Crude falls on API data; A$ falls on lower wage price index

Headlines/Economic Data


- (JP) JAPAN Q3 PRELIM GDP SA Q/Q: 0.3% V 0.4%E; ANNUALIZED Q/Q: 1.4% V 1.5%E; NOMINAL GDP Q/Q: 0.6% V 0.6%E

- (JP) Japan Economy Min Motegi comments on Q3 GDP data: Domestic demand is flat, overseas demand a positive; nominal GDP at a record ¥546T


- (KR) South Korea Finance Ministry official: Govt withdrew its plan to purchase bonds today as it reviews various ways to handle excess tax revenue

- (KR) Bank of Korea (BOK) sells KRW2.1T in 2-yr bonds at 2.18%

China/Hong Kong

- (CN) China PBoC Open Market Operations (OMO): CNY330B v CNY280B injected in 7, 14 and 63-day reverse repos prior; Net injection CNY220B v CNY140B prior

- USD/CNY (CN) PBOC sets yuan reference rate at 6.6263 v 6.6299 prior

- (CN) PBOC Policy Adviser: Worried about impact from financial deregulation in the US

Australia/New Zealand

- (AU) Australia Nov Westpac Consumer Confidence Index: 99.7 v 101.4 prior; M/M: -1.7% v 3.6% prior

- (AU) AUSTRALIA Q3 WAGE PRICE INDEX Q/Q: 0.5% V 0.7%E; Y/Y: 2.0% V 2.2%E; AUD/USD falls below 0.7580

- (AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2028 Bonds; avg yield 2.6867%

- (NZ) New Zealand Fin Min Robertson reiterates it is government intention to reduce net debt to 20% of GDP within five years - speaking to parliament


Levels as of 23:00ET

- Nikkei -1.3%, Hang Seng -0.7%; Shanghai Composite -0.7%; ASX200 -0.4%, Kospi -0.3%

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

- EUR 1.1802-1.1786; JPY 113.49-113.04; AUD 0.7632-0.7576;NZD 0.6888-0.6867

- Dec Gold -0.1% at $1,281/oz; Dec Crude Oil -1.1% at $55.09/brl; Dec Copper -0.1% at $3.05/lb



-Following the negative leads from the US, markets opened broadly lower in Asia.

-Energy shares have been under pressure, following the 3% decline in oil prices seen on Tuesday’s session. PetroChina has traded lower by more than 4%, while Australia’s S&P ASX 200 Energy Index has dropped by more than 2%.

-Airlines have outperformed amid the weakness being seen in oil prices. Shares of Air China have risen by over 4%, while Qantas has gained over 3.5%.

-At the same time, the resources sector in Australia is trading with a negative tone. Metals prices in China are trading lower, after copper declined by 2% during yesterday’s New York session. Nickel in Shanghai has opened down by 5%, while iron-ore traded in China has declined by more than 4%.

-Steel makers in Japan are trading broadly lower, with shares of JFE down over 3%. Shares of US Steel dropped by more than 2.5% during the US trading session.

-Besides this US automakers, Ford and GM, each traded down over 1% and this weakness has seemingly extended into the Japanese trading session. Shares of Toyota and Honda have traded lower by more than 1%, amid the weakness being seen in USD/JPY.

-Technology name Softbank has declined by over 0.5%, while in South Korea chipmakers Hynix and Samsung have traded lower by over 0.4%.

-In Taiwan, weaker earnings have weighed on tech names. Hon Hai Precision Industry has dropped over 1.5%, as Q3 results missed market expectations. Quanta Computer has declined by over 8% on weaker than expected Q3 profits.

-In Hong Kong, the Hang Seng Information Technology index has declined by over 0.5%. Shares of Tencent have weakened by over 0.5%, ahead of its earnings due later today. Semiconductor Manufacturing has declined by over 4%, after reporting weaker than expected Q3 results. China’s small-cap CHINEXT index has declined by over 1.4%.

-Meanwhile, property names in Hong Kong are trading generally weaker. The Hang Seng Property and Construction index is off by more than 0.6%. Earlier, China’s planning body, the NDRC, announced that it would ‘conduct pricing supervision’ related to housing.

-The Hang Seng Financials index has declined by more than 0.5%. China’s 10-year bond yield is currently lower on the session. Japanese mega banks, Mitsubishi UFJ and Sumitomo Mitsui have traded lower after the companies reported better than expected first half profits and affirmed their FY outlooks. With the declines being seen in the Japanese equity markets, the TOPIX Securities brokers’ index has declined by more than 1%.

-The TOPIX Retail Trade index has also declined by over 1%. In Q3, Japan’s private consumption declined by 0.5% q/q, according to preliminary Q3 GDP data.

- The overall preliminary annualized GDP figure slightly missed market expectations, while the nominal q/q figure was in line. Net exports added 0.5 pct points to growth, while private inventories added 0.2 pct points.

-The Aussie has declined by over 0.6%, while Australia’s 3-year bond yield has dropped by over 5bps. The earlier released Q3 wage price data for the country missed economists’ expectations.

-Looking ahead, Australia’s Oct Employment Change is due to be released on Thursday’s session, while US Oct CPI and Retail Sales are due for release later today.


Equities notable movers

Australia/New Zealand

- AAC.AU Reports H1 (A$) statutory Net -38M v +48M y/y; EBITDA 16M v 14M y/y; Meat sales 170M v 196M y/y; -10%

- ICQ.AU Announces A$10M 1 for 5.8 non-renounceable rights offer priced at A$0.18/share through Bell Potter; +8%


- 8316.JP Reports Q3 Net ¥178.7B v 161.5Be; -2%


- SORL Reports Q3 $0.44 v $0.18e, Rev $101.3M v $63.8Me - filing (1 est); +37% afterhours

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