Mixed trading session for Asia, modest moves seen ahead of Thanksgiving holiday in the US

General Trend

- Japanese sectors trade mixed; Decliners include Air Transportation, Auto and Insurance firms; Topix Information/Communication and Electric Appliances indices are among the gainers

- TECH and Finance indices rise in HK, Property shares drop after prior gains

- Shanghai Composite lagged during the morning session; Consumer and Property firms dropped

- Financial and Energy firms decline in Australia

- New Zealand 10-yr bond yield drops over 8bps, pares some of the recent rise; NZ debt agency sold bonds in 3 tranches

- BOK Gov expressed mild concern about recent gains in the KRW; BOK also raised growth forecasts, affirmed easing stance, did not specifically comment on the rate outlook or QE; Commented on monetary stabilization bond (MSB) issuance

- Tokyo confirmed plans to issue coronavirus bonds; Any implications for BoJ policy?

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.1%

- (AU) AUSTRALIA Q3 PRIVATE CAPITAL EXPENDITURE Q/Q: -3.0% V -1.5%E; 2020-21 Capex estimate A$105.0B v A$98.6B prior

- (NZ) New Zealand Oct Trade Balance (NZ$): -0.5B v -0.5Be; Trade Balance 12-month YTD 2.2B v 2.2Be (largest annual surplus since July 1992)

- (NZ) New Zealand Gov General: There is a perverse impact of low rates on house prices

- BGA.AU Trading halted: Confirms acquisition of Lion Dairy and Drinks from Kirin for A$534M cash plus costs; announces A$401M capital raise

- (AU) Reserve Bank of Australia (RBA) to buy A$2.0B in Govt bonds v A$3.5B prior

- New Zealand Debt Management Office (DMO) sells NZ$600M v NZ$600M indicated in 2023, 2029 and 2033 bonds

- (NZ) New Zealand PM Ardern: Increasing housing prices are not a plan for growth; Not content with housing experience in New Zealand

Japan

- Nikkei 225 opened -0.2%

- (JP) Japan Government Pension Fund (GPIF) thought to have turned net seller of Japan equities in Q3, though equities maintain 25% portfolio weight target - Nikkei

- (JP) Tokyo, Japan to sell ¥60B in coronavirus bonds – Nikkei; Follow up, Tokyo Govt confirms to issue bonds for lending to companies that are affected by coronavirus pandemic

- (JP) Japan Cabinet Office (Govt) Nov Monthly Economic Report: Maintains overall economic assessment (yesterday after the close)

- (JP) Japan govt to extend employment subsidy program until the end of Feb – Nikkei

- (JP) Japan Chief Cabinet Sec Kato: Reiterates no need to declare state of emergency, will decide on employment subsidy extension appropriately

- (JP) Japan Sept Final Leading Index CI: 92.5 v 92.9 prelim; Coincident Index: 81.1 v 80.8 prelim

Korea

- Kospi opened +0.2%

- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 0.50%; AS EXPECTED; raises 2020, 2021 GDP outlook; initiates 2022 outlook for GDP and CPI

- (KR) South Korea Health Min confirms daily virus cases >500 today (highest level since March) - Yonhap

China/Hong Kong

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

- (CN) China analysts note that China will end stimulus as economy improves, however may not increase interest rates yet as market isn't ready - China Securities Journal front-page

- China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos prior; Net inject CNY10B v Net inject CNY20B prior

- (CN) China PBOC sets Yuan reference rate: 6.5780 v 6.5749 prior

Other

- (SG) Singapore Oct Industrial Production M/M: -19.0% v -11.8%e; Y/Y: -0.9% v 7.3%e

North America

- (US) FOMC NOV MINUTES: PARTICIPANTS RECOGNIZED THAT CIRCUMSTANCES COULD SHIFT TO WARRANT ADJUSTMENTS TO PACE AND COMPOSITION OF ASSET PURCHASES. While participants judged that immediate adjustments to the pace and composition of asset purchases were not necessary, they recognized that circumstances could shift to warrant such adjustments.

Europe

- (DE) Germany Chancellor Merkel: confirms will extend Nov COVID measures to Dec 20th; Measures will continue afterwards in Jan unless we reach infection target

- (UK) Oct Auto Manufacturing 110.2K units, -18.2% y/y; YTD manufacturing 743.0K units, -33.8% y/y - SMMT

Levels as of 12:15ET

- Hang Seng +0.1%; Shanghai Composite +0.1%; Kospi +0.6%; Nikkei225 +0.7%; ASX 200 -0.7%

- Equity Futures: S&P500 0.0%; Nasdaq100 +0.4%, Dax 0.0%; FTSE100 +0.3%

- EUR 1.1929-1.1914; JPY 104.48-104.26; AUD 0.7375-0.7359; NZD 0.7015-0.6997

- Commodity Futures: Gold +0.2% at $1,808/oz; Crude Oil +0.5% at $45.93/brl; Copper +0.6% at $3.34/lb