Asia Market Update: Equity indices trade generally lower after Nasdaq decline; NZ dollar and yields drop after RBNZ avoids big rate hike; BOK expected to raise rates on Thurs.

General trend

- US equity FUTs have traded slightly lower.

- Nikkei 225 lags following holiday.

- Hang Seng traded generally flat during the morning session; Tech earnings remain in focus [Kuaishou rises, Xiaomi declines].

- Shanghai Composite ended morning trading slightly lower (-0.1%); Kweichow Moutai supported by broker comments.

- S&P ASX 200 ended slightly lower.

- Taiwan said to be considering an entry ban on senior China officials (press).

- Companies due to report during the NY morning include Cheetah Mobile, Deere & Co., Futu, Yiren Digital.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.1%.

- (AU) AUSTRALIA Q3 CONSTRUCTION WORK DONE Q/Q: -0.3% V -2.9%E.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 1.75% Nov 2032 bonds, Avg Yield: 1.969% v 1.9302% prior, bid to cover 3.39x v 4.09x prior [from Oct 29th].

- (NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) RAISES OFFICIAL CASH RATE (OCR) BY 25BPS TO 0.75%; AS EXPECTED; raises rate path outlook to above 2% neutral by Q4 2022.

- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Did consider 50bps rate hike today, amid a range of options, 25bps gives more optionality; RBNZ can take our time at this point - post rate decision comments.

Japan

- Nikkei 225 opened -0.4%.

- (JP) Japan PM Kishida: Confirms to release oil from state reserves in coordination with the US, the amount and timing to come from the Trade Ministry.

- (JP) Bank of Japan (BOJ) considering reducing corporate bond purchases - Japan press.

- (JP) JAPAN NOV PRELIMINARY PMI MANUFACTURING: 54.2 V 53.2 PRIOR (10th month of expansion).

- (JP) Japan govt plans to set aside ¥600B ($5.2B) for fund to support semiconductor firms – Nikkei.

- (JP) Consortium of 70 Japan companies (including 3 megabanks) to start experimental launch of digital currency – Nikkei.

- (JP) Japan to hold auctions by end of the year for release of oil from stockpile – Nikkei.

- 6502.JP Second largest shareholder, 3D Investment Partners, sends letter objecting to 3 way split, extremely unlikely to solve Toshiba's problems., likely to create 3 under performing companies.

Korea

- Kospi opened +0.3%.

- (KR) South Korea Govt: Have decided to accept the US request to release crude stockpiles, considering the need for international coordination on global oil prices, importance of the S. Korea-U.S. alliance and participation of major economies.

- 005930.KR Confirms $17B Texas factory, expect to start mass production of chips in H2 2024.

China/Hong Kong

- Hang Seng opened +0.1%; Shanghai Composite opened 0.0%.

- (CN) China Vice Premier Liu He reiterated call for stable housing market, reiterates housing is not for speculation - Chinese press.

- (CN) China PBOC sets Yuan reference rate: 6.3903 v 6.3929 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY100B in 7-day reverse repos v CNY50B prior; Net inject CNY50B v Net inject CNY0B prior.

- (CN) Analysts note that China PPI may have peaked on coal price decline - China Securities Journal.

- 1810.HK Reports Q3 (CNY) adj Net 5.18B v 4.81Be, Rev 78.1B v 77.5Be; Expects to launch EV mass production in H1 2024.

- (CN) China Economic Inflation Daily: rare earth price index 317.4, +8.3% from Nov 1st.

Other

- (SG) SINGAPORE Q3 FINAL GDP Q/Q: 1.3% V 0.8%E; Y/Y: 7.1% V 6.5%E; Narrows 2021 GDP outlook to 7.0% (prior 6-7%); Gives initial 2022 GDO outlook 3.0-5.0%.

- (SG) Singapore Central Bank (MAS) Official: To remain careful and vigilant on price developments.

- (SA) Saudi-based analysis firm International Energy Forum (IEF): Oil prices will probably fall for the rest of the year, OPEC+ will be cautious in reacting to SPR oil release.

North America

- (US) Weekly API Crude Oil Inventories: +2.3M v +0.7M prior.

- DELL Reports Q3 $2.37 v $2.33e, Rev $28.4B v $27.4Be; Guides Q4 $1.85-2.05 v $1.76e, Rev $27-28B v $25.9Be - earnings call comments.

- GPS Reports Q3 $0.27 v $0.49e, Rev $3.9B v $4.45Be; Cuts FY guidance.

- (US) US Energy Sec Granholm: Notes cutting gasoline taxes is a tool.

Europe

- (EU) EU's Sefcovic: EU-UK talks on Northern Ireland trade rules will 'probably' continue into next year – Politico.

- (UK) Former Bank of England (BOE) Gov King said central banks have 'King Canute' theory of inflation, said to question theory that inflation will stay low 'because we say it will' - UK press.

Levels as of 00:15ET

- Hang Seng +0.1%; Shanghai Composite +0.1%; Kospi -0.3%; Nikkei225 -1.8%; ASX 200 -0.2%.

- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.0%.

- EUR 1.1254-1.1233; JPY 115.24-114.92; AUD 0.7229-0.7200; NZD 0.6957-0.6896.

- Commodity Futures: Gold +0.6% at $1,794/oz; Crude Oil +0.3% at $78.77/brl; Copper -0.4% at $4.40/lb.

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