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TradeTheNews.com Asia Market Update: Yen rises on BOJ speculation; BOJ rate decision due on Tuesday [Dec 20th]; Equities trade generally lower, Shanghai Composite lags amid COVID deaths
Mon, 19 Dec 2022 0:30 AM EST
General Trend:
- Japan government is expected to revise joint statement with the BOJ, PM Kishida is expected to discuss the details of the revision with a new BOJ Gov – financial press
- Japan Chief Cabinet Sec Matsuno said: No plans to revise joint accord with BOJ [comments on press report]
- China reports 2 new COVID deaths in Beijing on Sun (Dec 18th)
- AUD rises ahead of RBA minutes [Dec 20th]
- South Korea auctions inverted 3-month bills and 5-year bonds [South Korea Treasury Sells 5-year bonds: Avg yield 3.430% v 3.84% prior; Bank of Korea (BOK) sells 3-month Monetary Stabilization bonds (MSB): Avg yield 3.500% v 3.420% prior]
- PBOC to set the loan prime rates (LPRs) on Tues
***Headlines/Economic Data***
Australia/New Zealand
- ASX 200 opened flat
- (NZ) Said that New Zealand Govt is consulting on regulations pertaining to Buy Now Pay Later (BNPL)
- (AU) Australia PM Albanese: Foreign Min Wong to travel to Beijing on Tues (Dec 20th)
Japan
- Nikkei 225 opened -0.4%
- (JP) Bank of Japan (BOJ) Former Dep Governor Yamaguchi: BOJ must be ready to change YCC if economy can withstand overseas economic risks; One idea would be to raise lower bound of 10-year yield target from 0.0%
- (JP) Bank of Japan (BOJ): Japan Household Assets at ¥2,005T, +0.8% y/y – Quarterly Flow of Funds Report
- Renesas: 6723.JP Suspending ops at Beijing Factory for a few days due to coronavirus outbreak since Friday (Dec 16th
- (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) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged
- (JP) Japan Chief Cabinet Sec Matsuno: No plans to revise joint accord with BOJ [comments on press report]; Hope BOJ will continue to work to 2.0% CPI target
- (JP) Japan said to target FY23/24 budget at ¥114T – Japanese press
- (JP) 11 of 26 economists polled expected BOJ to start unwinding stimulus in 2023; Expect FY22 GDP at 1.6% v 1.7% prior, Core CPI at 2.8% v 2.7% prior
Korea
- Kospi opened -0.9%
- (KR) South Korea Fin Min Choo: Domestic economy is slowing more rapidly than expected; economic slowdown to be at worst pace in H1
- (KR) South Korea Financial Services Commission (FSC): Banks to gradually resume bond issuance, to communicate with regulator regarding bond issuance
- (KR) Bank of Korea (BOK) sells 3-month Monetary Stabilization bonds (MSB): Avg yield 3.500% v 3.420% prior
- (KR) South Korea Treasury Sells 5-year bonds: Avg yield 3.430% v 3.84% prior
China/Hong Kong
- Hang Seng opened +0.1%; Shanghai Composite opened -0.1%
- (CN) China PBOC Open Market Operation (OMO): Sells CNY9B in 7-day reverse repos v CNY41B prior; Sells CNY76B in 14-day reverse repos; Net inject NY83B v net inject CNY39B prior
- (CN) China PBOC sets Yuan reference rate: 6.9746 v 6.9791 prior
Other
North America
- (US) FDA Proposes Revisions to Guidance on Evaluating Safety of Antimicrobial Animal Drugs Based on Their Importance in Human Medicine (update)
- (US) Former FDA commissioner Dr. Scott Gottlieb: 77% of ICU beds in US are filled and this is going to be a challenging flu season and COVID is contributing to hospitalizations as well - CBS Interview
Europe
- (HU) Hungary Dec Consumer Confidence: -53.0 v -53.4 prior; Business Confidence: -10.2 v -11.6 prior
Levels as of 00:20 ET
- Nikkei 225, -1.1%, ASX 200 -0.2% , Hang Seng -0.7%; Shanghai Composite -1.6% ; Kospi -0.6%
- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.1%, Dax flat; FTSE100 flat
- EUR1.0613-1.0582 ; JPY 136.60-135.77 ; AUD 0.6724-0.6682 ;NZD 0.6396-0.6368
- Gold +0.1% at $1,801/oz; Crude Oil +0.9% at $75.12/brl; Copper +0.3% at $3.7820/lb
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