.5% v -2.9% prelim; Capacity Utilization M/M: -1.5% v 2.2% prior
(JP) Japan Sept Tertiary Industry Index M/M: -1.1% v -0.4%e (largest decline since 2016)

Korea

Kospi opened flat
(KR) South Korea Oct Unemployment Rate: 3.9% v 4.0%e
(KR) South Korea Fin Min nominee Hong: Job situation is still grave, considering more steps on jobs – Korean press
005380.KR Govt putting pressure on union to join new plant in Gwangju as part of efforts to create new jobs and breathe new life into the local economy – Press

China/Hong Kong

Hang Seng opened +0.3%, Shanghai Composite -0.3%
(CN) MSCI announced constituent changes to China Indexes
(CN) China PBoC Open Market Operation (OMO):Skips OMO v skipped prior (14th straight skip)
(CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.9402 V 6.9629 PRIOR
2378.HK Prudential: Gives update ahead of conference: 9-month New Business Profit £2.76B v £2.35B y/y, APE Sales £4.97B v £4.96B y/y
(CN) China NBS Spokeswoman Liu Aihua: China economy still facing many external uncertainties; economy is slower but stable; Room for policy adjustments remains relatively large as inflation remains mild
(CN) China Oct Property Investment y/y: 9.7% v 9.9% prior
(CN) CHINA OCT FIXED ASSETS EX-RURAL YTD Y/Y: 5.7% V 5.5%E
(CN) CHINA OCT RETAIL SALES Y/Y: 8.6% V 9.2%E; YTD Y/Y: % V 9.3%E
(CN) China Oct Surveyed Jobless Rate: 4.9% v 4.9% prior
(CN) CHINA OCT INDUSTRIAL PRODUCTION Y/Y: 5.9% V 5.8%E; YTD Y/Y: 6.4% V 6.3%E
(CN) China MoF sells 2-yr bonds at 2.7265% v 2.88%e; 5-yr bonds at 3.0737% v 3.23%e
(CN) CHINA OCT AGGREGATE FINANCING (CNY): 728.8B V 1.380TE
(CN) CHINA OCT M2 MONEY SUPPLY: 8.0% V 8.4E (matches record low); M1 MONEY SUPPLY Y/Y: 2.7% V 4.2%E
(CN) CHINA OCT NEW YUAN LOANS (CNY): 697.0B V 904.5BE
Looking ahead: 700.HK Tencent: Expected to report earnings later today
(CN) China speculated to hold meeting on coal imports later today – Local Press

Australia/New Zealand

ASX 200 opened flat
AOG.AU Warns FY19 sales now at risk as residential markets continue to soften; will not affirms FY19 EPS – AGM [-7%]
(AU) Australia Nov Westpac Consumer Confidence Index:104.3 v 101.5 prior; M/M: 3.9% v 1.0% prior
(AU) Australia sells A$1.0B v A$1.0B indicated in Nov 2029 bonds, avg yield 2.7366%, bid to cover 3.91x
(AU) AUSTRALIA Q3 WAGE PRICE INDEX Q/Q: 0.6% V 0.6%E; Y/Y: 2.3% V 2.3%E (matches the highest growth since 2015)
RAP.AU Receives ISO 13485 certification for quality management system [+15%]

Other Asia

North America

US equity markets ended mostly lower: Dow -0.4%, S&P500 -0.2%, Nasdaq flat, Russell 2000 -0.3%
(US) Fed’s Quarles (hawk, FOMC voter): Fed is taking a number of measures to improve transparency – Congressional testimony
MMM Authorizes $10B share repurchase program (9% of market cap)
(US) US planning to hold off on implementing auto tariffs for now after Trump meeting
BA FAA denies reports it is conducting investigation into safety of 737 MAX planes following crash of Lion Air flight 610
SNAP Said to be cooperating with US regulators on inquiries possibly related to IPO, has responded to subpoenas and other requests from the DoJ and SEC – financial press

Europe

(UK) Five pivotal senior ministers reportedly back UK Prime Min May’s draft Brexit proposal – Sun’s Newton Dunn; Raab, Hunt, Javid, Gove and Cox support the plan; Leadsom and Grayling also McVey and Mordaunt do not support the plan
(IT) Italy Dep PM Di Maio: confirms Italy govt maintaining its 2019 budget deficit and growth targets
(IT) Italy 5 Star League Official: Italian Government agrees on 2.4% budget deficit for 2019 – Comments on draft reply to EU
(IT) Italy publishes letter to the EU: Asks EU for flexibility for extraordinary events. Sets privatization target at 1% of GDP for 2019; Plans €1B for infrastructure maintenance in 2019; Targets 2021 debt-to-GDP ratio of 126%
(UK) Tory Whip Julian Smith: Confident that PM May will get Brexit deal through Parliament – financial press

Levels as of 12:50ET

Hang Seng -0.6%; Shanghai Composite -0.6%; Kospi -0.3%; Nikkei225 0.0%; ASX 200 -1.7%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.5%
EUR 1.1217-1.1320; JPY 113.76-113.99 ; AUD 0.7214-0.7238;NZD 0.6756-0.6783
Dec Gold +0.2% at $1,203/oz; Dec Crude Oil -0.7% at $55.30/brl; Dec Copper -0.3% at $2.67/lb