AU bond yields declined after softer CPI data
|Asia Market Update: AU bond yields declined after softer CPI data; Weaker data seen out of CN, JP and KR [CN PMIs were terrible]; USD trades generally weaker ahead of month-end.
General trend
- China Health Authority: To shorten time between initial vaccination and booster shots to 3 months for elderly; To use big data to target seniors for COVID vaccination [from Nov 29th].
- Reportedly Japan govt considers tapping special account designated for FX interventions to help pay for planned increase in defense spending - Japanese press.
- Equity markets trade mixed.
- Quiet session seen thus far for Chinese equities after prior rally.
- Japanese equities remain modestly lower.
- Aussie REITs rose on CPI data.
- XPeng to report results after the HK close.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened flat.
- (NZ) New Zealand Nov ANZ Business Confidence: -57.1 v -42.7 prior.
- (AU) Australia sells A$700M v A$700M indicated in 4.50% Apr 2033 bonds; Avg Yield: 3.6213%; bid-to-cover 3.36x.
- (AU) Australia Oct Private Sector Credit M/M: 0.6% v 0.7% prior; Y/Y: 9.5% v 9.4%e.
- (AU) Australia Oct CPI Y/Y: 6.9% V 7.5%E.
- (AU) Australia Oct building approvals M/M: -6.0% V -2.0%E.
- (AU) Australia Q3 construction work done Q/Q: 2.2% V 1.5%E.
- (AU) Reserve Bank of Australia (RBA) Kearns Securitisation: Past, Present and Future: By early 2022, securities markets were beginning to resemble more ‘normal’ conditions.
Japan
- Nikkei 225 opened -0.5%.
- (JP) Japan Oct preliminary industrial production M/M: -2.6% V -1.8%E; Y/Y: 3.7% V 5.1%E.
- (JP) Reportedly Japan govt considers tapping special account designated for FX interventions to help pay for planned increase in defense spending - Japanese press.
- (JP) Japan Oct Annualized Housing Starts: 871K v 866Ke; Y/Y: -1.8% v +1.0%e.
Korea
- Kospi opened -0.4%.
- (KR) South Korea Oct Industrial Production M/M: -3.5% v -1.0%e (Fastest decline since May 2020); Y/Y: -1.1% v 0.1%e.
- (KR) South Korea Oct Cyclical Leading Index Change: -0.1 v -0.1 prior.
China/Hong Kong
- Hang Seng opened -0.4%; Shanghai Composite opened -0.3%.
- (CN) US White House Official Kirby: Don't want to see protesters physically harmed or coerced [was asked about the protests in China].
- (CN) China PBOC to sell CNY5.0B v CNY5.0B prior in 3-month Central Bank Bill Swap (CBS) today at 0.1%.
- (CN) China PBOC sets Yuan reference rate: 7.1769 v 7.1989 prior.
- (HK) Hong Kong Monetary Authority (HKMA) Yue: Reiterates no plan or need to change USD/HKD peg; No investment in crypto exchanges such as FTX and other platforms.
- (HK) HKMA: Hong Kong Exchange Fund Q3 investment loss HK$100.1B.
- (CN) China Nov manufacturing PMI (GOVT OFFICIAL): 48.0 V 49.0E (2ND consecutive contraction, 7-month low).
- (CN) China PBOC Open Market Operation (OMO): Sells CNY170B in 7-day reverse repos v CNY80B prior; Net inject CNY168B v net inject CNY78 prior.
- (CN) China Ministry of Finance (MOF) Sells 10-year bonds: avg yield 2.8892% v 2.8000%.
- (CN) China Oct Net Local Government Debt Issuance (CNY): 455.5B v 32.2B prior.
Other
- (SG) Singapore Oct Resident Deposits and Balances (S$): 536.2B v 533.3B prior.
- (SG) Singapore Oct M2 Money Supply Y/Y: 3.2% v 4.0% prior; M1 Money Supply Y/Y: -6.8% v -3.6% prior.
North America
- (US) Sept FHFA house price index M/M: +0.1% V -1.2%E; Q/Q: 0.1% V 3.7% PRIOR.
- (US) Sept S&P/case-shiller house price index (20-CITY) M/M: -1.24% V -1.20%E; Y/Y: 10.43% V 10.55%E.
- (US) Nevada reports Oct casino gaming Rev $1.28B, +4.8% y/y, Las Vegas strip Rev $705.8M, +0.5% y/y.
- (US) Nov consumer confidence: 100.2 V 100.0E.
- (US) Dallas Fed Nov Texas Service Sector Outlook Survey: General Business Activity: -11 v -13.6 prior.
- Reportedly OPEC+ likely to stick with existing policy at the Dec 4th meeting, though could consider a further output cut - press.
- (US) Speaker Pelosi (D-CA): Will have a bill on the House floor tomorrow that aims to resolve the rail dispute; House has the votes to avert a rail strike.
- (US) Fed Discount Rate Minutes: 9 of 12 Fed regional banks sought 75bps discount rate hike, 3 boards favored 50bps.
Europe
- (UK) Nov Lloyds Business Barometer: 10 v 15 prior.
- (UK) Nov BRC Shop Price Index Y/Y: 7.4% v 6.6% prior.
Levels as of 00:20 ET
- Nikkei 225, -0.4%, ASX 200 +0.4% , Hang Seng +0.8%; Shanghai Composite +0.1% ; Kospi +1.1%.
- Equity S&P500 Futures: +0.2%; Nasdaq100 +0.2%, Dax +0.6%; FTSE100 +0.4%.
- EUR 1.0360-1.0319 ; JPY 138.94-138.44 ; AUD 0.6707-0.6670 ;NZD 0.6230-0.6189.
- Gold +0.3% at $1,753/oz; Crude Oil +1.2% at $79.06/brl; Copper +0.1% at $3.6510/lb.
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