Trump again criticized Fed ahead of Powell’s speech

Asia Market Update: Asian equities trade mixed, traders continue to digest headlines related to upcoming G20; Analysts ponder implications of weaker Aussie construction data on GDP, Trump again criticized Fed ahead of Powell’s speech

General Trend:

- Cautious trading generally seen for Shanghai and Hong Kong during morning session

- Nikkei rises as transportation, technology and retail names gain

- Focus remains on upcoming G20 and if consensus will be reached on issues and if US and China will be able to ease trade tensions

- Australian equities lag, financials and resources sector decline

- Australia Q3 construction work done unexpectedly declined, little reaction seen; Q3 GDP data due next week (Dec 5th)

- Fed Chair Powell due to speak in NY later today, ahead of Thursday’s release of the FOMC minutes

Headlines/Economic Data

Japan

- Nikkei 225 opened +0.4%

- 8697.JP Discloses discovered CEO Kiyota has invested in infrastructure fund, which is against JPX rules but not illegal (after the close yesterday)

- (JP) Japan considering taxing car owners based on mileage - Nikkei

Korea

- Kospi opened +0.2%

- (KR) North Korean Leader Kim reportedly has expressed willingness to allow site inspectors into country's main nuclear complex - Yonhap

- (KR) US and North Korea special envoys fail to hold scheduled meeting - press

(KR) South Korea Dec Business Manufacturing Survey: 71 v 72 prior; Non-Manufacturing Survey: 74 v 75 prior

- (KR) South Korea YTD New foreign direct investment (FDI) pledged $23.04B v $22.94B at the end of 2017 - Yonhap

China/Hong Kong

- Hang Seng opened +0.3%, Shanghai Composite flat

- (CN) Beijing, China sells 12 land sites Monday (record for 1 day) - SCMP

- (CN) China Ambassador to US Cui: doesn't believe anyone in Beijing is thinking seriously about pulling back from US Treasury debt market if trade disputes worsen

- (CN) China PBoC: Issues guidelines on improving management of systemically important financial institutions (SIFIs): To impose additional capital and liquidity requirements on these companies (overnight)

- (CN) China Ambassador: Will retaliate 'in proportion' to any US sanctions over the Muslim Uighurs in Xinjiang

- (CN) China PBoC Open Market Operation (OMO): Skips open market operation v skipped prior (24th straight skip)

- (CN) Bank of China (private bank): Sees 2018 China GDP growth at ~6.6% v~6.7% forecast given in late Sept; 2019 GDP growth seen slowing to ~6.5%

Australia/New Zealand

- ASX 200 opened -0.1%

- (AU) AUSTRALIA Q3 CONSTRUCTION WORK DONE Q/Q: -2.8% V +0.9%E

- (NZ) RBNZ to loosen mortgage lending restrictions beginning Jan 1st; to reduce some mortgage and investor deposit requirements

- (NZ) New Zealand Central Bank (RBNZ) Financial Stability Report: financial system risks have eased, but remain high

- CKA.AU Requested and received resignation of AFO Teuku Juliansyah after completing investigation into financial irregularities and fraudulent activity

- AMP.AU Confirms will have A$415M pretax (A$290M after tax) additional advice remediation provision in H1 results

- (AU) Australia sells A$1.0B v A$1.0B in 2022 bonds; avg yield 2.1794% v 2.1921% prior; bid to cover 4.08x v 6.45x prior

- SML.NZ Likely to lower FY19 forecast for milk prices, cites current market conditions - AGM Statement

- SPK.NZ NZ Govt Communications Security Bureau declines request to use Huawei 5G equipment due to national security concerns

- (NZ) New Zealand Institute of Economic Research(NZIER): Sees GDp to avg 2.8% over the next 5-yrs; affirms expects cash rate to be left unchanged until March 2020 - local press

Other Asia

- (MY) Think tank Malaysian Institute of Economic Research (MIER): Sees Q4 GDP at 4.7-4.8%

North America

- (US) Weekly API Oil Inventories: Crude: +3.5M v -1.5M prior

- (US) Pres Trump: Federal Reserve rate policies are hurting the economy; I’m not even a little bit happy with my selection of Chair Powell - Wash Post

Europe

- (UK) PM May said to have backed down in Brexit disagreement with Parliament, which would allow the Brexit deal to be amended before vote on Dec 11th - press

- (UK) Pres Trump reportedly offered PM May a trade agreement in July but he was rebuffed - UK's Telegraph

- (UK) Nov BRC Shop Price Index Y/Y: +0.1% v -0.2% prior

- (IE) Ireland Fiscal Watchdog: Government medium-term budget plans 'not credible', 2019 budget plans counter to prudent economic management

- (UR) Ukraine President Poroshenko warned he could launch a full scale war; Russia has sharply increased its military presence on their shared border - press

Levels as of 12:50ET

- Hang Seng +0.9%; Shanghai Composite +0.7%; Kospi +0.3%; Nikkei225 +1.1%; ASX 200 -0.1%

- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.0%; FTSE100 +0.0%

- EUR 1.1286-1.1300; JPY 113.73-113.90 ; AUD 0.7223-0.7237;NZD 0.6784-0.6799

- Feb Gold 0.0% at $1,219/oz; Jan Crude Oil +1.1% at $52.14/brl; Feb Copper +0.7% at $2.76/lb