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TradeTheNews.com Asia Market Update: Equity markets trade generally lower; Financial press said recent CB decisions were hawkish; China's Annual Economic Work Conference in focus [Dec 15-16th]
Fri, 16 Dec 2022 0:30 AM EST
General Trend:
- Uncertainty seen regarding the next moves of central banks?
- AU, JP and NZ released weaker Manufacturing PMIs
- Chinese tech shares fluctuate amid Nasdaq decline and multiple headlines
- US PCAOB secures complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong [Dec 15th]
- Biden Administration confirmed to add 36 Chinese companies to so called entity list – press [Dec 15th]
- China reportedly prepares to wrap up regulatory uncertainties around tech, education sectors – press [Dec 15th]
- Nikkei 225 lags [How will the index be impacted by Fast Retailing’s (largest component) stock split?]
- Australian iron ore miners pare gains [CMRG (China state iron ore firm) to begin making iron ore purchases from miners in 2023, plans to seek discounts from miners – US financial press]
***Headlines/Economic Data***
Australia/New Zealand
- ASX 200 opened -0.2%
- (NZ) New Zealand Nov Non-Resident Bond Holdings: 59.7% v 58.4% prior
- (AU) AUSTRALIA DEC PRELIMINARY PMI MANUFACTURING: 50.4 V 51.3 PRIOR (32nd month of expansion)
- (NZ) New Zealand Nov Manufacturing PMI: 47.4 v 49.1 prior (2nd consecutive contraction)
Japan
- Nikkei 225 opened -1.2%
- (JP) Japan Chief Cabinet Sec Matsuno: PM Kishida has ordered to strengthen the coast guard
- (JP) Japan Draft: Will implement defense taxation at appropriate time, with a 4.0-4.5% surchage (in line)
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected]
- (JP) Former Japan Finance Ministry official Nakaso [seen as possible Kuroda replacement] commented on the BOJ in a book that was published in May, talked about how the central bank could seek to exit from easy monetary policy - financial press
- (JP) JAPAN DEC PRELIMINARY PMI MANUFACTURING: 48.8 V 49.0 PRIOR [2nd straight contraction and lowest since Oct 2020]
Korea
- Kospi opened -1.3%
- (KR) South Korea said to seek an increase in electricity and gas prices in 2023 - Press
China/Hong Kong
- Hang Seng opened -0.1%; Shanghai Composite opened -0.4%
- (CN) China state Planner (NDRC): Economy is facing more complex and grim external environments; Long term positive trend hasn't changed
- (CN) China Ministry of Finance (MOF) sells 3-month bills and 50-year bonds
- (CN) US Consulates in China cut services amid COVID; US embassy in Beijing has reduced services - SCMP
- (CN) CMRG [China state iron ore firm] to begin making iron ore purchases from miners in 2023, plans to seek discounts from miners – US financial press
- (CN) China National Health Commission (NHC) To step up coronavirus controls in Rural areas; To strengthen reserves of essential drugs and test kits in rural areas
- (CN) China PBOC Open Market Operation (OMO): Sells CNY41B in 7-day reverse repos v CNY2.0B prior; Net inject CNY39 B v net CNY0B prior
- (CN) China PBOC sets Yuan reference rate: 6.9791 v 6.9343 prior
- (CN) Rising probability of China PBOC 5-year loan prime rate (LPR) cut seen [in line], cites analysts – Chinese press
- (CN) Said that China is anxious to fully reopen border with Hong Kong completely in Jan 2023 - SCMP
- (CN) China Securities regulator CSRC: Welcomes US PCAOB decision on auditing, will continue supervision work on auditing in the future
Other
- (IN) Said that India has cut the windfall tax on Crude oil, Diesel, and Jet Fuel
- (SG) SINGAPORE NOV NON-OIL DOMESTIC EXPORTS M/M: -9.2% V -3.0%E; Y/Y: -14.9% V -7.4%E
North America
- (US) Senate has votes to pass 1-week funding bill
- (US) Senate has enough votes to pass the $858B Defense authorization bill
- (US) China Ambassador to the US Qin and Treasury Sec Yellen agreed to increase coordination on trade and policies
- (US) Said that the US Senate has rejected Senator Manchin (D-WV) Energy Permitting plan - Financial Press
- (US) California Public Utilities Commission has voted to cut solar rooftop incentives; Changes net metering policies
Europe
- (UK) Labor Party has retained the parliament seat in Stretford and Urmston special election
- (UK) Dec GfK Consumer Confidence: -42 v -43e
- (EU) France President Macron expects EU Energy Policy finalized during Monday Meeting (Dec 19th); US climate law likely not compatible with WTO rules
- (EU) Germany Chancellor Scholz: Confident in a gas price cap deal on Monday Dec 19th; Stressing need to intensify talks to US about IRA (Inflation Reduction Act)
Levels as of 00:20 ET
- Nikkei 225, -2%, ASX 200 -0.8% , Hang Seng flat; Shanghai Composite -0.3% ; Kospi -0.5%
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.1%, Dax +0.1%; FTSE100 +0.3%
- EUR 1.0662-1.0619 ; JPY 137.90-136.95 ; AUD 0.6735-0.6694 ;NZD 0.6408-0.6332
- Gold flat at $1,788/oz; Crude Oil -0.4% at $75.77/brl; Copper +0.1% at $3.7797/lb
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