General Trend:
- Japanese equity markets outperform after lagging on Wednesday’s session, the Yen weakened overnight; TOPIX Marine/Transportation index rebounds from prior session’s losses
- Japanese earnings in focus: Fast Retailing, Seven & I and Yaskawa Electric all rise ahead of earnings reports expected later today
- Shanghai Composite rises amid softer than expected inflation data, property shares rise while banks lag in the face of ongoing monetary easing expectations
- Healthcare stocks trade generally higher in China and Hong Kong, recent viral outbreak in Wuhan has been in focus
- Apple suppliers rise in Hong Kong, track recent gains in the company’s share price
- HK-listed sportswear companies (Li Ning, Anta Sports, Xtep International) outperform on analyst commentary
- Financials and property firms also rise in HK
- Telecom and Consumer Discretionary firms are among the gainers in Australia
- Australia companies continue to update the market on the impact of bushfires
- Energy shares decline amid recent drop in oil prices, gold miners also retreat
- Aussie bond yields rise amid the recent focus on geopolitics, futures market probability of Feb 2020 RBA rate cut again declines below 50%; Aussie Nov retail sales due on Friday
- Japan 1-yr household inflation expectations decline (BoJ survey)
- China CPI below ests in Dec as pork price rise slows, PPI deflation continued [It was previously reported in Jan that the PBOC is said to believe policy easing remains on track despite higher inflation]
- China Commerce Ministry (MOFCOM) sometimes holds its weekly press conferences on Thursdays (comments generally seen during the early European morning)
- Taiwanese Apple supplier Largan may report financial results later today
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- (NZ) New Zealand Dec Commodity Price Index M/M: -2.8% v +4.3% prior
- (AU) Australia Nov Trade Balance (A$): 5.8B v 4.1Be; Exports M/M: +2.0% v -5.0% prior; Imports M/M: -3.0% v 0.0% prior
- IMM.AU Expands part C of TACTI-002 due to positive data
- ERA.AU Reports Q4 uranium oxide production 426t, -31% y/y
- GXY.AU Confirms have met FY19 guidance: Q4 lithium concentrate production volume 43.2K dry metric tons v 35-35K guided
- SUN.AU Has received over 2.6K claims related to bushfires; sees YTD bushfire cost A$315-345M
Japan
- Nikkei 225 opened +1.4%
- TM Reportedly aims to sell 500K electric vehicles worldwide by 2025 – Nikkei
- 4506.JP Altavant Sciences unit acquires Onspira Therapeutics, no financial terms disclosed
- (JP) Bank of Japan (BOJ) Quarterly Public Opinion of Household Sentiment: 1-year inflation outlook 2.5% v 3.0% prior; maintains 5-year outlook at 2.0%
- 4503.JP U.S. FDA approves Supplemental NDA (sNDA) for Expanded Indication of MYCAMINE (micafungin for injection) for treatment of Invasive Candidiasis in Pediatric Patients Less Than 4 Months of Age
- (JP) Japan MoF sells ¥700B v ¥700B indicated in 0.4% coupon 30-year JGBs, avg yield: 0.43% v 0.43% prior, bid to cover 3.66x v 3.69x prior
Korea
- Kospi opened +1.4%
- 005380.KR Hyundai Kia 2019 US Sales 1.3M, +3.7% y/y
- (KR) South Korea and US have made progress in defense sharing cost negotiations; talks to resume next week – Yonhap
- (KR) South Korea Foreign Ministry: We can “reactivate” the suspended decision to terminate a military information sharing pact with Japan, depending on progress in negotiations over export restrictions and wartime forced labor – Yonhap
China/Hong Kong
- Hang Seng opened +1.0%; Shanghai Composite opened +0.5%
- (CN) CHINA DEC CPI M/M: 0.0% V 0.4% PRIOR; Y/Y: 4.5% V 4.7%E; PPI Y/Y: -0.5% v -0.4%e; Food CPI: +17.4% y/y; Non-food: +1.3% y/y; Pork prices -5.6% m/m: +97% y/y
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repos for the 13th consecutive session; Net drain CNY0B v drain CNY0B prior
- (CN) China PBOC sets Yuan Reference Rate: 6.9497 v 6.9450 prior
- (CN) China Fin Min Liu Kun: Will front-load over CNY500B for local government bond issuance; front-loaded bond quota to be used before March
- (CN) China Natural Resources Ministry: To open oil and gas exploration and production to foreign firms registered in China
- (CN) China Banking and Insurance Regulatory Commission (CBIRC) issues draft rules to tighten oversight of its financial leasing sector – press
- (HK) Hong Kong Fin Sec Chan: Will spend boldly to support growth; USD peg will remain intact; Q4 economy did not look good
North America
- BA Iran may request help from US in investigating crash of Boeing yesterday (after denying the black box to Boeing) under UN treaty – US press
- BA (IR) Initial Iran Investigation Report: Witnesses to Ukrainian Boeing airliner crash saw plane on fire prior to crash, there was no radio communication from pilot indicating an unusual situation
- (US) US Vice Pres Pence: Iran is sending messages to militia groups not to move against US targets
- T CFO John Stephens affirms FY19; Q4 Rev will reflect lower Warner Bros. theatrical rev; Affirms FY20
Europe
- (UK) Dec BRC Sales Like-For-Like Y/Y: +1.7% v -0.5%e
- (UK) PM Johnson spokesperson: PM had a positive meeting with EU’s Von der Leyen, wants positive EU partnership
Levels as of 12:15ET
- Hang Seng +1.2%; Shanghai Composite +0.6%; Kospi +1.2%; Nikkei225 +2.2%; ASX 200 +0.8%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.3%; FTSE100 +0.2%
- EUR 1.1119-1.1103; JPY 109.25-109.02; AUD 0.6881-0.6863; NZD 0.6659-0.6643
- Commodity Futures: Gold -0.0% at $1,559/oz; Crude Oil +0.9% at $60.12/brl; Copper +0.3% at $2.82/lb
