USD trades generally firmer

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Asia Market Update: Equities decline after losses on Wall St.; USD trades generally firmer; Key US macro events due this week (CPI and Fed decision).

General trend

– Hang Seng declines after prior gains.

– Chinese property indices decline; Developers continue to seek to raise capital.

– Financials also lag in China [Chinese regulators and state-owned banks reportedly splitting staff at their workplaces in Beijing amid fears of potential spike in COVID cases after policy easing – press (Dec 9th)].

– Japanese equities trade slightly lower; Modest declines seen in Australia.

– US Natural Gas FUTS rise >10% [**Reminder Dec 8th PG&E Corp (PCG) said: Prepared to Respond to Significant Storm System Expected to Impact Northern and Central California this Weekend].

– China may release monthly bank lending data.

– China Finance Ministry (MOF) to sell CNY750B in special sovereign 3-year bonds to help domestic economy on Monday, Dec 12th.

Headlines/economic data

Australia/New Zealand

ASX 200 opened -0.2%.

– (NZ) New Zealand Oct Net Migration: +3.3K – update.

– (AU) Australia PM Albanese to speak this week with the gas industry lobby – financial press.


Nikkei 225 opened -0.6%.

– (JP) Japan Q4 BSI large all industry Q/Q: 0.7 V +0.4 PRIOR; large manufacturing Q/Q: -3.6 V +1.7 prior.

– (JP) Japan Nov PPI (CGPI) M/M: 0.6% v 0.5%e; Y/Y: 9.3% v 8.9%e.

– (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].

6301.JP Reports China Nov excavator demand Y/Y: -11.3% v -6.7% prior [9th straight decline].

– (JP) Bank of Japan (BOJ) announced review of the benchmark ratio used to calculate the macro add-on balance in current account balances at the BOJ to which a zero interest rate is applied: set the ratio at 46.5% (44.0% prior) for the Dec reserve maintenance period [update].

– (JP) Said that Japan Largest Industrial Union to look for a base salary increase of ~4.0% and total salary increase of ~6.0% during spring wage talks.


Kospi opened -0.7%.

– (KR) South Korea 1-10 Exports Y/Y: -20.8% v -2.8% prior; Imports Y/Y: -7.3% v -6.7% prior.

– (KR) Bank of Korea (BOK) Sells 3-month Monetary Stabilization Bonds (MSB): Avg yield 3.420% v 3.400% prior.

– (KR) South Korea sells 10-year bonds: Avg yield 3.465% v 3.870% prior.

China/Hong Kong

Hang Seng opened -1.5%; Shanghai Composite opened -0.3%.

– (CN) China PBOC sets Yuan reference rate: 6.9565 v 6.9588 prior.

– (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net CNY0B v net CNY0B prior.

– (CN) China National Bureau of Statistics (NBS): 2022 wheat output ~137.7Mts, +0.6% y/y.

North America

– (US) Treasury Sec Yellen: Believe we will see substantial reduction in inflation in year ahead, and much lower inflation by end 2023 – 60 Minutes Interview [US Nov CPI data is due on Dec 13th (Tues)].


– (UK) Dec Rightmove House Prices M/M: -2.1% v -1.1% prior; Y/Y: 5.6% v 7.2% prior.

– (UR) Call between US President Biden and Ukraine President Zelinskiy: Biden emphasized US Prioritizing efforts to strengthen Ukraine air defense.

– (IE) Ireland Nov Construction PMI: 46.8 v 47.4 prior.

Levels as of 00:20 ET

– Nikkei 225, -0.2%, ASX 200 -0.5% , Hang Seng -2%; Shanghai Composite -0.6% ; Kospi -0.6%.

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

– EUR 1.0543-1.0506 ; JPY 137.14-136.44 ; AUD 0.6802-0.6757 ;NZD 0.6415-0.6379.

– Gold -0.8% at $1,796/oz; Crude Oil +0.8% at $71.54/brl; Copper -1% at $3.8175/lb.

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