General Trend:
- No news out of US, China trade talks
- Apple rises following its guidance, Nasdaq Futures outperform
- China Life declines over 3% on profit warning
- Hong Kong property developer Hang Lung FY profits miss ests, Property sales -64% y/y
- Property developer Jiayuan International resumed trading (rises over 20%), issued statement on margin loans
- Brokerage sector weighs on Japanese equities, Daiwa Securities down after recent earnings report
- Iron ore miners gain in Australia, prices rise in China on Vale dam accident
- Australian auto distributor G.U.D declines over 10% on financial results
- LG Display declines after guidance, Posco rises ahead of earnings
- Australia Q4 inflation data remains below RBA target range (2-3%)
- Aussie and 3-year bond yields rise, headline inflation was above ests
- British Pound (GBP) rises in Asian trading after recent parliamentary votes
- Mexican Peso (MXN) declines on PEMEX downgrade
- Chinese yuan (CNY) continues to be set stronger amid the US/China talks
- US/China trade talks are expected to conclude on Jan 31st
- US Fed expected to deliver rate decision later on Wed
- Companies expected to report earnings on Wed are ADP, AT&T, Alibaba, Boeing, Facebook, McDonald’s, Microsoft, Mondelez, Nasdaq, Qualcomm, Tesla, Tupperware, US Steel, Visa, Wynn Resorts (includes afterhours)
Headlines/Economic Data
Japan
- Nikkei 225 opened +0.2%
- TM Reports Dec Global Production 655.9K units, -4.7% y/y
- (JP) Reportedly the EU will lift import ban on Japanese egg and dairy products – Nikkei
- (JP) Sen Grassley (R-IA): not that confident a Japan trade deal can reached this year
- (JP) JAPAN DEC PRELIM RETAIL SALES M/M: 0.9% V 0.4%E; Dec Retail Trade y/y: 1.3% v 1.0%e ; Dec Department Store, Supermarket Sales y/y: -1.0% v -1.1%e
- 4506.JP Notes along with Sanbio that Phase 2B study evaluating SB623 for the Treatment of Chronic Stroke did not meet primary endpoint [-18.5%]
Korea
- Kospi opened flat
- 034220.KR Reports FY18 (KRW) Net -179.4B v +1.9T y/y; Op 92.9B v 2.46T y/y; Rev 24.3T v 27.8T y/y
- (KR) South Korea Fin Min Hong: Confirms reviewing stock transaction tax reform – Yonhap
- (KR) South Korea Fin Min Hong: Jan exports growth likely to show weaker growth y/y
- (KR) US Dir of National Intelligence Coats: North Korea likely will not give up its nuclear weapons and production capabilities
China/Hong Kong
- Hang Seng opened +0.1%, Shanghai Composite -0.4%
- (CN) China developers have issued $8.6B in offshore bonds in 2019 YTD, more than double y/y – SCMP
- (CN) China pushing its foreign investment law through approves, as it will give more protection to foreign companies; one of the things the US is seeking in trade talks – SCMP
- (CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 14-day reverse repos v skips prior; Net: CNY50B injects v CNY0Bprior (1st injection in 8 sessions)
- (CN) China PBoC sets Yuan Reference Rate: 6.7343 v 6.7356 prior
- (CN) China Govt’s China Centre for International Economic Exchanges (CCIEE) researcher Zhang Yansheng: The fundamental differences over economic issues, political systems and security between China and US will not be resolved by the March 1st deadline, will likely carry on much longer – SCMP
Australia/New Zealand
- ASX 200 opened -0.5%
- (AU) AUSTRALIA Q4 CPI Q/Q: 0.5% V 0.4%E; Y/Y: 1.8% V 1.7%E (2nd consecutive reading below 2-3% target range)
- NCM.AU Reports Q1 gold production 548.4K oz v 522.9K y/y at AISC $778/oz v $898 y/y, copper production 24.9K tons v 16.7K y/y; Affirms FY19 production
Other Asia
- (TH) Thailand Fin Min Apisak: Central bank should ensure THB currency (Baht) is not too volatile and not stronger than those of trading partners
North America
- (US) Federal Reserve (FED): Policymakers to meet as scheduled on Wed, despite late opening of US government offices on weather conditions
- (MX) US Trade Representative has submitted to Congress the list of changes to law needed to implement the US-Mexico-Canada trade agreement
- AAPL Reports Q1 $4.18 v $4.17e, Rev $84.3B v $84.1Be
- EBAY Reports Q4 $0.71 v $0.68e, Rev $2.88B v $2.86Be; initiates $0.14/shr dividend (1.66% indicated yield); expands share repurchases by $4B (12% of market cap)
Europe
- (UK) Parliament votes in favor of Spellman Amendment (I), against PM May’s wishes; vote was 318-310; ‘Amendment I’ is a non-binding amendment that would block a ‘no deal’ Brexit
- (UK) Parliament passes Brady Amendment in 317-301 vote; PM May supported the Brady Amendment that calls for the Irish backstop to be replaced with alternative arrangements to avoid a hard border
Levels as of 12:40ET
- Hang Seng +0.1%; Shanghai Composite -0.3%; Kospi +0.6%; Nikkei225 -0.4%; ASX 200 +0.2%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.7%, Dax -0.3%; FTSE100 -0.2%
- EUR 1.1427-1.1448; JPY 109.22-109.44 ; AUD 0.7150-0.7200;NZD 0.68-0.68
- Commodity Futures: Gold +0.3% at $1,313/oz; Crude Oil +0.2% at $53.41/brl; Copper +0.3% at $2.73/lb
