General Trend:
- Hang Seng outperforms for 2nd straight session as investors weigh recent Chinese monetary easing and protests
- Property developers extend gains in Hong Kong and Shanghai after recent move by PBoC to lower interbank rate, banks and tech shares also move higher in HK
- Softbank declines amid reports of New York AG probe into Wework
- South Korea Kospi underperforms as chipmakers drop, there have also been some reports about focus on the upcoming rebalancing of the MSCI indexes [All changes will be implemented as of the close of November 26, 2019]
- Hong Kong leader Lam plays down recent presence of China PLA soldiers in HK; China approved new police chief for HK
- China criticized HK’s High Court after the court ruled the mask ban is unconstitutional
- Japan ruling LDP party officials debate size of planned stimulus package
- According to analysts, PBOC expected to cut its 1-year loan prime rate (LPR) by 5bps on Wed (Nov 20th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- (AU) RESERVE BANK OF AUSTRALIA (RBA) NOV MINUTES: AGREED “CASE COULD BE MADE” FOR A RATE CUT AT THE NOV MEETING; RISK EXTENDED PERIOD OF LOW WAGE GROWTH COULD LOWER WAGE EXPECTATIONS, NORMS
- (NZ) Reserve Bank of New Zealand (RBNZ) Dep Gov Hawkesby: need to keep OCR at a low level for some time; very willing to provide more stimulus if needed
- (NZ) New Zealand Q3 PPI Input q/q: 0.9% v 0.3% prior; PPI Output q/q: 1.0% v 0.5% prior
- WPL.AU Narrows higher FY19 production 89-91 MMBOE (prior low end of 88-94) – investor day
- (AU) Australia ASX expecting 12 IPOs before the end of the year; IPOs to date are one of the worst so far since 2008 financial crisis – press
Japan
- Nikkei 225 opened -0.2%
- (JP) Bank of Japan (BOJ) Gov Kuroda: Economy is expanding moderately as a trend; Price momentum is being sustained to hit BOJ price target; BOJ does not see hitting 2% price target in 2021; Its possible to lower interest rates; Never said BOJ can cut rates unlimitedly and that BOJ has unlimited ammunition to ease – speaking to parliament
- 4508.JP Mitsubishi Chem offers ¥2,010/shr tender offer for drug-maker unit; deal valued at ¥492B (yesterday after the close)
- (JP) In Aug China Foreign Minister Wang Yi told Japan and South Korea not to deploy new intermediate-range missiles from the US – Japan Press
- (JP) Japan Lower House approves trade agreement with US
- (JP) Japan Econ Min Nishimura: Auto tariff removal was a prerequisite for trade talks, excluding autos goes against trade talks process
- (JP) Japan Senior LDP Official Nikai: Japan must compile a supplementary budget of ¥10T – Nikkei
- (JP) Japan Foreign Min Motegi: To early to name leader after Abe, honored if my name is mentioned as a future leader
- (JP) Japan Fin Min Aso: FY19 tax revenue may be smaller than estimated, less than ¥62.0T
Korea
- Kospi opened -0.5%
- 035420.KR South Korea FTC started process for abuse of market dominance – South Korea Press
- 005930.KR Analysts expect Q1 earnings to rebound due to recovery in chip market – Yonhap
- (KR) South Korea unification Min: US appears to be reviewing its options for successful denuclearization negotiations with North Korea – Yonhap
- (KR) Activity spotted at North Korea Yongbyon nuclear facility strongly suggesting the transport of radioactive materials
China/Hong Kong
- Hang Seng opened 0.0%; Shanghai Composite opened -0.2%
- (HK) Hong Kong High Court ruling on mask ban challenges authority of National People’s Congress (NPC) – Xinhua
- (CN) US Commerce Dept confirms 90-day Huawei waiver
- (CN) Agriculture orders and intellectual property ‘still big barriers to US-China trade deal’ – SCMP
- (HK) Hong Kong incoming police chief Chris Tang: Police force cannot end the city’s unprecedented social unrest on its own; wish local residents would condemn the violence their silence and tolerance only encouraged the masked radicals wreaking havoc; violence has come “very close to terrorism” – SCMP
- (CN) China PBOC sets Yuan Reference Rate: 7.0030 v 7.0037 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY120B v injects CNY180B prior in 7-day; Net CNY120B v CNY180B prior
- (CN) China National Development and Reform Commission (NDRC): Based upon changes to international oil prices, the raise retail prices of gasoline and diesel will rise by CNY70/tonne – China Press
- (CN) China Oct Foreign Direct Investment (FDI) Y/Y: 7.4% v 3.8% prior (overnight)
North America
- (US) SEPT NET LONG-TERM TIC FLOWS: China Total holding of US Treasuries: $1.10T v $1.10T prior
- NOW ServiceNow to join S&P 500; Thermo Fisher Scientific to join S&P 100
- (US) Fed’s Mester (hawk, non-voter): economy is doing well, US economic growth is basically around trend
- (US) President Trump: At my meeting with Jay Powell this morning, I protested fact that our Fed Rate is set too high relative to the interest rates of other competitor countries. In fact, our rates should be lower than all others (we are the U.S.). Too strong a Dollar hurting manufacturers & growth! – tweet
Europe
- TLG.DE Follow Up: Aroundtown offers stock transaction equal to 3.6 new Aroundtown shares per TLG share
- (DE) Germany Chancellor Merkel: Germany can generate growth with current budget policy – post Cabinet meeting comment (overnight)
Levels as of 00:20 ET
- Nikkei 225, -0.4%, ASX 200 +0.7%, Hang Seng +1%; Shanghai Composite +0.5%; Kospi -0.4%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 +0.2%
- EUR 1.1078-1.1062; JPY 108.71-108.45 ; AUD 0.6818-0.6784 ;NZD 0.6405-0.6361
- Gold -0.1% at $1,470/oz; Crude Oil -0.2% at $57.03/brl; Copper +0.1% at $2.621/lb
