General Trend:
- Hang Seng outperforms amid gains in property sector
- Shanghai Property and Financial shares rise after PBOC rate cut
- China said to bailout another bank linked to tycoon Xiao Jianhua
- Gainers in Japan include Real Estate and Electric Appliances companies
- Australian equities decline as financials drop
- RBA due to release Nov minutes on Tuesday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1% at 6,789
- (NZ) New Zealand Oct Performance of Services Index: 55.4 v 54.5 prior
China/Hong Kong
- Shanghai Composite opened -0.1%, Hang Seng +0.4%
- Harbin Bank [6138.HK]: Harbin Bank noted that certain private shareholders have been replaced by government investors, the transactions have an estimated value of ~CNY15.0B (~$2.1B); no reason was disclosed for the changes – US financial press
- (CN) Chinese Commerce Ministry: US and China had ‘constructive discussions’ about core concerns during teleconference among high level trade negotiators on Saturday morning
- (US) Reportedly US govt is preparing to extend licenses to allow US companies to use Huawei equipment, Trump is expected to issue a 2 week extension of the licenses – NYT
- (US) Commerce Sec Ross: China agricultural purchases and execution are an issue; Think both sides want to get a deal before Dec 15th tariffs go into effect (comments from Nov 15th)
- (CN) PBOC quarterly monetary policy report: PBOC will prevent rising inflation expectations from spreading; will fine tune policy based on economic and inflation conditions
- (CN) China PBOC cut rate on 7-day reverse repo by 5bps to 2.50% (first cut since 2015)
- (CN) China PBoC Open Market Operation (OMO): Injects CNY180B v skip prior in 7-day; Net CNY180B v skip prior
- (CN) China PBOC sets Yuan Reference Rate: 7.0037 v 7.0091 prior
- (HK) Hong Kong Polytechnic President: Reached deal with police to suspend use of force against protesters inside campus; fire under control – Hong Kong Press
- (HK) Hong Kong government spokesman said move by China PLA to clear debris and barricades left by protesters in HK on Saturday was initiated as a ‘voluntary community activity’ by the military – financial press
Japan
- Nikkei 225 opened flat at 23,304
- (JP) Japan Q3 Housing Loans Y/Y: 2.9% v 2.2% prior
Korea
- Kospi opened flat
Other Asia
- (SG) SINGAPORE OCT NON-OIL DOMESTIC EXPORTS M/M: -2.9% V -0.8%E; Y/Y: -12.3% V -11.0%E
- (TH) Thailand Q3 GDP Q/Q: 0.1% v 0.1%e; Y/Y: 2.4% v 2.6%e
North America
- (US) On Friday, USDA said it will start making the second round of the 2019 trade aid payments to US farmers this week; Trump said US farmers will receive another round of cash, compliments of China tariffs – financial press
- HP Inc [HPQ]: Board of Directors Unanimously Rejects Unsolicited Xerox Proposal, concluded the offer significantly undervalues HP; says open to exploring whether there is value for shareholders through a potential combination with Xerox
- (US) Fed’s Daly (dove, non-voter): low inflation despite low unemployment creates an opportunity for the economy (comments from Nov 16th)
Europe
- Saudi Aramco: Has set valuation for IPO at $1.6-1.7T [a range of $1.3-$2.27T had been speculated], the expected pricing range is SAR30-32/share [~$8.01-8.54]
Levels as of 00:20 ET
- Nikkei 225, +0.2%, ASX 200 -0.4%, Hang Seng +0.7%; Shanghai Composite +0.4%; Kospi -0.4%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.2%
- EUR 1.1066-1.1048 ; JPY 108.85-108.66 ; AUD 0.6821-0.6810 ;NZD 0.6408-0.6395
- Gold -0.1% at $1,466/oz; Crude Oil flat at $57.84/brl; Copper +0.2% at $2.642/lb
