Wed, Jan 20, 2021 @ 22:33 GMT
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Asian Markets Trade Mixed After Similar US Session

General Trend:

  • Consumer Discretionary firms rise in Australia, Financials drop
  • Westpac declines by over 3%, will not pay H1 dividend
  • BHP trades modestly lower after FY results, dividend announcement
  • Telecoms are among the gainers in Hong Kong
  • Sunny Optical (Apple supplier) drops over 9% after reporting Q2 results
  • Shanghai Composite rose by less than 0.5% during morning session; Gainers include Industrial and Consumer cos.; Financials decline following strength on Monday’s session
  • Japanese equities decline amid the strength in the Yen; Decliners include Air Transportation firms and Banks
  • Mediatek drops over 9% in Taiwan after US announced further restrictions related to Huawei
  • NZD/JPY drops by over 0.5%, more analysts expect negative rates in NZ in 2021; