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Equities Trade Generally Higher After US Gains, HK And CN Markets Trade Mixed After PBOC’s Easing

General trend

  • Speculation has now moved to China’s loan prime rates (LPRs) following RRR cut.
  • China’s Nov trade surplus missed ests amid higher imports.
  • RBA seemingly downplayed omicron.
  • US equity FUTs have remained higher; Intel rises during afterhours trading on Mobileye news.
  • Travel stocks trade generally higher.
  • Hang Seng has remained higher; TECH index rises after prior losses; HK property developers continue to announce stock offerings [Shimao Property, Logan Property].
  • Shanghai Composite traded slightly higher after the easing by the PBOC, the index later pared gains; Property index rises 2%, Financials also gain.
  • Nikkei 225 has extended its advance.
  • S&P ASX 200 also continued to move higher; Energy and Consumer Discretionary indices outperformed.
  • Reserve Bank of India (RBI) is due to hold policy meeting on Wed (Dec 8th).
  • Companies due to report during the NY morning include AutoZone, Conn’s, Designer Brands.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened +0.2%.
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 0.10%; AS EXPECTED; Omicron strain is a new source of uncertainty, but it is not expected to derail the recovery.
  • (AU) AUSTRALIA Q3 HOUSE PRICE INDEX Q/Q: 5.0% V 5.0%E; Y/Y: 21.7% V 16.8% PRIOR.
  • (NZ) Reserve Bank of New Zealand (RBNZ) annual Stress test results: Major stress event could make it difficult for banks to meet higher capital requirements, but show strengthening bank resilience from last year.


  • Nikkei 225 opened +0.8%.
  • (JP) Japan Oct Labor Cash Earnings Y/Y: 0.2% v 0.4%e; Real Cash Earnings Y/Y: -0.7% v -0.5% prior.
  • (JP) Japan Nov FX Reserves $1.41T v $1.40T prior.
  • 7201.JP COO Gupta: Will follow customer demand when deciding which regions to roll out electric vehicles, we are on a good path with profits and electrification – press.
  • (JP) Japan Fin Min Suzuki: FY25 primary balance target should be upheld, no need to consider a different target at this juncture – press.
  • (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.7% 30-year JGBs, Avg Yield: 0.6730% v 0.6830% prior, bid-to-cover: 3.21x v 3.45x prior.


  • Kospi opened 0.0%.
  • (KR) South Korea to front load more than 70% of budget in H1 of 2022 – Yonhap.
  • (KR) South Korea Oct Current Account (BOP): $5.6B v $10.0B prior (18th consecutive surplus); Balance of Goods (BOP): $7.0B v $9.5B prior.
  • 005930.KR To replace CEOs and business division heads; Appoints CFO, To merge mobile and consumer electronic divisions.

China/Hong Kong

  • Hang Seng opened +1.5%; Shanghai Composite opened +0.6%.
  • (CN) CHINA NOV TRADE BALANCE $71.7B V $82.1BE; Trade Balance with US: $37.0B v $40.7B prior.
  • (CN) CHINA PBOC CUTS OVERALL RESERVE REQUIREMENT RATIO (RRR) BY 50BPS; effective Dec 15th ; cut to release CNY1.2T liquidity into banking system (late session yesterday).
  • (CN) China PBOC to cut relending rate by 25bps to support SME and rural sector, effective Dec 7th – China Securities Times.
  • (CN) Shanghai Securities News: Property prices in China expected to remain ‘steady’ in 2022.
  • Kaisa Group, 1638.HK Said to have failed to deliver apartments and pay wages in Guangzhou – China Press.
  • (CN) China PBOC sets Yuan reference rate: 6.3738 v 6.3702 prior.
  • (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.
  • (HK) Hong Kong Chief Exec Lam: Travel between Hong Kong and China to begin with business groups.
  • (CN) China Govt Think Tank: Expects China GDP at 5.3% in 2022.

North America

  • INTC Confirms Intent to Take Mobileye Public; Will retain majority stake after IPO.
  • (US) Senate Minority Leader McConnell (R-KY): Will probably end up supporting reappointing Jerome Powell as Fed Chair.
  • TSLA CEO Musk: Company does not need federal tax credits; Cybertruck will move volume production to 2023.


  • (RU) US President Biden is considering options for potential Russia Invasion of Ukraine, including cutting Russia off of SWIFT payment system and restrictions on Russian bond trading.
  • (UK) Nov BRC Sales LFL Y/Y: +1.8% v -0.2% prior.
  • (HU) Hungary Central Bank Dep Gov Virag: Inflation will peak above ~7.0% in Nov, but decline will be slow starting in H2 2022; Will not hike rates weekly, but when needed. Central bank to act with sufficient force.

Levels as of 00:15ET

  • Hang Seng +1.8%; Shanghai Composite -0.1%; Kospi +0.5%; Nikkei225 +2.2%; ASX 200 +1.0%.
  • Equity Futures: S&P500 +0.3%; Nasdaq100 +0.3%, Dax +0.4%; FTSE100 0.0%.
  • EUR 1.1293-1.1276; JPY 113.68-113.40; AUD 0.7075-0.7039; NZD 0.6762-0.6737.
  • Commodity Futures: Gold -0.1% at $1,777/oz; Crude Oil +1.0% at $70.20/brl; Copper -0.4% at $4.32/lb.


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