UST yields rise amid Powell
|Asia Market Update: General equity strength seen in Asia; US equity FUTs and WTI Crude rebound; UST yields rise amid Powell.
General trend
- USD rises versus JPY, EUR and CHF; Commodity currencies gain.
- Hang Seng index has outperformed and extended gains; Financial, Property and TECH indices rise; Casino names continued to be weighed down amid concerns related to SunCity.
- Nikkei 225 has traded modestly higher after the volatility seen earlier during the session.
- Little action seen for the Shanghai Composite during morning trading.
- S&P ASX 200 pared some of decline; Energy index rebounded, Resources index moved higher; Travel names lagged.
- Little reaction seen from the surprise contraction in the CN Caixin Mfg PMI.
- US ADP data due later today.
- Companies due to report during the NY morning include Donaldson, G-III Apparel, RBC.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.2%.
- (AU) AUSTRALIA Q3 GDP Q/Q: -1.9% V -2.5%E; Y/Y: 3.9% V 3.0%E.
- (AU) Australia Nov Final PMI Manufacturing: 59.2 v 58.5 prior (confirms 18th month of expansion).
- (AU) Australia sells A$1.0B v A$1.0B indicated in 4.50% Apr 2033 bonds, Avg Yield: 1.7480%, bid-to-cover 2.75x.
- (AU) Australia Treasurer Frydenberg: Omicron not likely to be the last variant to be confronted, midyear budget review to show budget repair ahead of schedule.
Japan
- Nikkei 225 opened +0.2%.
- (JP) JAPAN Q3 CAPITAL SPENDING (CAPEX) Y/Y: 1.2% V 1.5%E; CAPITAL SPENDING EX-SOFTWARE: 2.2% V 3.0%E.
- (JP) Japan Nov Final PMI Manufacturing: 54.5 v 54.2 prelim (highest since Jan 2018, 10th consecutive expansion).
- (JP) Bank of Japan (BOJ) Board Member Adachi: BOJ will scrutinize COVID developments and impact on corp finance in deciding fate of pandemic relief loan programs.
- (JP) Japan Chief Cabinet Sec Matsuno: Symptomatic contact of Omicron case has tested negative, no other issues have been reported from close contacts.
- (JP) Former Japan PM Abe: A China Military adventure would be economic suicide, a crisis in Taiwan would involve the US-Japan Alliance.
Korea
- Kospi opened +0.7%.
- 005490.KR Said to be considering splitting into a holding company and an operating company - Korean press.
- (KR) South Korea Nov Trade Balance: $3.1B v $2.0Be.
- (KR) The man who tested positive for coronavirus Omicron Variant in Japan had a layover in South Korea - Yonhap.
- (KR) South Korea has been asked to increase tax and R&D benefits for chip industry – press.
- (KR) South Korea Nov PMI Manufacturing: 50.9 v 50.2 prior (13th straight expansion).
- (KR) South Korea confirms record high 5,123 daily coronavirus cases.
China/Hong Kong
- Hang Seng opened +0.5%; Shanghai Composite opened -0.1%.
- (CN) CHINA NOV CAIXIN PMI MANUFACTURING: 49.9 V 50.5E (1st contraction in 3 months).
- (HK) Macau Nov Casino Rev (MOP) 6.75B v 4.37B prior; Y/Y 0.0% v 2.0%e.
- (CN) China Vice Premier Liu: 2021 GDP growth will exceed targets; China will keep continuity and stability of macro policies - Hamburg Summit video conference.
- 9899.HK Prices 16M share Hong Kong IPO at HK$205/shr v HK$190-220/shr indicated range.
- USD/CNY (CN) China PBOC sets Yuan reference rate: 6.3693 v 6.3794 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY100B prior; Net drain CNY90B v Net inject CNY50B prior.
- 1383.HK Said to have closed all VIP gaming rooms in Macau after the Chairman was arrested - Press.
North America
- TSLA Denies press report that production goal in Shanghai is 500K vehicles this year, confirms plan to localize more than 90% of its supply chain in Shanghai.
- (US) Weekly API Crude Oil Inventories: -0.7M v +2.3M prior.
- MRK US FDA panel votes (13 Yes; 10 No; 0 Abstain) in favor of approval of molnupiravir oral capsules for treatment of mild to moderate COVID-19 in adults who are at risk for progressing to severe COVID-19 and/or hospitalization - AMDAC Meeting.
Europe
- (UK) Nov BRC Shop Price Index Y/Y: +0.3% v -0.4% prior.
- (FR) France New Car Registrations 122.0K vehicles, -29.4% y/y.
Levels as of 00:15ET
- Hang Seng +1.5%; Shanghai Composite +0.1%; Kospi +2.2%; Nikkei225 +0.7%; ASX 200 -0.1%.
- Equity Futures: S&P500 +0.9%; Nasdaq100 +1.4%, Dax +0.7%; FTSE100 +0.6%.
- EUR 1.1343-1.1317; JPY 113.56-113.08; AUD 0.7169-0.7119; NZD 0.6859-0.6813.
- Commodity Futures: Gold +0.2% at $1,780/oz; Crude Oil +2.6% at $67.91/brl; Copper +0.8% at $4.35/lb.
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