JP tech leads green day in Asia following higher US equities during light US holiday trading

Asia market update: JP tech leads green day in Asia following higher US equities during light US holiday trading; BOK hawkish hold stays KRW.

General Trend and developments

- Positive US equity prices leading into Thanksgiving break translated into Tokyo from the open, with chip-relateds in Tokyo followed the US higher, Kioxia +6.2%, SoftBank +3.7%, Advantest +4.8%. Nikkei outperformed Asia >+1%.

- Korean won slightly stronger as Bank of Korea (BOK) kept rates on hold at 2.50% (as expected), with one dissenter and the BOK Statement removing the phrase `maintain rate cut stance'. Bank is now open to both cut and hold options for now.

- Justifying the overall ‘hawkish cut’ yesterday by the RBNZ, New Zealand Q3 Retail Sales much hotter than expected at 1.9% while Business Confidence rose to a much better 67%.

- Meanwhile Australia’s Q3 Private Capex at 6.4% leaped to its highest since Q1, 2021.

- Reports overnight that Japan will issue ¥11.5T in additional govt bonds for the ¥21.3T supplementary budget over the next year. For comparison, the current year’s BOJ issuance of JGBs is ~¥41T.

- BOJ Board member Noguchi flipped back to a dovish bias, saying a premature hike would entail risk for price goal; Hiking too early or too late could cause problems. USD/JPY rose on the comments.

- China PBOC fix was strongest since Oct 14th, 2024, but was weaker than estimates for the first time since July, 2025. Offshore Yuan fell out of the 7.06 handle overnight back to 7.07.

- After the close yesterday the China Ministry of Industry and Information Technology released a large laundry list of multi-year plans to boost much-needed consumption in China. Aiming for three CNY1T consumer sectors by 2027 and ten CNY100B “consumer hotspot areas”. The plans aim to stimulate an array of consumer product sectors such as for the elderly, babies, rural areas, green and low carbon, robots, AI, internet, sports entertainment, LIV (Livestreaming and online shopping), trendy toys, pet-related, anime, among others. However, like previous plans there is a lack of fiscal commitment specified, making the list read more as a “goal list” without concrete income boosts. Moreover, the plan does not address the long-standing structural problems affecting Chinese consumption such as the prolonged property crisis, household debt, lack of well-paying jobs and inadequate social welfare programs.

- US equity FUTs flat to slightly up during Asian trading.

Looking ahead (Asian-weighted releases, using Asian time zone)

- Fri Nov 28th JP Oct Retail Sales & Industrial Production, (Fri eve: various EU Nov prelim CPI).

Holidays in Asia this week

- Mon Nov 24th Japan.

- Thu Nov 27th US Thanksgiving (US time).

- Fri Nov 28th US Thanksgiving half-day (early close, US time).

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.2% at 8,619.

- Australia Q3 private capital expenditure: 6.4% V 0.5%E (highest since Q1, 2021).

- Australia sells A$100M v A$100M indicated in 0.25% Nov 2032 Indexed Bonds: Avg Yield 1.8794% v 1.5265% prior: bid-to-cover: 4.65x v 4.10x prior.

- Australia PM Albanese: Environmental law overall will pass the Senate today; A$300M forestry growth fund shall be established.

- New Zealand Q3 Retail Sales Q/Q: 1.9% v 0.6%e.

- New Zealand Nov ANZ Business Confidence: 67.1 v 58.1 prior.

- RBNZ Acting Gov Hawkesby: Hurdle is high for any further rate cuts - US financial press interview.

- RBNZ Acting Gov Hawkesby: Confident that inflation will be coming down over the next few quarters; Have needed to kickstart demands through rates; Actually, we need to create some inflation through stronger economic activity.

China/Hong Kong

- Hang Seng opens flat at 25,945; Shanghai Composite opens +0.1% at 3,867.

- China media 'flags' banks' removal of high interest deposits, M&A's.

- China sees AI, cyber, as new security focus - China state media.

- China NDRC holds meeting on price competition; Vows to continue curbing price competition -press.

- China said to turn away 69K tons of Brazilian soybeans upon finding wheat and pesticides in cargo - Brazilian press.

- USTR extends exclusions related to technology transfer and intellectual property from Section 301 tariffs until Nov 10, 2026.

- China govt said planning to increase regulation of online corporate info - press.

- China MIIT: Issues plan to further promote consumption - financial press [overnight update].

