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Asia Market Update: CN property developers rally on stimulus news, other indices lag in Asia; CNH rises; USD trades generally firmer; China Oct data and MLF announcement due tomorrow ; RBA minutes also due on Tues; Biden and Xi to meet later today.

- Hang Seng Mainland Properties Index rises >15% [China announced a 16-point plan to rescue property companies].

- Will China’s property rescue plan impact USD-denominated bonds or Evergrande?

- UST yields jump following US government holiday.

- (US) Fed's Waller (voter): looking at a possible 50bps next meeting; will slow pace of QT when get closer to 10% of reserves [Nov 13rd].

- China PBOC set Yuan reference rate: 7.0899 v 7.1907 prior (midpoint lift was highest in percentage terms since FX reform in 2005).

- GBP extends decline amid recent BOE comments.

- Japanese equities lag; SoftBank Group drops on earnings.

- TOPIX Banks index declines ahead of Japanese bank earnings.

- FTX remains in the headlines.

- (NZ) BNZ [private bank] Economists believe RBNZ would prefer to hike the OCR by only 50bps as opposed to 75bps - NZ press [next RBNZ decision is Nov 23rd].

- (NZ) New Zealand Oct Performance Service Index (PSI): 57.4 v 55.9 prior.

- (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) Bank of Japan (BOJ) Gov Kuroda: Reiterates domestic economy picking up; BOJ to conduct appropriate policy by watching risks.

- (KR) South Korea said to consider increasing electricity rates for 2023 - Press.

- (KR) South Korea sells 10-year bonds: Avg yield 3.870% v 4.245% prior.

- (KR) Bank of Korea (BOK) Sells 3-month Monetary Stabilization Bonds (MSB): Avg yield 3.350% v 3.325% prior.

- Hang Seng opened +3.9%; Shanghai Composite opened +0.4%.

- (CN) China Sec Journal: China expected to inject liquidity via a new MLF, could provide 1.0T in 1-year facility.

- (CN) Reportedly China PBOC and insurance regulator tell financial firms to extend financing support to property firms; NAFMII [interbank bond market regulator] announced a CNY250B financing program [now available to property developers]; Banks were also told to provide CNY400B in loans to developers in Nov and Dec - press.

- (CN) President Biden and China President Xi to meet this evening in Bali; meeting to begin at 5:30 PM local time [9:30 AM GMT].

- (CN) China Ministry of Finance (MOF) Sells 10-year bonds: avg yield 2.8000% v 2.7034% prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY5.0B in 7-day reverse repos v CNY12B prior; Net drain CNY3.0B v net inject CNY9.0B prior.

- (CN) China Ministry of Commerce exec Vice Chair Bi Jingquan indicated it would increase further controls over bioequivalence test for generic drugs, a move introduced back in 2016 to make sure the quality and efficacy of generic drugs are on par with brand-name drugs (update).

- (CN) China has extended the lockdown in Panyu and Liwan until Weds (Nov 16th).

- (CN) China PBOC sets Yuan reference rate: 7.0899 v 7.1907 prior (midpoint lift was highest in percentage terms since FX reform in 2005).

- (HK) Huobi [HK-listed crypto exchange]: Notes failure to withdraw cryptocurrency assets from FTX.

- FREY KKR said to be in talks to invest $500M in the co. - US financial press.

- (US) Administration Senior Official: G20 first serious in person diplomacy with China in Years; Concerns on North Korea nuclear tests, Looking for a floor on US-China relationship.

- V Terminated global debit card agreements with FTX, wound down by issuer.

- (US) Democrats maintain control of the US Senate, to have at least 50 seats following victory in Nevada - press.

- (US) US Treasury Sec Yellen: Working with France on implementing Russia oil price cap, US-France relationship crucial.

- (US) Fed's Waller (voter): Given level of inflation, rates are not that high; CPI report was "just one data point" and markets are "way out in front"; Rates will not fall until there is "clear, strong evidence" inflation is falling; market over reacted to one CPI data point; looking at a possible 50bps next meeting.

- (US) Treasury Sec Yellen: The existence of a G7 price cap on oil will give India, China and African countries bargaining power with Russia on oil.

- (US) Fed's Collins (voter): Risk of over tightening on rates has increased.

- (RU) Russia Customs agrees to increase grain export quota in 2023 - Russia media.

- (UK) Nov Rightmove House Prices M/M: -1.1% v +0.9% prior; Y/Y: 7.2% v 7.8% prior.

- (IE) Ireland Oct Construction PMI: 47.4 v 50.2 prior.

- (CZ) Czech Central Bank (CNB) Gov Michl: Calls for a 2023 wage growth cap at ~5.0% - Press.

- (RU) Reportedly LME will not ban Russian metal from being stored and traded in its system - press.

- Nikkei 225, -0.8%, ASX 200 -0.2% , Hang Seng +2.5%; Shanghai Composite +0.4% ; Kospi +0.1%.

- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.5%, Dax -0.2%; FTSE100 -0.1%.

- EUR 1.0350-1.0305 ; JPY 139.94-138.78 ; AUD 0.6709-0.6671 ;NZD 0.6121-0.6065.

- Gold -0.2% at $1,765/oz; Crude Oil +0.2% at $89.11/brl; Copper -1.2% at $3.8905/lb.

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EURUSD has gathered bullish momentum in the early European session on Tuesday and climbed above 1.0400 for the first time since July. The renewed selling pressure surrounding the US Dollar amid improving market mood fuels the pair's upside.

GBPUSD has gained traction and advanced beyond 1.1800 early Tuesday. ALthough the UK data showed that the ILO Unemployment Rate rose to 3.6% in September, the pair didn't have a difficult time pushing higher amid broad US Dollar weakness. 

Following a consolidation phase during the Asian trading hours, Gold price started to stretch higher and touched its strongest level since mid-August above $1,780. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day, providing a boost to XAUUSD.

ETH shows a slight surge in buying pressure, which has pushed it above one of the two immediate hurdles. A continuation of this momentum could lead to a breakout that could propel ETH to trigger a strong recovery bounce.

Equities saw some profit-taking in last week’s post-US inflation rally, as some Fed officials put ‘the church in the middle of the village’ reminding investors that the 7.7% inflation is still high and that the Fed would continue fighting to bring it lower.  

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