Asian Indices Open Mixed After Trading Generally Lower On Monday

Nov 12 19, 07:12 GMT

General Trend:

Hang Seng opened higher, but later pared gains amid continued weakness in the property sector
Shanghai Composite declines in early trading amid weakness in trade-sensitive sectors (IT and Telecom Services)
Gainers in Japan include Fast Retailing, financials and Softbank are among the decliners
Japanese companies expected to report earnings later today include Nissan Motor and JFE Holdings
ASX200 lags after Monday’s outperformance, declining sectors include financials and resources
NZD declines ahead of Wednesday’s RBNZ rate decision, 2-year inflation expectations drop to multi-year low
Westpac now expects RBNZ to cut rates at tomorrow’s meeting (previously saw rates on hold)
Trump is expected to speak at the Economic Club of New York on Tuesday

Headlines/Economic Data

Australia/New Zealand

ASX200 opened -0.3%
(AU) AUSTRALIA OCT NAB BUSINESS CONFIDENCE: 2 V 0 (FLAT) PRIOR; BUSINESS CONDITIONS: 3 V 2 PRIOR
(AU) Australia sells A$100M v A$100M indicated in 1.00% Feb 2050 indexed bonds: Avg Yield 0.3075%; Bid-to-cover 3.31x
(NZ) Reserve Bank of New Zealand (RBNZ) Q4 Inflation Expectation Survey: 2-year Outlook: 1.80% v 1.9% prior (lowest since early 2017)

China/Hong Kong

Shanghai Composite opened +0.1%, Hang Seng opened +0.5%
(CN) City of Shenzhen to remove home transaction tax related to some second-hand home transactions, move seen as an attempt to increase demand – China Press
(CN) China PBoC Open Market Operation (OMO): Skips for 12th consecutive session
(CN) China PBOC sets Yuan Reference Rate: 6.9988 v 6.9933 prior
(CN) China PBOC Advisor Sheng: China should cut rates but not use monetary flooding; suggests cutting the MLF and LPR rates are more helpful in lowering real financing costs vs RRR cuts – US Financial Press
(HK) Hong Kong protests cause significant traffic delays; police firing tear gas at protesters; at least nine universities have cancelled classes – financial press
(HK) US State Dept: Watching situation in Hong Kong with ‘grave concern’

Japan

Nikkei225 opened flat
(JP) Japan Business Federation (Keidanren) said to suggest an additional sales hike increase as an option – Nikkei
(JP) Japan govt is mulling changing its tax system to encourage M&A activity – Japan press
(JP) Japan Oct M2 Money Supply Y/Y: 2.5% v 2.4%e; M3 Money Supply Y/Y: 2.1% v 2.0%e
(JP) Japan MoF sells ¥700B v ¥700B indicated in 0.4% coupon 30-year JGBs, avg yield: 0.4580% v 0.3820% prior, bid to cover 3.66x v 3.87x prior

Korea

North America

(US) Pres Trump reportedly expected to delay auto tariff decision for six more months – Politico

Levels as of 00:20 ET

Nikkei 225, +0.4%, ASX 200 -0.3%, Hang Seng +0.2%; Shanghai Composite -0.2%; Kospi +0.3%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax flat; FTSE100 -0.1%
EUR 1.1039-1.1024 ; JPY 109.18-108.94 ; AUD 0.6855-0.6831 ;NZD 0.6369-0.6325
Gold flat at $1,457/oz; Crude Oil flat at $56.86/brl; Copper +0.2% at $2.667/lb