Nov 26 Asian Marco Initial Thoughts Expect a weak open and light volumes as US closed Thursday and shortened Friday


26 Nov

This and previous notes can be found at Substack ( Asian Market Sense )
Check out ERI-C.com for  interesting research and trading analysis

Asia lacking guidance from the US but with Europe closing higher expect a flat open but light volumes which is likely to increase volatility.

New strain of covid discovered in South Africa, said to be of concern as very contagious and with many different mutations -VE for Airlines and re-opening names.

Australia 
Market trended lower at the open, with Energy names weak along with Iron Ore futures but Gold higher. Retail sales awaited along with AGM’s from Sandfire Resources Ltd (ASX: SFR), telco Uniti Group Ltd (ASX: UWL), and gold miner Westgold Resources Ltd (ASX: WGX)
Data
Retail Sales Prelim Oct Sept was +1.3% F/cast is 2.8%.
Japan
Nikkei futures opened +35pts re-opening and additional stimulus giving support to the markets.  Key will be the Tokyo CPI data out pre market.
S Korea 
Expect markets to open lower with concerns over the resurgence in covid cases and whether the govt will impose stricter measures.
Taiwan 
Market to open flat tech still seeing interest as BlackFriday and Cyber Monday approach.
China 
Market to open lower with concerns over slowing growth and increased international comments against China’s internal polices.
Hong Kong 
Expect the market to open lower with Ecommerce under pressure ahead of earnings from Meituan.
US Futures 
Slightly +VE

DOW Markets closed re-open Friday but a shortened session
The United States will sell 32 million barrels of crude from four Strategic Petroleum Reserve (SPR) sites
to be delivered between late-December and April 2022, the Department of Energy (DOE) said as it auctions oil to try to lower global prices.

DAX +0.25%, CAC +0.48%, FTSE =0.33%
Markets opened slightly +VE and traded sideways. Additional covid restrictions a concern to the market, with German and Italy adding new rules. Utilities lead the gains and most sectors closed higher. New German coalition a slight +VE but the politics in Sweden remain uncertain.
Remy Cointreau +13% after it beat first-half profit expectations and raised its full-year outlook.  Evolution -16% after launching an internal review into allegations of conducting gambling business in banned countries. Spectris weak on Morgan Stanley downgrade
Ahead
Eurozone  
ECB Monetary Policy Meeting Accounts
Germany 
GfK Consumer Confidence Dec -1.6 vs 1 Nov revised (F/cast was -0.2)
GDP Growth Rate Q3 1.7% QoQ vs 2% Q2 revised (F/cast was 1.8%)
GDP Growth Rate Q3 2.5% YoY vs 10% Q2 revised (F/cast was 2.5%)
France 
Unemployment Benefit Claims Oct -111.2k vs -55k Sept (F/cast was -46k)
Jobseekers Total Oct 3.1425m vs 3.2537m Sept (F/cast was 3.2077m)
UK 
CBI Distributive Trades Nov 39 vs 30 Oct (F/cast was 34)
AHEAD
Eurozone Loans to Households & Companies, M3 Money Supply
Germany Import Prices
France Consumer Confidence
UK  Car Production

JAPAN
Nikkei futures opened +35pts re-opening and additional stimulus giving support to the markets.  Key will be the Tokyo CPI data out pre market.
Yen trading in 115’s +VE for Exporters
Data due Tokyo CPI, Foreign Stock and Bond Investment.
Japan has decided to issue new government bonds worth 22.1 trillion yen ($192 billion) to fund an extra budget for the current fiscal year through next March that will help finance an economic stimulus package on the COVID-19 pandemic approved last week, sources close to the matter say.  The envisaged supplementary budget of 31.6 trillion yen, which is expected to be approved by the cabinet on Friday, will be used mainly for coronavirus measures and also securing a stable supply of semiconductors, the sources said.
The government and ruling camp are considering requiring companies to raise the salaries of all employees, including new and nonregular workers, to qualify for a tax break for wage-raising firms, it was learned Thursday.  The tax break requirement is expected to be included in tax system reform measures for fiscal 2022, the discussion for which is slated to begin in earnest from Friday, and in an outline of such measures to be released in early December.  +VE
Toyota +VE as Pony.ai Inc was granted the first batch of licenses from Beijing regulators to start open-road autonomous commercial driving operations in a part of the city equivalent to the size of Manhattan.
China on Thursday urged Japan to support the Beijing Olympics, as the United States and other democratic countries are weighing up whether to implement a "diplomatic boycott" of the Winter Games.
"China fully supported Japan in hosting the Tokyo Olympics" this summer, so "Japan should have basic faith," Foreign Ministry spokesman Zhao Lijian told reporters.

