General Trend:
- Declines in Softbank, financials and Marine Transportation names weigh on Japanese equities
- Shanghai Property index drops over 2%
- Tencent rises over 4%, China said to have approved certain video games for sale
- Nike rises over 6% post earnings
- Oil Futures rise in Asia after declines on Thursday
- US government funding deadline of midnight on Friday in focus
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.6%
- (NZ) New Zealand Dec ANZ Consumer Confidence: 121.9 v 118.6 prior
China/Hong Kong
- Shanghai Composite opened -0.4%, Hang Seng -0.4%
- (CN) Reportedly US and over a dozen allies plan to openly accuse China about its economic espionage activities – Washington Post
- (CN) China Foreign Ministry: ‘Resolutely’ opposes US report on cyber security; China will take necessary measures to firmly safeguard its cyber security and interests
- (CN) China said to have asked some banks to rein in FY18 profit growth – press
- (CN) China PBoC: To step up management of Bank’s Required Reserves and improve oversight of Deposit base
- (CN) China Stock Exchange said to look into certain suspected improper deals – Local Press
- (CN) China said to have completed review on certain online games – Local media
- (CN) China PBoC sets yuan reference rate: 6.8825 v 6.8936 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 7-day and 14-day reverse repos v CNY150B injected in 7 and 14-day reverse repos prior; Net: CNY50B injection v CNY150B injection prior
Japan
- Nikkei 225 opened -0.4%
- Nintendo: Exec says hardware target is not easy, can reach Switch software target (Local Press)
- (JP) JAPAN NOV NATIONAL CPI Y/Y: 0.8% V 0.8%E; CPI EX FRESH FOOD (CORE): 0.9% V 1.0%E
- (JP) Japan Vice Finance Minister for International Affairs Asakawa (top currency official): Concerning moves in FX and equity markets this week as volatility increases
- (JP) Japan, US and EU officials are considering a ministerial-level trade meeting in Jan – Japanese press
- (JP) Japan Cabinet approves general account budget spending of ~ÂĄ101.5T for FY19/20 (record amount, in line with press speculation)
- (JP) Japan End-Sept Household Assets: ÂĄ1,859T, +2.2% y/y – BoJ Q3 Flow of Funds Report
- Nissan: Tokyo Prosecutors confirm re-arrest of Ghosn
- (JP) Japan Trade Min Seko: Declines comment on decision of prosecutors related to former Nissan Chairman Ghosn, don’t know if this will develop into diplomatic issue
Korea
- Kospi opened -0.4%
- (KR) South Korea Dec First 20 Days Exports Y/Y: 1.0%; Imports Y/Y: 2.2%
- (KR) South Korea Nov PPI Y/Y: 1.6% v 2.2% prior
- (KR) South Korea Envoy Biegun: US has no intention to ease North Korea sanctions; Inter-Korea railway project to proceed as planned
- (KR) South Korea President Moon disapproval rating 46% v 44% prior; approval rating flat at 45% – Gallup Poll
Other
- (TH) Thailand Nov Customs Trade Balance: -$1.18B v +$1.0Be; Customs Exports Y/Y: -1% v +3.3%e
North America
- US equity markets ended lower: Dow -2%, S&P500 -1.6%, Nasdaq -1.6%, Russell 2000 -1.7%
- (US) US House has votes to pass stopgap bill, but opposition expected in the Senate; Senate Majority Leader McConnell (R) said Senate to take up House-passed bill on Friday
- (US) Pres Trump in tweet announces Defense Sec Mattis will be retiring at end of Feb; replacement to be named shortly
- Facebook: Said to develop ‘Stablecoin’ for transfers on WhatsApp (US financial press)
Europe
- (UK) Dec GfK Consumer Confidence: -14 v -14e
- (UK) Lloyds Dec Business Barometer: 17 v 24 prior
- (UK) UK Nov Car Production Y/Y: -19.6% (largest decline since Feb) – SMMT
- Danske Bank [DANSKE.DK]: Cuts FY18 net profit outlook to DKK15B (DKK16-17B prior); affirms NII
- Delivery Hero [DHER.DE]: Announces the sale of food delivery operations in Germany to Takeaway.com for €930M in cash and stock
Levels as of 01:30ET
- Nikkei 225, -1.3%, ASX 200 -0.7%, Hang Seng -0.2%; Shanghai Composite -1.3%; Kospi -0.2%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.6%; FTSE100 -0.3%
- EUR 1.1463-1.1441 ; JPY 111.43-111.08 ; AUD 0.7124-0.7103 ;NZD 0.6791-0.6760
- Feb Gold -0.4% at $1,263/oz; Jan Crude Oil +0.8% at $46.24/brl; Feb Copper -0.4% at $2.693/lb