Japan final Q3 GDP revised lower on soft CAPEX

Asia Mid-Session Market Update: China trade components with surprise increase in both Imports and Exports; Japan final Q3 GDP revised lower on soft CAPEX

US Session Highlights

- (CA) BANK OF CANADA (BOC) LEAVES INTEREST RATES UNCHANGED AT 0.50%; AS EXPECTED; slack remains

- (US) OCT JOLTS JOB OPENINGS: 5.53M V 5.50ME

- (US) DOE CRUDE: -2.4M V -1ME; GASOLINE: +3.4M V +1.5ME; DISTILLATE: +2.5M V +1.5ME

- Assoc of American Railroads sees third straight week of gains y/y in carloads and intermodal traffic

- Tech sector joins the rally with new all-time highs for the Dow, S&P and the Russell 2000

US markets on close: Dow +1.6%, S&P500 +1.3%, Nasdaq +1.1%

- Best Sector in S&P500: Technology

- Worst Sector in S&P500: Healthcare

- Biggest gainers: WDC +8.3%, MU +7.2%, DLPH +6.8%, BWA +6.2%, LOW +5.4%

- Biggest losers: UA -12.6%, UHS -11.9%, ENDP -4.9%, MNK -4.4%, CELG -4.0%

- At the close: VIX 12.2 (+0.4pts); Treasuries: 2-yr 1.10% (-2bps), 10-yr 2.35% (-5bps), 30-yr 3.03% (-5bps)

US movers afterhours

- TLRD: Reports Q3 $0.68 v $0.55e, R$846.9M v $836Me; +23.6% afterhours

- LULU: Reports Q3 $0.50 v $0.43e, R$544.4M v $543Me; To repurchase up to $100M (1.2% of market cap) in common stock; +14.1% afterhours

- HRB: Reports Q2 -$0.67 v -$0.68e, R$131.3M v $126Me- adj EBITDA -$161M v -$169M y/y; +7.1% afterhours

- TGI: The Gores Group to acquire Triumph Air Repair unit; terms not disclosed; +5.2% afterhours

- GLW: Announces $4B share repurchase (17.1% of market cap); +1.5% afterhours

- COST: Reports Q1 $1.17 (ex $0.07 benefit from legal settlement) v $1.19e, R$28.1B (including member fees) v $28.4Be; +1.4% afterhours

- JCAP: Files to offer $50M in Common Stock (41.5% of market cap); -4.9% afterhours

- VRNT: Reports Q3 $0.59 v $0.71e, R$260M v $271Me; -12.0% afterhours

Politics

- (US) President-elect Trump to appoint Oklahoma Attorney General Scott Pruitt as head of EPA - press

- (IT) Italy President: have asked Renzi to stay on as caretaker PM during consultations on forming new govt, which will begin tomorrow

- (NZ) New Zealand Fin Min English: Steven Joyce will be Fin Min if I am elected PM

- (NZ) New Zealand Finance Minister Bill English is set to be confirmed as the next PM after rivals have dropped out of contention - NZ press

Asia Session Notable Observations, Speakers and Press

- Australia's ASX200 leads regional indices higher as rising price of iron ore continues to benefit miners; S&P/ASX at 3-month high above 5,500

- Nikkei225 also with a meaningful advance despite the retreat in USD/JPY amid lower US Treasury yields; In other USD majors, NZD/USD rises to 4-week high as New Zealand Treasury half-year economic and fiscal update (HYEFU) raises FY16/17 and FY17/18 GDP targets while cutting jobless rate forecast.

- Moody's lowers Italy rating outlook to Negative from Stable after Sunday's NO referendum vote, citing concerns with slow progress on economic reform and risk of postponement in addressing debt burden.

- Japan Q3 final GDP revised lower, though the quarter is the 3rd straight of expansion; Annualized lowered to 1.3% from 2.3% and q/q to 0.3% from 0.5%, with CAPEX the most notable downward revised component at -0.4% vs 0% prelim.

- China Nov Trade Balance showing smaller than expected surplus in both USD and CNY terms, but Export and Import components top expectations in both formats: USD Exports Y/Y: +0.1% v -5.0%e, Imports +6.7% v -1.9%e; In CNY, Exports +5.9% (8-month high) v

-1.0%e; and Imports at 3-year high of +13.0% v +3.6%e; China Stats Bureau more upbeat on 2017 trade conditions despite worries over protectionism from Trump cabinet.

- Aussie trade deficit wider than expected, but smaller than in recent months. Export growth slows to 1% from 2% and Imports rise 2% after falling 1% prior. Crude oil shipments component most notable with a 15-month high value.

