HomeContributorsFundamental AnalysisAsian Equities Decline As US Officials Commented On Equity Volatility

Asian Equities Decline As US Officials Commented On Equity Volatility

General Trend

  • Hang Seng TECH and Finance indices decline by over 2%
  • Shanghai IT index declines over 2%
  • Decliners in Australia included Resources, Energy and Financial cos.
  • Topix Information & Communication and Electric Appliances indices were among the losers in Japan; Marine Transportation index rose amid earnings speculation related to Kawasaki Kisen
  • Japan companies expected to report results include Daiwa Securities, Tokyo Electron, Advantest, Canon Inc, Fujitsu and Seiko Epson
  • DAX FUTs outperform, BMW reported Q4 results for auto unit
  • MSCI said it will not delete China cos. from its indices, noted comments from the US Treasury Dept.
  • China repo rates continue to rise amid PBOC cash drains
  • Australia Q4 export prices rose on ores and metal scrap prices; AUD appreciation weighed on both export and import prices
  • NZ Dec dairy exports to China declined, dairy product exports to China dropped for the first time in 6 years
  • China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
  • BOJ is due to release the Summary of Opinions from its Jan policy meeting on Fri (Jan 29th)
  • Companies expected to report during the NY morning include American Airlines, Comcast, Dow Inc, JetBlue, Southwest Airlines, MasterCard, McDonald’s, Altria Group, MSCI, Northrop Grumman, Nucor, PulteGroup, Sherwin-Williams, Stanley Black & Decker, Valero Energy

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened -0.7%
  • (NZ) New Zealand Dec Trade Balance (NZD): 17M v 800Me
  • FMG.AU Reports Q2 Iron Ore Shipments 46.4Mt v 46.4Mt y/y; Ore Mined 50.0Mt v 54.6Mt y/y
  • (AU) Australia Q4 Import Price Index Q/Q: -1.0% v -1.0%e; Export Price Index Q/Q: +5.5% v +5.3%e

Japan

  • Nikkei 225 opened -1.6%
  • (JP) JAPAN DEC RETAIL SALES M/M: -0.8% V -0.7%E; Y/Y: -0.3% V -0.5%E
  • (JP) Japan PM Suga to decide on state of emergency extension right before current one is set to end on Feb 7th – Japan press

Korea

  • Kospi opened -0.2%
  • 005930.KR Reports final Q4 (KRW) Net 6.6T v 5.2T y/y; Op 9.1T v 9.0T prelim; Rev 61.6T v 61T prelim
  • (KR) South Korea PM Chung: Should resume short selling after system improvement, cannot extend short selling ban forever
  • (KR) Bank of Korea (BOK) To end Standing Lending Facility on Feb 3rd as planned; May resume lending for financial firms if necessary

China/Hong Kong

  • Hang Seng opened -1.3%; Shanghai Composite opened -1.1%
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY180B in 7-day reverse repos prior; Net drain CNY150B v Net drain CNY100B prior
  • (CN) China Finance Ministry: Will maintain stable marco leverage ratio; Will resolutely deal with hidden debt risks and avoid systemic risks
  • (US) US Treasury OFAC amended the restrictions that were placed on investments related to the securities of certain China military cos.; MSCI said will not proceed with the deletion of the securities referenced in communication on January 26 – update
  • HUAWEI.CN White House press secretary Psaki: Telecommunications equipment made by “untrusted vendors” including China’s Huawei is a threat to US security and its allies
  • (CN) China PBOC sets Yuan reference rate: 6.4845 v 6.4665 prior
  • (HK) Hong Kong Monetary Authority (HKMA) HK Money markets operating smoothly, to maintain monetary and financial stability

Other

  • 2330.TW Addressing chip supply challenges in auto sector as top priority, Expediting critical auto products through wafer Fabs

North America

  • (US) Treasury Sec Yellen: Will try to better understand risk of stranded assets (projects shutdown by Govts), Keystone pipeline significance for energy and economy is limited – answers to Senate Finance Committee
  • TSLA CFO: Semiconductor shortage may have a temporary impact ; Q1 deliveries aided by Model Y production in China and offset by slowdown in Model S, X during production transition in US – conf call comments

Europe

  • (UK) Dec Auto Manufacturing 71.4K v 73.1K y/y; 2020 Car production 920.9K, -29.3% y/y (lowest level since 1984) – SMMT

Levels as of 12:15ET

  • Hang Seng -1.8%; Shanghai Composite -1.2%; Kospi -1.7%; Nikkei225 -1.4%; ASX 200 -1.9%
  • Equity Futures: S&P500 -0.2%; Nasdaq100 -0.4%, Dax +0.4%; FTSE100 -0.8%
  • EUR 1.2112-1.2083; JPY 104.38-104.06; AUD 0.7666-0.7621; NZD 0.7163-0.7130
  • Commodity Futures: Gold -0.5% at $1,835/oz; Crude Oil -0.4% at $52.62/brl; Copper +0.1% at $3.55/lb

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading