Equities generally rally on softer US CPI

Asia market update: Equities generally rally on softer US CPI; CN IP and Retail Sales above ests; US/CN talks in focus; Tencent to report earnings.

General trend

- Recession risk for Japan?

- Japan Economy Min: Risk of global slowdown pushing down Japan's economy 'warrants attention' [comments after weaker than expected Q3 GDP data].

Reminder: US Pres Biden and China Pres Xi said to meet on Nov 15th at APEC Summit.

-Biden and Xi to meet on Wed at 10:45 AM PST; Biden to hold press conference at 4:15 PM PST; US Treasury Sec Yellen to join the bilateral meeting at 11 AM PST - Press.

- Reserve Bank of New Zealand (RBNZ) to begin repurchasing May 2024 New Zealand government bonds; The repurchase to begin on Nov 15th (Wed).

- US Retail Sales due later today.

- Australia jobs data due on Thurs.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.7% at 7,056.

- Australia Q3 wage price index Q/Q: 1.3% V 1.3%E; Y/Y: 4.0% V 3.9%E; Quarterly wages growth highest in WPI history; The annual growth, at 4.0 per cent, is the highest for the WPI since March quarter 2009.

- Australia Oct Port Hedland Iron Ore Exports: 46.9Mts v 45.1Mts m/m.

- (AU) APRA: Proposes targeted changes on liquidity and capital in response to global banking turmoil.

- Australia sells A$800M v A$800M indicated in 2.25% May 2028 bonds; Avg Yield: 4.2116%; bid-to-cover: 3.88x.

China/Hong Kong

-Hang Seng opens +2.5% at 17,836.

- Shanghai Composite opens +0.7% at 3,077.

-*(CN) China said to be mulling CNY1.0T (~$137B) of new funding to boost housing market; PBOC said to inject cheap funds in phases through banks with the money ultimately trickling down to households for home purchases - press.

- China PBOC conducts CNY1.45T VS. CNY850B maturing in 1-year medium term lending facility (MLF) AT 2.50% VS. 2.50%E; Net injection CNY600B [largest injection since Dec 2016].

- China oct industrial production Y/Y: 4.6% V 4.5%E.

- China oct retail sales Y/Y: 7.6% V 7.0%E.

- China oct ytd fixed urban assets Y/Y: 2.9% V 3.1%E.

- China National Bureau of Statistics (NBS) Official Liu Aihua: Foundation of economic recovery yet to be consolidated [follows Oct data releases].

- China PBOC Open Market Operation (OMO): Sells CNY495B in 7-day reverse repos.

- China reportedly asks local govts to halt Public-Private Partnerships (PPP) projects that are 'problematic' - press.

- US and China reaffirm commitment to implementing the Paris Agreement.

- China said to cap OTC derivatives - US financial press.

- China PBOC to issue 3-month and 1-year yuan denominated bills in Hong Kong; to be held on 21 November 2023.

- China PBOC sets Yuan reference rate: 7.1752 v 7.1768 prior.

Japan

-Nikkei 225 opens +1.3% at 33,112.

-Bank of Japan (BOJ) announcement related to daily outright bond buying operation: decreases amount of regular bond buying.

- Japan Q3 preliminary GDP Q/Q: -0.5% V -0.1%E; annualized Q/Q: -2.1% V -0.4%E; GDP Private Consumption Q/Q: 0.0% v 0.3%e; GDP Business Spending Q/Q: -0.6% v 0.1%e.

-NVIDIA: Japan gets 'full cooperation' from Nvidia on GPU supply - Japanese press.

Korea

-Kospi opens +2% at 2,482.

-South Korea Oct Unemployment Rate: 2.5% v 2.7%e.

-LG Energy: Michigan unit to temporarily layoff ~170 production workers; cites output adjustment - Press.

Other Asia

-Foxconn: Reports Q3 (NT$) Net 43.1B v 34.0Be, Op 46.2B v 39.5Be, Rev 1.54T v 1.55Te; Says already seeing strong growth in Q4 q/q; Q4 business will be slightly better than previously expected.

-Thailand PM Advisor: Digital handout scheme will not impact sovereign credit rating, will be fiscally responsible.

-Thailand PM Srettha to announce measures to deal with debt in 2 weeks - US financial press.

North America

-*(US) OCT CPI M/M: 0.0% V 0.1%E; Y/Y: 3.2% V 3.3%E (lowest annual pace since July and 1st flat M/M print this year); CPI (ex-food/energy) M/M: 0.2% v 0.3%e; Y/Y: 4.0% v 4.1%e (7th straight deceleration, lowest since Sept 2021).

-(US) Fed's Goolsbee (voter; non-voter in 2024): The key to further progress on inflation is housing; Oct CPI report looked pretty good.

-(US) House of Representatives passes the stopgap govt funding bill with bipartisan support (as expected).

-Berkshire Hathaway: Says not disclosing one or more of its stock holdings; requested SEC permission to keep the details confidential - press.

-Nike [NKE]: Raises quarterly dividend by 9% to $0.37 [implied yield 1.4%].

-GM: 68% of UAW hourly workers at Spring Hill plant voted to reject tentative deal - press.

-OpenAI: CEO Altman: Pausing new ChatGPT sign-ups 'for a bit'; suggests capacity constraints amid rise in ChatGPT usage.

Europe

-(EU) Follow Up: EU reaches agreement to curb methane in oil and gas supplies - press.

-(IL) Israel Defense Forces (IDF) said troops are fighting against Hamas in certain part of the Gaza Shifa Hospital - press.

Levels as of 00:20 ET

- Nikkei 225, +2.5%, ASX 200 +1.4% , Hang Seng +2.9%; Shanghai Composite +0.4% ; Kospi +2.1%.

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

- EUR 1.0883-1.0865 ; JPY 150.79-150.24 ; AUD 0.6509-0.6483 ;NZD 0.6029-0.5996.

- Gold +0.2% at $1,969/oz; Crude Oil +0.5% at $78.50/brl; Copper +0.4% at $3.6902/lb.