JPY firmer on multi-month high in Japan prelim PMI

Economic Data

- (JP) JAPAN NOV PRELIM PMI MANUFACTURING: 52.8 V 52.4 PRIOR

- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 114.5 v 115.9 prior

- (KR) Bank of Korea (BOK): South Korea Q3 household debt increase by 3% or KRW34.5T (biggest increase on record) v 3% in Q2

- (VN) Vietnam Nov CPI Y/Y: 0.3% v 0.5%e; Core CPI y/y: 1.7% v 1.8% prior

Index Snapshot (as of 04:30 GMT)

- Nikkei225 +0.1%, S&P/ASX -0.8%, Kospi +0.2%, Shanghai Composite -0.7%, Hang Seng -0.7%, Dec S&P500 flat at 2,083

Commodities/Fixed Income

- Dec gold +0.3% at $1,070/oz, Jan crude oil +0.5% at $41.97/brl, Dec copper +0.1% at $2.02/lb

- GLD: SPDR Gold Trust ETF daily holdings fall 5.1 tonnes to 655.7 tonnes; Lowest since 2008

- (CN) PBoC to inject CNY10B in 7-day reverse repos (41st consecutive injection); Offer yield at 2.25%, unchanged from prior

- USD/CNY: (CN) PBoC sets yuan mid point at 6.3888 v 6.3867 prior; Weakest Yuan setting since Aug 31st

- (JP) BOJ offers to buy ¥300B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, ¥400B in 5-10yr JGBs

- (AU) Australia MoF (AOFM) sells A$200M in 2% 2035 Indexed Bonds; Avg yield 1.118%; bid-to-cover: 3.56x

Market Focal Points/FX

- Asian markets are mixed with a bearish tinge after modest selling on Wall St. Shanghai Composite is underperforming on the heels of IPO resumption for 10 companies announced overnight. Nikkei225 is marginally higher in spite of the modestly stronger JPY - USD/JPY is down about 30pips from the highs below 122.70. Other USD majors were trapped in narrow ranges - EUR/USD rebound capped around $1.0640, AUD/USD in a 20pip range around $0.72, and NZD/USD in a 30pip range above $0.65.

- Japanese Yen firmed on strength in November preliminary manufacturing PMI for Japan rising to 52.8 from 52.4. Resident economist said: "Data pointed to a substantial improvement in operating conditions at Japanese manufacturers. Growth in production accelerated to the sharpest since March 2014, while new orders increased at a marked rate." Also of note in Tokyo, Fin Min Aso said tax cuts would not be considered without replacement revenue after the cabinet draft announcing reduction in corporate tax rates.

- In China, securities regulator followed up the recent resumption of IPOs with a lift on the brokers' proprietary trading positions, allowing a net negative view. China state planner NDRC official reiterated intentions to boost consumption by pledging to increase product imports, mainly in new electronic equipment and daily consumer goods. Worries over the health of China financial system and credit market continue to be manifested in rising non-performing loans, with Sept-end ratio speculated to rise to 2% from 1.65% last year. Reports suggesting the NPL ratio will continue to rise for the balance of the year. China cabinet also promised to establish a time period under which it intends to address the 'zombie companies'.

Equities

US equities/ADRs:

- XRX: Carl Icahn discloses new 7.1% stake; plans to talk to management, may seek board seats - 13D filing; +7.1% afterhours

- DY: Reports Q1 $1.24 v $1.01e, R$659.3M v $626Me; +4.3% afterhours

- PANW: Reports Q1 $0.35 v $0.32e, R$297M v $280Me; +3.8% afterhours

- VRX: Pershing Square raises stake to 9.9% (up from 5.7% in Sept quarterly holdings), including call options for 12.5M shares - 13D filing; +3.7% afterhours

- POST: Reports Q4 $0.06 v $0.24e, R$1.31B v $1.36Be; flat afterhours

- YY: Reports Q3 $0.71 v $0.74e, R$234.4M, +48.9% y/y; -3.6% afterhours

- BRCD: Reports Q4 $0.26 v $0.24e, R$589M v $575Me; -5.0% afterhours

Notable movers by sector:

- Consumer discretionary: Skyworth Digital 751.HK +2.8% (H1 result); SA SA International Holdings 178.HK -0.4% (H1 result); Billabong BBG.AU -20.7% (guidance)

- Financials: Guotai Junan International Holdings 1788.HK +2.5% (Chairman absence related to regulatory probe); CITIC Securities 6030.HK -1.8%, Haitong Securities 6837.HK -0.6% (China allows negative positions for brokers' proprietary trading)

- Industrials: Qube Logistics QUB.AU -1.7% (Q1 result)

- Technology: Samsung Electronics 005930.KR +0.7% (reported to decrease R&D staff)

- Materials: BC Iron BCI.AU +2.0% (affirms guidance)

- Energy: PetroChina 857.HK +0.7% (asset sale speculation); Tianneng Power International 819.HK +6.1% ( possible spin-off); Oil Search OSH.AU -0.2% (guidance)

- Healthcare: Healthscope HSO.AU -6.4% (shareholder sells stake)

- Telecom: ZTE Corp 763.HK +2.1% (introduction of strategic investor)

- Utilities: Transurban TCL.AU -0.5% (acquisition and equity raising)