General Trend:
- Hong Kong listed property developer Jiayuan International rises over 90% (said to have made note payment), declined over 75% prior session
- Rio Tinto rises over 0.5% following quarterly production update
- Nidec declines after recent profit warning
- On Thursday, it was reported that Treasury Sec Mnuchin was said to support lifting China trade tariffs to break stalemate, but Trade Rep Lighthizer is pushing back against easing tariffs (press)
- The US Treasury Dept later issued the following response: neither Mnuchin or Lighthizer has made any recommendations to anyone with respect to tariffs or other parts of the talks with
China
- Japan Dec CPI eases, there is speculation the BoJ may trim inflation forecast at next week’s meeting (Jan 22-23rd)
- China’s Q4 GDP figures are expected to be released on Jan 21st (Monday)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- Rio Tinto[ RIO.AU] Reports Q4 Pilbara Iron Ore production 86.6 Mt, -1% y/y; Shipments 87.4 Mt v Mte v 90.0Mt y/y; Guides initial FY19 Pilbara shipments 338-350Mt v 348Mte
- (NZ) New Zealand Dec Business Manufacturing PMI: 55.1 v 53.7 prior
China/Hong Kong
- Shanghai Composite opened +0.3%, Hang Seng +0.9%
- (CN) US and China said to be in discussions to reopen China’s markets to chicken exports from the US – press
- (CN) According to Nikkei estimates, China 2019 tax reduction program is projected to exceed CNY1.5T, program expected to be announced in March
- (CN) For the week, PBoC injected net CNY1.16T in its open market operation v CNY410B net drain w/w
- (CN) China PBoC sets Yuan Reference Rate: 6.7665 v 6.7592 prior
- (CN) China to target 2019 GDP growth of 6.0-6.5% (in line with prior report from Jan 11th) – China Daily
- (CN) China revises 2017 GDP growth lower to 6.8% v 6.9% prior – Stats Agency
Japan
- Nikkei 225 opened +0.4%
- (JP) JAPAN DEC NATIONAL CPI Y/Y: 0.3% V 0.3%E (7-month low); CPI EX-FRESH FOOD (CORE) Y/Y: 0.7% V 0.8%E
- (JP) Japan Government Official: No change to government’s view inflation accelerating ‘moderately’ as a trend
- (JP) Japan Finance Min Aso: Reiterates making changes to budget due to wages issue, [as a result] FY19 will have ÂĄ700M in additional JGB issuance
- (JP) Japan Nov Final Industrial Production M/M: -1.0% v -1.1% prelim; Y/Y: 1.5% v 1.4% prelim
- (JP) Japan Cabinet Office Official: BoJ Gov Kuroda expects US/China trade friction to be ‘resolved’ this year
Korea
- Kospi +0.4%
- (KR) North Korea official Kim Yong Chol has arrived at airport in Washington D.C. – South Korean Press
- (US) Trump administration missile defense review: North Korea poses an extraordinary threat despite peace efforts; US won’t accept limitations on missile defense development against ‘rogue states’
Other
- (MY) Malaysia Finance Ministry: To issue up to ÂĄ200B in 10-year Samurai bonds, coupon seen below 0.65%
North America
- (US) White House: President Trump and Treasury Sec Mnuchin to hold oval office meeting on Friday
- (US) US House Ways and Means Committee Chairman Neal: Treasury Sec Mnuchin has declined request to testify next week over partial government shutdown; Treasury Dept has instead offered to send sr officials to testify, said a US financial press report
- (US) Senate Majority Leader McConnell (R): Democrats want ‘power grab’ not negotiation
- (US) White House: President Trump cancels delegation trip to Davos, cites US government shutdown
- (US) Fed’s Quarles (hawk, voter): the real US economic data is ‘very strong’; Dec job data was a ‘very big number’ – remarks in NYC
- (US) Fed’s Evans (dove, voter): Believe we are about 75 basis points below what would be a slightly restrictive fed funds rate
Europe
- (UK) Northern Ireland’s DUP Party reportedly edging towards a customs union – UK’s Times
- (CN) China and Germany Joint Statement: Support role of the G-20, committed to expand bilateral opening up
Levels as of 01:00ET
- Nikkei 225, +1.3%, ASX 200 +0.5%, Hang Seng +1.1%; Shanghai Composite +1%; Kospi +0.6%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax flat; FTSE100 +0.1%
- EUR 1.1408-1.1385 ; JPY 109.39-109.05 ; AUD 0.7206-0.7177 ;NZD 0.6775-0.6748
- Feb Gold -0.1% at $1,291/oz; Feb Crude Oil +1% at $52.59/brl; Feb Copper flat at $2.697/lb