Equity markets trade mixed, USD extends decline from Friday


Asia market update: Equity markets trade mixed; USD extends decline from Fri; RBA speak and minutes due on Tues.

General trend

– Alibaba attempts rebound after prior plunge.

– Generally quiet session for commodities
Reminder: China PBOC to issue 3-month and 1-year yuan denominated bills in Hong Kong; to be held on 21 November 2023.

Headlines/economic data

Australia/New Zealand

– ASX 200 opens +0.1% at 7,059

– Australia PM Albanese: Made clear strong objections to China [Australia said China’s navy used sonar pulses against divers].

-New Zealand PM-elect Luxon: Reaches policy agreement with the ACT and NZ First parties – Press.

China/Hong Kong

-Hang Seng opens +1% at 17,625.

-Shanghai Composite opens +0.1% at 3,056.

-Alibaba: Said to deny rumors of cutting 25,000 jobs, co. is also said to have filed a police report related to the matter – Chinese press.

-Alibaba: Jack Ma office: Founder of Alibaba remains very positive about the company – SCMP.

-China PBOC sets Yuan reference rate: 7.1612 v 7.1728 prior [strongest CNY fix since Aug].

-China Oct YTD Foreign Direct Investment (FDI) (CNY-denominated) Y/Y: -9.4% v -8.4% prior.

-China PBOC monthly loan prime rate (LPR) setting leaves rates unchanged; as expected.

-China PBoC and Financial Regulators: Will strive to stabilize property market.

-CSRC [China securities regulator] says to manage the delisting risk of property developers – Chinese press.

-China Daily: Reiterates property tax not on horizon.

-China PBOC Open Market Operation (OMO): Sells CNY205B in 7-day reverse repos; Net injects CNY92B v injects CNY149B prior.

– 3-month HKD HIBOR rises to the highest since 2001.


-Nikkei 225 opens -0.1% at 33,559.

-Nippon Yusen [9101.JP]: Confirms it operates cargo ship that was seized in the Red Sea [the ship was said to have been seized by Iran-backed Houthi rebels].

-Japan Fin Min Suzuki: Notes bright signs emerging in Japan economy.


– Kospi opens -0.2% at 2,464.

Other Asia

-Thailand Q3 GDP Q/Q: 0.8% v 1.3%e; Y/Y: 1.5% v 2.2%e.

North America

-Milei wins Argentina Presidential election, Massa has conceded; Milei has ~56.0% of the vote, Massa has 44% – Press.

-Argentina President-elect Milei: Pledges to start the country’s rebuilding.

-OpenAI: Follow Up: Microsoft said to consider board seat at the co. – US press.


-Reportedly OPEC+ could consider an additional 1M bpd production cut – FT [from Nov 17th].

-(IL) White House: US continues to work hard to get a deal between Israel and Hamas, but no deal yet.

-Moody’s affirms Italy sovereign rating at Baa3; Outlook revised to Stable from Negative.

Levels as of 00:20 ET

– Nikkei 225, -0.4%, ASX 200 +0.1% , Hang Seng +1.4%; Shanghai Composite +0.4% ; Kospi +1.1%.

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

– EUR 1.0935-1.0897 ; JPY 149.99-148.69 ; AUD 0.6562-0.6501 ;NZD 0.6039-0.5977.

– Gold -0.1% at $1,983/oz; Crude Oil +0.7% at $76.59/brl; Copper +0.5% at $3.7525/lb.

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