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Asia Market Update: Asia trades mixed despite vaccine news, tech sector lags; Nasdaq FUTs extend losses, Barr to probe alleged voting irregularities; China CPI slows more than expected.

General Trend

– Travel-sensitive and financial firms outperform after the Pfizer/BioNTech vaccine news; tech sector lags

– Consumer Discretionary firms drop in Shanghai, Oct CPI had slowest y/y rise since late 2009

– James Hardie declines by over 5% in Australia amid results/guidance

– Japanese officials declined to comment on size of 3rd extra budget

RBNZ is due to issue monetary policy statement on Wed (Nov 11th); the central bank is expected to give an update on the development of its policy tools [including Funding for Lending Program]

Headlines/Economic Data

Australia/New Zealand

– ASX 200 opened %

– (AU) Australia PM Morrison: Confidence in Domestic economy return; Extends jobkeeper supplement by 3-months

– (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 103.1 v 99.9 prior (10th consecutive increase)

– (NZ) New Zealand Government 3-Month Financial Statements: Rev NZ$23.7B v NZ$21.6B forecast; Deficit NZ$3.17B v NZ6.5B forecast

– (CN) According to analysts China is waiting for Australia to make the first move to repair relations between the countries, however anti-China sentiment is high in Australia putting the Govt in a difficult position – SCMP


– Nikkei 225 opened +1.0%

– (JP) Japan PM Suga orders extra budget – Japan press

– (JP) Japan Sept Current Account: ¥1.66T v ¥2.025Te; Adj Current Account: ¥1.35T v ¥1.794Te

– (JP) Japan Econ Min Nishimura: Confirms PM Suga has instructed completion of fresh economic package, nothing has been decided on size yet

– (JP) Japan Fin Min Aso: Japan economic decline was smaller, so rebound will be smaller; many industries are seeing demand recover, including autos

– (JP) Japan MoF sells ¥898.7B v ¥900B indicated in 0.6% 30-year JGBs, avg yield 0.6430% v 0.6380% prior, bid to cover 3.76x v 3.51x prior

– (JP) Japan Oct Eco Watchers Current Survey: 54.5 v 50.5e (Highest level since Jan 2014); Outlook Survey: 49.1 v 49.8e


– Kospi opened +0.3%

– (KR) South Korea GDP expected to be +3% in 2021 v contraction in 2020 – Korean press

– (KR) South Korea COVID cases in triple digits for 3rd consecutive day, authorities considering implementing stronger social distancing rules

China/Hong Kong

– Hang Seng opened +1.8%; Shanghai Composite opened +0.4%

– (CN) CHINA OCT CPI M/M: -0.3% V +0.2% PRIOR; Y/Y: 0.5% V 0.8%E (slowest y/y pace since Oct 2009); PPI Y/Y: 0.0% v -2.0%e; Pork prices -2.8% y/y (1st decline in 20-months)

– (CN) China PBOC sets Yuan reference rate: 6.5897 v 6.6123 prior

– (CN) China State Administration for Market Regulation (SAMR) to implement new regulations that will look to limit monopolies of online platforms – press

– (HK) Hong Kong Chief Exec Lam: No room to further relax social distancing rules, to extend social distancing rules for 1 week

– 2196.HK Trades limit up after the Pfizer/BionTech vaccine news

North America

– (US) Fed’s Kaplan (FOMC dissenter): US economy is in the midst of a rebound out of deep contraction; risk is that a resurgence of COVID could overhelm hospitals and lead to lockdowns

– (US) Fed biannual Financial Stability Report: In the near term, risks associated with the course of COVID-19 and its effects on the U.S. and global economies remain high

– (US) Fed’s Quarles (hawk, voter): Fed remains committed to using full range of tools to support economy as long as needed – prepared Congressional testimony

– LLY US FDA authorizes emergency use authorization for Bamlanivimab, an monoclonal antibody drug for COVID

– HDS Lowes comments on rumors: not in talks with Company and has no plans for a transaction with the company

– (US) Joe Biden Transition Team Spokesman: Legal action is a possibility if the GSA does not recognize Biden win in the US Election


– (UK) House of Lords votes against UK govt on proposed law that would grant ministers the power to override the EU exit treaty – press

Levels as of 12:15ET

– Hang Seng +0.8%; Shanghai Composite -0.1%; Kospi 0.0%; Nikkei225 +0.5%; ASX 200 +0.7%

– Equity Futures: S&P500 -0.6%; Nasdaq100 -0.6%, Dax -0.5%; FTSE100 -1.1%

– EUR 1.1840-1.1806; JPY 105.38-104.82; AUD 0.7289-0.7267; NZD 0.6841-0.6809

– Commodity Futures: Gold +1.4% at $1,879/oz; Crude Oil -1.3% at $39.77/brl; Copper +0.1% at $3.14/lb