General Trend:
- Early gainers in Shanghai include IT and Property shares
- The trade-sensitive Iron/Steel and Marine/Transportation sectors are weighing on Japanese markets
- Nissan declines over 9% after cutting guidance, said it would not pay year-end dividend
- Japanese companies expected to report earnings today include ASICS and Japan Post Holdings. Japanese insurers are also due to report.
- Sectors moving higher in Australia include Financials, Resources and Energy companies lag
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- (AU) Australia plans syndicated tap of 2041 bond during the week of Feb 17th
- (AU) ANZ says RBA rate cut in April looks difficult if the Aussie central bank maintains its cautious approach regarding interest rates; notes markets are pricing in a Sept rate cut- US financial press
- (NZ) New Zealand Jan Business Manufacturing PMI: 49.6 v 49.2 prior
- (NZ) New Zealand Jan Food Prices M/M: +2.1% v -0.2% prior
China/Hong Kong
- Shanghai Composite opened -0.2%, Hang Seng -0.1%
- (CN) China Hubei Coronavirus Update Feb 13th: Additional cases: 4,823 v 14,840 prior; Daily Death Toll: 116 v 242 prior
- (CN) China National Health Commission Coronavirus Update for Feb 13th: New deaths 121 v 254 prior; Additional cases: 5,090 v 15.2K prior
- (CN) China President Xi reiterates stance to keep momentum of economic development to achieve targets; To definitely minimize economic impact from coronavirus – financial press
- (CN) CNN/NYT reporter who said Shanghai is banning people and cars from entering city has since deleted his tweet
- (CN) China may consider more ‘proactive’ fiscal moves due to coronavirus – China Press front page commentary
- (CN) China PBoC said to ease some property loan quotas due to coronavirus
- (CN) China PBOC sets Yuan Reference Rate: 6.9843 v 6.9785 prior
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repo operations for the 3rd consecutive day; Net CNY0B v CNY0B prior
- Huawei: US Commerce department extends Huawei temporary general license through April 1st (45 day extension)
Japan
- Nikkei 225 opened -0.5%
- (JP) Nikkei 225 Options said to settle at 23,744
- (JP) Japan confirms first death from Coronavirus – Nikkei
- (JP) Japan Health Minister Kato: Can’t deny possibility coronavirus will spread in Japan; Plans to start disembarking some passengers from Japanese cruise ship today.
- (JP) Japan Chief Cabinet Sec Suga: No medical basis that coronavirus is spreading in Japan; government is gathering information of route of infections
- (JP) Bank of Japan (BOJ) Executive Dir Maeda: Q4 GDP may have contracted ‘sharply’, cites overseas slowdown, sales tax hike and impact of natural disasters
- (JP) Japan Econ Min Nishimura: Reiterates Q4 GDP likely to be weaker Q/Q, citing sales tax hike and typhoon; coronavirus outbreak likely to weigh on Japan’s economy
- (JP) Hokkoku Bank [8363.JP] said to delay yen-denominated bond sale, the reason for the delay is not initially clear – US financial press
- (JP) Japan Investors Net Buying of Foreign Bonds: ¥1.63T v -¥150.2B prior week; Foreign Net Buying of Japan Stocks: ¥282.9B v -¥295.6B prior week; Foreign investors purchased a net ¥1.67T in JGBs during the prior week
Korea
- Kospi opened flat
- (KR) Bank of Korea Gov Lee: To maintain enough liquidity to cap borrowing costs increases; Liquidity management is separate from rate decision
- (KR) South Korea Fin Min Hong: Not yet time to adjust 2020 GDP forecast
- (KR) South Korea Jan Export Price Index M/M: -0.8% v +0.8% prior; Y/Y: -2.7% v -3.1% prior
- (KR) South Korea Pres Moon: Will seek summit with US Pres Trump in March
- (KR) South Korea sells KRW732B v KRW750B indicated in 50-year bonds: avg yield 1.63% v 1.54% prior
Other Asia
- (SG) Singapore Monetary Authority (MAS): Sees minimal impact on finance services from coronavirus
North America
- (US) Fed’s Williams (moderate, voter): the US economy is very good; Sees US 2020 GDP +2.25%
- (US) Fed reduces size of overnight repo operations and plans smaller term operations; To lower overnight repo operations limit to $100B starting Feb 14th (from $120B); To lower max on term repo offerings to $25B starting mid-Feb and $20B in March (from $35B); To keep targeted monthly Treasury bill purchases unchanged at $60B through mid March
- Tesla [TSLA]: Said to price stock offering at $767/shr
Levels as of 00:20 ET
- Nikkei 225, -0.7%, ASX 200 +0.4%, Hang Seng +0.5%; Shanghai Composite +0.4%; Kospi +0.4%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.2%; FTSE100 +0.2%
- EUR 1.0842-1.0827 ; JPY 109.91-109.73 ; AUD 0.6732-0.6709 ;NZD 0.6444-0.6431
- Gold -0.1% at $1,576/oz; Crude Oil flat at $51.44/brl; Copper -0.1% at $2.614/lb
