General Trend
- Topix Information/Communication and Marine Transportation indices are among the gainers in Japan, automakers also rise after recent earnings/guidance; Softbank Group rises over 3% amid the general strength in Tech, expected to report earnings after the market close; Japan Airlines weighs on the Air Transportation index
- Gainers in Australia include Telecom, Resources and Consumer firms; Financials lag, ANZ declines amid ex-dividend
- Hang Seng TECH index rises over 4%, Finance index rises over 1.4%; Will these companies see less trade-related risks under a Biden administration?
- Financial and Tech firms also outperform in Shanghai; ZTE rises over 7% [above avg volume]
- USD weaker as Joe Biden named winner in US Presidential election over the weekend, equities expected to be stronger as futures rise over the Asia session
- Commodity currencies outperform, track gains in equity and commodity prices; Offshore yuan (CNH) also rises
- China reported mixed trade balance components in Oct
- The China International Import Expo (CIIE) is being held in Shanghai (Nov 5-10th) [China issued data related to trade deals that were signed following last year’s expo]
- Topics at the BOJ’s Oct policy meeting included deflation, ETF purchases, call rates and longer-end of the yield curve (Summary of Opinions)
- Japanese officials acknowledge the recent uptick in coronavirus cases in the Hokkaido Prefecture
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.5%
- FMG.AU Signs total 12 MOU with China Steel mill procurement partner at China international import expo, cumulative value $3.0-4.0B
- CWN.AU Given approval to start limited gaming operations in Victoria; Gaming operations are expected to commence from Thursday Nov 12th; Ceased operations in UK starting on Nov 5th
- (NZ) RBNZ buys NZ$340M v NZ$215M prior in government bonds as part of QE v N$340M sought
- (AU) Reserve Bank of Australia (RBA) Off
- (NZ) New Zealand Fin Min Robertson: Small Business loan program has been extended 3-year; Had broad general catch up with RBNZ Gov Orr
Japan
- Nikkei 225 opened +1.0%
- (JP) Bank of Japan (BOJ) Oct Summary of Opinions: BOJ must respond swiftly, appropriately as needed while in close cooperation with Govt and major central banks; desirable to guide 10-yr JGB yield around 0%, while allowing for longer end of yield curve to steepen at moderate pace
- (JP) Japan PM Suga: Sends congratulations to Biden for victory in US election, wants to arrange a call with Biden
- (JP) Japan Chief Cabinet Sec Kato: Recognizes Biden as winner of US Election; Wants to communicate closely with US to exercise leadership of both countries for a free indo-pacific region
- (JP) Japan Finance Ministry (MOF) Official: Stability in Currency in important to continue watching FX with sense of urgency
Korea
- Kospi opened +0.9%
- (KR) South Korea Oct Foreign Investors in stocks +KRW1.35T (2nd consecutive monthly buying) – Yonhap
- (KR) South Korea Foreign Min Kang arrives in the US today to talk about pending bilateral and regional issues with Sec of State Pompeo after US elections – Yonhap
China/Hong Kong
- Hang Seng opened +1.7%; Shanghai Composite opened +0.5%
- (CN) CHINA OCT TRADE BALANCE: $58.4B V $45.8BE; Exports Y/Y: 11.4% v 8.9%e (fastest pace in 19 months); Imports Y/Y: 4.7% v 8.8%e; Trade Balance with the US: $31.4B v $30.8B m/m; Exports to US $43.8B, +22.5 y/y; Imports from US $12.5B, +33.4% y/y
- (CN) CHINA OCT TRADE BALANCE (CNY-DENOMINATED): 401.8B V 332.7BE; Exports Y/Y: 7.6% v 6.5%e; Imports Y/Y: 0.9% v 6.3%e
- (CN) CHINA OCT FOREIGN RESERVES: $3.13T V $3.14TE (2nd consecutive decline)
- (HK) Hong Kong Chief Exec Lam: Have full support of China central Govt to integrate into national development; not able to secure border opening between HK and China, must bring COVID under control – comments after her trip to China
- (CN) China PBOC sets Yuan reference rate: 6.6123 v 6.6290 prior (Strongest since June 28th of 2018)
- China PBoC Open Market Operation (OMO): skips reverse repos v skips prior; Net drain CNY50B v Net drain CNY100B prior
- (CN) China national adviser: China will seek to renegotiate trade deal with President elect Biden; unlikely Biden can do anything that could be construed as being soft on China – SCMP
Other
- (SG) Singapore implemented a moratorium on new data centers due to electricity consumption and its effect of raising short term rates – Singapore press
North America
- AP, Fox News, NBC and CNN say Joe Biden is the winner of the Presidential election after calling Pennsylvania in his favor with its 20 electoral votes
- TSLA Said to be planning 2021 vehicle production at Shanghai gigafactory of 550K units v 150K planned for 2020 – local press
- (US) President Trump has no conceded Presidential election to Biden who was declared the winner after securing Pennsylvania
- (CA) Canada Transport Min Garneau: Canada is ready to start talks with major airlines, airports and aerospace sector this week about financial assistance due to impact of COVID, support could come in the form of loans or other support – press
Europe
- (UK) EU chief Brexit Negotiator Barnier: Very happy to be back in London and work continues – press
- (TR) Turkey Pres Erdogan removes central bank Governor Uysal; Minister of Finance Naci Agbal appointed as new governor of central bank
- (TR) Turkey Fin Min Albayrak has resigned citing health issues (2nd surprise departure recently)
- (FR) France far left leader Melenchon to run for President in 2022 if he receives enough public support
- DBK.DE Rejected request from ECB to suspend part of its leveraged finance operations, over concerns about lax risk monitoring, until ECB could approve new risk monitoring plan – FT
- (DE) Germany considering delaying $4.0B tariff strike on US; EU said to be looking to ‘reboot’ trade relationship with US in a ‘post Trump’ environment – US financial press
Levels as of 12:15ET
- Hang Seng +1.7%; Shanghai Composite +1.9%; Kospi +1.4%; Nikkei225 +2.5%; ASX 200 +1.8%
- Equity Futures: S&P500 +1.8%; Nasdaq100 +2.7%, Dax +1.7%; FTSE100 +1.2%
- EUR 1.1896-1.1881; JPY 103.48-103.19; AUD 0.7298-0.7268; NZD 0.6816-0.6785
- Commodity Futures: Gold +0.6% at $1,962/oz; Crude Oil +2.6% at $38.09/brl; Copper +0.8% at $3.18/lb