- Reportedly China regulators blocked Bytedance from using Nvidia chips in new data centers - The Information [overnight update].

- China PBOC sets Yuan reference rate: 7.0779 v 7.0796 prior (strongest since Oct 14th, 2024, but weaker than estimates for first time since July).

- China PBOC Open Market Operation (OMO): Injects CNY356B in 7-day Reverse Repos; Net injects CNY56B v drains CNY97B prior.

Japan

- Nikkei 225 opens +0.7% at 49,924.

- BOJ Board member Noguchi: Premature hike would entail risk for price goal; need more time for expectations to be anchored – meeting with local leaders in Oita (Kyushu).

- Trump reportedly advised Japan's PM to not provoke China on Taiwan - WSJ citing Japanese and American Officials regarding Trump's call with Takaichi.

- BOJ Outright Bond Purchase Operation for 3~5 Years; 5~10 Years, 10~25 Years and inflation-linked bonds; (Amounts inline with prior purchases).

- Japan and US reportedly considering development plans for a public-private NAND plant in the US - press.

- Japan to issue >¥11.5T (~$74B) additional govt bonds for stimulus (earlier reported ¥11T) - financial press [overnight update].

Korea

- Kospi opens +0.7% at 3,989.

- Bank of Korea (BOK) leaves 7-day repo rate unchanged at 2.50%; as expected.

- Bank of Korea (BOK) Gov Rhee: Decision to keep policy steady was not unanimous (6-1) with dissenter seeking rate cut - post rate decision.

- Board staying open to both cut and hold options for now.

- Bank of Korea (BOK) post-rate statement; Leaves room for potential rate cuts; Removes phrase `maintain rate cut stance' from statement.

- South Korea Real Household Disposable Income +2.6% y/y vs -0.5% q/q.

Other Asia

- Taiwan cabinet to pursue review of Fiscal Act revision - press.

- Taiwan to levy anti-dumping tax on China beer from July 3rd; To levy anti-dumping tax on some China steel products - financial press.

- Malaysia Commodities Min Ghani: Palm oil exports to China fell almost 29% in first 10 months of 2025.

North America

- US Citizenship and Immigration Services: Processing of all immigration requests related to Afghan nationals has been stopped indefinitely following further review of security and vetting protocols, effective immediately.

- US has ordered American diplomats in Europe, Canada, and New Zealand to press governments to restrict most immigration - NYT.

- (US) Initial jobless claims: 216K V 225KE; continuing claims: 1.960M V 1.963ME.

- (US) Sept preliminary Durable Goods Orders: 0.5% V 0.5%E; durables (ex-transportation): 0.6% V 0.2%E.

- (US) NOV CHICAGO PURCHASE MANAGERS INDEX (PMI): 36.3 V 43.6E.

- (US) DOE CRUDE: +2.8M V -1.5ME; GASOLINE: +2.5M V +0.5ME; DISTILLATE: +1.1M V 0ME.

- (US) Weekly EIA Natural Gas inventories: -11 BCF VS. -1 BCF TO +1 BCF indicated range.

- (US) Treasury $44b 7-year note auction draws 3.781% v 3.790% prior, bid-to-cover ratio: 2.46 v 2.46 prior and 2.60 over the last 12.

- (US) Fed Beige Book: Prices rose moderately during the reporting period; wage inflation appears to have steadied at a modest pace.

- (CA) Canada PM Carney: Trade talks with the US have not restarted yet; Canada shall impose 25% global tariff on targeted imported steel derived products; New tariffs apply to all countries, including the US, and affect C$10B worth of goods.

Europe

- EU said to reach provisional agreement on payment services rules - press.

- (UK) Chancellor reeves Autumn Budget speech: Confirms fiscal headroom doubles to ~£21.7B v £15Be.

- (UK) DMO FY25/26 GILT REMIT: £303.7B VS. £308.1BE (prior remit £299B).

Levels as of 01:20 ET

- Nikkei 225 +1.4%, ASX 200 +0.1%; Hang Seng +0.6%; Shanghai Composite +0.1%; Kospi +0.6%.

- Equity S&P500 Futures +0.1%; Nasdaq100 +0.1%; DAX +0.2%; FTSE100 -0.1%.

- Gold -0.4% at $4,185/oz; BTC +4.4% at $91,585; Crude Oil -0.5% at $58.38bbl; Copper -0.4% at $5.1845/lb.