Tech Sector Rises After Nasdaq, Financials Decline

Nov 12 20, 06:53 GMT

General Trend

Financial and Property firms trade generally lower in Shanghai and HK; Tech firms rise after prior decline
Financials trade generally weaker in Japan after prior gain, Mitsubishi Estate declines over 5% after earnings; Mizuho Financial is expected to report after the market close; Topix Information/Communication index rises after Nasdaq gain
Energy and Financial firms declined in Australia after recent gains; NAB drops on ex-dividend; Telecom index rises on Telstra
China/AU relations appear to weigh on business deal (Woodside Petroleum), China also takes aim at logs from Australia
Overnight SHIBOR rises to mid-Jan high ahead of PBOC MLF operation on Nov 16th (Monday)
ASB raises minimum deposit for property investors in NZ after recent RBNZ meeting
Japan Econ Min Nishimura: rising trend in [virus] cases has become clearer, Japan may need more stringent virus measures if trend continues
22nd China Hi-Tech Fair (CHTF) is being held in Shenzhen on Nov 11-15th

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(AU) China to impose additional quarantine requirements on Australia log shipments
-TLS.AU Gives strategy update: To restructure into 3 legal entities by Dec 2021; Affirms FY21 outlook
BAM.A.CA Launching Dalrymple Bay Infrastructure IPO in Australia for at least A$656M at A$2.57/shr, implied enterprise value of A$3.07B; IPo expected Dec 10th – AFR
(NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: Less stimulus now required than thought in August; Will respond if funding for lending program doesn’t delivery enough stimulus
(NZ) New Zealand Debt Management Office (DMO) sells NZ$600M v NZ$600M indicated in 2023, 2029 and 2033 bonds

Japan

Nikkei 225 opened +0.4%
(JP) JAPAN SEPT CORE MACHINE ORDERS M/M: -4.4% V -1.0%E; Y/Y: -11.5% V -12.0%E
(JP) Japan Oct PPI (CGPI) M/M: -0.2% v -0.1%e; Y/Y: -2.1% v -2.0%e
(JP) Reportedly Japanese Airlines Assoc is seeking govt support for the next FY21/22 – Japanese press
(JP) Japan Investors Net Buying of Foreign Bonds: ¥1.37T v ¥72.1BT prior; Foreign Net Buying of Japan Stocks: +¥485.5B v -¥212.7B prior
(JP) Bank of Japan (BOJ) Official Adachi (new Board member): Need to keep accomodative policy stance, need to watch economic development carefully
(JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.10% 5-year JGBs; avg yield -0.1050% v -0.0910% prior, bid to cover 3.5x v 4.9x prior

Korea

Kospi opened -0.1%
(KR) South Korea Exports Prices Y/Y: -6.4% v -6.2% prior (3rd consecutive decline); Import Prices Y/Y: -11.6% v -11.5% prior
(KR) South Korea FSC looking at lifting short selling ban in March 2021 – Korean press
(KR) South Korea President Moon could conduct Cabinet reshuffle in Dec – Korea Press
(KR) South Korea Vice Fin Min Kim: FX volatility may rise in the short term after the US Election; Policies of new US Govt may be positive for equities

China/Hong Kong

Hang Seng opened +0.7%; Shanghai Composite opened +0.1%
(CN) China PBoC Open Market Operation (OMO): Injects CNY120B in 7-day reverse repos v Injects CNY150B in 7-day reverse repos; Net inject CNY90B v Net inject CNY30B prior
(CN) CHINA OCT NEW YUAN LOANS (CNY): 689.8B V 775.0BE
(CN) CHINA OCT M2 MONEY SUPPLY Y/Y: 10.5% V 10.9%E
(CN) CHINA OCT AGGREGATE FINANCING (CNY) 1.420T V 1.400TE
(CN) China targeting to have 50% of all new vehicles with partial self driving technology by 2025 – Sina
(CN) China PBOC sets Yuan reference rate: 6.6236 v 6.6070 prior
(CN) China Oct Vehicle Sales Y/Y: 12.5% v 12.8% prior
(CN) China sells CNY25B in 3-month and 1-yr bills in Hong Kong

Other

ST.SG Reports H1 (S$) Net +466.1M v -127M y/y; EBITDA 1.9B v 2.4B y/y; Rev 7.4B v 8.3B y/y

Europe

(UK) PM Johnson senior aide Lee Cain has resigned as communications director despite being offered role of Chief of Staff – press
(UK) Oct RICS House Price Balance: 68% v 54%e (highest since 1999)

Levels as of 12:15ET

Hang Seng -0.2%; Shanghai Composite -0.2%; Kospi -0.4%; Nikkei225 +0.3%; ASX 200 -0.5%
Equity Futures: S&P500 -0.6%; Nasdaq100 -0.4%, Dax -0.9%; FTSE100 -0.9%
EUR 1.1788-1.1767; JPY 105.47-105.19; AUD 0.7294-0.7268; NZD 0.6915-0.6873
Commodity Futures: Gold +0.4% at $1,869/oz; Crude Oil +0.3% at $41.59/brl; Copper +0.1% at $3.13/lb