Equity markets trade generally higher after the gains on Wall Street

Asia Market Update: Equity markets are generally up after gains on Wall St. China released inflation data; The US PPI is the latest in the past; USD/JPY is falling.

General trend

– Former Japanese Finance Minister Nakao [seen as possible Kuroda replacement] said new BOJ leaders should rethink policy, favor policy review with gradual adjustments – US financial press.

– Property stocks in China are rising amid continued stimulus talk [China govt said to consider more property easing measures at an upcoming economic meeting on Dec 15th – press].

– Taiwan Semi may report monthly sales this week.

– China has yet to release Nov bank loan data.

Financial headlines/data

Australia / New Zealand

ASX 200 open +0.2%.

– (AU) Narrabri gas pipeline declared critical, New South Wales (NSW) government – press.

– (NZ) Prime Minister Arden of New Zealand: sees a chance of a trade mission to China in early 2023.

– (AU) Australia sells A$700M v A$700M in 0.25% bonds due 2025; Average yield 3.045%: 4.97x bid-to-cover.

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– (AU) APRA publishes final standard on public disclosure requirements for depository institutions.

– (NZ) New Zealand November Total M/M Credit Card: -0.4% v +0.9% previously.

– (NZ) New Zealand Q3 Manufacturing Activity Q/Q: 5.1% v -3.2% previously; Volume Production Y/Y: 3.1% v -4.8% previously.

Japan

The Nikkei 225 opened +0.2%.

– (JP) Former Japanese Finance Minister Nakao [seen as possible Kuroda replacement] said new BOJ leaders should rethink policy, favor policy review with gradual adjustments – US financial press.

– (JP) The Bank of Japan (BOJ) proposes to buy 5-10 year JGB at a fixed rate of 25bps; Opens the window to buy unlimited 0.25 percent 10-year JGBs [as expected].

– (JP) Japan said it aims to increase corporate taxes by ~¥1.0T starting in FY27 to finance defense spending. [inline] – Japanese press.

– (JP) Japanese Industry Min Nishimura: Must be careful about raising taxes for defense spending; they should not slow down investment or wage increases.

– (JP) Japan Fin Min Suzuki: PM Kishida gives way to defense finance; A total of ¥4.0T of maintenance funds are required each year.

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Korea

Kospi opened +0.5%.

– (KR) South Korea November Net Foreign Investment in Local Bonds: +0.63B v +0.28B previously.

– (KR) October Current Account (BOP): $0.88B v + $1.61B previously; Balance of Product (BOP): -$1.48B v + $0.49B previously.

China / Hong Kong

Hang Seng opened +0.2%; The Shanghai Composite opened flat.

– (CN) China’s Ministry of Finance (MOF) is selling 3-month and 6-month bills.

– (CN) Chinese Prime Minister Li: The world economy is facing many difficult challenges, the risk of a global recession is increasing; The domestic economy is now in a stable position after reversing the Q3 recession.

(CN) CHINA NOV CPI M/M: -0.2% V -0.2%E; Y/Y: 1.6%V 1.6%E.

– (CN) China PBOC Open Market Operation (OMO): sells CNY2.0B in 7-day reverse repos against CNY2.0B previously; Net CNY0B v net CNY8.0B previously.

– (CN) China PBOC sets Yuan reference rate: 6.9588 v 6.9606 previously.

– (CN) US to sanction entities from China and Russia, linked to alleged human rights abuses – US Financial Press.

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North America

-(US) Citi US Inflation Surprise Index down from 26.53 to 20.13 (lowest since December 2020).

-(US) Adobe Analytics November Digital Price Index (DPI) -2.0% y/y, -3.2% m/m (fastest drop since pandemic).

-(US) Initial unemployment claims: 230K V 230KE; CONTINUOUS VIEWS: 1.67MV 1.62ME (highest since February 2022).

-(US) EIA weekly natural gas inventories: -21 BCF VS. -30 BCF TO -32 BCF is the indicated range.

europe

– (UR) According to the Ukrainian energy firm Energoatom, Russia has deployed several Grad MLRS on the territory of the seized Zaporizhzhia nuclear power plant and is preparing for another provocation.

Level as of 00:20 ET

– Nikkei 225, +1.3%, ASX 200 +0.5%, Hang Seng +1.6%; Shanghai Composite + 0.1%; Kospi +0.4%.

– S&P500 Equity Futures: +0.2%; Nasdaq100 + 0.3%, Dax + 0.3%; FTSE100 +0.1%.

– EUR 1.0585-1.0551; JPY 136.88-135.76; AUD 0.6800-0.6763; NZD 0.6411-0.6353.

– Gold +0.5% at $1,809/oz; Crude oil +0.7% at $71.99/brl; Copper +0.9% at $3.9165/lb.

Source

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