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Equities Generally Rise After Gains On Wall Street, China Inflation Data Is Due On Thurs

General trend

  • USD index declines.
  • Yuan trades at strongest level since May 2018.
  • AUD extends gain; Australian bond yields pared rise.
  • US equity FUTs have remained modestly higher in Asia.
  • Nikkei 225 has extended gains.
  • Hang Seng has pared the opening rise; Kaisa Group was halted amid default concerns; Weibo declined in HK debut.
  • Shanghai Composite extended gains during the morning session; Consumer firms rise ahead of inflation data; Property index lags after prior gains.
  • S&P ASX 200 has extended gains; Consumer Discretionary and Resources indices outperform.
  • RBA Gov Lowe is due to speak on Thurs at 10:05 PM GMT [Payments: the Future? – to Payments Summit 2021 – Online].
  • Companies due to report during the NY morning include Brown-Forman, Campbell Soup, CooTek, Thor Industries, United Natural Foods, Vera Bradley

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened +0.6%.
  • (AU) Australia Treasurer Frydenberg to announces reform to the “buy now, pay later”, crypto and digital wallets business later today (follows RBA study launched in late summer).
  • CBA.AU Subsidiary, Avanteos Investments, pleads guilty to 18 criminal charges for charging deceased superannuation members.


  • Nikkei 225 opened +1.2%.
  • (JP) JAPAN Q3 FINAL GDP Q/Q: -0.9% V -0.8%E; GDP ANNUALIZED Q/Q: -3.6% V -3.1%E.
  • (JP) According to a former Bank of Japan (BOJ) official, the BOJ is likely to scale down longer COVID aid (narrow the scope) but keep this more limited version in place for longer term – Japan press.
  • (JP) Japan Govt said to be considering tying tax incentives to wage increases, tax breaks for gas companies hit by reregulation – Press.
  • (JP) Japan Oct Current Account: ¥1.18T v ¥1.03Te; Adj Current Account: ¥1.03B v ¥999.2Be; Trade Balance (BoP): ¥166.7B v ¥128.8Be.
  • (JP) Japan PM Kishida: Capital gains tax revision is one option for distribution – speaking to parliament.
  • (JP) Japan Nov Eco Watchers Current Survey: 56.3 v 57.4e (highest since Nov 2013); Outlook Survey: 53.4 v 57.7e.
  • (JP) Japan Nov Bank Lending Y/Y: 0.6% v 0.9% prior; Bank Lending (ex-trusts) Y/Y: 0.5% v 0.8% prior.
  • (JP) Bank of Japan (BOJ) Official Amamiya: Watching impact of virus infection closely; Unclear how coronavirus variant will impact domestic and overseas economies; In light of Japan’s price situation, you can see the BOJ for now has no need to modify its massive monetary stimulus program.


  • Kospi opened +1.0%.
  • (KR) South Korea PM: South Korea to report >7.0K coronavirus cases (record high).
  • (KR) South Korea Fin Min Hong: Housing prices have markedly stabilized on the back of housing supply measures.

China/Hong Kong

  • Hang Seng opened +0.4%; Shanghai Composite opened +0.6%.
  • 9898.HK Hong Kong IPO opens -6.1% at HK$256.20/shr v pricing of HK$272.80/shr.
  • (CN) China companies’ IPOs in US to slow in short term, due to SEC rules – China Economic Daily.
  • (CN) China PBOC sets Yuan reference rate: 6.3677 v 6.3738 prior.
  • (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net drain CNY90B prior.
  • (CN) China MoF sells 2-year and 5-year bonds; Sells 2-year bond, avg yield 2.4576%; bid to cover 3.70x; Sells 5-year bond; avg yield 2.67%; bid to cover 3.33x.
  • (CN) China 2022 local government bond supply might remain ‘high’ amid spending to support growth [in line] – Chinese press.
  • (CN) Fitch: Sees mainland China 2022 GDP to slow to 4.8%, from 8.0% in 2021.


  • (TW) Taiwan Nov Trade Balance: $5.7B v $5.4Be; Exports Y/Y: 30.2% v 22.8%e (record high, yesterday after the close).
  • (SG) Singapore Central Bank (MAS) Economist Survey: Raises 2021 GDP to 6.9% (prior 6.6%); Raises 2021 core CPI outlook 0.9% (prior 0.7%).

North America

  • STT Blackrock to pull most of its $2.0T ETF assets in US from State Street and move them to Citigroup, JPMorgan, Bank of New York, to reduce its reliance on State Street’s custody services.
  • (US) Commerce Sec Raimondo: US and UK have not yet agreed to begin formal talks on steel trade.
  • (US) Senate Banking Panel to hold hearing on Stable Coins on Dec 14th.
  • AAPL Reportedly has told suppliers to accelerate iPhone production in Nov-Jan period; Supply chain woes will leave Apple about 15M units short of its 230M iPhone production plan set at the start of 2021 – Nikkei.
  • (US) House of Representatives passes bill to make passing debt limit bill quicker; the final vote was 222 to 212.


  • (UK) Govt considering a work from home plan (due to Omicron variant) for Christmas and New Years and any economic impact that may have – UK press.
  • NESN.CH Nestle cuts stake in L’Oreal to 20.1% at €400/shr; Initiates new CHF20B share buyback.

Levels as of 00:15ET

  • Hang Seng -0.2%; Shanghai Composite +0.8%; Kospi +0.3%; Nikkei225 +1.3%; ASX 200 +1.4%.
  • Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.0%; FTSE100 -0.1%.
  • EUR 1.1296-1.1264; JPY 113.62-113.36; AUD 0.7143-0.7115; NZD 0.6801-0.6769.
  • Commodity Futures: Gold +0.3% at $1,790/oz; Crude Oil -0.3% at $71.81/brl; Copper -0.1% at $4.34/lb.


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