General Trend
- Japanese automakers trade generally higher amid earnings releases; TOPIX Iron/Steel index rises ahead of earnings from Nippon Steel; Financials also trade generally higher; Figures from Mitsui Fudosan weigh on the Real Estate index
- Toyota raised outlook (as speculated); Honda and Isuzu are due to report results later today; Nintendo pared gain amid raised outlook
- Consumer and Industrial firms are among the decliners in Shanghai; Kweichow Moutai drops over 1%
- Hang Seng TECH index declines, Alibaba declines after revenue miss; Financial and Property indices rise
- Resource and Consumer firms are among the gainers in Australia
- Macquarie Group rises over 2% following earnings report; Tabcorp rises over 15% on M&A speculation; CSR drops over 3% amid ex-dividend
- Aussie Trade Min addressed press speculation related to China possibly imposing some type of trade ban
- China is due to release its Oct trade balance data on Nov 7th (Saturday) [after Friday’s US market close]
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) Australia Trade Min Birmingham: Trade bans from China only Rumors, no one should jump to conclusions for now; Disappointing that China Authorities refuse to engage with Australia on Ministry level [responds to press speculation]
- Reminder: (AU) China said to verbally order traders to stop imports of 7 different commodity imports from Australia; effective Fri, Nov 6th; Goods including barley, sugar, wine will be barred from Nov. 6 (financial press from Nov 3rd)
- (AU) Australia APRA issues letter to banks: Announces A$35B reduction in committed liquidity facility between the RBA and local banks
- (AU) RESERVE BANK OF AUSTRALIA (RBA) STATEMENT ON MONETARY POLICY (SOMP): Reiterates prepared to expand bond buying if needed
- (AU) Australia Oct AiG Performance of Services Index: 51.4 v 36.2 prior
- (AU) Australia sells A$2.0B v A$2.0B indicated in 1.00% Dec 2030 bonds, avg yield 0.7482% v 0.7672% prior, bid to cover 5.1x v 6.4x prior
- (NZ) New Zealand Q4 Inflation Expectation Survey: 2-year Outlook: 1.6% v 1.4% prior
- (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$870M v NZ$870M prior in government bonds next week
- (NZ) New Zealand PM Ardern: Parliament will open on Nov 25th; Must be mindful of Majority of NZ citizens who opposed Cannabis reform
China/Hong Kong
- Hang Seng opened +0.2%, Shanghai Composite +0.2%
- (CN) China PBoC Vice Gov Liu Guoqiang: Current interest rate levels are appropriate; Need to consider policy adjustments as China policy recovers; Reiterates monetary policy will be more flexible and appropriate
- (CN) China PBOC sets Yuan reference rate: 6.6290 v 6.6895 prior (Strongest fix since July 11th 2018)
- Alibaba [9988.HK]: Reports Q2 $2.65 v $2.06e, Rev $22.8B v $23.0Be [from Nov 5th]
- (CN) China said to consider a 5% annual GDP growth target for the next five years – financial press [in line with speculation from Sept 23rd]
- (HK) Hong Kong Monetary Authority (HKMA): Will maintain peg against US dollar for monetary stability; PBoC will issue CNY25B in bills in Hong Kong on Nov 12th; Ample liquidity in banking system
- The China International Import Expo (CIIE) is being held in Shanghai (Nov 5-10th)
- (CN) China Commerce Ministry (MOFCOM): Expects Service Imports to reach $2.5T over the next 5-years
- (CN) China said to temporarily halt entry into country by Russian nationals holding visas
- (CN) China PBoC Open Market Operation (OMO):skip reverse repos v Injects CNY30B in 7-day reverse repos prior; Net drain CNY100B v Net drain CNY110B prior
- (CN) China PBoC Open Market Operation (OMO) Net drain CNY590B for the week v Net inject CNY190B w/w
Japan
- Nikkei225 opened -0.1%
- (JP) Japan PM Suga: Wants to refrain from comments on FX Rates; Stable FX Rate is important; Will respond appropriately on markets with close coordinations with overseas authorities
- (JP) Japan Senior LDP Politician Seko: 3rd Extra budget ~¥30T would be reasonable
- (JP) Japan Fin Min Aso: Need to comprehensively consider Japan income tax; BOJ ETF Purchases are part of Monetary policy
- (JP) Japan Hokkaido Prefecture said to close restaurants in Sapporo and to raise coronavirus alert as soon as Saturday (Nov 7th) due to spike in cases
- (JP) Japan Sept Household Spending Y/Y: -10.2% v -10.6%e
- (JP) Japan Sept Labor Cash Earnings Y/Y: -0.9% v -1.1%e; Real Cash Earnings Y/Y: -1.1% v -1.4%e (7th Consecutive decline)
Korea
- Kospi opened +0.3%
- (KR) South Korea said to institute new virus restrictions due to spiking daily case totals; the new measures will have 5 tiers and take effect on Saturday (Nov 7th) – South Korea press
North America
- (US) Arizona Sec of State: Approx 285K ballots to count – MSNBC [comments made at 21:33]
- (US) Pennsylvania Attorney General: Ballot count is continuing, should have results “soon”; Few thousand ballots were mailed in late [comments made at 20:12]
- (US) President Trump: A lot of votes arrived late; If you count the ‘legal’ votes, I easily win; Could be down a little bit in Georgia; I am on track to win Arizona
- General Motors [GM]: China Chief Julian Blissett: to consider exporting additional China-Made models; China sales strong, forecasts strong sales through end of 2020 – financial press
Levels as of 00:20 ET
- Nikkei 225, +1.2%, ASX 200 +0.8% , Hang Seng -0.2%; Shanghai Composite -0.7% ; Kospi -0.1%
- Equity S&P500 Futures: -0.6%; Nasdaq100 -1.1%, Dax -0.7%; FTSE100 -0.4%
- EUR 1.1846-1.1795 ; JPY 103.75-103.36 ; AUD 0.7290-0.7248 ;NZD 0.6789-0.6752
- Gold -0.3% at $1,940/oz; Crude Oil -2.7% at $37.72/brl; Copper -0.2% at $3.1063/lb
