Asia Market Update: Terrible CN trade data continues; Little initial reaction seen to China’s Politburo statement [inline?]; Equities trade mixed

General trend

- Chinese equity markets rise.

- Chinese property indices decline; Developers continue to raise capital.

- China National Health Commission to hold a press conference on coronavirus controls at 3PM Local time [7 GMT].
[Reminder from Dec 5th] China reportedly may announce 10 supplementary COVID-19 measures as early as Dec 7th supplementing the 20 measures unveiled in Nov.

- Taiwan Semi may report monthly sales this week.

Headlines/economic data

Australia/New Zealand

- ASX 200 opened -0.2%.

- (AU) Australia Q3 GDP Q/Q: 0.6% V 0.7%E; Y/Y: 5.9% V 6.3%E.

- (NZ) Reserve Bank of New Zealand (RBNZ): Announces Preferred capital instrument for mutual banks identified.

- (AU) APRA: Releases final guidance on contingent liquidity for MLH ADIs.

- (AU) Australia Treasurer Chalmers: Q3 GDP solid given the circumstances.

- (AU) Australia sells A$900M v A$900M indicated in 3.00% Nov 2033 bonds; Avg Yield: 3.3903%; bid-to-cover 2.78.

- (AU) Australia Nov AIG Services Index: 45.6 v 47.7 prior (3rd consecutive contraction).


- Nikkei 225 opened -0.8%.

- (JP) Japan Oct Preliminary Leading Index CI: 99.0 v 98.3e; Coincident Index: 99.9 v 100.5e.

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

- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].

- (JP) Bank of Japan (BOJ) Member Nakamura: Reiterates need to persist with easing; Current CPI increases are not accompanied by wage increases, far from wage inflation spiral is a concern.


- Kospi opened -0.3%.

- (KR) South Korea expected to expand the back to work orders on Dec 8th - Press.

- (KR) Bank of Korea sells 2-year Monetary Stabilization Bonds (MSB): Avg yield 3.790% v 4.225% prior.

China/Hong Kong

- Hang Seng opened -1.6%; Shanghai Composite opened -0.4%.

- (CN) China PBOC sets Yuan reference rate: 6.9975 v 6.9746 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net drains CNY168B v net drains CNY78B prior.

- (CN) China Finance Ministry (MOF) sells CNY5.0B v CNY5.0B indicated in 2024 and 2032 bonds in Hong Kong.

- (CN) China Ministry of Finance (MOF) Sells 1-year and 5-year bonds.

- (CN) China Nov trade balance: $69.8B V $78.1BE.

- (CN) China Nov trade balance (CNY-denominated): 494.3B V 586.8B PRIOR.

- (CN) China Dec 6th Politburo Meeting: Reiterates China to continue prudent monetary policy, monetary policy should be targeted and forceful; Urging coordinating covid controls and economic development- Xinhua.

- (CN) SCMP comments on the Nov sell-off in the China government bond market; China 10-year yield rose by ~28bps during Nov.

- (HK) Macau Gov’t reiterates to gradually relax COVID-19 measures – US financial press.

North America

- (US) Georgia Senate runoff election update: Preliminary projections show Warnock (D) defeats Walker (R).

- (US) ERCOT Creates Voluntary Curtailment Program for Large Flexible Customers During Peak Demand.


- (UR) Ukraine Nov Official Reserve Assets: $28.0B v $25.2B prior.

Levels as of 00:20 ET

- Nikkei 225, -0.6%, ASX 200 -0.6% , Hang Seng +0.9%; Shanghai Composite flat ; Kospi -0.1%.

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

- EUR 1.0476-1.0455 ; JPY 137.49-136.79 ; AUD 0.6716-0.6684 ;NZD 0.6337-0.6310.

- Gold +0.2% at $1,785/oz; Crude Oil +0.2% at $74.34/brl; Copper flat at $3.8232/lb.

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