Mixed Equity Trading Seen In Asia After Losses On Wall Street

Dec 06 21, 07:24 GMT

General trend

Hang Seng has declined by >1.4%;HK TECH index drops >2% amid delisting concerns related to the US; Evergrande said that there is no guarantee that the Group will have sufficient funds to continue to perform its financial obligations.
Shanghai Composite has outperformed and traded slightly higher; Property and Financial indices rise amid RRR talk, China 10-yr yield declines >4bps.
Nikkei has reversed the opening gain; Softbank Group continues to hit 52-week lows.
S&P ASX 200 pared drop; Energy and Consumer Staples indices rise.
US Natural Gas FUTs decline by over 6%.
RBA is due to meet on Tuesday (Dec 7th).
Taiwan Semi may report monthly sales later this week.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.3%.
(AU) Australia Treasurer Frydenberg: Will raise economic forecasts at the next mid-year budget update; The market is coming back strongly.
MTS.AU Reports H1 (A$) Net 146.6M v 129.6M y/y; underlying EBIT 231.2M v 203.0M y/y; Rev 7.15B v 7.1B y/y.
(NZ) NEW ZEALAND Q3 VOLUME OF ALL BUILDINGS Q/Q: -8.6% V -13.0%E.
(NZ) Reserve Bank of New Zealand (RBNZ) Dep Gov Bascand: Low net migration numbers could slow growth in housing prices; If house prices cooled down faster than expected, it could affect the Reserve Bank of New Zealand’s forecast for rapid interest rate rises next year – FT.

Japan

Nikkei 225 opened +0.1%.
(JP) Japan PM Kishida: WIll maintain a cautious stance on coronavirus policy; Fiscal health depends on economic growth.
6502.JP Certain shareholders said to have begun pressing board to renew buyout talks again – Press.
6502.JP Said to have turned away multiple offers to focus on splitting up the co – Press.
(JP) According to a recent Yomiuri poll approval rating for Japan cabinet is 62% v 56% in Nov.
(JP) Japan PM Kishida: WIll maintain a cautious stance on coronavirus policy; Fiscal health depends on economic growth, will take measures swiftly including curbing activities if COVID cases pick up again.

Korea

Kospi opened -0.5%.
(KR) South Korea PM: South Korea will focus on containment of the new coronavirus variant Omicron by increasing anti coroanvirus measures – Yonhap.

China/Hong Kong

Hang Seng opened -1.5%; Shanghai Composite opened +0.2%.
2608.HK Announces default on Dec 5th 2021 Senior Notes, have not gotten notice from creditors, having liquidity issues, pressures on China real estate lead to default.
2202.HK Reports Nov contracted property sales CNY43.2B v CNY57.5B y/y.
(CN) China PBOC sets Yuan reference rate: 6.3702 v 6.3738 prior.
(CN) China lender loans to real estate sector of the economy has risen q/q and ~CNY200B y/y.
(CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY90B v Net drain CNY90B prior.
(CN) China Sec Daily: China may cut RRR as soon as during Dec, cites brokerage firm.
(CN) US Defense Sec Austin concerned over scale and frequency of Beijing’s military incursions near Taiwan – FT.
(HK) Hong Kong Dec IPOs, which were expected to show a rebound, are off to a rocky start China Tourism Group Duty Free suspended its offering and SenseTime raising less than initially indicated.

Other

Hon Hai Precision, 2317.TW Reports Nov (NT$) Rev 621.7B -8.8% y/y.
(SG) Singapore Central Bank (MAS) warns financial sector that asset quality could be under pressure from economic impact of COVID wave and sharper than expected tightening of global financial conditions.
(US) Sec of State Blinken warns China, that any attempt to invade Taiwan would have “terrible consequences” – press.

North America

(US) NIH’s Fauci said the Biden Administration is considering lifting travel restrictions against noncitizens entering the US from several countries in Africa, said hopefully will be able to lift the ban in a quite reasonable period of time – US media.
JNJ Johnson & Johnson COVID-19 Booster (Ad26.COV2.S), Administered Six Months After Two-Dose Regimen of BNT162b2, Shows Substantial Increase in Antibody and T-cell Responses.
(US) President Biden to have a video call with Russia’s PM Putin on Tuesday (Dec 7th).
(CN) Expected that US will announce no officials to attend 2022 Winter Olympics in Beijing this week – Press.
9988.HK Appoints deputy CFO Toby Xu as CFO, effective Apr 1st 2022; CFO Maggie Wu steps down.
(CN) China Premier Li: To cut the RRR at the proper time (Friday US morning).

Europe

(UK) UK said to begin a trial on a ‘smart customs’ border in order to reduce frictions in trade, asks companies to submit bids to the pilot program – FT.

Levels as of 00:15ET

Hang Seng -1.4%; Shanghai Composite +0.1%; Kospi +0.4%; Nikkei225 -0.3%; ASX 200 +0.1%.
Equity Futures: S&P500 +0.5%; Nasdaq100 +0.1%, Dax +0.7%; FTSE100 +0.6%.
EUR 1.1314-1.1286; JPY 113.08-112.86; AUD 0.7027-0.6997; NZD 0.6761-0.6744.
Commodity Futures: Gold -0.1% at $1,782/oz; Crude Oil +2.3% at $67.78/brl; Copper +0.3% at $4.29/lb.