Global Market Quick Take: Asia – November 20, 2023 Global Market Quick Take: Asia – November 20, 2023 Global Market Quick Take: Asia – November 20, 2023

Global Market Quick Take: Asia – November 20, 2023

Macro 5 minutes to read
APAC Strategy Team

Summary:  Quiet session on Friday with equities trading sideways and bonds muted. The dollar was sold further as markets continue to expect Fed rate hikes to be over, and this saw JPY and AUD rally. Today’s 20-year bond auction could be key after China’s PBoC announces loan prime rates in the Asian session. Oil prices saw a sharp rebound on Friday amid OPEC cut expectations, while metals outperformed last week.

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

US Equities: Small-cap companies outperformed during a subdued trading session on Friday. The Russell 2000 gained 1.4%, while the S&P 500 edged up 0.1%, and the Nasdaq moved sideways. Within the S&P 500 sectors, energy stocks took the lead, rising over 2%, amid a rally in crude oil prices. Retailers also fared well, with Gap soaring by an impressive 30.7% after the new management delivered robust Q3 results. Powell’s dovish shift, coupled with softer inflation and employment data, a better-than-expected 4.3% Y/Y Q3 earnings growth for S&P500 companies, and favorable seasonality, is expected to uphold US equity markets for the rest of the year.

Fixed income: The 2-year Treasury notes sold off by 5bps, finishing at 4.89%, due to robust housing data and a rally in crude oil prices. Traders took some profits on rate-cut bets, further fuelling the selling. The 10-year yield remained unchanged at 4.44%. On Monday, the Treasury is scheduled to auction $15 billion of 20-year bonds.

China/HK Equities: Alibaba tumbled by 10% after the Chinese internet giant abruptly cancelled the full spin-off of its cloud unit, sparking investors' concerns about issues in business strategy execution. The disclosure of a selling plan from Jack Ma’s family trust also negatively impacted sentiment. Other Chinese internet mega-cap names were dragged down by 2%-5%, except for NetEase, which gained 2.1% after reporting robust Q3 earnings and a solid game pipeline. The Hang Seng Index declined by 2.1% to 17,454. In the mainland, A-shares rebounded in the afternoon, with the CSI300 finishing the session only 0.1% lower than the previous day. Pharmaceuticals, autos, telecommunications, and machinery stocks led the rally. Chinese Financial regulators told the country’s leading financial institutions in a meeting on Friday to meet the reasonable demand for funding from property developers. Overnight, November Hang Seng Futures recovered by 1%. Xiaomi is scheduled to report Q3 results on Monday.

FX: The dollar index continued to be sold on Friday, and DXY closed below 104 for the first time since end-August. Immediate focus now turns to 200DMA at 103.62 and 50% retracement at 103.46. The rebound in oil prices helped NOK to be the best performer in G10 while USDJPY also dropped to sub-150 levels with market expecting the Fed to have ended in rate hike cycle. AUDUSD still above 0.65 but resistance at 0.6523 continues to hold up, and RBA minutes this week could be a key test. EURUSD rose above 1.09 and may get a further push with Moody’s upgrading Portugal and reaffirming Italy’s rating while upgrading its outlook to Stable from Negative. EURGBP stays above 0.8750 and could get test 0.88.

Commodities: Crude oil prices saw a sharp rebound on Friday, rising over 4% as Brent got back above $80/barrel. With demand concerns in focus last week bringing a heavy technical selling earlier in the week, focus has turned to OPEC acting to support prices once again. OPEC and its allies are scheduled to meet next weekend and markets are anticipating production cuts for next year. Metals will be in focus today as China announces loan prime rate especially with Copper up close to 4% last week and iron ore up 1.3%. Gold and silver also had a strong performance last week with silver markedly outshining with gains of 6.5%.


  • The People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission held a meeting with the 18 largest Chinese banks, five asset management companies, and four securities firms to ensure the stability of credit growth for the remainder of the year and early next year. The financial regulators also highlighted the need to resolve local government debts and meet the reasonable demand for funding from both state-owned property developers and private property developers.
  • UK retail sales unexpectedly fell in October. Retail sales ex-auto fuel was down 0.1% MoM (exp +0.5%, prev -1.3%) and 2.4% YoY (exp -1.5%, prev -1.5%). While weather may have some impact, the print also emphasizes cost of living pressures plaguing the UK economy.

Macro events: PBoC LPR; German Producer Prices (Oct), New Zealand Trade Balance (Oct)

Earnings: Xiaomi, TRIP.COM, British American Tobacco, Compass, Jonson Controls, Zoom

In the news:

  • Ousted OpenAI CEO Altman discusses possible return, mulls new AI venture (Reuters)
  • Portugal Rating Upgraded Two Levels by Moody’s (Moody’s)
  • Argentina elects 'shock therapy' libertarian Javier Milei as president (Reuters)
  • UK’s Hunt says won’t implement tax cuts that fuel inflation (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 (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

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. Android is a trademark of Google Inc.