Asia market update: CNH and CN stocks lag amid deflation concerns; AU bond yields track rise in UST rates; Recent US jobs data in focus; US CPI data due on Tues., RBA Gov to also speak.

General trend

- The recent Ueda comments were played down [Reminder Dec 7th: Bank of Japan (BOJ) Gov Ueda: challenging situation remains and likely become more so towards the year end and early next year; 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; Too early to conduct exit simulation].

- JGB yields mixed.

- Equity markets trade mixed.

- Japanese stocks supported by weaker Yen.

- US M&A theme?

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.3% at 7,217.

- Australia to triple fees on foreign purchases of existing homes; cites Treasurer Chalmers - press.

- Australia Treasurer expects budget deficit to narrow in FY24 to ~A$900M; expected to issue updated forecasts on Dec 13th (Wed) - Australian press.

-Australia PM Albanese: Govt has a plan to slow Australian immigration, need to bring immigration back to sustainable levels.

- Australia PM Albanese to take leave until Dec 14th [reason not disclosed].

- China Customs: Authorized economic operator mutual recognition arrangement with Australia Customs.

- (NZ) NZIER: latest NZIER Consensus Forecasts show expectations for a general slowing in the New Zealand economy over the next two years.

- Regis Resources [RRL.AU]: Has closed out all remaining commitments on its existing gold sales hedge book; now fully exposed to spot gold prices.

China/Hong Kong

- Hang Seng opens +0.2% at 16,373.

- Shanghai Composite opens -0.5% at 2,956.

- China Nov CPI M/M: -0.5% V -0.1% PRIOR; Y/Y: -0.5% V -0.2%E [largest annualized decline since Nov 2020].

- China Pres Xi chaired Politburo meeting which discussed and analyse economic work for 2024; Says China's fiscal policy must be moderately strengthened to stimulate recovery; Look to deepen reforms in key areas; Xi 'warns' China economic recovery at critical stage - Chinese press.

- China names Zhu Hexin as SAFE [FX regulator] Chief and PBOC Dep Gov - press [**Reminder Nov 24th China confirms to appoint Zhu Hexin as Party Chief of FX regulator - press].

- China State Admin of Foreign Exchange (SAFE): To further promote cross-border trade and investment; To optimize foreign exchange management of procurement trade.

- CSRC [China Securities Regulator] reportedly could cut stock trading commissions by 30% - press.

- China PCA: Nov final Retail Passenger Vehicle Sales Y/Y: 26.0% v 25.0% prelim.

- China arrests over 50 people for insider trade and market manipulation - Chinese press.

- US said to consider missile launch notification plans with China - Japanese press [**Reminder Nov 15th (CN) China President Xi: Confirms China and US agree to restore military communication; Has no plan to replace the US; calls for mutual respect and that both sides should have more dialogue].

- 30 local brokerage firms in Hong Kong have closed down in 2023 v 49 y/y; cites data from the Hong Kong Stock Exchange - Press.

-Hong Kong said to consider resumption of multiple-entry permit for permanent residents of Shenzhen - Press.

- HSBC and Hang Seng Bank cut HKD fixed deposit interest rates by 20bps - Press.

- Country Garden [2007.HK]: Targets to deliver 400K units during 2024; Vows to ensure delivery and operation for next 12-months; Very confident in repairing balance sheet - statement on WeChat.

- Chairman Richard Liu responds to employee's intranet post, confesses to mismanaging company - Asia press.


- Nikkei 225 opens +1.1% at 32,665.

- Bank of Japan (BoJ) Gov Ueda's remark about exit from negative rate said to be taken out of context and not signal of imminent shift, but weakening domestic consumption a concern for BoJ; next key data for timing of exit would be 'tankan' business survey on Dec 13th - press [from Dec 8th].

- Japan Q4 BSI large all industry index Q/Q: 4.8 V 5.8 prior; large manufacturing Q/Q: 5.7 V 5.4 prior.

- Japan Nov M2 Money Supply Y/Y: 2.3% v 2.4% prior [slowest pace since 2019]; M3 Money Supply Y/Y: 1.7% v 1.8% prior.

- Japan PM Kishida: Wants to consider appropriate measures at the appropriate time [asked about cabinet reshuffle].

- Japanese PM Kishida plans to replace chief cabinet secretary Matsuno after criminal complaint filed.

- Japanese PM Kishida plans to replace Industry Min Nishimura and ruling party policy chief Hagiuda - press.

- Matsuya Foods [9887.JP]: Expected to raise wages by 10.9% from Apr 2024 - Japanese press.


- Kospi opens +0.3%.

