Nikkei Futs Lag, Nissan Declines After Guidance, Japan Confirmed First Coronavirus Death

Feb 14 20, 07:25 GMT

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