Equity indices trade mixed, Chinese markets rise amid CPI data

Asia Market Update: Equity indices trade mixed, Chinese markets rise amid CPI data; AU and NZ 10-yr yields track rise in Treasury yields; CN property developer said to appoint receivers.

General trend

- China’s Nov inflation data was mixed; PPI slowed less than expected, CPI rose at slower than expected pace.

- Japan’s Q4 BSI survey rose; Some BOJ officials are focusing on the upcoming quarterly Tankan survey [Dec 13th].

- Japan’s M2 had slowest annual rise since Apr 2020 [BOJ’s Amamiya commented on the monetary base earlier this week].

- BOK commented on omicron, Korea 3-yr yield declines.

- USD Index rises after prior decline.

- Quiet session for CNH after prior rally.

- US equity FUTS have traded slightly lower.

- Nikkei 225 and S&P ASX 200 have also traded slightly down.

- Shanghai Composite rose by 1% during the morning session; Gainers included the Consumer and Property indices.

- Hang Seng rose by over 1% then pared gain; TECH index has moved higher; Property developer to sell convertibles (Hopson Development), Fantasia Holdings said to enter receivership.

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.

- Japan Ruling Parties expected to complete tax plan by Dec 10th (Fri).

- Companies due to report during the NY morning include Ciena Corp, Hooker Furniture, Hovnanian, Hormel Foods.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.1%.

- (AU) Reserve Bank of Australia (RBA) Board member Harper: Economy can run strong without high inflation; Labor participation is holding back wage growth.

- LHC.AU EBOS acquires acquire 100% of LifeHealthcare’s Australian & New Zealand subsidiaries and 51% of LifeHealthcare’s Asian subsidiary for A$1.2B.

- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Regulators contine to review treatment of crypto assets and stablecoins, can see advantages in digital tokens backed by RBA - Payments: The future?

- (NZ) Reserve Bank of New Zealand (RBNZ) Deputy Gov Bascand: Warned Fin Min Robertson in August that if mortgage interest rates rose to 6% then about half of recent first-home buyers would struggle to service their loans.

- (NZ) New Zealand sells NZ$500M v NZ$500M indicated in 2024, 2032, and 2051 nominal bonds.

- (AU) Australia Total Weekly Payroll Jobs change Nov 13th: 0.2% v +1.3% prior; Wages Paid 0.0% v -0.9% prior.

- (AU) Port Hedland Exports Port Hedland Iron Ore Exports 43.4Mt v 46.7Mt prior.

Japan

- Nikkei 225 opened -0.1%.

- (JP) JAPAN Q4 BSI LARGE ALL INDUSTRY Q/Q: 9.6 V 5.0E; LARGE MANUFACTURING Q/Q: 7.9 V 7.0 PRIOR.

- (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.005% 5-year JGBs; Avg Yield: -0.0860% v -0.077% prior, bid-to-cover 3.63x v 4.54x prior.

- (JP) Japan Nov M2 Money Supply Y/Y: 4.0% v 4.1%e (slowest rise since Apr 2020); M3 Money Supply Y/Y: 3.6% v 3.7%e.

Korea

- Kospi opened +0.2%.

- (KR) South Korea reports additional 7,102 coroanvirus cases (2nd consecutive day above 7.0K); Record number of Critical Care patients.

- (KR) Bank of Korea (BOK) Gov Lee to hold briefing on Dec 16th on H2 CPI.

- (KR) Bank of Korea (BOK) monetary policy report: Will adjust the extent of its loose monetary policy stance "appropriately" in consideration of inflation the pandemic and monetary policy directions of major economies - issued to lawmakers.

China/Hong Kong

- Hang Seng opened +0.7%; Shanghai Composite opened +0.1%.

- (CN) CHINA NOV CPI M/M: 0.4% V 0.3%E; Y/Y: 2.3% V 2.5%E (fastest pace since Aug 2020); PPI Y/Y: 12.9% v 12.1%e; Food CPI y/y: +1.6% v -2.4% prior.

- (CN) China Securities Journal: Analysts see further yuan strength in the short term; Yuan's two-way move trend remains unchanged – press.

- (CN) China PBOC said to see its special status starting to erode, with Govt starting to push its influence on the central bank.

- (CN) China Sec Journal: China could see 2022 CPI speeding up, while producer price index’s (PPI) gain may slow down due to a higher base and lower commodity prices; modest price increases will have limited impact on monetary policy.

- (CN) China PBOC sets Yuan reference rate: 6.3498 v 6.3677 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.

- (CN) China State Planner (NDRC) Official Wu Xiao: Supports measures to boost consumption in rural areas, including subsidies for furniture and autos.

North America

- RETA CRDAC Panel (Yes 0; No 13; Abstain 0) votes Not in favor of support for bardoxolone methyl as effective in slowing progression of chronic kidney disease in Alport syndrome and benefits do not outweigh risk - CRDAC Meeting.

- (US) Trade Agency: Recommends maintaining solar tariffs for 4 years, with 0.25% annual decline.

Europe

- (UK) Nov RICS House Price Balance: 71% v 70%e.

Levels as of 00:15ET

- Hang Seng +1.0%; Shanghai Composite +1.2%; Kospi +0.4%; Nikkei225 -0.3%; ASX 200 -0.3%.

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

- EUR 1.1347-1.1329; JPY 113.82-113.29; AUD 0.7177-0.7158; NZD 0.6816-0.6802.

- Commodity Futures: Gold +0.1% at $1,787/oz; Crude Oil +1.0% at $73.08/brl; Copper -0.2% at $4.37/lb.