Asia Market Update: Equity indices trade lower after US declines on Monday amid weaker US manufacturing data and various trade-related headlines; Nikkei Futures rise after prior session’s losses; Aussie yields rise as RBA affirmed prior policy measures are working way through the economy [no near term rate cut signal seen]


General Trend:

- Australian equity markets underperformed amid RBA decision, decliners include consumer staples and financials

- Hang Seng Futures erase losses as government plans 4th round of stimulus measures

- Decliners in Japan include Marine/Transportation and Iron/Steel companies, banks also drop

- Nintendo rises as Tencent is expected to give a Switch update on Dec 4th

- Fast Retailing is due to report its Nov sales after the Tokyo close

- Japan’s economic stimulus package may now total ¥25T, above the previously speculated ¥10T figure; government may decide on stimulus package later this week (Japanese press)

- Japan sells 10-year JGBs at lowest bid to cover since 2016

- Australia Q3 GDP data due for release on Wed (Dec 4th)

- US Treasury Sec Mnuchin to appear at US House committee hearing on Dec 5th (Thursday)


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.6%



- CTX.AU Rejects bid from Couche Tard, saying it undervalues the company

- ORE.AU Gives Q2 lithium carbonate pricing guidance: Expect lithium chemical pricing to recover in the mid-term, will meet current pricing in order to maintain market share


- Nikkei 225 opened -1.3%

- (JP) Japan Econ Min Nishimura: Economy is picking up but still at low level; To compile econ measures looking at consumption

- (JP) Bank of Japan (BOJ) Gov Kuroda: Losing trust in Japan's finances could spike yields; important to find balance between growth and fiscal discipline - speaking in Parliament

- (JP) Japan govt reportedly to select stimulus package worth ¥25T – Nikkei

- (JP) Japan Cabinet Sec Suga: Economic measures will not be based on a certain scale and will likely be compiled soon

- 4502.JP Files lawsuit against Mylan over breaching a license agreement stemming from the settlement of a patent-infringement case over Colcrys

- 4503.JP Astellas Pharma to acquire Audentes Therapeutics at $60/shr cash for $3.0B

- 7956.JP Reports 9M Net ¥9.6B v ¥12.2B y/y, Op ¥13.9B v 16.9B y/y, Rev ¥77.5B v ¥79.4B y/y; Cuts FY19/20 Net ¥11.8B v ¥15.77Be, Op ¥16.8B v ¥22.09Be (prior Net ¥14.3B, Op ¥20.0B)

- (JP) Japan MoF sells ¥2.1T v ¥2.1T indicated in 0.1% 10-year JGBs: avg yield: -0.042% v -0.099% prior, bid to cover 3.28x v 3.62x prior (lowest btc since Aug 2016)


- Kospi opened -0.8%

- (KR) SOUTH KOREA Q3 FINAL GDP Q/Q: 0.4% V 0.4%E; Y/Y:2.0% V 2.0%E

- (KR) South Korea to appoint new Premier Kim Jin-Pyo - South Korea Press

- (KR) North Korea Foreign Min: Dialog with the US has been nothing but a trick; will not continue talks with US, it is using talks for its upcoming elections

- 005930.KR US Sec of State Pompeo: Samsung is a legitimate substitute to China companies for building 5G networks across the EU - op-ed in Politico

China/Hong Kong

- Hang Seng opened -0.5%; Shanghai Composite opened -0.2%

- (CN) China has banned US military visits to Hong Kong due to human rights bill

- (HK) Hong Kong Chief Exec Lam: Will soon announce fourth round of relief measures; foresees fiscal deficit in Hong Kong over next 1-2 years

- (CN) China President Xi: Will work with Russia to counter 'western interference;' will ramp up coordination with Russia to deal with criticism of treatment of Muslim Chinese in western Xinjiang - speaking to Russian Security Council Sec Patrushev

- China Global Times releases list of possible counter measures China is considering taking against the US in response to Hong Kong Bill

- (CN) China soybean revitalization plan calling on farmers in Heilongjiang Province to increase soybean production in 2020 in order to reduce reliance on US amid the trade war - Chinese press

- (CN) China PBoC Open Market Operation (OMO): Skips for 10th consecutive session; Net drains CNY0B v CNY0B prior

- (CN) China PBOC sets Yuan Reference Rate: 7.0223 v 7.0262 prior

North America

- BOLD To be acquired by Astellas Pharma at $60/shr cash for $3.0B

- (CN) Bipartisan group of US Senators want Pres Trump to probe China social credit system as applied to foreign companies – SCMP

- (US) US State Dept Official: China has made false accusations of foreign interference in its sanctioning of US NGOs in Hong Kong


- (FR) US issues decision in response to France digital tax: USTR will take action against digital tax regimes that discriminate against US companies; proposes $2.4B tariffs on French goods; also considering probe on Austria, Turkey and Italy over digital tax

- (IE) Ireland Nov Consumer Confidence: 77.1 v 69.5 prior (fastest rise since 2015)


Levels as of 12:15ET

- Hang Seng -0.3%; Shanghai Composite 0.0%; Kospi -0.4%; Nikkei225 -0.7%; ASX 200 -2.2%

- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.3%; FTSE100 +0.1%

- EUR 1.1083-1.1071; JPY 109.20-108.95; AUD 0.6844-0.6815; NZD 0.6513-0.6493

- Commodity Futures: Gold -0.2% at $1,466/oz; Crude Oil +0.4% at $56.16/brl; Copper +0.1% at $2.65/lb


All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.


EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 


Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold clings to modest gains above $1460 level, lacks follow-through

The latest NFP report surpassed most optimistic estimates, which provided a goodish intraday lift to the US dollar and eventually prompted some aggressive selling around the dollar-denominated commodity.

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.


Forex Majors