General Trend:
- Asian equity markets trade generally lower, track Thursday’s US session
- Financials and tech names decline in Japan
- South Korean chip makers decline, Bank of Korea Gov makes cautious comments on chip industry
- Australian equities lag, financials decline
- Hyundai Motor rises over 4%, to repurchase shares
- Australia’s Coca-Cola Amatil declines over 13%, issued outlook
- Bank of Korea raised rates (as expected), Korean Won (KRW) weakened
- Aussie pared gain after weaker Chinese PMIs
- Japan Industrial Production rebounds in Oct
- G20 due to be held from Nov 30 to Dec 1st
- China President Xi and US President Trump are expected to meet on the sidelines of the G20 meeting
- China confirmed adjustment to cross-border e-commerce import tax from 2019
- China PBoC skips daily OMOs for entire month of Nov
- Bank of Japan (BoJ) may disclose Dec bond buying schedule later today
- Aussie Q3 GDP data due next week (Dec 5th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.5%
- (AU) AUSTRALIA OCT PRIVATE SECTOR M/M: 0.4% V 0.4%E; Y/Y: 4.6% V 4.6%E
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Needs to ensure there is sufficient capital in the banking system to match the public’s ‘risk tolerance’
- (NZ) New Zealand Oct ANZ Consumer Confidence: 118.6 v 115.4 prior
- (NZ) New Zealand Oct Building Permits M/M: +1.5% v -1.3% prior
China/Hong Kong
- Shanghai Composite opened -0.1%, Hang Seng +0.2%
- (CN) CHINA NOV MANUFACTURING PMI: 50.0 V 50.2E (lowest since July 2016); NON-MANUFACTURING: 53.4 V 53.8E
- (CN) US and China reportedly considering deal to de-escalate trade disputes; likely would focus on delaying US tariffs in return for China policy modifications on farm and energy product restrictions – press
- (CN) White House Adviser Navarro reportedly back on guest list for Trump-Xi dinner meeting – Chinese press
- (CN) China Finance Ministry (MOF): Confirms to adjust cross-border e-commerce import tax from 2019; to raise the annual cross border quota for individuals to CNY26K from CNY20K, effective Jan 1st 2019
- (CN) China State Planner: Coal producers and utility firms need to sign medium to long term contracts for 75% of coal supplies
- (CN) CHINA PBOC OPEN MARKET OPERATION (OMO): SKIPS V SKIPPED PRIOR (SKIPS DAILY OMOS FOR THE 26TH STRAIGHT SESSION AND ENTIRE MONTH OF NOV AS SPECULATED IN THE PRESS)
- (CN) China PBoC sets yuan reference rate: 6.9357 v 6.9353 prior
Japan
- Nikkei 225 +0.1%
- (JP) JAPAN OCT PRELIM INDUSTRIAL PRODUCTION M/M: 2.9% V 1.2%E (fastest growth since Jan 2015); Y/Y: 4.2% V 2.5%E
- (JP) JAPAN OCT JOBLESS RATE: 2.4% V 2.3%E
- (JP) Japan Nov Tokyo CPI Y/Y: 0.8% v 1.1%e; CPI Ex-Fresh Food (Core) Y/Y: 1.0% v 1.0%e
- (JP) Japan Government Spokesman Nishimura: No meeting decided between PM Abe and France President Macron at this stage; important for Nissan and Renault to keep stable alliance
South Korea
- Kospi opened +0.1%
- (KR) BANK OF KOREA (BOK) RAISES RATES BY 25BPS TO 1.75% (AS EXPECTED), first rate hike since Nov 2017; rate decision was not unanimous, two board members voted to keep rates unchanged
- Bank of Korea Gov Lee: Today’s rate hike, along with government measures, to help ease financial imbalances.
- (KR) SOUTH KOREA OCT INDUSTRIAL PRODUCTION M/M: 1.0% V 1.1%E; Y/Y: 10.7% V 6.9%E
North America
- (US) FOMC MINUTES FROM NOV 8TH MEETING: ALMOST ALL SEE ANOTHER RATE INCREASE WARRANTED ‘FAIRLY SOON’; FUTURE POLICY STATEMENTS TO EMPHASIZE IMPORTANCE OF INCOMING DATA
- (CN) Pres Trump: I’m close to ‘doing something’ with China’
Europe
- (UK) UK PM May: Focused on Dec 11 Vote [asked if she has a plan B if UK Parliament rejects Brexit deal]; If lawmakers reject Brexit deal, will prepare for no deal
Levels as of 01:30ET
- Nikkei 225, -0.1%, ASX 200 -1.6%, Hang Seng +0.4%; Shanghai Composite +0.2%; Kospi -0.8%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.4%
- EUR 1.1401-1.1383 ; JPY 113.49-113.34 ; AUD 0.7327-0.7311 ;NZD 0.6880-0.6855
- Feb Gold flat at $1,230/oz; Jan Crude Oil +0.4% at $51.66/brl; Feb Copper +0.3% at $2.798/lb
