General Trend
- Decliners in Australia include Energy, Resource and Financial firms ; Treasury Wine dropped over 11% on China’s move
- Topix Banks and Air Transportation indices decline, automakers also drop; Real Estate index rises amid M&A speculation, drugmakers also gain
- Shanghai Composite traded flat during morning session; Financials rose, Telecom Services firms declined [ZTE dropped]
- China confirmed it will collect anti-dumping duties related to Australian wine; Little initial impact seen on AUD/USD
- BOJ might release its Dec bond buying plan later today
Headlines/Economic Data
Australia/New Zealand
- (AU) Australia sells A$1.5B v A$1.5B indicated in 0.50% Sept 2026 bonds, avg yield 0.3988% v 0.3937% prior, bid to cover 4.0x v 4.5x prior
- (AU) Australia Debt Agency (AOFM): Final bond and note tenders for 2020 to be held during the week of Dec 7th
- (NZ) New Zealand Treasury: Retail sales data is an upside risk to GDP forecast
- (NZ) New Zealand Nov Consumer Confidence: 106.9 v 108.7 prior
China/Hong Kong
- (CN) China Oct Industrial Profits Y/Y: +28.2% v 10.1% prior (6th straight rise)
- (CN) China PBoC Quarterly Monetary Policy Report: Reiterates stance to maintain prudent monetary policy that is more flexible and targeted; Reiterates stance that market to play decisive role in Yuan exchange rate mechanism
- (CN) China Finance Ministry (MOF) Sells 1-Month Deposits at 2.95% v 2.75% prior
- JD Health: Retail portion of IPO said to be 53.8x oversubscribed thus far – Press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY120B in 7-day reverse repos v Injects CNY80B in 7-day reverse repos prior; Net inject CNY40B v Net inject CNY10B prior
- (CN) China PBOC sets Yuan reference rate: 6.5755 v 6.5780 prior
Japan
- (JP) JAPAN NOV TOKYO CPI Y/Y: -0.7% V -0.5%E; CPI (EX-FRESH FOOD) Y/Y: -0.7% V -0.6%E (Largest drop in Core and Headline CPI since 2012)
- Tokyo Dome [9681.JP]: Says not the source of report about tender offer; Mitsui Fudosan board to discuss Tokyo Dome bid at meetings today (Nov 27th)
- (JP) Tokyo Govt prices ¥60B v ¥60B indicated in 0.01% 5-year bonds
- (JP) Japan LDP Party calls for extension of 0% loan scheme through March 2021; Confirms to call for Govt to promote electric vehicles and battery development; calls to create state backed loan guarantee schemes to support companies hit by coronavirus – Draft
- (JP) BOJ ETF holdings had ¥5.8T in paper gains at the end of Sept; End of Sept BOJ Net Income ¥928.8B
- (JP) Japan Fin Min Aso: Extra budget must also help change the Post coronavirus economy; No decision made on cash handouts to single parents
- (JP) Japan MOF sells ¥3.0T v ¥3.0T indicated in 0.1% 2-year JGBs: avg yield: -0.1390% v -0.1300% prior, bid to cover 3.21x v 3.98x prior
Korea
- (KR) South Korea CDC: South Korea to see coronavirus cases between 400-600/day through early Dec; Current surge may subside by next week
- (KR) South Korea said to make decision on social distancing rules on Sunday, Nov 29th – Press
- (KR) North Korea said to have attempted a hack into South Korea coronavirus vaccine producers – Yonhap
North America
- (US) Pres Trump tweet: Just saw the vote tabulations. There is NO WAY Biden got 80,000,000 votes!!! This was a 100% RIGGED ELECTION; Conceding going to be a very hard thing to do; Will give up power if electoral college votes for Biden; Don’t want to talk about 2024 run yet.
- (US) President Trump calls for immediate termination of Section 230 code (In line)
- Arrow Electronics [ARW]: Says Asia unit has no ties to China military; In talks with US on a potential blacklisting, confident Asia unit will not face sanctions – US financial press
- Facebook [FB]: Said to launch cryptocurrency Libra in 2021 in a limited format – FT
Europe
- AstraZeneca [AZN.UK]: Said that the UK Govt has asked Drug regulator to assess Oxford and Astrazeneca coronavirus vaccine prior to shipping the vaccine; Medicines and Healthcare products Regulatory Agency (MHRA) is already reviewing the vaccine on a rolling basis. – Press
- AstraZeneca CEO said: likely to run new global trial on COVID-19 vaccine (from Nov 26th)
- (EU) ECB Panetta (Italy): There should be no doubt on inflation commitment; open to case-by-case resumption of bank dividends
Levels as of 00:20 ET
- Nikkei 225, +0.3%, ASX 200 -0.5% , Hang Seng -0.1%; Shanghai Composite +0.1% ; Kospi +0.1%%
- Equity S&P500 Futures: -0.1%; Nasdaq100 +0.2%, Dax flat; FTSE100 -0.2%
- EUR 1.1925-1.1907 ; JPY 104.28-103.92 ; AUD 0.7377-0.7352 ;NZD 0.7020-0.6997
- Gold flat at $1,805/oz; Crude Oil -1.7% at $44.95/brl; Copper +0.2% at $3.3647/lb
