Asia Market Update: Mixed trading session for Asia; S&P 500 FUTs underperform, US banks and Airlines decline in afterhours; Fed official ‘surprised’ by Treasury’s move related to unused stimulus funds; Trump to participate in APEC meeting.

General Trend

- Topix Insurance and Air Transportation indices are among the decliners in Japan

- Energy firms decline in Australia while Financials rise

- Hang Seng TECH index rises, property index drops (China Overseas Land trades at 52-week low)

- Shanghai Composite traded flat during the morning session; Industrials rose, Financials dropped amid corporate debt concerns

- China expands probe related to banks and the recent default by Yongcheng Coal

- China bill yields rise at auction; PBOC drained more liquidity

- Deflation concerns reappear in the headlines after Japan inflation data

- Asian central banks continue to move to deal with currency strength (Thailand)

- Commodity currencies pare early losses

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened flat

- (AU) Reserve Bank of Australia (RBA): Banks using committed liquidity facilities can increase holdings of high-quality liquid assets (HQLA); banks can raise holdings of HQLA to 27% by the end of 2020, to 30% by the end of 2021

- (AU) Australia Preliminary Oct Retail Sales M/M: +1.6% v -1.1% prior

- (AU) South Australia State Premier: To lift restrictions [3 days] earlier than expected, restrictions to be removed at midnight on Nov 21st; Contact tracers were misled by one contact who lied

China/Hong Kong

- Hang Seng opened +0.2%, Shanghai Composite -0.1%

- (CN) Industrial Bank, Zhongyuan Bank [1216.HK] and Everbright Bank to be probed by China in relation to default by Yongcheng Coal - financial press

- (CN) China to probe domestic ratings agencies, relates to the recent default by Yongcheng Coal - SCMP

- Greenland Holdings [600606.CN]: The state-backed property firm held a call on Thursday with investors; followed default concerns and a sharp rise seen in the co's 2025 bond yields - Nikkei

- *(CN) CHINA MONTHLY LOAN PRIME RATE (LPR) SETTING: 1-YEAR AND 5-YEAR RATES UNCHANGED (rates left unchanged for 7th straight month)

- (CN) China PBOC sets Yuan reference rate: 6.5786 v 6.5484 prior

- (CN) China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repos v Injects CNY70B in 7-day reverse repos prior; Net drain CNY80B v Net drain CNY50B prior

- (CN) China Virus Expert Zhong Nanshan: Urges mass coronavirus testing in Hong Kong

- (HK) Hong Kong Govt to suspend classes for Primary levels 1-3 [for 2 weeks]

- (CN) Japan Foreign Min Motegi confirms China Foreign Min Wang to visit Japan on Nov 24-25th

Japan

- Nikkei 225 opened -0.6%

- *(JP) JAPAN OCT NATIONAL CPI Y/Y: -0.4% V -0.4%E; CPI EX-FRESH FOOD (CORE) Y/Y: -0.7% V -0.7%E (lowest annual rate for core CPI since late 2010)

- *(JP) JAPAN NOV PRELIMINARY PMI MANUFACTURING: 48.3 V 48.7 PRIOR; PMI Services: 46.7 v 47.7 prior

Korea

- Kospi opened -0.1%

- (KR) South Korea Oct PPI Y/Y: -0.6% v -0.4% prior

Other Asia

- (TH) Bank of Thailand Assistant (BoT) Gov Vachira: Eases rules on FX deposits to encourage capital outflows; To allow Domestic investors to invest more in foreign securities, raise the overseas investment limit for institutional investors

North America

- (US) Treasury Sec Mnuchin sends letter to Fed's Powell requesting 90 day extension of Fed's Commercial Paper Funding Facility, Primary Dealer Credit Facility, Money Market Liquidity Facility, and Paycheck Protection Program Liquidity Facility; Calls on Fed to return unused stimulus funds to the Treasury

- (US) Treasury Sec Mnuchin; Financial conditions are quite strong; hopes $580B in leftover funds [from Fed] are used to help the economy (returned to treasury)

- (US) Fed Bostic (dove, non-voter): Given where economy is, is prudent to keep emergency facilities open; Was a bit surprised by US Treasury decision [related to unused Fed stimulus funds]; When households burn through their savings will signal a tipping point requiring more Fed engagement

- (US) Sen Schumer says Majority Leader McConnell has agreed to resume negotiations over Covid-19 stimulus – CNBC

- (US) VP Biden says he has picked someone to be Treasury Secretary and will announce soon after Thanksgiving – press

- (US) President Trump to participate in APEC meeting at 06:50 AM ET on Nov 20th ( Friday)

- (US) SEMI Oct North America-based Manufacturers of Semi Equipment Billings: $2.64B, -3.7% m/m and +26.9% y/y

- Gilead [GILD]: World Health Organization (WHO) recommends against use of Remdesivir for COVID-19

- (US) California govt reportedly to impose a 'limited' stay at home order for more than 40 counties that are in the 'purple/widespread' COVID zone - local press

Europe

- (UK) UK-EU trade deal reportedly could be announced next Monday - UK's Telegraph

- (UK) Nov GfK Consumer Confidence: -33 v -31 prior

Levels as of 00:20 ET

- Nikkei 225, -0.4%, ASX 200 -0.1% , Hang Seng +0.4%; Shanghai Composite +0.1% ; Kospi flat

- Equity S&P500 Futures: -0.4%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%

- EUR 1.1882-1.1865 ; JPY 103.91-103.73 ; AUD 0.7298-0.7265 ;NZD 0.6930-0.6904

- Gold +0.1% at $1,863/oz; Crude Oil -0.1% at $41.88/brl; Copper +0.2% at $3.2228/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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors

Cryptocurrencies

Signatures