Asian indices opened mixed after flat US session

Asia Market Update: Asian indices opened mixed after flat US session; FT reported US/China ‘struggling’ to complete Phase 1, Kudlow commented after US close

General Trend:

- Hang Seng opened higher despite continued reports of bank branch closures and train disruptions, Hong Kong government denied ‘rumors’ related to weekend curfew

- Telecom Services firms lag in early trading in Shanghai after comments by US AG Barr

- Japanese markets rise as the trade-sensitive Marine/Transportation and Iron/Steel sectors gain

- PBoC conducts second MLF operation in Nov, but leaves interest rate unchanged; confirmed operation was aimed at offsetting the impact of tax payments on liquidity

- The 2nd phase of the PBOC’s targeted 100bps RRR cut (announced on Sept 6th) took effect today, expected to release ~CNY40B in liquidity

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.3% at 6,756

- (AU) Reserve Bank of Australia (RBA) Asst Gov Debelle: Reiterates need to give it more time for monetary policy to work.

- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: door is open for a rate cut if needed; we're in a nice position to observe the data

- (NZ) Reserve Bank of New Zealand (RBNZ) Hawkesby: Feb rate decision is 'live', rate cut in Feb would require outlook to change, need to see how outlook evolves heading into Feb

- (NZ) New Zealand Oct Business Manufacturing PMI: 52.6 v 48.8 prior

China/Hong Kong

-Shanghai Composite opened +0.1%, Hang Seng +0.8%

-Alibaba: Confirms launches Hong Kong IPO, confirms to sell 500M shares and maximum offer price of HK$188/share (implies proceeds of ~$12.1B); shares are expected to being trading on Nov 26th (Tuesday)

- (CN) US White House Advisor Kudlow: Getting close to a trade deal with China; talks have been constructive and the 'mood music' is pretty good; Pres Trump likes what he sees but is not ready to make commitments; no agreement on Phase 1; Phase 1 deal down to 'short strokes' - US Financial Press [commented after US market close]

- (CN) US and China struggling to complete Phase 1 trade deal; Trump administration officials said to be frustrated that China hasn't offered enough to justify a reduction in US tariffs on Chinese goods – FT (released on Nov 14th)

- Fox's Lawrence tweets: "US Trade Sources confirm there was another deputy level trade talk via phone between the US and Chinese trade teams. The talks are progressing as the two sides try to get a Phase One trade deal on paper."

- (CN) China reportedly purchases US soybeans amid trade talk uncertainty – press

- (CN) China said to have removed curbs on US poultry imports – press

- US AG Barr sends letter to FCC saying Huawei and ZTE cannot be trusted because they are a threat to our collective security - press

- (CN) CHINA PBOC CONDUCTS CNY200B V CNY400B PRIOR IN 1-YEAR MEDIUM TERM LENDING FACILITY (MLF) OPERATIONS AT 3.25% V 3.25% PRIOR

- (CN) China PBoC Open Market Operation (OMO): Skips for 15th consecutive session

- (CN) China PBOC sets Yuan Reference Rate: 7.0091 v 7.0083 prior

- (CN) China Finance Ministry sells 30-year upsized government bonds: yield 3.8523% v 3.7991% prior

- (CN) China NDRC: Oct Power Consumption: +5.0% y/y; Oct YTD Power Consumption: +4.4% y/y; Approved 8 fixed-asset investment projects in Oct for CNY44.2B v 14 projects for CNY177.8B m/m

- (CN) China needs economic stimulus - China Daily

- (CN) CHINA OCT NEW HOME PRICES M/M: 0.5% V 0.5% PRIOR; Y/Y: 7.8% V 8.4% PRIOR

- (HK) US Sen Hawley (R-MO): Senate plans to fast track its Hong Kong bill

- (CN) China Pres Xi: restoring order and stopping violence is the most urgent task for Hong Kong at the moment (comments from Nov 14th)

Japan

- Nikkei 225 opened flat

- (JP) Japan govt plans to issue more deficit-covering bonds due to downward revision in the current year's tax revenues - Japanese press

- (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged

- (JP) Japan US trade deal approved by legislature Lower House committee

- (JP) Japan Econ Min Nishimura: Japan industrial production and exports are weak; supplemental budget will have enough funding

Korea

- Kospi opened flat

Other Asia

- (ID) Indonesia Oct Trade Balance: $0.2B v -$0.3Be; Exports Y/Y: -6.1% v -8.3%e

- (MY) Malaysia Q3 GDP Q/Q: 0.9% v 0.9%e; Y/Y: 4.4% v 4.4%e

North America

-(US) New York Fed to keep pace of reserve management T-bill buying at $60B per month; Reduces size of some term repo operations; plans some 42- and 28-day operations

- (US) Pres Trump to speak about healthcare price transparency at 14:00 ET on Friday, Nov 15

- (CA) Bank of Canada Gov Poloz: Wage inflation now above 4% in most measures

Levels as of 00:20 ET

- Nikkei 225, +0.7%, ASX 200 +0.8%, Hang Seng +0.1%; Shanghai Composite -0.1%; Kospi +0.9%

- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.4%, Dax +0.4%; FTSE100 +0.3%

- EUR 1.1030-1.1018 ; JPY 108.63-108.38 ; AUD 0.6799-0.6783 ;NZD 0.6393-0.6377

- Gold -0.5% at $1,466/oz; Crude Oil +0.5% at $57.05/brl; Copper +0.6% at $2.638/lb