SOUTH KOREA
Expect markets to open lower with concerns over the resurgence in covid cases and whether the govt will impose stricter measures.  
No data due
Hospitals in South Korea are running at near-full capacity and cannot add any more beds, the government said Thursday as the number of patients hospitalized with severe COVID-19 hit a record level. -VE
EU Ambassador to South Korea Maria Castillo Fernandez and Italian Ambassador Federico Failla on Thursday criticized the Korean government’s “vaccine pass” system, saying it discriminates against foreigners working and residing here who have been vaccinated overseas. -VE
JB Financial Group said on Thursday it has established an integrated big data platform which brings together the data of all of its affiliates and uses artificial intelligence technology to offer customized service.  The “data hub” converges the financial data of affiliates and public data, and applies the group’s internal cloud technology to allow data analysis from an integrated perspective, JB Financial said. +VE
Samsung Biologics and Boston-based biotech firm GreenLight Biosciences have teamed up to help make COVID-19 vaccines more accessible to people in poor countries, especially in Africa, the Korean pharmaceutical company said Thursday. +VE
Hyundai Motor Group said Thursday it would test its Level 4 autonomous driving system in downtown Seoul under its new mobility service “RoboRide,” using its fully electric compact Ioniq 5 as early as next year. +VE

TAIWAN
Expect market to open flat tech still seeing interest as BlackFriday and Cyber Monday approach.  
Data due after market GDP Growth Rate
The Executive Yuan yesterday unveiled a NT$237.3 billion (US$8.54 billion) special budget to enhance the military’s air and naval capabilities, including a NT$79.7 billion program to set up coastal anti-ship missile batteries.  On Tuesday, the Legislative Yuan approved a bill authorizing the government to draft a special budget of up to NT$240 billion for arms procurements over the next five years. The bill was later promulgated by the Presidential Office. +VE
The Executive Yuan yesterday unveiled an NT$20 billion (US$719.4 million) digital education initiative that would purchase 61,000 tablets for elementary and junior-high students over the next four years.  +VE Tech.
Five members of the U.S. House of Representatives arrived in Taiwan on Thursday for a short trip expected to focus on security matters, the second time in a month U.S. lawmakers have visited.
HSBC Bank Taiwan Ltd has partnered with Asustek Computer Inc and World Vision Taiwan to launch a program that provides computers and financial education to children in remote areas. Local schools shifted to online classes in May when the government imposed a nationwide level 3 COVID-19 alert, but many children in remote areas could not take the classes as they lacked computers or digital devices due to their economic situation, World Vision Taiwan acting director Yvonne Nieh told a news conference in Taipei yesterday.

CHINA
Expect market to open lower with concerns over slowing growth and increased international comments against China’s internal polices.
No data due but on Saturday Industrial Profits
Search giant Baidu Inc and Toyota Motor Corp-backed Pony.ai Inc were granted the first batch of licenses from Beijing regulators to start open-road autonomous commercial driving operations in a part of the city equivalent to the size of Manhattan. +VE
Daimler's China sales will stay strong next year, the carmaker's China chief said on Thursday, adding he was confident that Mercedes-Benz could grow its share of the country's electric vehicle market given little competition in the premium car segment.
China warns the new German Coalition to observe the ‘one China policy’ after it vows to take a tough stance over human rights  and other matters relating to China. -VE
China’s nominee wins Interpol seat despite concerns of human rights groups.  The candidacy of Hu Binchen, an official in the Chinese public security ministry, was also opposed by alliance of lawmakers from 20 countries. The election helps China use global policing body for repressive policies, endangering Hongkonger, Uygur, Tibetan, Taiwanese and Chinese dissidents, alliance says.  Slight -VE
EU joins calls for ‘independent and verifiable proof’ of Peng Shuai’s whereabouts.  Despite state media efforts to present the tennis star as safe and active, ‘the requests for reliable information are legitimate and remain’, EU spokeswoman says.  Videos and photographs of Peng that appeared over the weekend are widely dismissed as having been provided under duress.  -VE

HONG KONG 
Expect the market to open lower with Ecommerce under pressure ahead of earnings from Meituan.
No data due
Earnings Meituan in focus along with Pinduoduo.

