AU RBA provides no fresh insights amid quiet session with little data

Asia market update: AU RBA provides no fresh insights amid quiet session with little data; AU & SG equities reach record highs.

General trend

- Australia RBA Nov Minutes did not add any fresh insights. Does not see inflation sustainably at target until 2026.

- Australia ASX 200 +1.6% to fresh record high, while Singapore’s benchmark equities index hits highest level since Nov 1st, 2007.

- A stream of Chinese officials and banking CEOs spoke at the HKMA Global Summit in Hong Kong, with officials overall reiterating that China would expand Hong Kong market access for equities and bonds.

- In a market that has been burdened by housing debt concerns, South Korea Q3 Household Credit saw its fastest growth q/q since end-2021.

- US equity FUTs +0.2% to 0.3% during the Asia session to trade at above the US overnight highs.

Looking ahead (Asian time zone)

- Tue Nov 19th (Tue night US prelim Oct Building Permits).

- Wed Nov 20th JP Oct Trade Balance, CN LPR, ID Rate Decision (Wed eve UK Oct CPI).

- Thu Nov 21st JP BOJ Ueda speech, AU RBA Bullock speech.

- Fri Nov 22nd JP Oct National CPI, JP + AU + IN Flash Nov PMIs, (Fri eve UK Retail Sales, DEM Nov Flash PMI).

Holidays in Asia this week

- No holidays in Asia this week.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens flat at 8,300.

- ASX 200 +1.6% to fresh record high of 8,431.

- Reserve Bank of Australia (RBA) Nov minutes: Reiterates does not see inflation sustainably at target until 2026; No "Immediate need" to change the OCR.

- Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 86.8 v 86.7 prior (update).

- Pres Xi in meeting with Australia PM Albanese: China-Australia relations have achieved a turnaround and are maintaining a positive momentum of development; China willing to increase imports from Australia and to encourage Chinese investment in Australia [overnight update].

- Reserve Bank of Australia (RBA) Asst Gov Kent (Financial Markets): Forward guidance in Australia might be less useful than in the US - speech in Canberra [overnight update].

China/Hong Kong

- Hang Seng opens +0.6% at 19,699; Shanghai Composite opens flat at 3,324.

- (HK) Offshore Yuan (CNH) overnight HIBOR rises to 6.03082%, highest since Apr 19th.

- China State Planner Official: Expects China's economy to sustain recovery momentum in Nov and Dec.

- (HK) Hong Kong Monetary Authority (HKMA) CEO Eddie Yue: Exploring expansion of the Southbound Bond Connect - comments at HKMA Forum.

- China CSRC's Chairman Wu Qing: Will continue to expand Hong Kong mutual market access (inline) - comments at Hong Kong Global Summit.

- China PBOC's Zhu: China to deepen QFII and RQFII reforms - comments at Hong Kong Global Summit.

- China Financial Regulator (NFRA) Li: Chinese banks have sufficient buffers for risks - financial press.

- (HK) China Vice Premier He Lifeng: Hong Kong financial system is "as robust as ever" - comments at Hong Kong Global Summit.

- (RU) EU Foreign Policy Chief Borrel: Role of China is becoming larger in the Ukraine war.

- Tier1 analysts citing call with director of property research firm Centaline: China physical property market is holding up well based on some leading indicators (sell-through rate, visitations, agents' confidence level, tier-1 cities' listing price index, etc.); The next policy window will mostly be in March 2025 [overnight update].

- China Jan-Oct Fiscal Revs Y/Y: -1.3% v -2.2% prior; Expenditures +2.7% v +2.0% prior - MOF [overnight update].

- China Finance Ministry (MoF) is reportedly making plans on front-loading part of 2025's local govt special bonds to ensure funds demand for major projects – press [overnight update].

- China Pres Xi to UK PM Starmer: China and UK enjoy 'vast space' for cooperation - China state press [overnight update].

- China PBOC sets Yuan reference rate: 7.1911 v 7.1907 prior.

Japan

- Nikkei 225 opens +0.5% at 38,936.

- Japan Fin Min Kato: It's desirable for FX to move stably and reflect on fundamentals; Will continue to take appropriate action against excessive forex moves, and watching them with very high sense of urgency.

- Japan Chief Cabinet Sec Hayashi: PM Ishida met with UK PM Starmer at G20 in Brazil on Monday; Agreed to start "2+2" economic and trade cooperation talks with UK.

- Japan Economic Revitalization Min Akazawa: Aiming for cabinet approval of economic package 'soon' - financial press.

- Japan DPP Head Tamaki (opposition): Aims for cabinet approval of eco measures by Friday.

- Japan sells ¥650B v ¥650B indicated in 10-yr, 20-yr, and 30-yr JGB's in liquidity enhancement auction: Avg accepted spread -0.015%, bid-to-cover: 3.39x.

- Japan sells ¥3.2T vs. ¥3.2T indicated in 12-Month Bills; Avg Yield: 0.4379% v 0.2886% prior; bid-to-cover: 3.14x v 3.04x prior.

Korea

- Kospi opens flat at 2,469.

- Bank of Korea (BOK) Kim: Trump win adds policy uncertainties - financial press.

- South Korea Q3 Household Credit (KRW): 1,914T v 1,895T prior (fastest growth q/q since end-2021).

- North Korea reportedly may deploy as many as 100K troops to help Russia in Ukraine; Move not imminent and troops could rotate in batches - press [overnight update].

Other Asia

- Singapore benchmark equities index hits highest level since Nov 1st, 2007.

- Philippine Central Bank (BSP) Gov Remolona: BSP likely to cut rates again in Dec or at the next meeting; We're still on an easing cycle; Projects 25bps increment cuts.

North America

- (US) Pres Elect Trump names more senior nominees to his govt; Names former Rep. Sean Duffy (R-WI) as Transportation Secretary.

- (US) Sept total net TIC flows: $398.4B V $79.2B prior; net long-term TIC flows: $216.1B V $111.4B prior.

- (CL) Chile Q3 GDP Q/Q: 0.7% v 0.6%e; Y/Y: 2.3% v 2.2%e.

- (US) Nov NAHB housing market index: 46 V 42E.

- (US) NY Fed reports that credit application rates were largely steady over 2024.

Europe

- (RU) Russian govt spokesperson: Russia is ready to normalise ties with the US but 'will not tango alone' - Russian state news.

- (RU) At G20 meeting in Brazil, Russia and China Foreign Mins discuss 'unprecedented' strategic bilateral relations - Russia press.

- (EU) Reportedly EU has raided some firms in the data-center construction sector; Particularly focused on possible collusion manifest by 'no poach' agreements - press [meaning companies control wages by agreeing not to head-hunt one another's employees.

- (UK) Germany Chancellor Scholz: Haven't changed stance on Taurus missiles for Ukraine; Cannot justify supplying Ukraine with Taurus missiles.

Levels as of 01:20 ET

- Nikkei 225 +0.6%, ASX 200 +0.9%, Hang Seng +0.1%; Shanghai Composite -0.6; Kospi -0.3%.

- Equity S&P500 Futures +0.2%; Nasdaq100 +0.2%; Dax +0.4%; FTSE100 +0.3%.

- EUR 1.0585-1.0601; JPY 153.95 -154.70; AUD 0.6496-0.6525; NZD 0.5878-0.5901.

- Gold +0.4% at $2,626/oz; Crude Oil +0.1% at $69.26/brl; Copper +0.3% at $4.1372/lb.