General Trend:
- Hong Kong gaming companies rise over 1% in early trading, Apple suppliers also rise after losses seen on Thursday
- Foxconn Technology rises over 1% after dropping over 9% yesterday amid concerns about coronavirus impact on production
- Sectors moving higher in Japan include Securities, Iron/Steel and Real Estate.
- Nintendo declines over 4% after results and guidance
- Japanese companies expected to report earnings later today include Daiwa Securities, Mizuho Financial, Hitachi, Komatsu, Daiichi Sankyo, Astellas Pharmaceuticals, Eisai, Mitsubishi Motors, Japan Airlines and KDDI.
- Gainers in Australia include Energy and Resources companies
- Amazon rises over 10% in afterhours trading on financial results
- South Korean earnings in focus: Chipmaker Hynix rises over 2%, expects avg selling prices for DRAM to continue to rise throughout 2020
- LG Display rises over 4% after reporting earnings, noted rise in avg sales price
- Chinese companies start to announce relief measures amid the coronavirus outbreak; Large property developer Vanke to cut certain rents
- Chinese markets are scheduled to resume trading on Feb 3rd (Monday) following the extended Lunar New Year break [the market resumption was delayed from Jan 31st due to the impact of the coronavirus]
- RBA in focus next week: The Reserve Bank of Australia is due to hold its next policy meeting on Feb 4th (Tuesday), RBA Gov Lowe is due to hold his National Press Club address on Feb 5th (Wed); The RBA is also due to release its quarterly statement on monetary policy (SOMP) on Feb 7th (Friday).
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.3%
- (AU) AUSTRALIA Q4 PRELIMINARY PPI Q/Q: 0.3% V 0.4% PRIOR; Y/Y: 1.4% V 1.6% PRIOR
- (AU) Australia Dec Private Sector Credit m/m: 0.2% v 0.2%e; y/y: 2.4% v 2.3%e
- (NZ) New Zealand Jan Consumer Confidence Index: 122.7 v 123.3 prior; M/M -0.5% v +2.2% prior
China/Hong Kong
- Shanghai Composite closed, Hang Seng opened +1.2%
- (CN) CHINA JAN MANUFACTURING PMI (OFFICIAL GOVT): 50.0 V 50.0E; Non-Manufacturing: PMI: 54.1 v 53.0e
- (CN) China: Confirmed coronavirus cases rise to 9,692 v 7,711 prior, confirms death toll at 213 vs 170 prior
- (CN) World Health Organization (WHO) Director Tedros: declares coronavirus a Public Health Emergency of International Concern (PHEIC); this declaration of PHEIC is not a vote of no confidence in China
- (HK) Hong Kong to extend tax payment deadline to Feb 5 from Jan 31
- (HK) Hong Kong confirms human-to-human transmission of coronavirus; considers more border checkpoint closures
Japan
- Nikkei 225 opened +0.7%
- (JP) Japan PM Abe: Will bring forward infection disease order to Feb 1, Will deny entry to Coronavirus patients from Feb 1
- (JP) JAPAN DEC PRELIMINARY INDUSTRIAL PRODUCTION M/M: 1.3% V 0.7%E (first rise in 3 months); Y/Y: -3.0% V -3.6%E
- (JP) JAPAN DEC JOBLESS RATE: 2.2% V 2.3%E
- (JP) JAPAN DEC RETAIL SALES M/M: 0.2% V 1.0%E; Y/Y: -2.6% V -1.8%E
- (JP) JAPAN DEC ANNUALIZED HOUSING STARTS: 852K V 847KE; Y/Y: -7.9% V -11.8%E
Korea
- Kospi opened +0.6%
- (KR) South Korea Dec Industrial Production M/M: 3.5% v +0.7%e; Y/Y: 4.2% v +1.0%e
North America
- (US) CDC ANNOUNCES FIRST INSTANCE OF PERSON-TO-PERSON SPREAD OF CORONAVIRUS IN THE US; TRANSMISSION REPORTED IN ILLINOIS
- (CN) US State Dept issues Level 4 Advisory – Do Not Travel to China
Europe
- (UK) Jan GFK Consumer Confidence: -9 v -9e
- (UK) PM Johnson: Wants a Canada-style trade deal with Brussels – UK Press
Levels as of 00:20 ET
- Nikkei 225, +1.2%, ASX 200 +0.1%, Hang Seng +0.4%; Shanghai Composite closed; Kospi -0.3%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -0.3%; FTSE100 flat
- EUR 1.1035-1.1024; JPY 109.13-108.87 ; AUD 0.6730-0.6705 ;NZD 0.6496-0.6478
- Gold -0.8% at $1,571/oz; Crude Oil +2.1%% at $53.25/brl; Copper -0.2% at $2,544/lb
