Asian Indices Trade Mixed with Various Markets Still Closed for Holiday

Asia Market Update: Asian indices trade mixed with various markets still closed for holiday; No ‘Christmas gift’ seen from North Korea

General Trend:

• Shanghai Property index rises over 2%, China plans to cancel guidelines related to household registration limits in smaller cities
• Jiugui Liquor rises over 3% in China, Chinese regulator said a banned artificial sweetener was not found in certain batches of products made by the company
• Gainers in Japan include Marine/Transportation and Financial companies
• Australia, New Zealand and Hong Kong markets remained closed today
• China overnight repo rate declines to 10 year low amid expectations for higher fiscal spending toward year-end
• Japanese officials comment on upcoming spring wage talks

Headlines/Economic Data

Australia/New Zealand

• ASX 200 closed

Japan

• Nikkei 225 opened 0.0%
• 8601.JP Since low rates are persisting, will expand real estate trust business – press
• 6758.JP According to VGChartz, PlayStation 4 has out sold the Xbox One this holiday season – US press
• (JP) Japan PM Abe told China Premier Li there will be no true improvement in bilateral relations without stability in the East China Sea – Japan foreign ministry
• (JP) Japan PM Abe: Has ‘high hopes’ for annual wage talks during the Spring; Japan wants to enter trade negotiations with the UK when it enters transit from the EU
• (JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates believes downside risks remain “large” for overseas economy; hope companies’ wage and price setting stance improves, wage growth and price gains still lack strength
• (JP) Japan Economy Min Nishimura: Would like to ask for cooperation on wages, continued wage growth is important
• (JP) Japan Investors Net Buying of Foreign Bonds: -¥927.6B v +¥521.9B prior week; Foreign Net Buying of Japan Stocks: +¥148.4B v -¥53.3B prior week
• (JP) JAPAN NOV ANNUALIZED HOUSING STARTS: 834K V 881KE; Y/Y: -12.7% V -7.8%E

Korea

• Kospi opened +0.1%
• (KR) Bank of Korea (BOK): Notes financial stability of households worsened despite slowing growth in debt – statement on financial stability
• 000720.KR Awarded KRW800B in contracts

Singapore

• (SG) Singapore Nov Industrial Production M/M: -9.4% v -0.3%e; Y/Y: -9.3% v -0.8%e

China/Hong Kong

• Hang Seng closed; Shanghai Composite opened 0.0%
• (CN) China said to plan CNY800B in railway investment in 2020, CNY1.8T in highway and waterway investment [in line with targets for 2019] Also said to plan CNY90B in civil aviation investment in 2020 – Chinese media
• (CN) China Foreign Ministry spokesperson Geng Shuang: Both sides’ economic and trade teams are in close communication about detailed arrangements for the deal’s signing and other follow-up work
• (CN) China PBOC sets Yuan Reference Rate: 6.9801 v 7.0067 prior (strongest since Aug 6th)
• (CN) China PBoC Open Market Operation (OMO): Skips reverse repos for the 3rd consecutive session; Net drain CNY30B v drain CNY50B prior
• (CN) Senior PBOC official Zou Lan said in 2020 China will step up monitoring of credit risks, stabilize market expectations and crack down on practice of dodging repayment obligations – Chinese press
• (HK) Hong Kong Chief Exec Lam: “Many members of the public and tourists coming to Hong Kong were naturally disappointed that their Christmas Eve celebrations have been ruined by a group of reckless and selfish rioters” – her FB
• (CN) China Nov outstanding local Govt bonds CNY21.1T v 21.2T prior
• (CN) China will announce 3-year action plan on SOE reform early 2020 – China Securities Journal
• (CN) China may publish draft of its first tariff law for public opinion in the near term, cites experts close to the Ministry of Finance – China Daily
• (CN) China Govt issues guidelines to help increase labor and talent mobility; Canceling guidelines related to household registration limits in smaller Chinese cities and relaxed the controls in bigger ones
• (CN) China Nantong city said to announce 5-year ban related to the sale of ‘cheap’ homes, the move is seen as an attempt to limit housing market speculation – financial press

North America

• (CN) US President Trump: We’ll be having a signing ceremony, yes. And we’ll be having a quicker signing because we want to get it done. The deal is done, it’s just being translated now
• (US) US looking into tactics to curb Russia interference in 2020 election – US press
• (US) Mastercard/SpendingPulse: US Nov 1-Dec 24th overall holiday retail sales (ex autos) +3.4% y/y to $880B; e-commerce sales hit a record high

Europe

• (UK) Chief Secretary to the Treasury Rishi Sunak expected to be promoted to run the new “economic super ministry” when the Cabinet reshuffles in Feb – FT
• (TR) Turkey President Erdogan spokesperson: US said they would not sell Patriots unless we get rid of Russia’s S-400s. It is out of question for us to accept such a precondition

Levels as of 00:20 ET

• Nikkei 225, +0.3%, ASX 200 closed, Hang Seng closed; Shanghai Composite +0.3%; Kospi +0.2%
• Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%
• EUR 1.1096-1.1088- ; JPY 109.57-109.31 ; AUD 0.6929-0.6913 ;NZD 0.6651-0.6628
• Gold +0.2% at $1,507/oz; Crude Oil +0.4% at $61.38/brl; Copper +0.5% at $2.839/lb