Tokyo CPI accelerated more than expected

Asia Market Update: Equity markets trade generally lower; Tokyo CPI accelerated more than expected; RBA Gov Lowe to testify on Mon (Nov 28th).

General trend

- Possible China RRR cut in focus [China RRR cut at all banks is seen as likely – China Securities Journal].

- Shanghai Property index rises >3% amid RRR cut speculation.

- HK Casino firms decline [Hong Kong extends coronavirus social distancing measures through Dec 14th].

- Meituan to report earnings after the HK close.

- US equity FUTS remain higher.

- Appearance by Philip Lowe, RBA Governor, before the Senate Economics Legislation Committee (Additional Budget Estimates) – Canberra [28 November 2022, 10.00 am AEDT].

Headlines/economic data

Australia/New Zealand

- ASX 200 opened flat.

- (AU) RBA Gov Lowe to appear for a senate committee at 10AM Australia Time Monday, Nov 28th.

- (AU) Australia sells A$700M v A$700M indicated in 3.25% Apr 2025 bonds; Avg Yield: 3.1749%; bid-to-cover: 4.74x.

- (NZ) New Zealand Q3 Retail Sales (ex-inflation) Q/Q: 0.4% v 0.5%e.

- (NZ) New Zealand Nov Consumer Confidence Index: 80.7 v 85.4 prior [lowest since Jun]; M/M: -5.5% v 0.0% prior.

Japan

- Nikkei 225 opened +0.1%.

- (JP) Japan Trade Min: Will exempt oil from Sakhalin 2 from Russia Oil Price cap.

- (JP) Japan Investors Net Buying of Foreign Bonds: -¥526.6B v -¥123.9B prior; Foreign Net Buying of Japan Stocks: ¥4.5B v ¥556.6B prior.

- (JP) Japan Oct PPI Services Y/Y: 1.8% v 2.1%e.

- (JP) Japan Fin Min Suzuki: Defense spending requires perpetual spending; Government will strive to cut issuance of short-term debt.

- (JP) Japan Investors Net Buying of Foreign Bonds: -¥526.6B v -¥123.9B prior; Foreign Net Buying of Japan Stocks: ¥4.5B v ¥556.6B prior.

- (JP) Japan Nov Tokyo CPI Y/Y: 3.8% V 3.6%E; CPI (ex-fresh food) Y/Y: 3.6% V 3.5%E (fastest increase since 1982).

Korea

- Kospi opened flat.

- (KR) Bank of Korea (BOK) Gov Rhee: May go up to 3.5% as terminal policy rate; Watching other central banks and credit market.

China/Hong Kong

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

- (CN) China PBOC Open Market Operation (OMO): Sells CNY8.0B in 7-day reverse repos v CNY8.0B prior; Net drain CNY13B v net CNY124B prior.

- (CN) China PBOC sets Yuan reference rate: 7.1339 v 7.1201 prior.

- (CN) China RRR cut at all banks is seen as likely – China Securities Journal.

- (CN) China Daily: China must supervise developer use of presale funds.

North America

- (US) US Pres Biden: Had oil price cap conversation with US Treasury Sec Yellen and it is in play.

- (CA) Canada Sept Payroll Employment Change: +85.3K v -22.2K prior.

Europe

- Saudi and Iraq Energy Ministers ensure commitment to OPEC+ decision.

- (UK) UK Oct Car Production Y/Y: +7.4% - SMMT.

- (ES) Spain windfall tax on banks and energy companies passes first step in Parliament; the vote was 186 to 152 [there were 10 abstentions].

- (UK) Bank of England (BOE) Receives 1.92x times bids of £750M gilts sold during QT auction.

- (DE) Germany Econ Ministry: EU ministers agreed to two sets of emergency measures; One for affordable gas supply in EU, other is for faster development of renewables.

Levels as of 00:20 ET

- Nikkei 225, -0.4%, ASX 200 +0.2% , Hang Seng -0.8%; Shanghai Composite +0.4% ; Kospi -0.1%.

- Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax flat; FTSE100 -0.1%.

- EUR 1.0429-1.0396 ; JPY 139.05-138.37 ; AUD 0.6781-0.6751 ;NZD 0.6278-0.6248.

- Gold +0.2% at $1,758/oz; Crude Oil +0.8% at $78.56/brl; Copper +0.6% at $3.6528/lb.