Global Market Quick Take: Asia – November 16, 2023 Global Market Quick Take: Asia – November 16, 2023 Global Market Quick Take: Asia – November 16, 2023

Global Market Quick Take: Asia – November 16, 2023

Macro 5 minutes to read
APAC Strategy Team

Summary:  The Hang Seng Index surged 3.9% on news of easing US inflation, PBoC's potential RMB1 trillion money printing for urban villages and affordable housing support, and a net RMB600 liquidity injection. In the US, better-than-feared retail sales and Target's earnings beat supported the equity market, but higher bond yields and tech stock softness pressured it. Nvidia fell 1.6% with Microsoft's new AI chip, while Cisco dropped 11% after lowering guidance. GBPUSD weakened post-weaker-than-expected UK CPI.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: On Wednesday, investors had their eyes on US consumers. A smaller-than-expected decline in retail sales and an earnings beat from Target provided support to the market, but higher bond yields and some softness in mega-cap technology stocks weighed on it. The S&P 500 gained 0.2% and the Nasdaq 100 edged up 0.1%. Target soared 17.8% after reporting an EPS of $2.1, surpassing the consensus of $1.47 by 43% due to margin expansion. Disney added 3.2%, with hedge fund ValueAct Capital taking an equity stake. Nvida slid 1.6% as Microsoft unveiled a competing AI chip. Cisco plummeted 11% in extended hours after lowering its FY2024 guidance due to a weak order book and inventory digestion issues.

Fixed income: Treasuries reversed a substantial portion of the post-CPI gains due to stronger-than-expected prints in retail sales and the Empire manufacturing index. Additionally, corporate issuance of around $13 billion also exerted pressure on the market. The 2-year and 10-year yields each increased by 8bps to 4.91% and 4.53% respectively.

China/HK Equities: The Hang Seng Index surged 3.9% in response to the cooling US inflation, discussions of a RMB1 trillion money printing by the PBoC to support urban village renovation and affordable housing programs, and a net RMB600 billion liquidity injection by the PBoC. Adding to the improved sentiment, China’s retail sales and industrial production grew faster than expected. The news that the USD 771 billion US Federal Retirement Thrift Investment Board decided to exclude China- and Hong Kong-listed stocks did not dent the sentiment. The strong upward movements in Hong Kong-listed stocks attracted FOMO (fear of missing out) buyers and lifted trading volume to the highest in the last two months. The CSI300 gained 0.7%.

FX: The USD pared some of its steep losses from Tuesday, but the move was modest with PPI and retail sales sending mixed messages. GBPUSD was the worst performer in the G10 after CPI came in weaker-than-expected. GBPUSD returned from 1.25 to trade just above 1.24. Higher Treasury yields brought USDJPY back above 151. Scandis outperformed, with NOK leading gains despite lower oil prices, and SEK following. AUDUSD staying supported at 0.65 and employment data on watch while NZDUSD stays above 0.60.

Commodities: Crude oil prices ended lower after mixed EIA inventory data for two-week period. The report showed that US commercial stockpiles of crude oil rose 17.5mn barrels over the past two weeks, but this was offset by fuel inventories declined suggesting refinery demand may be picking up after the maintenance season. Meanwhile, China data released saw the country's oil refinery throughput in October ease from the prior month's highs amid weakening industrial fuel demand and narrowing refining margins. Iron ore and copper were however in gains after China’s activity data showed some signs of stability and PBoC pumped the most cash since 2016 into the financial system.


  • The PBoC injected RMB600 liquidity as the Chinese central bank lent out RMB1.45 trillion under its 1-year medium-term lending facility, exceeding the necessary amount to roll over RMB850 billion in maturing loans at 2.5%, which remained unchanged.
  • China’s retail sales growth accelerated to 7.6% Y/Y in October (vs consensus: 7.0%) from the prior month’s 5.5%. Industrial production increased by 4.6% Y/Y, surpassing the street forecast of 4.5% and September’s 4.5%. The growth rates in the manufacturing and mining sectors picked up in October. Fixed assets investment growth slowed to 1.3% Y/Y in October from 2.5% in September.
  • US retail sales fell 0.1% m/m in October, less than the 0.3% expected, suggesting consumption trends held up ahead of the holiday season. Gas sales declined less than expected, down only 0.3% despite a near 6% fall in prices. The control group, which feeds into GDP, was in-line with expectations at +0.2% m/m.
  • October US headline PPI fell 0.5% m/m, a big surprise against the expected 0.1% rise, and down from the prior month's 0.5% rise amid a plunge in energy prices, mostly in the gasoline segment but also electricity prices. PPI rose 1.3% y/y, also well beneath the expected +1.9% and down from the prior +2.2%. Core PPI was flat m/m beneath the expected and prior +0.3%, with the core y/y rising 2.4%, beneath the prior and expected 2.7%.
  • Fed's Daly (2024 voter), in an FT interview, noted that data is showing further deceleration in inflation and it is "very, very encouraging" and indicative of effective Fed policies. However, the San Fran Fed President refuses to rule out another interest rate hike and stresses that rate cuts are "not happening for a while".
  • UK CPI for October dropped to 4.6% y/y from 6.7% previously, coming in below consensus expectation of 4.7% and BOE’s own forecast of 4.8%. The decline in household energy prices was the biggest contributor, while services inflation also fell from 6.9% y/y to 6.6%. Report signals that energy has helped to bring inflation down, but the battle has not been won and BOE will need to keep rates high for a considerable time.

Macro events: Australia Employment (Oct), Chinese House Prices (Oct)


  • Tencent earnings beat, revenue in line: Tencent’s Q3 revenue increased by 10% Y/Y to RMB154.6 billion, aligning with analyst projections. Although online gaming and online ads revenue fell short of expectations, Video Account (VA) ads revenue exceeded predictions. Non-GAAP net profit surged by 39% to RMB44.9 billion, surpassing the consensus forecast by 12.4%, attributed to margin expansion. Tencent’s net margin increased to 29.1% in Q3 from Q2’s 25.2% and the prior-year quarter’s 23.0%.
  • JD.Com earnings beat, revenue in line: JD.COM reported a 2% Y/Y increase in Q3 revenue to RMB247.7 billion, meeting expectations. Non-GAAP net income increased by 6% Y/Y to RMB10.6 billion, contrary to the consensus forecast of a decline.

Earnings Event: Walmart, Alibaba, Applied Materials, Siemens, Copart, Ross Stores, Warner Music, Lenovo, NetEase

In the news:

  • Cisco stock plunges on light guidance after product order slowdown (CNBC)
  • Microsoft introduces its own chips for AI, with eye on cost (Reuters)
  • Biden, Xi Jinping meet amid disputes over military, economic issues (Reuters)
  • Taiwan’s opposition KMT, TPP, the two mainland-friendly parties, agree to joint ticket in presidential race (SCMP)
  • US federal pension fund to exclude Hong Kong and China investments (Financial Times)
  • Hamas agrees to tentative deal to free dozens of hostages, pending Israel’s approval (Washington Post)
  • Target shares jump more than 17% after retailer posts big earnings beat, even as sales fall again (CNBC)



For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.



The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.