Asian equities fall again as Trump fills out leadership team

Asia market update: Asian equities fall again as Trump fills out leadership team; Focus back on data with US Oct CPI tonight?

General trend

- Pres-elect Trump’s new Admin picks continue with both new and familiar faces. Reportedly wants his ex-Trade Rep Robert Lighthizer to be Trade Czar and confirms Elon Musk with Vivek Ramaswamy to lead Dept of Government Efficiency (DOGE). Nominates Pete Hegseth (another China hawk) as Secretary of Defense. Former WH Cabinet Sec Bill McGinley to return as White House Counsel. Names Kristi Noem [Gov of South Dakota] as pick for Secretary of Homeland Security. Names John Ratcliffe as CIA director (former Dir of National Intelligence in 1st Trump Admin).

- Equities continued their fall as global yields rise. Japan 5-year JGB yield trades at the highest since 2009 with JP 10-yrs +3.5bps to 1.045%.

- Hotter Japan Oct PPI and revisions [reminder Sept 21st: BOJ Gov Ueda: Very interested in how wage hikes are reflected in service prices in Oct].

- Seven & I news of possible $58B MBO to stop Couche-Tard bid from Canada is a potential positive for USD/JPY, which nearly retook 155 handle. USD Index hits 106.00, first time since May, 2024.

- Nvidia says Softbank Corp [9434.jp] will build the first supercomputer with Blackwell chips on Grace Hopper platform.

- China said to tap global banks for feedback to lift market confidence.

- US equity FUTs -0.2% to -0.3% during the Asia session.

Looking ahead (Asian time zone)

- Wed Nov 13th (Wed night US Oct CPI).

- Thu Nov 14th AU jobs, (Thu night US Oct PPI).

- Fri Nov 15th JP Q3 GDP, CN Oct ‘data dump’ (Fri eve UK Q3 prelim GDP, Fri night US Oct Retail Sales + Industrial Production).

Holidays in Asia this week

- Fri Nov 15th India.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens -0.4% at 8,225.

- Australia Q3 Wage Price Index Q/Q: 0.8% v 0.9%e; Y/Y: 3.5% v 3.6%e.

- Australia Oct Port Hedland Iron Ore Exports: 45.6Mts v 48.8Mts m/m; iron ore exports to China 39.3Mts v 44.5Mts m/m.

- Australia sells A$800M v A$800M indicated in 2.50% May 2030 bonds; Avg Yield: 4.3317% v 3.8354% prior; bid-to-cover: 3.67x v 3.02x prior.

- New Zealand Sept Net Migration: 2.3K v 1.8K prior.

China/Hong Kong

- Hang Seng opens -0.9% at 19,671; Shanghai Composite opens -0.4% at 3,406.

- Follow Up: China to release home-buying tax cut plans 'soon', will likely cut taxes for home purchases by the end of 2024 - China Securities Times.

- China said to tap global banks for feedback to lift market confidence - financial press.

- China Nonferrous Metals Industry Association: To actively promote M&A in the area of China copper refining capacity; sees 2024 domestic copper scrap recycling vols at 2.5Mts.

- Hong Kong Financial Sec Chan: Economy is stable.

- (FR) French Cognac Assoc: France and China resume discussion on Cognac issue.

- Chinese Premier Li Qiang extending public holidays by two days; Effective from 2025; The Spring Festival holiday is extended from three days to four days, with the eve of the Chinese Lunar New Year added; The May Day holiday is increased from one day to two days, with May 2 added [overnight update].

- China PBOC sets Yuan reference rate: 7.1991 v 7.1927 prior.

- China PBOC Open Market Operation (OMO): Injects CNY233B in 7-day reverse repos; Net injects CNY216B v net injects CNY107B prior.

Japan

- Nikkei 225 opens -0.2% at 39,317.

- Japan Oct PPI (domestic CGPI) M/M: 0.2% v 0.0%e; Y/Y: 3.4% v 2.9%e (fastest pace since July 2023).

