Currency volatility weighs on Nikkei, Yen pares rise amid BOJ bond operation

Asia Market Update: Currency volatility weighs on Nikkei; Yen pares rise amid BOJ bond operation; JGB yields moved off of the highs; JP GDP misses again; US jobs data due later today.

General trend

- Equity markets trade mixed.

- WTI Crude FUTs rise.

- Taiwan Semi to report monthly sales.

- China to release monthly CPI on Fri night [US time].

Headlines/economic data

Australia/New Zealand

-ASX 200 opens -0.1% at 7,166.

-Australia Treasurer: Agreed on a new monetary policy statement with the RBA.

- Reserve Bank of Australia (RBA) Head of Financial Stability Brischetto: Severe household financial stress is limited.

-New Zealand Q3 Manufacturing Activity Q/Q: -2.8% v 0.2% prior.

China/Hong Kong

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

-Shanghai Composite opens flat at 2,965.

-CHINA NOV FOREIGN RESERVES: $3.1718T V $3.140TE.

-China issues economic and trade guidelines for Shanghai Free Trade Zone - press.

-China State Council: Releases plan to improve air quality; to vigorously develop new and clean energy.

-China Agricultural Ministry said to seek to stabilize hog production.

-Hong Kong Fin Sec Chan: 2024 may face a lot of volatility - TV.

Japan

-Nikkei 225 opens -0.8% at 32,600.

-USD/JPY: 1-week implied volatility at ~15.7%.

- JAPAN Q3 FINAL GDP Q/Q: -0.7% V -0.5%E; ANNUALIZED Q/Q: -2.9% V -2.0%E; GDP Deflator Y/Y: 5.3% v 5.1%e; Private Consumption Q/Q: -0.2% v 0.0%e; Inventory Contribution % to GDP: -0.5% v -0.3%e.

- JAPAN OCT LABOR CASH EARNINGS Y/Y: 1.5% V 1.0%E.

-Bank of Japan (BOJ) announcement related to daily outright bond buying operation: Maintains bond amounts unchanged.

-Japan sells ¥5.6T in 3-Month Bills; Avg Yield: -0.1556% v -0.1656% prior; bid-to-cover: 2.68x v 3.26x prior.

-Japan Oct BOP Current Account Balance: ¥2.6T v ¥1.7Te.

- Japan Oct Household Spending Y/Y: -2.5% v -2.9%e.

-Japan Nov Bank Lending Y/Y: 2.8% v 2.8% prior.

-Japan Fin Min Suzuki: No decision on timing of defense tax increase; declines comment on FX, continues to carefully watch FX moves.

- Japan PM Kishida: Decided to leave political 'faction' while in office - Tokyo.

-Japan Chief Cabinet Sec Matsuno: To continue duties, understands criminal complaint has been filed [asked about funding probe].

-Japan Trade Min Nishimura: Carefully checking own political funding [responds to question on the LDP funds 'scandal'].

Korea

-Kospi opens +0.7% at 2,510.

-Bank of Korea (BOK) and South Korea Pension Fund said to extend FX swap line - financial press.

-South Korea sells 50-year bonds: Avg Yield: 3.425%.

-South Korea Oct Current Account Balance: $6.8B v $5.4B prior [largest monthly surplus since Oct 2021].

Other Asia

- INDIA CENTRAL BANK (RBI) LEAVES REPURCHASE RATE UNCHANGED AT 6.50%; AS EXPECTED.

- India [largest global exporter of onions]: Amends onion export policy; to prohibit onion exports until Mar 31, 2024.

-Taiwan Defense Min: China balloon might have been a weather balloon; the balloon was spotted in the Taiwan Strait.

Levels as of 00:20 ET

- Nikkei 225, -1.9%, ASX 200 +0.3% , Hang Seng +0.3%; Shanghai Composite +0.4% ; Kospi +1%.

- Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax +0.2%; FTSE100 +0.3%.

- EUR 1.0800-1.0782 ; JPY 144.32-142.49 ; AUD 0.6619-0.6592 ;NZD 0.6189-0.6130.