Equities generally decline amid press focus on China and COVID-19
|Asia Market Update: Equities generally decline amid press focus on China and COVID; CN markets lag, CNH drops; RBA Gov Lowe to speak on Tues evening [Nov 22nd].
General trend
- Beijing reports 2 COVID-related deaths for Sun [China's first COVID-related deaths since late May].
- Companies in Chongqing suspend production amid COVID curbs.
- Commodities and AU mining shares decline on China.
- CN Consumer stocks drop on COVID; Many shops and restaurants in Beijing's most populous district [Chaoyang] were shut - press.
- Macau Casino cos. trade sharply lower; Macau has strengthened coronavirus testing requirements for visitors from China.
- Chinese property firms decline. Disappointment with 5-year LPR decision?
- HK TECH index lags [JD.com and JD Logistics drop after issuing earnings].
- US equity FUTs erased gains.
- MYR declines amid hung parliament.
- South Korean officials move to stabilize money markets.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened flat.
- (NZ) NZIER RBNZ Shadow Board: majority view was that the OCR should increase by 75 bps [in line with consensus]; three members preferred a smaller OCR increase [next RBNZ decision is Nov 23rd (Wed)].
- (NZ) New Zealand Oct Credit Card Spending M/M: 1.0% v 0.7% prior; Y/Y: 24.8% v 34.1% prior.
Japan
- Nikkei 225 opened +0.3%.
- (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan PM Kishida Cabinet approval rating declines to 30.5% [new low] - ANN poll.
- (JP) Japan PM Kishida said to have removed Internal Affairs Minister – press.
- (JP) Japan Oct Tokyo Condominiums for Sale Y/Y: +34.7% v -11.9% prior.
Korea
- Kospi opened flat.
- (KR) The heads of the BOK, South Korea Finance Ministry, FSC and FSS have met every Sunday since the middle of Oct – South Korea press.
- (KR) Bank of Korea (BOK) Announces repo op, to supply KRW2.5T of liquidity to money markets using repo as part of plans made in Oct.
- (KR) Bank of Korea (BOK) Sells 3-month Monetary Stabilization Bonds (MSB): avg yield 3.350% v 3.350% prior.
- (KR) South Korea sells 5-year bonds: Avg yield 3.840% v 4.4600% prior.
China/Hong Kong
- Hang Seng opened -1.7%; Shanghai Composite opened -0.6%.
- (CN) China PBOC sets Yuan reference rate: 7.1256 v 7.1091 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY3.0B in 7-day reverse repos v CNY21B prior; Net drain CNY2.0B v net inject CNY9B prior.
- (CN) China PBOC monthly loan prime rate (LPR) setting: Maintains both1-year and 5-year rates (as expected).
- (CN) China Baiyun District in Guangzhou has been locked down through Nov 25th.
- (CN) China Shijiazhuang City [largest city in Hebei Province] to conduct mass coronavirus testing in certain areas; effective for 5 days from Mon.
- (CN) Beijing reports 2 COVID-related deaths for Sun [China's first COVID-related deaths since late May]; Many shops and restaurants in Beijing's most populous district [Chaoyang] were shut, schools in the area said classes would move online.
- (HK) Hong Kong Chief Exec Lee has tested positive for coronavirus.
- (CN) China Securities Journal: Reiterates PBOC monetary policy to be targeted.
- (CN) China PBOC sells total CNY25B in 3-month and 1-year bills in Hong Kong.
North America
- (US) Fed's Bostic (non-voter): Ready to move away from 75 bps hikes; Believe another 75 to 100 bps of tightening will be sufficient to rein in inflation over a reasonable time horizon (implies peak rate between 4.75-5.00%).
- (US) US Condemns Iran cross border missile and unmanned strikes in Erbil (Iraq) [Iran said to have struck Iranian Kurdish opposition group’s targets in northern Iraq on Sunday night].
Europe
- (UR) PM Sunak: Will provide Ukraine with £50M air defense package - comments from Kyiv.
- (IE) Ireland Nov Consumer Confidence: 45.3 v 46.1 prior.
Levels as of 00:20 ET
- Nikkei 225, flat, ASX 200 -0.2% , Hang Seng -2.2%; Shanghai Composite -0.8% ; Kospi -1.3%.
- Equity S&P500 Futures: -0.4%; Nasdaq100 -0.3%, Dax -0.5%; FTSE100 -0.3%.
- EUR 1.0333-1.0275 ; JPY 140.57-140.16 ; AUD 0.6684-0.6636 ;NZD 0.6169-0.6125.
- Gold -0.4% at $1,747/oz; Crude Oil -0.9% at $79.39/brl; Copper -1% at $3.6060/lb.
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