JGB yields rose on terrible bond auction – Equities track losses on Wall Street
|Asia market update: JGB yields rose on terrible bond auction; Equities track losses on Wall St.; Yen rises; BOJ Gov commented on rates; CN trade data was mixed.
General trend
- Higher FX reserves seen in Japan and Indonesia.
- Oil FUTs rise after prior plunge.
- Taiwan Semi to report monthly sales on Fri.
Headlines/economic data
Australia/New Zealand
- ASX 200 opens -0.1% at 7,169.
- RBA: Sarah Hunter has been appointed as the Chief Economist and Assistant Governor (Economic) at the Reserve Bank of Australia; effective Jan 29th.
- Australia Oct Trade Balance (A$): 7.1B v 7.5Be; Exports to China +3% m/m.
- S&P: Expects 'soft landing' for the Australia economy, this supports the AAA sovereign rating.
- Woodside [WDS.AU]: Said to consider merger with Santos [STO.AU] - Australian press.
- New Zealand sells total NZ$500M vs. NZ$500M indicated in bonds.
- 5-year Kauri bond sale by International Finance Corp was supported by RBNZ liquidity announcement – Press.
- New Zealand Treasury said to signal 2035 and 2054 bond syndicates before Jun 30th.
China/Hong Kong
-.Hang Seng opens -0.5% at 16,376.
-.Shanghai Composite opens -0.1% at 2,965.
-.China Nov trade balance: $68.4B V $54.9BE; exports Y/Y: +0.5% v 0.0%e [first rise since Apr]; Imports Y/Y: -0.6% v 3.9%e.
-.China college students set to break graduation record at 11.8M in 2024, rekindling fears on job market pressures - HK press.
-.China investors 'step up' buying of ETFs - Shanghai Securities News.
-.Foreign investors said to have increased China bond holdings in Nov by CNY250B; cites data from the PBOC - Shanghai Securities News.
-.China PCA: Nov Retail Passenger Vehicle Sales Y/Y: 25.0% v 10.2% prior; M/M +1.0%.
-.Hong Kong Monetary Authority (HKMA): lent HK$3.5B through the discount window on Wed [Dec 6th].
Japan
- Nikkei 225 opens -0.8% at 33,165.
- Bank of Japan (BOJ) Gov Ueda: Challenging situation remains; Options include raising rate applied to financial institutions' reserves at the BOJ, or revert to policy rate targeting overnight call rate; Whether to keep interest rate at zero or move it up to 0.1% will depend on economic and financial developments.
- Japan sells ¥900B in 30-year JGB bnds; AVG yield: 1.6230% V 1.7410% prior, bid-to-cover: 2.62x V 3.60X prior (lowest BTC since 2015).
- Japan MOF: Meeting with primary dealers suggested that 20-year JGB sales should be reduced.
- Japan Nov FX Reserves: $1.27T v $1.24T prior [highest since Aug 2022].
- Japan releases weekly flows data [period ended Dec 1st]: Foreign buying of Japan equities: -¥358.3B v +¥4.2B prior; Japan buying of foreign bonds: +¥64.5B v -¥84.5B prior; Foreign buying of Japan bonds: -¥710.4B v +¥864.1B prior.
- Japan Nov Tokyo Avg Office Vacancies: 6.0% v 6.1% prior.
Korea
- Kospi opens flat at 2,493.
Other Asia
- Indonesia Nov Foreign Reserves: $138.1B v $133.1B prior [multi-month high].
-Thailand considers tightening rules related to Baht-denominated bond sales by foreigners - Press.
North America
-(US) Nov ADP employment change: +103K V +130KE; Job-stayers pay growth lowest since Sept 2021; Sees more moderate hiring and wage growth in 2024.
-WTI crude futures dip below $70/bbl for first time since early July [from Dec 6th].
Europe
- (EU) Generative AI deal brings EU closer to passing landmark AI bill - EU press.
- China President Xi: China and EU should jointly tackle global challenges - China press.
- Iran Foreign Min: Coming days will be 'terrible' for Israel.
Levels as of 00:20 ET
- Nikkei 225, -1.9%, ASX 200 -0.1% , Hang Seng -1%; Shanghai Composite flat ; Kospi -0.1%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 flat, Dax -0.1%; FTSE100 -0.1%.
- EUR 1.0772-1.0758 ; JPY 147.38-146.64 ; AUD 0.6558-0.6525 ;NZD 0.6178-0.6112.
- Gold -0.3% at $2,042/oz; Crude Oil +0.6% at $/brl; Copper +0.7% at $3.7572/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.