General Trend
- Tech firms extend declines in HK and Shanghai; Financial and Property firms rise
- Japanese regional banks supported by new BOJ program, M&A
- Energy sector shines in Australia, Financials track the rise in 10-year yields
- NZD and bond yields rise after the RBNZ statement; no comments seen related to the timing of negative rates or the currency
- Australia 10-year yield rises to 1% (highest since Sept), NZ 10-year yield up over 11bps following RBNZ statement
- RBA is due to hold its next bond buying operation on Thursday (Nov 12th) [purchases of AGS with residual maturity of around 7 to 10 years are planned for Thursdays]
- New Zealand Debt Management Office (DMO) is also expected to sell a total of NZ$600M in 2023, 2029 and 2033 bonds on Thurs.
- South Korea’s chip exports accelerated during early Nov
- IC firms in Taiwan continue to raise prices (Digitimes)
- PBoC will issue CNY25B in bills in Hong Kong on Thurs (Nov 12th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.6%
- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 0.25%; (AS EXPECTED); to implement an Funding for Lending Program (FLP) in early December 2020; Progress made on deploying a FLP and a negative OCR
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Inflation and employment will be below target for a long time; Funding for Lending program worth NZ$28B; too early to tell on negative OCR – post rate decision press conference
- (AU) Australia Nov Consumer Confidence Index: 107.7 v 105 prior; M/M: 2.5% v 11.9% prior
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.0B in Semi Govt bonds v A$3.5B prior
- ABA.NZ NZ Bidco raises takeover offer to NZ$5.20/shr (prior NZ$4.75); Reports FY21 to date underlying EBITDA NZ$18.2M, +26% y/y; Rev NZ$155.8M, +7% y/y; no longer need a capital raise
Japan
- Nikkei 225 opened +1.0%
- (JP) Japan Chief Cabinet Sec Kato: Expects New Regional Bank program to contribute to strengthening regional bank capacity; Pleased with BOJ measures to help regional banks
- (JP) Bank of Japan (BOJ): Announces Supplementary Explanation for the Outline of “Special Deposit Facility to Enhance the Resilience of the Regional Financial System”; the move aims to strengthen the foundations of regional banks (yesterday after the close)
- 6502.JP Reports H1 Net +¥3.5B v -¥145.2B y/y; Op ¥3.1B v ¥52.1B y/y; Rev ¥1.37T v ¥1.71T y/y
- 8308.JP Reports H1 Net ¥56.4B v ¥77.0B y/y; Offers ¥500/shr for Kansai Mirai [7321.JP], total deal value is ¥66.2B (yesterday after the close)
- Japan to extend the cap related to large event capacity until the end of Feb 2021 – Japanese press
Korea
- Kospi opened +0.3%
- (KR) South Korea Oct Unemployment Rate: 4.2% v 3.9% prior (6-month high)
- (KR) South Korea 2020 trade volume not expected to pass $1.0T due to pandemic and US/China trade dispute – Yonhap
- (KR) South Korea Nov 1-10th Exports Y/Y: +20.1%% v -28.8% prior; Imports Y/Y: +7.8% v -19.5% y/y; Exports to China +14.5% y/y
China/Hong Kong
- Hang Seng opened -0.3%; Shanghai Composite opened -0.2%
- (CN) Deals reached at the third China International Import Expo (CIIE) totaled $72.6B, +2.1% y/y – Xinhua
- (CN) China Official: Premature to talk about Biden Policies, need to wait
- (HK) Hong Kong Special Administrative Region (HKSAR) acting Chief Cheung: The so called sanctions imposed by the United States on four Chinese mainland and Hong Kong officials are barbaric interference in the affairs of Hong Kong and its motherland – Xinhua
- BYTEDANCE.IPO TikTok filed legal petition challenging Trump’s Aug 14th executive order requiring company to divest video app – press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos; Net inject CNY30B v Net drain CNY0B prior
- (CN) China PBOC sets Yuan reference rate: 6.6070 v 6.5897 prior
- (CN) China Banking and Insurance Regulator Vice Chair: Hopes RCEP can be signed on schedule; China attaches High Importance to risks in digital economy
- (CN) Spending on China Singles’ Day (Nov 1- 11th) Totaled $56B (record high) v $38.4B y/y
- (CN) China said to invest CNY800B on 5G tech over the next 5-year – China Daily
- 388.HK Reports Q3 (HK$) Net 3.4B v 2.2B y/y, EBITDA 4.2B v 3.0B y/y, Rev 5.31B v 3.99B y/y
North America
- LYFT Reports Q3 -$1.46 v -$0.89e, Rev $499.7M v $497Me
- DOX Reports Q4 $1.23 v $1.19e, Rev $1.05B v $1.03Be; divests OpenMarket for $300M cash; raises dividend by 9.9% to $0.36 from $0.3275 (implied yield 2.37%
- (US) Democratic challenger Cunningham concedes North Carolina Senate race to Republican Tillis – press
Europe
- (ES) Bank of Spain (BOS) chief economist Arce: ECB must act to fight off deflation
Levels as of 12:15ET
- Hang Seng +0.4%; Shanghai Composite +0.1%; Kospi +1.3%; Nikkei225 +1.9%; ASX 200 +1.7%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.5%, Dax -0.1%; FTSE100 -0.1%
- EUR 1.1833-1.1812; JPY 105.33-105.00; AUD 0.7319-0.7276; NZD 0.6904-0.6811
- Commodity Futures: Gold +0.2% at $1,880/oz; Crude Oil +0.9% at $41.73/brl; Copper +0.2% at $3.16/lb
