CNH and commodity currencies also drop

28 Nov 2022, 14:18 · Views 299

Asia Market Update: Chinese equities opened sharply lower; CNH and Commodity currencies also drop; Press focuses on COVID-related protests in China; Size of CN RRR cut disappointing?

General trend

- Commodities drop amid focus on China; Yen rises; UST yields decline.

- China reported >40K new COVID cases on Sunday [record high].

- Australian retail sales unexpectedly decline.

- Chinese property firms move lower [China RRR cut not aggressive enough?].

- ZTE declines in HK [(US) FCC bans equipment authorizations for Chinese telecom and video surveillance equipment deemed to pose a threat to US national security – statement].

- HK casino firms trade sharply higher [Macau renews provisional gaming licenses for six existing operators for ten years – press].

- US equity FUTs trade modestly lower.

- Chinese markets later pared drop.

- BOJ might issue updated bond buying schedule this week.

Headlines/economic data

Australia/New Zealand

- ASX 200 opened flat.

- (NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Silk: Reiterates need to see CPI expectations come down; New Zealand not substantially more aggressive than peers.

- (AU) Australia Oct Retail Sales M/M: -0.2% v +0.5%e (first decline in 10 months).

- (AU) Australia sells A$300M v A$300M indicated in 3.00% Mar 2047 bonds: Avg Yield: 4.0018%; bid-to-cover 3.00x.

- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Unsure regarding labor market and price response to supply shock; Wage growth is consistent with inflation returning to target.

- (KR) South Korea government may lower 2023 GDP growth forecast to 1% level from 2.5% - South Korea press.

Japan

- Nikkei 225 opened -0.2%.

- (JP) Japan PM Kishida: Have agreed with BOJ Gov Kuroda to achieve price target accompanied by structural wage growth.

- (JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates expects upward pressure on wages to strengthen gradually; Tighter labor market will drive up wages ahead.

- (JP) Former BOJ official Shirai says BOJ should review measures, make policy more flexible – financial press.

Korea

- Kospi opened -0.5%.

- (KR) South Korea Transport Min: Trucker Strike estimated to cost economy ~KRW300B/day.

- (KR) South Korea sells 30-year bonds: Avg yield 3.675% v 4.505% prior.

- (KR) Bank of Korea (BOK) Sells 3-month Monetary Stabilization Bonds (MSB): Avg yield 3.400%.

- (KR) South Korea Transport Ministry: Elevating cargo transport situation warning for truckers' strike to the highest level of serious.

- (KR) South Korea FIn Min Choo: To expand bond stabilization fund by using KRW5.0T capital call.

China/Hong Kong

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

- (CN) China PBOC cuts broad required reserve ratio (RRR) BY 25BPS; effective Dec 5th (1st broad RRR cut since Apr 2022) [from Nov 25th].

- (CN) TTN Research Alert: Protests against COVID restrictions in China intensified over the weekend.

- (CN) China Guanzhou City (5th most populous city in China) reports ~7.4K coronavirus cases.

- (CN) China Jan-Oct Industrial Profits Y/Y: -3.0% v -2.3% prior.

- (US) FCC bans equipment authorizations for Chinese telecom and video surveillance equipment deemed to pose a threat to US national security; Bans Huawei, ZTE Telecom from sale in US - statement.

North America

- (US) Dr. Anthony Fauci: China has not conducted science related to Covid-19 in a transparent manner - NBC interview.

Europe

- (UK) UK Govt announces £1.0B energy scheme on improving energy efficiency in homes.

- (IE) Ireland Nov Economic Pulse: 67.2 v 60.5 prior.

- (HU) Hungary Nov Consumer Confidence: -53.4 v -55.4 prior; Business Confidence: -11.6 v -10.1 prior.

- (UR) Ukraine Pres Zelenskiy: The price for Russian seaborne oil should be capped at between $30-40/bbl.

Levels as of 00:20 ET

- Nikkei 225, -0.5%, ASX 200 -0.4% , Hang Seng -2.1%; Shanghai Composite -1% ; Kospi -1.1%.

- Equity S&P500 Futures: -0.7%; Nasdaq100 -0.9%, Dax -0.6%; FTSE100 -0.5%.

- EUR 1.0394-1.0341 ; JPY 139.42-138.33 ; AUD 0.6751-0.6665 ;NZD 0.6234-0.6191.

- Gold -0.2% at $1,750/oz; Crude Oil -3% at $73.99/brl; Copper -1.8% at $3.5630/lb.

Reprinted from FXStreet，the copyright all reserved by the original author.

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.