General Trend:
- Equity futures fluctuate following gains on Wed
- Asian tech and energy names trade generally higher, Softbank rises over 6%
- Banks, Fast Retailing and Marine/Transportation names gain in Japan
- Japanese automakers trade generally higher, Toyota gains over 4%
- China Airlines decline, follows recent rise in oil prices
- Sinopec declines over 6%, UNIPEC unit said to have suffered losses
- Australian equities supported by the Energy and Resources sectors
- Oil Futures decline after gains on Wed
- USD/JPY tracks decline in the equity futures, NZD/JPY -0.4%
- It remains unclear when partial US government shutdown will end, Senate adjourned until Thursday (Dec 27th)
- China Commerce Ministry is expected to hold weekly press conference later on Thursday
Headlines/Economic Data
Japan
- Nikkei 225 opened +2.0%
- (JP) Japan Securities Clearing Corporation (JSCC) says emergency margin call triggered for index futures: Nikkei 225 Futures rose over 5.5% on Wed
- (JP) Some economists increasingly expect the BoJ to ease monetary policy further in 2019 amid equity declines – Japanese Press
- 6465.JP Hoshizaki reportedly probably will meet deadline to avoid delisting – Japanese press [+15%after releasing results]
- 8028.JP FamilyMart plans to launch its own cashless payment service in July 2019 – Nikkei
- 7201.JP Tokyo prosecutors to bring fresh charges against former Chairman Ghosn related to payments to Saudi businessmen – press
Korea
- Kospi opened +0.2%
- (KR) South Korea Dec Consumer Confidence: 97.2 v 96.0 prior (1st increase in 3-months)
- (KR) South Korea, Seoul to raise taxi fare 27% to KRW3,800, starting end of January, first increase in 5-yrs – Yonhap
- (CN) South Korea said to release defense white paper early 2019 that will delete content that makes North Korea Govt and Army as an enemy – Xinhua
China/Hong Kong
- Hang Seng opened +0.7%, Shanghai Composite +1.2%
- (CN) US and China reportedly plan for “mid-level” trade talks week of Jan 7th in China, headed by US Dep Trade Rep Gerrish
- (CN) China PBOC Ma: Bank lending, money supply, and in a broader context, total social financing, will maintain a proper growth pace to cope with GDP growth, capital increase to boost confidence in bank stocks
- (CN) China’s first domestically produced regional jetliner, the ARJ21-700, completed its first manned over water demonstration flight in southern China’s island province of Hainan – Xinhua
- (CN) China Nov Industrial Profits YTD y/y: +11.8% v 13.6% prior; Nov CNY594.8B, -1.8% m/m (1st decline since late 2015)
- (CN) China PBoC sets yuan reference rate: 6.8894 v 6.8845 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 7-day and 14-day reverse repos v CNY30B injected in 14-day reverse repos prior; Net: CNY30B injection v CNY10B drain prior
- HUAWEI.CN UK Defense Sec Williamson reportedly has raised concerns about the role Huawei has in 5G development – UK press
- 1133.HK Harbin Electric Group and Harbin Electric Co to merge, HEC to be absorbed by HEG in HK$4.56/shr cash deal for H shares
- Sinopec: UNIPEC unit said to have suffered losses, two top officials have been suspended at the oil and gas trading unit – financial press
Australia/New Zealand
- ASX 200 opened +0.1%
- MMJ.AU Unit Medipharm Labs Corp, expands annual production capacity by 50%
- SFR.AU Exercise its option to enter into JV agreement with White Rock Minerals for the Red Mountain Project
Other Asia
- 2354.TW Increasing efforts to expend into semiconductor and chip making sector, in order to diversify away from its heavy reliance on manufacturing smartphones as the global smartphone market slows – China Daily
North America
- (US) President Trump: prepared to wait ‘whatever it takes’ to achieve border security, wall funding (Reminder US Govt remained on partial shutdown)
- (US) White House Econ Adviser Hassett: Fed Chair Powell’s job is not in jeopardy; Powell is 100% safe; there’s no hidden liquidity crisis – Fox Business interview
Europe
- (FR) EU Budget Commissioner Oettinger: France President Macron lost authority with his draft 2019 budget but remains a strong supporter of EU, EC will tolerate budget deficit of more than 3% as a one time exception next year; Chance of UK staying in EU has increased slightly over the past months, but still expect UK to leave EU next year
Levels as of 01:00ET
- Nikkei 225, +3.6%, ASX 200 +1.9%, Hang Seng flat; Shanghai Composite flat; Kospi flat
- Equity Futures: S&P500 +0.1%; Nasdaq100 -0.1%, Dax +1.6%; FTSE100 +1%
- EUR 1.1391-1.1348 ; JPY 111.38-110.85 ; AUD 0.7078-0.7054 ;NZD 0.6742-0.6712
- Feb Gold +0.2% at $1,272/oz; Jan Crude Oil -1% at $46.14/brl; Feb Copper +0.2% at $2.705/lb
