Equities begin the month generally lower, little positive impact seen from the better CN PMI

General trend

- JGB and Aussie government bond yields rise.

- Japanese banks outperform.

- Chinese markets lag; Automakers and Tech names decline in Hong Kong.

- USD traded weaker during early Asia; the greenback later rebounded.

- US ISM Manufacturing data is due on Fri; Fed Chair Powell to also speak.

- Reminder: China set to begin requiring export permits for some graphite products on Fri, Dec 1st.

-Biden Admin reportedly to limit Chinese role in US EV market; Biden expected to release EV tax credit rules on Fri, Dec 1st – WSJ [from Nov 29th].

Headlines/economic data

Australia/New Zealand

-ASX 200 opens -0.2% at 7,070.

-GPT Group [GPT.AU]: S&P: Downgrades GPT Group To A- from A; Outlook Stable.

-Australia Nov Final PMI Manufacturing: 47.7 v 48.2 prior (confirms 9th month of contraction).

-RBNZ Dep Gov Hawkesby: Need to take seriously that some inflation expectation measures have ticked up.

-New Zealand Nov ANZ Consumer Confidence: 91.9 v 88.1 prior.

China/Hong Kong

-Hang Seng opens -0.1% at 17,019.

-Shanghai Composite opens -0.1% at 3,027.

-CHINA NOV CAIXIN PMI MANUFACTURING: 50.7 V 49.6E [moves back into expansion, 3-month high].

-Evergrande [3333.HK]: Disclosed Hengda Real Estate had ~CNY301.4B in unpaid debts as of the end of Oct.

-Evergrande: Said to propose debt restructuring plan to offshore creditors this week, but creditors unlikely to accept Evergrande's new proposal - financial press.

-China top 100 developers see Nov Sales -29.6% y/y - China Real Estate Information Corp (CRIC).

-Bestore [603719.CN] plans to reduce prices for snack products by up to 45% - press.

-BYD [1211.HK]: Announces subsidies for certain vehicle models - Press.

- Macau Nov Casino Rev Y/Y: +435.0% v +435.0%e.

-Techtronic [669.HK]: ACCC [Australia competition regulator]: Record penalty for resale price maintenance conduct by power tool supplier Techtronic.

-China PBOC may cut the RRR in order to meet liquidity needs at the end of 2023 [inline] - Chinese press.

-China President Xi: To drive healthy development of private economy.

- Hong Kong Monetary Authority (HKMA): lent HK$3.0B through the discount window on Thurs [Nov 30th], highest level since Aug.

-Nanjing (China) has raised the mortgage loan quota for 2nd-home buyers - Press.

- China said to survey banks regarding the 2024 sovereign bond issuance plan - financial press.

Japan

- Nikkei 225 opens +0.2% at 33,537.

-JAPAN Q3 CAPITAL SPENDING (CAPEX) Y/Y: 3.4% V 3.4%E; Capital Spending (ex-software) Y/Y: 1.7% v 3.4%e.

-Japan Nov Final PMI Manufacturing: 48.3 v 48.1 prelim (confirms 6th month of contraction).

-Japan Oct Jobless Rate: 2.5% v 2.6%e [lowest since Jun].

-Japan Fin Min Suzuki: Reiterates firms need to use cash on wages and Capex.

- Former BOJ Dep Gov Muto: Chances are high for BOJ to scrap both negative interest rates and YCC as early as April 2024 when annual wage talks confirm the scope of wage hikes.

-Rengo [largest trade union in Japan]: Formally agreed on 2024 pay hike demand of at least 5.0%.

-Resonac [4004.JP]: Discloses receipt of European Commission anti-monopoly notice of objection related to battery supply.

Korea

-Kospi opens -0.6% at 2,520.

-South Korea Nov Trade Balance: $3.8B v $1.0Be; Chip exports +12.9% y/y [first rise in 16 months].

-(KR) South Korea Nov PMI Manufacturing: 50.0 v 49.8 prior.

-LG Energy: Says in talks with GM over tax benefit sharing [GM said to ask the co. to allocate up to 85% of tax benefits].

-South Korea Vice Regulator Chief: Seeking to address illegal shortselling practices causing market inefficiencies; Undecided whether to lift short-selling ban fully or partially in H2 2024.

Other Asia

-India said to lower the windfall gains tax related to domestic crude - Press.

-Taiwan Nov PMI Manufacturing: 48.3 v 47.6 prior [18th month of contraction]; the pace of reduction was the weakest recorded since March.

-Vietnam Nov PMI Manufacturing: 47.3 v 49.6 prior [3rd straight contraction].

North America

-*(US) NOV CHICAGO PURCHASE MANAGER’S INDEX (PMI): 55.8 V 46.0E (expansion territory for first time in > 1-year).

-(US) OCT PCE DEFLATOR M/M: 0.0% V 0.1%E; Y/Y: 3.0% V 3.0%E.

-(US) INITIAL JOBLESS CLAIMS: 218K V 218KE; CONTINUING CLAIMS: 1.927M V 1.865ME (2-yrs high).

-(US) Fed's Williams (voter): Decisions will continue to be data-dependent; More hikes could be needed if inflation persists.

Europe

- Israel-Hamas truce expires with no announcement of an extension; Israel resumes combat actions against Hamas in Gaza saying Hamas violated the ceasefire.

-OPEC+ reportedly has agreed to 1M bpd of extra supply cuts on top of extension of Saudi's voluntary 1M in cuts - press citing delegate.

-ECB to pause the reinvestment during the last week of the year (Dec 20-Jan 1st) for liquidity purposes.

-EURO ZONE NOV ADVANCE CPI ESTIMATE Y/Y: 2.4% V 2.7%E (lowest since Aug 2021, below all analysts's estimates); CPI CORE Y/Y: 3.6% V 3.9%E.

Levels as of 00:20 ET

- Nikkei 225, flat, ASX 200 -0.2% , Hang Seng -0.8%; Shanghai Composite -0.5% ; Kospi -1%.

- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.2%, Dax +0.4%; FTSE100 +0.4%.

- EUR 1.0912-1.0883 ; JPY 148.24-147.60 ; AUD 0.6629-0.6600 ;NZD 0.6193-0.6145.

- Gold +0.2% at $2,041/oz; Crude Oil +0.1% at $76.04/brl; Copper -0.1% at $3.8497/lb.