RBA again rules out near-term rate hike

Asia Market Update: RBA again rules out near-term rate hike; Upcoming US/China talks in focus

General Trend:

- Asian equity markets trade generally lower in the aftermath of Fed meeting

- Hang Seng IT index lags, Tencent declines over 4%

- RBA again rules out near-term rate hike (Quarterly Monetary Policy Statement)

- China inflation data inline with expectations

- Friday’s US/China diplomatic and security talks in focus

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened flat

- (AU) RESERVE BANK OF AUSTRALIA (RBA) QUARTERLY STATEMENT ON MONETARY POLICY (SOMP): REITERATES HIGHER INTEREST RATES LIKELY APPROPRIATE AT SOME POINT, does not see strong case to adjust cash-rate in near-term

- (AU) Australia Sept Home Loans M/M: -1.0% v -1.0%e; Investment Lending: -2.8% v -1.1% prior

- (NZ) New Zealand sells NZ$250M in April 2029 bonds, avg yield 2.8179%, bid to cover 2.20x

China/Hong Kong

-Shanghai Composite opened -0.6%, Hang Seng -1.2%

- (CN) CHINA OCT CPI Y/Y: 2.5% V 2.5%E

- (CN) CHINA OCT PPI Y/Y: 3.3% V 3.3%E

- (CN) Companies in China repurchased CNY33.7B (~$4.9B) in shares in 2018 - China Securities Times

- (CN) China must maintain current property controls - Chinese Press

- (CN) China PBoC Open Market Operations (OMO): Skips reverse repo operation v skipped prior

- (CN) China PBoC sets Yuan reference rate at: 6.9329 v 6.9163 prior

Japan

-Nikkei 225 opened -0.1%

- (JP) Japan Chief Cabinet Sec Suga: PM Abe held phone call with US President Trump

- (JP) Japan Fin Min Aso: Expects strong US/Japan relations to continue; can't comment on details of US Vice President Pence's visit next week

- (JP) Japan Oct Money Stock M2 Y/Y: 2.7% v 2.8%e; M3 Y/Y: 2.3% v 2.4%e

Korea

- Kospi opened +0.1%

- (KR) South Korea President Moon names Government Coordination Office Chief as the new Finance Min (confirms press speculation)

- (KR) South Korea President Moon approval rating 54% v 55% prior - Gallup Poll

Other

- (MY) Malaysia Sep Industrial Production Y/Y: 2.3% v 2.3%e

North America

- US equity markets ended mixed: Dow flat, S&P500 -0.3%, Nasdaq -0.5%, Russell 2000 -0.3%

- (US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 2.00-2.25%; AS EXPECTED: UNEMPLOYMENT RATE HAS DECLINED, JOB GAINS HAVE BEEN STRONG ON AVERAGE

-TransCanada [TRP]: Federal Court said to block Keystone XL Pipeline project -US financial press

Europe

- (UK) Prime Min May spokesperson: govt won't agree to anything that causes hard border on Ireland; will not accept UK division into two customs territories

- (UK) Reportedly EU demanding fishing rights in British coastal waters as the price for an all-UK Brexit backstop agreement - UK Telegraph

- (UK) Prime Min May reportedly will hold phone discussions with ministers on Sunday related to the Irish border - FT

-ThyssenKrupp [TKA.DE]: Cuts FY18 Net €0.1B v €0.3B y/y, adj EBIT €1.6B (prior €1.8B): affected by provisions for cartel proceedings

Levels as of 01:30ET

- Nikkei 225, -1%, ASX 200 -0.1%, Hang Seng -2.5%; Shanghai Composite -1%; Kospi -0.1%

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

- EUR 1.1369-1.1340 ; JPY 114.10-113.82 ; AUD 0.7272-0.7236 ;NZD 0.6767-0.6730

- Dec Gold -0.4% at $1,220/oz; Oct Crude Oil -0.1% at $60.63/brl; Dec Copper -0.4% at $2.721/lb