COVID
A new and likely more infectious Covid-19 mutant variant was detected from the two imported cases involved in the Regal Airport Hotel transmission case, health authorities said on Thursday. The center added that the sequences are similar to those found in South Africa and Botswana, and suggested that the index case was the 36-year-old man who arrived in Hong Kong from South Africa.   -VE
Comes as Hong Kong is said to have now entered the home straight for border reopening as Beijing officials believe the city has fulfilled the requirements, Chief Secretary for Administration John Lee Ka-chiu said after leading a delegation to meet mainland experts and officials in Shenzhen on Thursday. Although a target date has not been set, Lee said both sides want to reopen borders as early as possible. But before that, they will have to submit reports on details of the operation, such as the quota, the circuit-breaking system and land port arrangements, to seek Beijing’s approval. +VE

Short Selling  HSI Thursday 19.8% vs 22% Wednesday
Top shorts
Bud APAC (1876) 65%, Country Garden (2007) 57%, Hang Seng Bank (11) 55%, PingAn (2318) 50%, Henderson Land (12) 49%, Hengan (1044) 48%, HSBC (5) 43%, Link REIT (823) 39%, Wharf REIC (1997) 38%, HKEX (388) 37%, AAC Tech (2018) 36%, SHKP (16) 34%, Ali Health (241) 33%, CK Asset (1113) 32%, Shenzhou (2313) 32%, China Overseas (688) 32%, Sunny Optical (2382) 31%, Techtronic (669) 30%, NWD (17) 29%, MTRC (66) 29%, Meituan (3690) 29% (reports Friday), China Res Land (1109) 28%, CKH (1) 27%, Citic (267) 27%, Geely (175) 27%, Power Assets (6) 26%, CM Bank (3968) 26%, Galaxy Ent (27) 25%.

WATCH
Macau's Public Security Police Force announced that the visitor arrivals of the city during 18-24 November stretched 12.42%, 
compared to the previous week (11-17 November).  +VE
New Oriental Education & Technology Group, Inc. (EDU.US) has begun to build up Chinese language courses in the U.S. as BlingABC (a subsidiary of the Company) explores its transformation, 
Sina Tech citing sources. These are online courses mainly covering the Chinese language. BlingABC rolled out Blingo in August 2021, aiming to boost the Chinese listening, speaking, reading, writing and translation skills of overseas Chinese kids and teenagers by offering them Chinese language and culture courses, according to public information.  +VE
TENCENT (00700.HK)'s Tencent Cloud database has reportedly leaked, sparking the exodus of some SOE business units on WeChat. Equally, the Cyberspace Administration of China is reportedly making phone calls to a list of key Tencent Cloud clients to verify the rumors. In response, TENCENT said on the "Goose Factory Blackboard News" Wechat official account that such reports were rumors.  Slight -VE
JD-SW (09618.HK) is currently in talks with about five top-tier banks in relation to a USD2 billion syndicated loan, with a financing maturity period of five years, reported Bloomberg News, citing sources. +VE
DICKSON CONCEPT (00113.HK) announced the interim result ended September 2021. 
The net profit amounted to HK$135 million, up 1.4% yearly. EPS was HK34.3 cents. An interim dividend of HK8 cents was declared, flattish yearly. Slight +VE
VITASOY INT'L (00345.HK)'s China sales were significantly undermined during the peak summer vacation season, 
given the lack of full product commercialization and advertising inputs in most of the July-September period, said Group CEO Roberto Guidetti at the result teleconference. However, the group put the goods back on shelves in September, leading to a certain degree of sales revival channel-wise following Mid-Autumn Festival, National Day holiday and school opening. Such momentum seemed to run on in October and November, Guidetti added. VITASOY INT'L announced the interim result ended September 2021. The net profit amounted to HK$32.804 million, down 95.1% year on year.  +VE
Lorenzo Bertelli, the eldest son and heir designate to PRADA (01913.HK) CEO Patrizio Bertelli, pledged to maintain the group under family control after assuming office.  
The 33-year old Lorenzo Bertelli is a now Prada's marketing chief, helping propel the group's digital business. Patrizio Bertelli depicted Lorenzo, who will take over Prada in three to four years, as the key element in the group's turnaround to profit. +VE
Bloomberg reports Shuozhou issuing coal coupons to ensure families have access to coal stocks. 
Each coupon good for two tons of subsidised coal. Slight -VE
Centa Valuation Index (Major Banks) (CVI) last stood at 29.89, down 5.82 pts WoW from last week's 35.71, remarked the research department of Centaline Property. Banks continued to lower valuation in self-defense in the second week after bond-buying taper in the U.S.. CVI busted below 30, foretelling that the home price slackening from peak has yet to come to an end. However, there is no asserting the signal for property price downturn. Slight -VE

Comments
* The email will not be published on the website.