Equity Markets In Asia Generally Track Recent US Declines

Nov 21 18, 07:13 GMT

General Trend:

Energy shares drop following declines in oil prices on Tuesday’s session
Japanese megabanks trade lower
Asian tech shares rise, pare some of the recent losses
Mitsubishi Electric declines over 5%, said to have shipped certain rubber products without inspection (Japanese Press)
Nissan and Mitsubishi Motors rise after Tuesday’s declines; Situation related to the Nissan Chairman still fluid
US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn’t modified its unfair trade practices – USTR report
Renewed press speculation that the China PBoC will continue to not follow rate hikes by the US Fed
Crude Oil rises over 1.9% after declines on Tuesday

Headlines/Economic Data

Japan

Nikkei 225 opened -1.4%
Mitsubishi Electric, 6503.JP Said to have shipped certain rubber products without inspection – Japanese Press; Late denies press report: no quality issues with unit’s rubber products
Honda, 7267.JP To recall ~107K Odyssey units in the US in relation to door latch – US financial press
8233.JP Planning to issue ¥60B in convertible bonds overseas [-15%]
Nissan, 7201.JP Said to consider revising alliance with Renault, including stake – Local Media

Korea

Kospi opened -1.2%
(KR) South Korea and US held working group on North Korea in Washington DC, discussed UN Security Council resolutions
(KR) South Korea holding public hearing today on trade deal with UK, in a move to cushion risks posed to Korean firms doing business in the UK after Brexit – Korean press
(KR) South Korea Nov 1-20 Exports Y/Y: +5.7% v 26.0% prior; Imports Y/Y: 12.8% v 31.4% prior
(KR) South Korea sells KRW1.8T in 2-yr Monetary Stabilization Bonds (MSBs) at 1.945%

China/Hong Kong

Hang Seng opened -1.3%, Shanghai Composite -1.0%
(CN) US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn’t modified its unfair practices
173.HK Expects the Hong Kong property market to become active again after March of 2019 – Local Press
(CN) According to some analysts, the impact of the US/China trade tensions and higher costs of doing business have led to some concerns among investors regarding a ‘flash crash’ – HK Press
(CN) China PBoC said to be less likely to lower money market rate due to foreign exchange concerns – China Securities Journal
(CN) China PBoC Open Market Operation (OMO): v skipped prior (19th straight skip)
(CN) China PBoC sets yuan reference rate: 6.9449 v 6.9280 prior
(CN) Moody’s: Expect China 2019 GDP to slow to 6% v 6.6% expectation in 2018
(CN) Hebei (largest steel making province in China) issues second level pollution alert from Nov 22 – Local Media
(HK) Official: No plan to ease property curbs at this time – press

Australia/New Zealand

ASX 200 opened -1.2%
APA.AU Australia Treasurer Frydenberg officially rejects CK’s bid for APA; deal terminated
WOW.AU Guides FY19 priorities mostly consistent with FY18; Customer and brand metrics to remain stable; Starting to build momentum into festive season – AGM
(AU) Australia ACCC launches inquiry into supply of electricity in the National Electricity Market
(AU) Australia sells A$1.0B v A$1.0B indicated in May 2030 bonds, avg yield 2.7486% v 2.729% prior, bid to cover 3.31x v 4.04x prior
(NZ) Reserve Bank of New Zealand (RBNZ) Analytical Note: Expects labor force participation to remain broadly flat
(AU) RBA Gov Lowe: Workers do not feel happy or confident about future prospects despite unemployment level
(NZ) New Zealand Oct Credit Card Spending m/m: -0.1% v +0.8% prior; y/y: 6.3% v 7.8% prior

Other Asia

(PH) China and Philippines sign deals relating to oil and gas exploration; signed a total of 29 deals on state visit – SCMP

North America

(US) Pres Trump has submitted written responses to some of Special Counsel Mueller’s questions, according to Trump attorney Rudy Giuliani – press
(US) Outgoing Senator Corker (R-TN) demands President Trump make determination on the Saudi Crown Prince; Congress will consider law to push the President on Saudi Arabia
TME Thought to be considering moving Tencent Music Entertainment Group IPO to early 2019 – US financial press

Europe

(UK) PM May suggests that Brexiters’ customs plan could be solution to Ireland boarder issue – press
(ES) China President Xi Jinping is expected to visit Madrid (Spain) next week, infrastructure investment is expected to be a topic – HK Press
(IT) Italy Fin Min Tria reiterates concerned about bond spread – Italy Press

Levels as of 12:50ET

Hang Seng -0.2%; Shanghai Composite +0.3%; Kospi -0.3%; Nikkei225 -0.2%; ASX 200 -0.5%
Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.5%; FTSE100 +0.7%
EUR 1.1364-1.1379; JPY 112.65-112.94 ; AUD 0.7203-0.7236;NZD 0.6782-0.6807
Dec Gold +0.1% at $1,222/oz; Jan Crude Oil +1.6% at $54.27/brl; Dec Copper +0.5% at $2.77/lb