General Trend:
- Equity Futures reverse early gains
- Shares of Nikkei-weighted Fast Retailing and Softbank decline
- Property and Industrial sectors weigh on markets in Shanghai
- Hong Kong gaming shares trade broadly lower
- South Korean chipmakers track declines in the US
- Rusal rises over 20% and aluminum prices decline, US government lifted sanctions
- NZD declines amid weaker GDP and rate cut speculation
- Commodities trade generally lower, Oil Futures drop over 2%
- Few surprises out of the BoJ
- China PBoC announced plans to create a ‘targeted’ medium-term lending facility (MLF)
- PBoC declines to raise reverse repo rates after Fed (as expected)
- Looking Ahead: BoJ Gov Kuroda due to hold post rate decision press conference after equity close
- China Commerce Ministry expected to hold weekly press confidence later today
- Japan CPI data due for release on Friday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.3%
- (AU) AUSTRALIA NOV EMPLOYMENT CHANGE: 37.0K V 20.0KE; UNEMPLOYMENT RATE: 5.1% V 5.0%E
- (NZ) NEW ZEALAND Q3 GDP Q/Q: 0.3% V 0.6%E; Y/Y: 2.6% V 2.8%E
- (NZ) New Zealand Nov Trade Balance (NZD): -0.9B v -0.9Be
- (NZ) ANZ forecasts Reserve Bank of New Zealand (RBNZ) will cut cash rate in Nov 2019
China/Hong Kong
- Shanghai Composite opened -0.2%, Hang Seng -0.6%
- (CN) China State Taxation Administration Vice Head Ruibiao: To study new round of ‘substantial’ tax cuts
- (CN) China Financial Stability Committee/PBOC hold meeting on capital market: Capital market has long-term investment value, risks in capital market have been ‘fully released’
- (CN) China PBoC Open Market Operation: Injects CNY150B in 7 and 14-day reverse repos v CNY60B injected in 7 and 14-day reverse repos prior: Net: CNY150B injection v CNY60B injection prior
- (CN) China PBoC sets yuan reference rate: 6.8936 v 6.8869 prior
- (HK) Hong Kong Monetary Authority (HKMA) raises base rate by 25bps to 2.75% (as expected), tracks US fed: Says whether domestic banks raise rates is their own commercial decision
Japan
- Nikkei 225 opened -1%
- BoJ left policy unchanged (as expected)
- (JP) Foreigners purchased net ¥1.61T in Japanese government bonds in recent weekly period
Korea
- Kospi opened -0.7%
- (KR) Bank of Korea Gov Lee: Sees room for monetary policy if Fed slows rate hikes, US Fed rate hike in line with expectations – Local Press
- (KR) South Korea expected to release its 2019 government bond issuance plan after the market close on Thursday
North America
- US equities decline: Dow -1.5%, S&P500 -1.5%, Nasdaq -2.2%, Russell 2000 -2%
- (US) FOMC RAISES TARGET RANGE BY 25BPS TO 2.25-2.50%; AS EXPECTED; Raises IOER from 2.20% to 2.40%; Cuts Median forecast for end-2019 rate 2.875% (prior 3.125%)
- (US) US Senate passes bill funding government agencies through Feb 8, sends measure to House
Levels as of 01:30ET
- Nikkei 225, -3.3%, ASX 200 -1.3%, Hang Seng -1.5%; Shanghai Composite -1.2%; Kospi -1.3%
- Equity Futures: S&P500 -0.8%; Nasdaq100 -0.8%, Dax -1.8%; FTSE100 -0.6%
- EUR 1.1390-1.1360 ; JPY 112.67-112.25 ; AUD 0.7126-0.7094 ;NZD 0.6816-0.6730
- Feb Gold -0.6% at $1,248/oz; Jan Crude Oil -2.3% at $47.05/brl; Feb Copper -0.6% at $2.658/lb
