Equity markets in Asia generally track recent US declines
|Asia Market Update: Equity markets in Asia generally track recent US declines, markets later pare losses; The Mitsubishi Conglomerate remains in the headlines in Japan
General Trend:
- Energy shares drop following declines in oil prices on Tuesday’s session
- Japanese megabanks trade lower
- Asian tech shares rise, pare some of the recent losses
- Mitsubishi Electric declines over 5%, said to have shipped certain rubber products without inspection (Japanese Press)
- Nissan and Mitsubishi Motors rise after Tuesday’s declines; Situation related to the Nissan Chairman still fluid
-US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn't modified its unfair trade practices - USTR report
- Renewed press speculation that the China PBoC will continue to not follow rate hikes by the US Fed
- Crude Oil rises over 1.9% after declines on Tuesday
Headlines/Economic Data
Japan
- Nikkei 225 opened -1.4%
- Mitsubishi Electric, 6503.JP Said to have shipped certain rubber products without inspection - Japanese Press; Late denies press report: no quality issues with unit's rubber products
- Honda, 7267.JP To recall ~107K Odyssey units in the US in relation to door latch - US financial press
- 8233.JP Planning to issue ¥60B in convertible bonds overseas [-15%]
- Nissan, 7201.JP Said to consider revising alliance with Renault, including stake - Local Media
Korea
-Kospi opened -1.2%
- (KR) South Korea and US held working group on North Korea in Washington DC, discussed UN Security Council resolutions
- (KR) South Korea holding public hearing today on trade deal with UK, in a move to cushion risks posed to Korean firms doing business in the UK after Brexit - Korean press
- (KR) South Korea Nov 1-20 Exports Y/Y: +5.7% v 26.0% prior; Imports Y/Y: 12.8% v 31.4% prior
- (KR) South Korea sells KRW1.8T in 2-yr Monetary Stabilization Bonds (MSBs) at 1.945%
China/Hong Kong
- Hang Seng opened -1.3%, Shanghai Composite -1.0%
- (CN) US Trade Rep Lighthizer releases report on China IP and tech transfers which says China hasn't modified its unfair practices
- 173.HK Expects the Hong Kong property market to become active again after March of 2019 - Local Press
- (CN) According to some analysts, the impact of the US/China trade tensions and higher costs of doing business have led to some concerns among investors regarding a 'flash crash' - HK Press
- (CN) China PBoC said to be less likely to lower money market rate due to foreign exchange concerns - China Securities Journal
- (CN) China PBoC Open Market Operation (OMO): v skipped prior (19th straight skip)
- (CN) China PBoC sets yuan reference rate: 6.9449 v 6.9280 prior
-(CN) Moody's: Expect China 2019 GDP to slow to 6% v 6.6% expectation in 2018
- (CN) Hebei (largest steel making province in China) issues second level pollution alert from Nov 22 - Local Media
-(HK) Official: No plan to ease property curbs at this time - press
Australia/New Zealand
- ASX 200 opened -1.2%
- APA.AU Australia Treasurer Frydenberg officially rejects CK's bid for APA; deal terminated
- WOW.AU Guides FY19 priorities mostly consistent with FY18; Customer and brand metrics to remain stable; Starting to build momentum into festive season - AGM
- (AU) Australia ACCC launches inquiry into supply of electricity in the National Electricity Market
-(AU) Australia sells A$1.0B v A$1.0B indicated in May 2030 bonds, avg yield 2.7486% v 2.729% prior, bid to cover 3.31x v 4.04x prior
- (NZ) Reserve Bank of New Zealand (RBNZ) Analytical Note: Expects labor force participation to remain broadly flat
- (AU) RBA Gov Lowe: Workers do not feel happy or confident about future prospects despite unemployment level
- (NZ) New Zealand Oct Credit Card Spending m/m: -0.1% v +0.8% prior; y/y: 6.3% v 7.8% prior
Other Asia
- (PH) China and Philippines sign deals relating to oil and gas exploration; signed a total of 29 deals on state visit - SCMP
North America
- (US) Pres Trump has submitted written responses to some of Special Counsel Mueller's questions, according to Trump attorney Rudy Giuliani - press
- (US) Outgoing Senator Corker (R-TN) demands President Trump make determination on the Saudi Crown Prince; Congress will consider law to push the President on Saudi Arabia
- TME Thought to be considering moving Tencent Music Entertainment Group IPO to early 2019 - US financial press
Europe
- (UK) PM May suggests that Brexiters' customs plan could be solution to Ireland boarder issue - press
- (ES) China President Xi Jinping is expected to visit Madrid (Spain) next week, infrastructure investment is expected to be a topic - HK Press
-(IT) Italy Fin Min Tria reiterates concerned about bond spread - Italy Press
Levels as of 12:50ET
- Hang Seng -0.2%; Shanghai Composite +0.3%; Kospi -0.3%; Nikkei225 -0.2%; ASX 200 -0.5%
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.5%; FTSE100 +0.7%
- EUR 1.1364-1.1379; JPY 112.65-112.94 ; AUD 0.7203-0.7236;NZD 0.6782-0.6807
- Dec Gold +0.1% at $1,222/oz; Jan Crude Oil +1.6% at $54.27/brl; Dec Copper +0.5% at $2.77/lb
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.