General Trend:

  • Japanese automakers rise ahead of earnings from Nissan
  • Japanese chipmaker Renesas Electronics rises over 15% following earnings/guidance
  • Toshiba declines over 6%, confirmed plan to lower FY Op profit guidance
  • Chinese Telecom and Tech names add to Monday’s gains, US/China trade talks in focus
  • Healthcare names rise in Hong Kong, China Premier pledged to offer preferential VAT on rare disease treatments
  • Geely rises over 5% after monthly sales figures
  • Banks in China underperform
  • Macquarie rises over 3% in Australia, issued guidance
  • Australia Dec Home Loans were the weakest since 2015, NAB business confidence and conditions rebounded
  • BoJ reduced daily 10-25 yr JGB purchases, reversed move from early Dec; little reaction seen in USD/JPY
  • US Senator Shelby (R) said ‘agreement in principle’ has been reached in the gov’t shutdown talks, in line with his comments from Feb 7th
  • China MOFCOM Official: In Jan trade in goods maintained growing trend (comments ahead of trade balance data)
  • US/China trade talks due to occur in Beijing from Feb 14-15
  • US companies expected to report earnings on Tuesday include Activision, Akamai, Groupon, Huntsman and Under Armour (includes afterhours)

Headlines/Economic Data

Japan

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  • Nikkei 225 opened +0.5%
  • 6502.JP Confirms press report related to FY18/19 Op guidance
  • (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: cuts 10-25-yr JGB buying by ¥20B to ¥180B
  • 6723.JP Reports FY18 Net ¥54.6B v ¥77.2B y/y; Op ¥66.8B v ¥78.4B y/y; Rev ¥757.4B v ¥780.3B y/y (rises to daily limit)
  • Japan Industry Min Seko: There is ‘absolutely no truth’ to media report that France government told Japan that Renault could lower its stake in Nissan – Japanese Press

Korea

  • Kospi opens +0.1%
  • (KR) North Korea strongly condemned Japan for its attempt to lay territorial claim to the South Korean island of Dokdo, calling it an illogical, gangster-like act – Yonhap
  • 005930.KR Agrees to preliminary settlement over recalled washing machines recalled in the United States in late 2016, no terms disclosed
  • (KR) Bank of Korea (BOK): 2018 CPI may have risen ~2.0% if public prices strictly controlled by the government are not taken into account – Yonhap
  • 037560.KR To be acquired by LG Uplus for KRW800B

China/Hong Kong

  • Hang Seng opens -0.2%; Shanghai Composite opens flat
  • 293.HK Will close Toronto cabin crew base, 120 jobs may be lost, nothing decided yet; no plans currently to close other flight attendant bases – SCMP
  • (CN) China PBoC Open Market Operation (OMO): Skips reverse repo operations for second consecutive session; Net: CNY100B drain v CNY20B drain prior
  • 175.HK Reports Jan sales 158.4K units +2% y/y
  • (CN) CHINA JAN FOREIGN RESERVES: $3.088T V 3.080TE; gold reserves rise for a 2nd month (released on Feb 11th)
  • (CN) China Premier Li Keqiang: Govt to support banks to add capital via various channels; To offer preferential VAT on drugs for rare diseases; to cut VAT from March – financial press
  • 1055.HK Carried 2.1M passengers over Spring Festival holiday (Feb 4-10), +8% y/y
  • (CN) US Undersecretary for International Affairs Malpass: March 1 deadline for US-China trade deal will not be extended; US deputy-level delegation is currently in Beijing for the second day of trade talks -HK Press

Australia/New Zealand

  • ASX 200 opened slightly lower
  • (NZ) New Zealand Jan Retail Card Spending M/M: 1.8% v 1.4%e; Total Card Spending M/M: +2.0% v -1.9% prior
  • MQG.AU Gives Q3 update: Trading conditions were satisfactory with significant realizations across the Group; Affirms FY19 results +15% y/y
  • SUL.AU Reports prelim H1 (A$) EBIT 124.5M v 113.6M y/y; Rev 1.4B v 1.3B y/y
  • (AU) AUSTRALIA JAN NAB CONFIDENCE: 4 V 3 PRIOR; BUSINESS CONDITIONS: 7 V 2 PRIOR
  • (AU) AUSTRALIA DEC HOME LOANS M/M: -6.1% V -0.9% PRIOR (weakest reading since 2015)
  • (NZ) New Zealand Q1 1-year Avg Inflation Expectations: 1.8% v 2.1% prior – Reserve Bank of New Zealand (RBNZ)

North America

  • (US) White House announces initiative on Artificial Intelligence (AI)
  • (US) US President Trump said the Tennessee Valley Authority (TVA) should consider the importance of coal in the power mix before closing coal-fired plants; could compromise on border – speaking at rally
  • VALE Vale reportedly was aware in Oct that the failed Brumadinho dam in Brazil was at a heightened risk of rupture; internal classification of risk level would have required company to notify CEO and board – press
  • (US) Sen Shelby (R-AL): Agreement in principal reached on shutdown talks; border bill will have some money for a barrier

Europe

  • (UK) According to ‘cabinet minister sources,’ UK PM May is readying to resign in the summer so she can influence who succeeds her – UK’s The Sun
  • (UK) UK Parliament Treasury Committee said Chancellor Hammond target for a budget surplus in the mid-2020s is no longer credible – financial press
  • (UK) EU Brexit Negotiator Barnier: Very little time left before the Brexit; PM May has told us she wants to work for a deal before March 29th
  • (IT) Northern League party: draft proposal for Constitutional change would allow the govt to sell gold reserves

Levels as of 12:50ET

  • Hang Seng +0.0%; Shanghai Composite +0.3%; Kospi +0.6%; Nikkei225 +2.6%; ASX 200 +0.3%
  • Equity Futures: S&P500 +0.5%; Nasdaq100 +0.6%, Dax +0.6%; FTSE100 +0.4%
  • EUR 1.1271-1.1286; JPY 110.35-110.66; AUD 0.7054-0.7088; NZD 0.6720-0.6740
  • Commodity Futures: Gold 0.0% at $1,311/oz; Crude Oil +0.5% at $52.68/brl; Copper -0.1% at $2.78/lb
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