Big Equity Losses Seen In Asia

Nov 26 21, 06:11 GMT

General trend

Commodity currencies decline on the lower oil and iron ore prices; ZAR drops over 1%; Gold FUTs rise.
Equity markets have generally extended declines.
US equity FUTs reversed gain, DOW FUTs lag; US markets to return from holiday.
Nikkei has declined by over 2.8%; Stronger yen weighs on automakers, Softbank Group declines amid the DiDi news.
Hang Seng has lost over 2%; Tencent drops amid continued regulatory concerns; Casino names drop after China/HK meeting on travel; Meituan is due to report results after the market close.
Property indices decline in Shanghai and HK; Fantasia and Evergrande have been in focus.
Shanghai Composite traded modestly lower during the morning session (-0.5%).
Australian Energy, Financial and Resources indices lag; travel names also drop.
WHO is due to meet on the new COVID variant.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.1%.
(NZ) Reserve Bank of New Zealand (RBNZ) Hawkesby: Affirms need to continue removing stimulus; sees risk inflation expectations could lift, inflation expectations will be key for the RBNZ.
(NZ) RBNZ Gov Orr to speak at Bank of Canada conference on Nov 30th (Tuesday).
(NZ) New Zealand Nov ANZ Consumer Confidence: 96.6 v 98.0 prior; M/M: -1.4% v -6.2% prior.
(AU) Australia APRA Finalizes guidance on financial risks on climate change; No new regulations or requirements are being instituted.
(AU) Australia sells A$1.5B v A$1.5B indicated in 0.25% Nov 2025 bonds, Avg Yield: 1.3087%, bid-to-cover 2.46x.
(AU) Australia Oct Retail Sales M/M: 4.9% v 2.2%e.

Japan

Nikkei 225 opened -0.6%.
(JP) Japan Nov Tokyo CPI Y/Y: 0.5% V 0.4%E; CPI (Ex-Fresh Food) Y/Y: 0.3% V 0.3%E (Fastest increase since July 2020).
(JP) Young households in Japan to be given low-energy home subsidies; the subsidy is expected to total up to ¥1M – Japanese press.
(JP) Japan PM Kishida said to seek ~3.0% wage increase in the Spring wage talks [shunto talks]; notes it has been years since a Japanese PM has set a numerical target for wages – Japanese press.
(JP) Japan to extend 5G investment tax deduction – Japanese press.
(JP) Japan Investors Net Buying of Foreign Bonds: -¥12.8B v +¥465.3B prior; Foreign Net Buying of Japan Stocks: -¥47.1B v +¥164.9B prior.
(JP) Moody’s affirms Japan A1 sovereign rating, outlook stable.
(JP) Japan Govt confirms it will convene extra parliament session on Dec 6th – Press.

Korea

Kospi opened -0.2%.
(KR) South Korea expected to announce additional quarantine steps on Nov 29th (Monday).

China/Hong Kong

Hang Seng opened -1.0%; Shanghai Composite opened -0.2%.
(CN) China PBOC sets Yuan reference rate: 6.3936 v 6.3980 prior.
(CN) China PBOC Open Market Operation (OMO): q33Sells CNY100B in 7-day reverse repos v CNY100B prior; Net inject CNY50B v Net inject CNY50B prior.
(CN) China may set the 2022 special bond issuance quota at CNY3.2T v CNY3.65T y/y – Chinese press.
(CN) China Economic Daily Commentary: Measures should be taken to secure grain supply, grain supplies expected to remain tight in the long-term.
(CN) China Economic Information Daily Commentary: Digital yuan (CNY) trial should be expanded after the Winter Olympics.
(HK) SCMP comments on Thursday’s travel talks between HK and China officials: Hong Kong Chief Sec Lee Ka-chiu said HK has meet the basic requirements to reopen the border with mainland China but must tighten certain COVID controls before quarantine-free travel can resume.
(CN) Japan and Vietnam to increase security cooperation in the South China Sea citing serious concerns – Press.
China said to have asked DiDi [DIDI] to delist from US Exchanges citing security fears – Press.
(CN) Beijing said to consider creating digital asset trading exchange – US financial press.
(CN) Shanghai has cancelled certain flights due to coronavirus – Chinese media.
(CN) China Ministry of Finance (MOF) Sells 3-month bills: avg yield 2.1027% v 2.1213% prior.

Other

(MX) Mexico Central Bank (BANXICO) Nov Minutes: Rate hikes could make supply chain shocks worse; Must rule out prolonged, aggressive cycle.
World Health Organization calls meeting of experts for later on Friday, Nov 26th to speak on whether to declare new coronavirus variant as a variant of concern.

North America

Europe

(EU) New COVID variant known as B.1.1.529 found in South Africa reportedly shows high number of mutations in spike – press.
(UK) UK has suspended flights to 6 countries in Africa on new COVID variant – press.

Levels as of 00:20 ET

Nikkei 225, -2.8%, ASX 200 -1.7% , Hang Seng -2.3%; Shanghai Composite -0.7% ; Kospi -1.7%.
Equity S&P500 Futures: -1%; Nasdaq100 -0.6%, Dax -2%; FTSE100 -1.8%.
EUR 1.1227-1.1206 ; JPY 115.40-114.59 ; AUD 0.7199-0.7133 ;NZD 0.6861-0.6817.
Gold +0.8% at $1,797/oz; Crude Oil -3% at $76.07/brl; Copper -0.8% at $4.4032/lb.