Japan GDP and Aussie wages data due on Wed, along with China industrial production

Asia Market Update: Apple suppliers trade generally lower; No breakthroughs seen in recent US/China talks; Japan GDP and Aussie wages data due on Wed, along with China industrial production

 

General Trend:

- Markets pare losses amid reports of more upcoming talks between the US and China

- Asian automakers trade generally lower, Toyota down over 2.5%

- US Commerce Dept. said to have circulated draft report on auto tariffs (press)

- Apple suppliers decline amid outlook concerns, Hon Hai drops over 2%

- Japan Display declines over 7% after cutting outlook

- Yuan pares loss amid intervention speculation

- Japan mega-banks Mitsubishi UFJ and Sumitomo Mitsui may report results after the market close (unconfirmed report)

- Australia Q3 wage price index due on Wednesday

- Japan Q3 prelim GDP due tomorrow

- China Oct Industrial Production, Retail Sales and Fixed Asset Investment due for release on Wed

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -1.5%

- (AU) AUSTRALIA OCT NAB BUSINESS CONFIDENCE: 4 V 6 PRIOR; CONDITIONS: 12 V 15 PRIOR

- (AU) Australia sells A$150M v A$150M indicated in 2022 Linkers, avg yield 0.4792%, bid to cover 4.53x

- (NZ) RBNZ Deputy Gov Bascand: financial sector is sound and well regulated

- (NZ) New Zealand Oct Food Prices m/m: -0.6% v -0.1% prior

China/Hong Kong

- Shanghai Composite opened -1.1%, Hang Seng -2.1%

- (CN) China Vice Premier Liu He to visit the US to pave the way for the Xi-Trump meeting - Hong Kong Press

- (CN) On Friday (Nov 9th), US Treasury Sec Mnuchin and China Vice Premier Liu He resumed talks and spoke by phone; the conversation did not lead to any 'breakthrough' - US financial press

- (CN) China Premier Li: Reiterates willing to improve free trade through discussion; Reiterates global economy and politics are complicated, global uncertainties are rising; China and US will find solution that meets common interest

- (CN) 'Major' China state-owned banks said to have been seen selling US dollars (USD) in the onshore spot FX market at around the 6.97 level

-(CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.9629 V 6.9476 PRIOR

-(CN) China PBoC Open Market Operation (OMO):Skips OMO v skipped prior (13th straight skip)

-(CN) Brokerage firm in China has launched ~$1.4B relief fund aimed at supporting private companies - Chinese Press

Japan

- Nikkei 225 opened -1.7%

- (JP) Japan Finance Min Aso: Does not expect auto tariffs to come up in talks with US Vice President Pence, will meet Pence but not as part of economic dialogue talks

(US) US Vice President Pence: US has had trade imbalance with Japan for too long; US President Trump is looking forward to meeting with China President Xi, Trump believes progress can be made with China

- (JP) Japan PM Abe: US/Japan alliance stronger than ever; Agreed with US Vice President Pence to expand bilateral investment and trade

- (JP) Bank of Japan (BoJ) asset holdings reach ¥553.6T, which is larger than Japan's GDP

- (JP) Japan MoF sells ¥700B v ¥700B indicated in 0.90% 30-yr JGBs, avg yield: 0.8740% v 0.8980% prior, bid to cover 3.99x v 3.92x prior

Korea

- Kospi opened -1.6%

- (KR) Bank of Korea (BOK) held meeting to discuss impact from US equity market decline; reiterates to closely monitor financial markets and economic conditions

- (KR) South Korea's Ruling Party seeks North Korea visit in Dec - Local Press

- (KR) South Korea Oct Import Price Index M/M: 1.5% v 1.5% prior; Y/Y: 10.7% v 9.7% prior

- (KR) South Korea Sept L Money Supply M/M: 0.1% v 0.2% prior; M2 M/M:-0.1 % v +0.6% prior

Other

- (ID) Indonesia Central Bank Official: To maintain liquidity in onshore NDF market, to hold auction in onshore NDF market if needed

North America

- US equity markets ended lower: Dow -2.3%, S&P500 -2.0%, Nasdaq -2.8%, Russell 2000 -2%

- Amazon: Announcement related to two new headquarters may come by as early as Tuesday - US financial press

- (US) Commerce Dept reportedly circulating a draft report on auto tariffs; Pres Trump to hold meeting Tues with trade advisers to discuss the report – press

- (US) San Francisco Fed Pres Mary Daly (voter): 'Neutral' rate is uncertain so shouldn't view it as a stopping point; won't be surprised by a Dec rate hike and at least a couple more in 2019 - press interview

- (US) Former Fed Chair Yellen: Sees Fed increasing interest rates by 3-4 times over next year

Europe

- (UK) Prime Min May: both sides are working hard to reach Brexit deal but significant issues remain; talks are now reaching their 'end game'

- (DE) Germany Bundesbank official Wuermeling not concerned by the low stress test scores of German banks - financial press

 

Levels as of 01:30ET

- Nikkei 225, -2.3%, ASX 200 -1.8%, Hang Seng flat; Shanghai Composite +0.8%; Kospi -0.9%

- Equity Futures: S&P500 +0.5%; Nasdaq100 +0.5%, Dax +0.3%; FTSE100 +0.2%

- EUR 1.1252-1.1215 ; JPY 114.06-113.58 ; AUD 0.7218-0.7163 ;NZD 0.6751-0.6707

- Dec Gold +0.1% at $1,204/oz; Oct Crude Oil -1.4% at $59.09/brl; Dec Copper +0.8% at $2.689/lb