- South Korea Dec 1-10th Exports Y/Y: 3.3%; Imports -15.3%.

- (KR) South Korea Financial Services Commission (FSC): Margin call risks by domestic brokerage firms can be managed [**Reminder Nov 27th South Korea to examine the bank exposures of HK stock index-linked ELS [equity-linked securities] sales - South Korea press ].

Other Asia

-Taiwan Semi: Reports Nov (NT$) Rev 206.0B, -7.5% y/y (v +15.6% prior) and -15.3% m/m; YTD Rev 1.99T -4.1% y/y v -3.7% prior [from Dec 8th].

North America

- (US) President Biden gives rare take on interest rates; he said jobs report does NOT encourage Fed to raise rates - US financial press [update].

- (US) Nov change in Nonfarm Payrolls: +199K V +183KE.

- (US) Nov unemployment rate: 3.7% V 3.9%E (lowest since July); Participation rate matches highest since Feb 2020.

- (US) Nov average hourly earnings M/M: 0.4% V 0.3%E; Y/Y: 4.0% V 4.0%E.

- (US) Dec preliminary university of michigan confidence: 69.4 V 62.0E (highest since Aug).

- Macy's [M]: Receives $5.8B offer to be taken private from Arkhouse Management consortium at $21/share [~21% premium to prior close] - WSJ.

- Cigna [CI]: Announces increase to Share Repurchase Program of $10B, bringing the company's total share repurchase authority to $11.3B; affirms FY23 adj at least $24.75 v $24.82e; affirms FY24 adj at least $28.00 v $28.21e.

- Humana [HUM]: Cigna said to end attempt to negotiate acquisition of Humana - press.

- Boeing [BA]: To name Stephanie Pope COO; Pope said to be likely successor to CEO David Calhoun - WSJ.

- Nasdaq announces annual changes to the Nasdaq-100 Index: Adding CDW DASH SPLK MDB CCEP ROP; effective Dec 18th; Removing: ALGN EBAY JD ENPH ZM LCID.


- (UK) Dec Rightmove House Prices M/M: -1.9% v -1.7% prior; Y/Y: -1.1% v -1.3% prior.

Levels as of 00:20 ET

- Nikkei 225, +1.5%, ASX 200 +0.1% , Hang Seng -1.7%; Shanghai Composite -0.2% ; Kospi +0.1%.

- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.3%, Dax +0.1%; FTSE100 +0.3%.

- EUR 1.0773-1.0759 ; JPY 145.67-144.81 ; AUD 0.6583-0.6551 ;NZD 0.6137-0.6105.

- Gold -0.1% at $2,013/oz; Crude Oil +0.6% at $71.68/brl; Copper -0.5% at $3.8117/lb.

Share: Feed news

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

AUD/USD dips on risk-off mood, RBNZ's dovish pivot

AUD/USD dips on risk-off mood, RBNZ's dovish pivot

The Australian Dollar (AUD) dropped 0.73%, against the US Dollar (USD) on Wednesday/s session, courtesy of a dovish hold by the Reserve Bank of New Zealand (RBNZ), which followed a solid inflation report from Australia. As the Asian session begins, the AUD/USD trades at 0.6496, virtually unchanged.


EUR/USD grinds back to flat as investors hunker down for wait to US PCE inflation print

EUR/USD grinds back to flat as investors hunker down for wait to US PCE inflation print

EUR/USD sagged early Friday after European sentiment indicators came in below expectations, and a lopsided print in US Gross Domestic Product (GDP) figures kept the pair in familiar territory midweek.


Gold rises as US Treasury yields fall before key US inflation report

Gold rises as US Treasury yields fall before key US inflation report

Gold price remains steady near $2,030 on Wednesday, posting a gain of 0.17% after the US Bureau of Economic Analysis (BEA) revealed the country's economy expanded. A drop in US Treasury bond yields has kept the yellow metal near the current month and weekly highs, capped by the 50-day Simple Moving Average (SMA).

Gold News

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin price could go into discovery mode now that BTC OTC markets hit six-year low

Bitcoin (BTC) price is trading with a bullish bias, recording milestones this week as institutional money floods the crypto markets. Galaxy CEO Mike Novogratz says BTC is now in price discovery phase now the bulk of US wealth has easy access.

Read more

Moment of truth in FX PCE tomorrow

Moment of truth in FX PCE tomorrow

During today's TradeGATEHub Live Trading session, Coach Dale discusses the significance of closing above inter-day spikes in the DXY. He also provides an update on the Rising Wedge pattern in the Dow, as well as his critical threshold for 10-year yields. 

Read more