US Steel issued profit warning

Asia Market Update: Asian indices trade mixed, Property shares outperform in HK and Shanghai ; US Steel issued profit warning ; PBOC left LPRs unchanged

General Trend:

- Nike declined over 2% in afterhours trading after Q2 results

- Gainers in Shanghai include financials and property firms, IT companies decline

- Telecoms and property firms are among the gainers in Hong Kong

- Electric Appliance companies and banks are among the decliners in Japan

- Australian equities decline amid losses in consumer and financial firms

- Regis Healthcare (Australian provider of aged care services) declines over 17% on profit warning

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.1%

-(NZ) New Zealand Dec Consumer Confidence Index: 123.3 v 120.7 prior; M/M 2.2% v 1.9% prior

-(NZ) New Zealand Credit Card Spending m/m: +1.6% v -1.5% prior; y/y: 4.5% v 2.5% prior

China/Hong Kong

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

-(CN) China President Xi: Macau has become one of the safest cities in the world, integrates national sovereignty into its development; Macau should raise infrastructure construction - comments from Macau

-(CN) China Premier Li: Downward pressure on China's economy could be even bigger next year; could see more complications during the year; Reiterates stance to keep economic operations within a reasonable range

-(CN) China President Xi said to not attend the upcoming January meeting in Davos, Switzerland; China still plans to send Vice Premier Liu He to Washington to sign the phase-one deal - financial press

-(CN) CHINA PBOC SETS 1-YEAR LOAN PRIME RATE (LPR) AT 4.15% V 4.15% PRIOR (4.10%E); SETS 5-YEAR LPR AT 4.80% V 4.80% PRIOR (4.80%E)

-(CN) China PBOC sets Yuan Reference Rate: 7.0020 v 7.0025 prior

-(CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 14-day reverse repos; net injection CNY150B

- (CN) China Finance Ministry (MOF) sells 50-year bonds: avg yield 3.8418% v 3.88%e; bid to cover 2.1x v 1.9x prior

- (CN) China PBoC sells CNY10B v CNY10B indicated in 6-month bills in HK; avg yield 2.90% v 2.89% prior

Japan

- Nikkei 225 opened +0.1%

-(JP) JAPAN NOV NATIONAL CPI Y/Y: 0.5% V 0.5%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.5% V 0.5%E

-(JP) Japan Finance Ministry (MOF) comments on FY20/21 budget: Confirms issuance to be ¥128.8T in FY20/21 v ¥129.4T y/y; cabinet approves FY20/21 budget of ¥102.7T (record, as speculated)

-(JP) Japan End Sept (Q3) Total Household Assets: ¥1,864T, -0.6% y/y; BoJ holdings of JGBs: 43.9% v ~43.5% prior - BoJ Quarterly Flow of Funds Report

- Japan 10-year JGB yield turns positive for the first time since March 2019

Korea

-Kospi opened +0.4%

-(KR) South Korea Trade Ministry: Trade Ministers from South Korea, China and Japan to hold meeting in Beijing on Dec 22nd (Sunday)

-(KR) Korea Exchange: South Korea ex-dividend date is Dec 27th; the last day of equity trading in 2019 will be Dec 30th, markets are closed on Dec 31st

-(KR) South Korea Nov PPI Y/Y: -0.1% v -0.6% prior

Other Asia

- (MY) Malaysia Nov CPI Y/Y: 0.9% v 1.1%e

North America

-US Steel [X]: Guides Q4 adj -$1.15 v -$0.65e; Cuts FY20 CAPEX forecast to $875M (vs $950M prior); Cuts quarterly dividend by ~80% to $0.01 (vs $0.05 prior, the new implied yield is less than 1%), formally terminates stock buyback program

-(US) SEMI Nov North America-based Manufacturers of semi equipment Billings: $2.1B, +1.9% m/m and +9.1% y/y

Europe

-(UK) Financial Conduct Authority chief executive Andrew Bailey reportedly has been selected as next Bank of England governor - FT

-(UK) Follow Up: BOE and US Fed said to examine certain traders' access to audio feeds – FT

-(UK) Dec GFK Consumer Confidence: -11 v -14e

Levels as of 00:20 ET

- Nikkei 225, -0.1%, ASX 200 -0.3%, Hang Seng +0.4%; Shanghai Composite +0.1%; Kospi +0.2%

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

- EUR 1.1126-1.1114 ; JPY 109.40-109.28 ; AUD 0.6901-0.6882;NZD 0.6615-0.6600

- Gold -0.1% at $1,482/oz; Crude Oil -0.1% at $61.12/brl; Copper +0.1% at $2.827/lb