China:

- (CN) PBoC chief economist Ma Jun: China housing investment to slow down in 2017 due to recent property purchase curbs - Chinese press

- (CN) China Customs: Pressure on China's exports likely to ease early 2017

- (CN) NDRC said to consider revising guidance for foreign investment in China - Chinese press

Japan:

- (JP) According to a survey, 37% of Japan corporate leaders see the election of Donald Trump as a negative for business, while 25% see him as a positive force - Nikkei

- (JP) Japan Upper House of Diet will not vote on Casino bill today - Japan press

Australia/New Zealand

- (AU) Australia PM Turnbull: Q3 GDP figures were a "bump in the road" - press

- (AU) Moody's: Australian Banks' Funding Stability Improving; Asset Quality Metrics Gradually Deteriorating But Buffered By Strong Capital Levels

- (AU) UBS: Australia trade data shows stalling in the narrowing of trade deficit trend - SMH

- AUD/USD: Goldman Sachs economist: There is a massive wedge between AUD and commodity prices, which is unprecedented - SMH

- (NZ) New Zealand Treasury half-year economic and fiscal update (HYEFU): Raises FY16/17 GDP target to 3.5% from 3.3%; Raises FY17/18 GDP target to 3.4% from 3.0%

- (NZ) Fonterra Global Dairy Trade Auction: Dairy Trade price index: +3.5% v +4.5% prior; 4th straight increase

- FCG.NZ: Westpac raises FY16/17 forecast milk price to NZ$6.20/kg

Asia Key economic data:

- (CN) CHINA NOV TRADE BALANCE (CNY): 298B V 320BE; USD denominated: $44.6B V $46.9BE

- (JP) JAPAN Q3 FINAL GDP Q/Q: 0.3% V 0.5%E; ANNUALIZED GDP: 1.3% V 2.3%E (3rd straight expansion both quarterly and annualized)

- (JP) JAPAN OCT CURRENT ACCOUNT BALANCE: ¥1.72T V ¥1.55TE; ADJUSTED CURRENT ACCOUNT: ¥1.93T V ¥1.72TE; TRADE BALANCE: ¥588B V ¥603BE

- (AU) AUSTRALIA OCT TRADE BALANCE (A$): -1.5B V -0.6BE; 30th consecutive trade deficit

Asian Equity Indices/Futures (00:00ET)

- Nikkei +1.0%, Hang Seng +0.6%, Shanghai Composite -0.1%, ASX200 +1.2%, Kospi +1.2%

- Equity Futures: S&P e-mini +0.1, Dax +0.1%, FTSE100 flat

FX ranges/Commodities/Fixed Income (00:00ET):

- EUR 1.0750-1.0785; JPY 113.10-113.90; AUD 0.7475-0.7505; NZD 0.7160-0.7220

- Feb Gold +0.1% at 1,179/oz; Jan Crude Oil +0.2% at $49.88/brl; Mar Copper +0.1% at $2.65/lb

- GLD: SPDR Gold Trust ETF daily holdings fall 6.2 tonnes to 863.7 tonnes; 15th straight decline; lowest since May 19th

- JGB: (JP) Japan MoF sells ¥724B in 0.6% (0.5% prior) 30-yr bonds; Avg yield: 0.617% v 0.511% prior; Bid to cover: 2.85x v 3.50x prior (weakest demand in 5 months)

- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.8731 V 6.8808 PRIOR

Asia equities/Notables/movers by sector

- Consumer discretionary: Television Broadcasts 511.HK -3.0% (profit warning); Fairfax Media FXJ.AU +1.7% (confirms third party interest in NZ business); Nine Entertainment Co Holdings NEC.AU +2.0% (Morgan Stanley raises PT); APN News APN.AU +1.2% (ACCC not oppose News' proposed acquisition)

- Financials: Insurance Australia IAG.AU +4.5% (guidance)

- Industrials: Sumitomo Chemical Co 4005.JP -0.7% (JPMorgan cuts to neutral)

- Technology: Advantech Co 2395.TW +1.6% (Nov result); Fujitsu 6702.JP +6.1% (CEO outlook)

- Materials: Baoshan Iron & Steel Co 600019.CN +3.8%, Wuhan Iron and Steel 600005.CN +5.6% (merger approval); Fortescue FMG.AU +1.8%, Rio Tinto RIO.AU +3.2% (iron ore gains); Saracen Mineral Holdings SAR.AU +3.6% (Macquarie raises to outperform); New Hope Corporation NHC.AU +4.0% (Credit Suisse raised to neutral)

- Energy: Karoon Gas Australia KAR.AU -9.8% (Joined Proceedings against Petrobras); Xinjiang Goldwind Science & Technology 2208.HK +6.0% (work plan with Apple); Santos STO.AU -2.4% (production guidance)

- Utilities: Tokyo Electric Power Co 9501.JP +16.2% (Japan govt may expand credit)