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Daily Scan: Asian shares end mixed; China industrial output slumps

By NexChange
Capital Markets

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Updated throughout the day

November 11

Chinese shares climbed higher Wednesday after a mixed bag of economic data spurred bets on more stimulus measures from Beijing. The Shanghai Composite ended the day up 0.27%, while the Shenzhen Composite finished the session up 1.97%. Ever the contrarians, their Hong Kong-based H-share brethren tanked 0.67%. As for the rest, here’s how they did:

  • Hang Seng Index: -0.22%
  • Nikkei 225: +0.10%
  • Straits Times Index: -0.22%

Things are looking a whole lot better in Europe. The U.K.’s FTSE 100 has climbed 0.54%, while the German DAX and French CAC have surged 1.05% and 0.71% respectively. Draghi’s upcoming speech and the finalized megabrewer deal have no doubt aided in their lifting.

Here’s what else you need to know:

AB Inbev snaps up SABMiller for $105.5 billion. After weeks of backs and forths between the two companies, Anheuser-Busch InBev announced on Wednesday that it had formally agreed to purchase SABMiller for a whopping £69.78 billion ($105.5 billion). Cheers, people. Wall Street Journal

Chinese industrial production misses estimates. China’s highly-anticipated industrial output figure came in at 5.6% for October, slightly weaker than the expected 5.8% reading and also below September’s 5.7% growth rate. The nation’s retail sales report however was slightly better, punching at 11% year on year versus a 10.9% expected climb. Still though, this should be enough to raise more than a few eyebrows over the country’s economic outlook. ForexLive

Yuan hits near one-month low. China’s yuan was trading at 6.3617 against the dollar earlier this morning, slumping just a whisker shy of its one-month low after the PBOC fixed its midpoint rate 6.3614. This was the seventh time a row the bank has fixed the currency at a weaker level. SCMP (paywall)

BOJ’s Harada defends stimulus program. In his first speech since he joined the Bank of Japan, policy board member Yatuka Harada defended the bank’s massive program by saying that it has boosted company earnings and lifted job growth by tanking the yen. He did however acknowledge that there were “worrying signs” in private consumption, and he did add that should the job market worsen, “it’s necessary to offer additional monetary easing without hesitation.” Reuters

Consumer sentiment down under hits a new high. In a surprise score, the Westpac Melbourne Institute Index of Consumer Sentiment rose from 97.8 in October to 101.7 in November, leading Westpac’s Chief Economist, Bill Evans, to say: “This is a cracking result. Apart from the brief surge we saw following last May’s Budget this is the highest print for the Index since January 2014.” Melbourne Institute (pdf)

Minneapolis Federal Reserve Bank names new president. Neel Kashkari, the man who led the controversial TARP program at the U.S. Treasury during the financial crisis, will replace Narayana Kocherlakota as president and CEO at the end of the year. The troubled asset relief program was used as a venue to bailout banks and major financial institutions. Kashkari, who is not an economist, worked at Goldman Sachs, making him the fourth of 12 presidents to join the Federal Reserve system. He also ran for Governor of California. Wall Street Journal (paywall)

Three charged for massive financial hack. U.S. prosecutors charged one U.S. man and two Israeli men in relation to the cyber hack of JPMorgan, Fidelity, and other financial institutions between 2012 and 2015. The federal prosecutor called it “securities fraud on cyber-steroids.” Charges include hacking and identity theft. BBC

Japan Inc. earnings have been pretty dog-eat-dog. Amid volatile commodity prices, automobile demand, and smartphone supplies, a serious zero-sum game has emerged in corporate Japan. Mitsubishi Corp – once the top dog among the big resource trading houses – has been knocked off the top spot by Itocho, while Sony emerged as the winner in its battle against Sharp. Nikkei Asian Review

Died: Former West German Chancellor. Helmut Schmidt helped make West Germany an economic leader between 1974 and 1982. He was 96. Schmidt was a popular German personality, and was even given exemption from Germany’s public smoking ban. The Guardian

Catalonia votes to break from Spain. Separatists in the Catalonia regional parliament voted 72 to 63 to form their own European country. Madrid says “no way,” but Catalonia, which has its own language and culture, says this is the start of an 18-month process that will include forming a Catalan tax authority and social security. NPR

You won’t believe this:

Kobe man arrested for hiding in storm drains to film up women’s skirts – twice.He was noticed by a 37-year old “beauty artist” after she saw his hair stick out of storm drain slats and made eye contact. Tokyo Reporter

Photo: JOHN LLOYD

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