The sell off in global equity markets continued throughout the Asian session with most markets on the back foot from the opening. A late rally improved the outlook but markets were still much lower on the day (Nikkei -0.94%, Hang Seng -0.76%, Shanghai Comp -0.60% & S&P/ASX -0.58%). Bond markets benefited from the equity weakness with all major markets trading higher. 10yr US gained 5 ticks on above average volume of over 102k lots, while JGB's gained 10 ticks. Aussie Bonds outperformed however, after a miss on the wage price data which came in at +0.5% vs expectations for a 0.7% rise. This saw the 3yrs rally 8 ticks at one stage, with around 50k lots going through in a 10 minute period. The data also weighed on the Aussie $ which underperformed vs most pairs as the USD$ continued lower losing over 40 pips vs the Yen before recovering to trade around 0.26 lower. Elsewhere, Oil continued to sell off, trading 1.00% lower from the previous close and Gold was also lower as oversupply concerns reverberated around the commodity markets.
Key Headlines:
-Australia Westpac Leading Index (Nov) 99.7, previous 101.4
-Japan GDP Data (Q3 P) SA Q/Q +0.3% vs +0.4% exp, pvs +0.6%. Annualised SA Y/Y +1.4% vs +1.5% exp, pvs +2.5%. Nominal SA Q/Q +0.6% vs +0.6% exp, pvs +0.7%
Deflator Y/Y +0.1% vs +0.1% exp, pvs -0.4%
-Australia Wage Price Index Data Q/Q +0.5% vs +0.7% exd, pvs +0.5%. Y/Y +2.0% vs +2.2% exp, pvs +1.9%.
-The PBoC set the yuan mid-point at 6.6263 against the Dollar. The PBoC injected 160 Bln yuan via 7-day reverse repos, 140 Bln yuan via 14-day reverse repos & 30 Bln yuan via 63-day reverse repos
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