in mainland China on the Shanghai and Shenzen exchanges rose again
today as signs of a more flexible approach to COVID-19 management in
China grew. A strong hint was given by a China top official, outgoing
Vice Premier Sun Chunlan, who said, in part:
the omicron variant becomes less pathogenic, more people get
vaccinated and our experience in Covid prevention accumulates, our
fight against the pandemic is at a new stage and it comes with new
tasks”. As far as coded comments from China this one is pretty
clear that there is some form of relaxation yet to come.
impetus was given to risk assets, of course, from Federal Reserve
System Chair Powell on Wednesday (US time) who indicated a 50bp point
rate hike, not 75, was likely at the December Federal Open Market
Committee (FOMC) meeting. The USD continued its fall during Asia
trade. EUR, GBP, AUD and NZD all higher. The yen was a strong
outperformer, with USD/JPY falling 150-odd points to lows circa
was further poor data from South Korea today. November exports saw
their worst decline in 2-1/2 years.
of poor data, manufacturing PMIs released for Australia, Japan and
China all fell in November. With those aforementioned signs of China
easing back on the harsh COVID-19 restriction regime perhaps November
will be the nadir. Winter is still to come in China though.
Kong’s Hang Seng +1.6%
GMT Bank of Japan Governor Haruhiko Kuroda speaks at an Asian
Development Bank Institute event