General Trend:
- Asian equity markets pare opening gains
- Shanghai property index declines, HK property sector lower after HK housing Min said there were no plans to ease curbs
- South Korean automakers decline amid speculation related to US probe
- Tech and bank declines weigh on the Nikkei
- Big Nikkei components decline (Softbank, Fast Retailing)
- Japanese market supported by gains in automakers’ shares ahead of Nissan’s upcoming board meeting
- Australian equities outperform as Resources, Bank and Energy shares gain
- Australia lithium names (KDR, PLS, GXY, AJM, NMT) higher on news that Mineral Resources (MIN) signed JV with Albermarle
- Australia export retail names (A2M, BKL, BAL) higher after China Premier Li confirmed to continue improving cross-border e-commerce retail import policy
- Standard Chartered gains on buyback speculation
- China’s Angang Steel declines, plays down M&A speculation
- Commodity currencies decline after Wednesday’s gains, AU and NZ yields also move lower
- Trading activity expected to be limited by the US Thanksgiving holiday
- Singapore has slowest rate of growth since 2016, in line with Q3 data seen in other Asian countries (including China)
- Tesla to cut prices in China
- BoJ Gov Kuroda expected to address parliament following the equity close
- Looking ahead: Reminder US markets are closed 11/22 for holiday; Japanese markets closed for holiday on Friday
Headlines/Economic Data
Japan
- Nikkei 225 opened +0.4%
- (JP) Japan govt reportedly considering at least ¥2T for steps to mitigate impact on economy from sales tax raise next year – Nikkei
- (JP) Japan said to be considering 5% rebate 9-months after sales tax hike – Japan press
- 8306.JP US prosecutors are investigating for money laundering – press
- (JP) JAPAN OCT NATIONAL CPI Y/Y: 1.4% V 1.4%E; CPI EX FRESH FOOD (CORE): 1.0% V 1.0%E
- (JP) Japan Investors Weekly Net Buying of Foreign Bonds: -¥145.2B v +¥1.62T prior; Foreign Buying of Japan Stocks: -¥179.2B v +¥360.9B prior
- 7201.JP There is speculation that the company’s shares may be at risk of TSE supervision amid recent Chairman scandal – FT
Korea
- Kospi opened +0.1%
- (KR) South Korea Fin Min nominee Hong: Govt will ceaselessly seek deregulation and provide support for startups, which are key to innovation-led growth – Korean press
- (KR) Analysts note that South Korea President Moon employment policy has precipitated the weakening of the Korean economy’s ability to create new jobs – Korean press
China/Hong Kong
- Hang Seng opened +0.7%, Shanghai Composite +0.2%
- (CN) US White House trade adviser Navarro being excluded from dinner between China President Xi and President Trump at G20; seen as a positive towards reaching an agreement on trade – SCMP
- (CN) China Premier Li Keqiang: Will continue and improve the cross-border e-commerce retail import policy – comments from meeting yesterday
- (HK) Hong Kong’s cryptocurrency exchange OKEx forced early settlement of bitcoin cash futures contracts on its platform, which is thought to have triggered the recent sell off in BitCoin – SCMP
- (HK) Hong Kong Housing Min Frank Chan: No plan to ease property curbs at this time – press
- (CN) China PBoC Open Market Operation (OMO): v skipped prior (20th straight skip)
- (CN) China PBoC sets yuan reference rate: 6.9391 v 6.9449 prior
- (CN) Shanghai Stock Exchange to only allow listed companies that are planning asset restructuring through share issuance to halt share trades for not more than 10 trading days – financial press
- 2888.HK Said to be preparing stock buy back – FT
Australia/New Zealand
- ASX 200 opened +0.2%
- MIN.AU [+26%] Signs exclusivity agreement with Albermarle for 50/50 fully integrated lithium JV in Western Australia; The purchase price for Albemarle’s 50% interest in the JV would be US$1.15 billion, which Albemarle expects to fund with available cash and new credit facilities. It is expected that the transaction will be accretive to Albemarle’s earnings.
- RCR.AU Unable to secure additional funding; names McGrathNicol administrator
- (NZ) New Zealand sells NZ$150M v NZ$150M indicated in 2.75% April 15 2025 bonds, bid to cover 3.38x
Other Asia
- (ID) Indonesia to cancel the remaining bond auctions for 2018
- (SG) Singapore Q3 Final GDP q/q: 3.0% v 4.0%e; y/y: 2.2% v 2.4%e; Narrows 2018 GDP outlook to 3.0-3.5% (prior 2.5-3.5%); Sees 2019 GDP at 1.5-3.5%
- (SG) Singapore may announce the successor to PM Lee on Friday – Local Press
- (TH) Thailand Central Bank Gov Veerathai: There is less need for very low interest rates; Prolonged period of low interest rates can create ‘fragilities’; If there is any tightening the domestic policy rate will still be ‘low’
North America
- US equity markets ended generally higher, pared gains in the afternoon: Dow flat, S&P500 +0.3%, Nasdaq +0.9%, Russell 2000 +1.3%
- (G20) Draft communique will reportedly offer no explicit commitment to fight protectionism – press
- (US) DOE CRUDE: +4.9M V +2ME
- (US) Reports circulating that FED could pause in the current tightening cycle as early as spring – financial press (from Nov 21st)
Europe
- (UK) Foreign Min Hunt reportedly warned PM May of possibility that Brexit deal may be voted down in parliament – UK’s Telegraph
- (DE) German Oct Tax Rev +9.2% y/y; YTD +6.6% y/y; German growth to continue but less strongly – German Finance Ministry
- (UK) PM May: have made progress in talks with Juncker and given direction to Brexit negotiators who can now resolve the remaining Brexit issues; PM May will return to Brussels on Saturday
- (UK) PM May: Had good talks between UK, Spain and Gibraltar on MOU
Levels as of 12:50ET
- Hang Seng -0.0%; Shanghai Composite -0.4%; Kospi -0.4%; Nikkei225 +0.7%; ASX 200 +0.9%
- Equity Futures: S&P500 +0.0%; Nasdaq100 +0.0%, Dax +0.1%; FTSE100 +0.2%
- EUR 1.1364-1.1425; JPY 112.96-113.23 ; AUD 0.7245-0.7268;NZD 0.6802-0.6836
- Dec Gold 0.0% at $1,228/oz; Jan Crude Oil 0.00% at $54.37/brl; Dec Copper +0.2% at $2.79/lb
