Asian stock indices move mixed after Fed decision

Asian Market Update: Asian stock indices trade mixed after the Fed’s decision; AU jobs data beat ests, AU yield curve flattened; European Central Bank decisions expected later today (including BOE and ECB).

General trend

– Will the current pace of Australian job gains be sustained in the future?

– RBA Govt Lowe commented on the 3 options for the central bank’s bond buying program, also said he would like to see full employment and 4.0% wage growth.

– Budget statement issued by the Australian Treasury: reduce GDP forecasts, see inflation within the target of 2 to 3% of the RBA, sees FY24 / 25 salary growth exceeding 3%.

– Australia’s New South Wales (the most populous state) reports a record 1,742 cases of the virus.

– Commodity-linked currencies typically trade lower amid events in Australia and the US Fed.

– The government of the Bank of Korea (BOK) held a briefing on CPI H2.

– Precious metals remained higher in Asia.

– US Equity FUTs are trading slightly higher after gains on Wednesday.

– The Nikkei 225 remained> 1% higher.

– Hang Seng remained in decline; The TECH index has hit a new record; The real estate index traded slightly higher during the morning session, Chinese officials said they met with some real estate developers on Wednesday.

– The Shanghai Composite traded slightly higher during the morning session (+ 0.3%).

– the S&P ASX 200 remained lower following the decline at the opening; CSL weighed on the health care index; The resource and energy indices also fell.

– Singaporean property developers edged down on property borders.

– Central banks in Taiwan, the Philippines and Indonesia are expected to leave rates unchanged later today.

– The Chinese Ministry of Commerce (MOFCOM) sometimes holds weekly press conferences on Thursdays.

The BOJ’s decision is expected on Friday, December 17

– Australia will release the annual update of the CPI and cost of living index weights on Friday.

– Companies that have to report in the morning in New York include Accenture, Jabil.

Titles / Economic data

Australia / New Zealand

The ASX 200 opened + 0.1%.

(AU) Reserve Bank of Australia (RBA) Gov Lowe: Option 3 is to stop bond buying in February if economic data is better than expected; Core inflation is expected to reach 2.5% in 2023; The conditions for rate hikes will not be met in 2022 – Speech “The RBA and the Australian Economy”.

(AU) AUSTRALIA NOV JOB CHANGE: + 366.1KV + 200.0KE; UNEMPLOYMENT RATE: 4.6% V 5.0% E.

(AU) AUSTRALIA DEC CONSUMER INFLATION WAITING: 4.8% V 4.6% BEFORE (9-year high).

(AU) Australia Treasurer Frydenberg publishes mid-year economic and budgetary outlook (MYEFO): cuts the outlook for GDP, raises the outlook for the CPI, the budget will remain in decreasing deficit for the next few years.

– (NZ) NEW ZEALAND Q3 GDP Q / Q: -3.7% V -4.1% E; Y / Y: -0.3% V -1.4% E.

– QAN.AU Guides H1 (A $) EBITDA -300M to -250M, underlying EBIT above -1.1bn.

– Quarterly statement from the Australian Council of Financial Regulators (CFR) (AU): Key talking points included housing market risks and the Council’s work on payments and crypto-assets, cybersecurity and financial risks related to the climate change.

WSA.AU To be acquired by IGO at AUD 3.36 / shr for AUD 1.1 billion.

MSB.AU announces that FDA’s OTAT has accepted primary endpoint for back pain, to conduct an additional Phase 3 trial in the United States that may support submissions for potential approval in the United States and in the EU.

Japan

Nikkei 225 opened + 1.4%.

– (JP) JAPAN PRELIMINARY DEC PMI MANUFACTURING: 54.2 V 54.5 PRIOR (11th consecutive extension).

– (JP) Japan Econ Min Yamagiwa: No need to change GDP forecast after overestimated construction data.

– (JP) Japan’s trade balance in November: – ¥ 954.8B against – ¥ 600.3Be; Adjusted trade balance: – 486.8B vs. – ¥ 302.8Be.

– (JP) Net purchases of foreign bonds by Japanese investors: + 457.0 billion yen against -1.18 T yen previously; Net foreign purchases of Japanese equities: – 602.9 billion yen against + 2.01 T yen previously.

– (JP) Japan MoF sells ¥ 1.2T against ¥ 1.2T indicated in JGB 0.500% 20 years, Average yield: 0.4520% against 0.4640% before, bid-to-cover: 3.66xv 3.78x before.

Korea

Kospi opened + 0.8%.

(KR) Bank of Korea (BOK) Govt Lee: See the CPI stay above 2% for some time amid a strong economic recovery and mounting price pressures from bottlenecks in the global supply – mid-year inflation review.

– (KR) South Korea Fin Min Hong: Target low GDP growth of 3.0% in 2022.

– (KR) Bank of Korea (BOK): $ 60 billion currency swap agreement with the United States expiring on December 31, as planned; the financial and economic situations at home and abroad remain stable.

– (KR) South Korean Prime Minister announces increased COVID restrictions, reinstates 9 p.m. curfew in all restaurants and shops, limits private gatherings to 4 people.

China / Hong Kong

Hang Seng opened -0.6%; Shanghai Composite opened 0.0%.

– (CN) The Chinese government has declared that it is increasing the number of minority stakes it takes in private companies, especially those with large amounts of key press data.

– (HK) Hong Kong Monetary Authority (HKMA): Hong Kong money markets continue to operate smoothly.

– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.3637 against 6.3716 previously.

– (CN) China PBOC Open Market Operation (OMO): sells CNY 10 billion in 7-day reverse repurchase agreements against CNY 10 billion previously; Net CNY0B versus Net CNY0B before.

– Another news article indicating that the preferential lending rates in China (LPR) could be lowered in December, quotes analysts – The Chinese press.

– (CN) China State Planner (NDRC): approval of investments of CNY 261.5 billion in November; Created a list of projects funded by special bonds in 2022.

North America

– In October, Japan Total holdings of US Treasury bills: 1.32 T against $ 1.30 previously, China Total holdings of US Treasury bills: $ 1,065 against 1.05 billion dollars previously.

TCOM Q3 (CNY) reports 0.81 vs 2.32 y / y, Rev 5.3B vs 5.5B y / y.

(US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 0.00-0.25%; AS EXPECTED; DOUBLE THE PACE OF CONICAL TO $ 30B PER MONTH; Civil servants see three rate hikes in 2022 – Civil servants see three rate hikes in 2022, three more hikes in 2023.

(United States) Fed Chairman Powell: Economic developments and outlook warranted faster reduction in bonds; High inflation was the reason for the acceleration of the taper – after the press conference on the rate decision.

Europe

– (FR) France Prés Macron: It is quite possible that France will introduce compulsory vaccinations against COVID.

Levels from 00:15 ET

– Hang Seng -0.6%; Shanghai Composite + 0.3%; Kospi + 0.2%; Nikkei225 + 1.9%; ASX 200 -0.4%.

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

– 1.1299-1.1281 euros; 114.25-114.00 JPY; AUD 0.7181-0.7146; NZD 0.6791-0.6758.

– Commodity Futures: Gold + 1.0% at $ 1,782 / oz; Crude oil + 1.0% at $ 71.55 / brl; Copper -0.1% at $ 4.24 / lb.


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