Indices trade generally lower; Hang Seng underperforms amid trade uncertainty, reports of violence

General Trend:

- Hang Seng declines over 2%. Losers include property and financial shares, along with Apple suppliers and gaming companies

- Large pork producer WH Group drops over 3%; China’s Oct pork prices rose over 101% y/y

- Automakers also decline in Hong Kong, China retail vehicle sales continued decline in Oct

- Decliners in Shanghai include property, telecom services, consumer discretionary and financial firms

- Real estate, securities and iron/steel companies are among the decliners in Japan; Nikkei weighed Fast Retailing also drops

- Honda rises over 3% after recently reported earnings

- Australian equities outperform on gains in sectors including consumer staples and energy

- China CPI rises above target as pork prices continue to jump

- Producer price deflation concerns persist as China PPI continues to decline

- Japan cuts assessment of core machinery orders after weaker than expected data

- US bond market is closed on Monday in observance of Veterans Day

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.1%

- (AU) Australia sells A$500M v A$500M indicated in 2.75% Nov 2029 bonds, avg yield 1.3025%, bid to cover 4.2x

- (NZ) New Zealand Oct Card Spending Retail M/M: -0.6% v +0.4%e

- (NZ) Reserve Bank of New Zealand to publish decision on bank capital requirements on Dec 5

China/Hong Kong

- Hang Seng opened -1.1%, Shanghai opened -0.5%

- (HK) Hong Kong protester said to have been shot by police amid protests - Local media

- (CN) CHINA OCT CPI M/M: 0.9% V 0.9% PRIOR; Y/Y: 3.8% V 3.4%E; PPI Y/Y: -1.6% v -1.5%e

- (CN) 10 cities in China are expected to establish financial blockchain platforms - financial press

- (CN) China Oct Retail Vehicle Sales 1.87M units, -6.0% y/y (4th straight decline) - PCA (Industry Association)

- Alibaba: Says Singles Day purchases at CNY158.3B ($22.6B) as of 09:00 AM local time

- (CN) China PBoC Open Market Operation (OMO): Skips for 11th consecutive session

- (CN) China PBOC sets Yuan Reference Rate: 6.9933 v 6.9945 prior

Japan

- Nikkei opened +0.1%

-SBI Holdings [8473.JP]: Speculated to form capital tie-up with Fukushima Bank - Japanese Press

-(JP) JAPAN SEPT CORE MACHINE ORDERS M/M: -2.9% V 0.9%E; Y/Y: 5.1% V 8.1%E

-(JP) Japan Sept Current Account Balance (BoP): ¥1.61T v ¥1.71Te; Adj Current Account: ¥1.49T v ¥1.66Te

- (JP) Japan Oct Eco Watchers Current Survey: 36.7 v 40.6e ; Outlook Survey: 43.7 v 41.9e

-(JP) Bank of Japan (BOJ) Summary of Opinions from Oct meeting: Appropriate to clarify policy stance is tilted to monetary accommodation by indicated there will be downward bias in policy rates

-(JP) Japan Oct Bank Lending Ex-Trusts y/y: 2.2% v 2.2% prior; Including Trusts y/y: 2.0% v 2.0% prior

Korea

- Kospi opened +0.1%

- (KR) South Korea Oct Foreign Net Investment in Local Stocks (KRW): -0.35T v -0.92T prior; Foreign Net Investment in Local Bonds: -0.19T v +1.42T prior

North America

- (US) Pres Trump: I have not agreed to roll back tariffs on China; China would like me to do so; Could sign a trade deal with Pres Xi in Iowa; any China trade deal will be signed in the US (comments from Nov 8th)

- (US) President Trump: Trade talks with China are moving along, I think, very nicely; if we make the deal that we want, it will be a great deal and if it's not a great deal, I won't make it; Trump said there was a lot of incorrect reporting, but you will see what I'm going to be doing. Trump said the level of tariff lift is incorrect [referring to news reports] – (comments from Nov 9th)

- (CN) Fox's Lawrence: This morning White House Economic Advisor Peter Navarro says the US is willing to postpone Dec 15th tariffs and that is it for Phase One deal... saving other tariffs to make sure we can negotiate Phase 2 and 3 with China (from Nov 8th)

- (US) Fed’s Williams (moderate, voter): expect interest rates will be very low for the foreseeable future and global growth will be modest (comments from Nov 8th)

- Bolivia President Morales steps down amid election fraud accusations - US press

Europe

- (ES) Spain Election Results: Socialists Party of PM Sanchez again fails to gain majority in parliament, receives 120 seats out of total of 350 (-3 seats); VOX has 52 seats (+28 seats)

- (UK) Moody's revises UK outlook to Negative from Stable; Affirms Aa2 rating

 

Levels as of 00:20 ET

- Nikkei 225, -0.3%, ASX 200 +0.7%, Hang Seng -2.4%; Shanghai Composite -1.4%; Kospi -0.4%

- Equity Futures: S&P500 -0.3%; Nasdaq100 -0.3%, Dax -0.4%; FTSE100 -0.4%

- EUR 1.1026-1.1016 ; JPY 109.25-108.99 ; AUD 0.6862-0.6847 ;NZD 0.6350-0.6327

- Gold +0.1% at $1,463/oz; Crude Oil -0.9% at $56.75/brl; Copper -0.2% at $2.678/lb