- Softbank Corp (9434.JP) *Nvidia says Softbank Corp will build the first supercomputer with Blackwell chips (dates not specified}- fireside chat between CEO's Huang and Masayoshi Son.

Korea

- Kospi opens -0.6% at 2,468.

- South Korea Oct Unemployment Rate : 2.7% v 2.6%e.

- South Korea Oct Import Price Index M/M: +2.2% v -2.6% prior; Y/Y: -2.5% v -3.7% prior (update).

- Samsung Electronics; Shares hit lowest levels since June, 2020.

- Korea regulator FSC said to request officials to strengthen market monitoring - press.

- South Korea financial regulator (FSC): To keep bond market stabilization fund of KRW20T available in 2025.

Other Asia

- Vietnam Parliament sets 2025 GDP growth target between 6.5-7.0%; inflation at 4.5%.

North America

- (US) Pres-elect Trump names additional senior officials for his Administration including CIA Director and White House Counsel, DOGE, Sec of Defense and more.

- (US) Robert Lighthizer may be named as Trade Czar – US financial press.

- (US) Reportedly some of Pres-elect Trump’s key advisers are backing Scott Bessent, who runs macro hedge fund Key Square Group, as the best choice to serve as Treasury Sec; Trump has not yet made a decision or offered the job to any candidate - press.

- (US) BOFA institute: Oct total card spending +1.0% Y/Y V -0.9% IN SEPT; Strengthening after-tax wages and salaries growth among higher-income households, up nearly 2% YoY in October, has underpinned a rise in their spending growth, with spending increasing YoY for all income cohorts.

- (US) Redfin: Oct median U.S. asking rent barely moved, nudging up 0.2% y/y to $1,619; New apartments are being completed at the fastest pace on record; Construction is slowing, but we will continue to see a wave of new apartment buildings coming onto the market in coming months, which is good news for renters looking for an affordable rental in 2025.

- (US) Fed's Waller (voter for 2024 and 2025): Still doesn't see case for Fed digital currency; Doesn't comment on monetary policy or economic outlook.

- (US) Fed’s Barkin (voter for 2024; non-voter for 2025): With the economy now in a good place and interest rates off their recent peak but also off their historic lows, the Fed is in position to respond appropriately regardless of how the economy evolves; Inflation might be coming under control or might risk getting stuck above 2% target.

- (US) Oct NY Fed 1-year Inflation Expectations Survey: 2.90% v 3.0%e.

- (MX) Mexico Fin Min Ramirez: Mexico's 2025 budget plan includes significant deficit reduction.

- (US) Fed Quarterly Senior Loan Officer Survey (SLOOS): Banks saw weaker demand fro consumer credit care and auto loans.

- (US) Fed's Kashkari (non-voter for 2024 and 2025): Continue to be surprised by US economic resilience; Seems like strong labor market and economy will continue.

Europe

- (UK) Chancellor of the Exchequer (Fin Min) Reeves and BoE Gov Bailey reportedly agree to slightly change Asset Purchase Facility (APF) cash management - press.

- (DE) German Fin Min Joerg Kukies: Germany must not fear a budget freeze; It's not realistic to pass the 2025 budget before the election.

- (EU) ECB's Kazaks (Latvia, voter, hawk): US tariffs might push up inflation and will not be good for Europe.

Levels as of 01:20 ET

- Nikkei 225 -1.7%, ASX 200 -1.6%, Hang Seng -1.1%; Shanghai Composite -0.3%; Kospi -2.0%.

- Equity S&P500 Futures -0.2%; Nasdaq100 -0.3%; Dax -0.2%; FTSE100 flat.

- EUR 1.0609-1.0630; JPY 154.51 -154.94; AUD 0.6515-0.6540; NZD 0.5918-0.5934.

- Gold +0.2% at $2,612/oz; Crude Oil +0.3% at $68.31/brl; Copper -0.2% at $4.1387/lb.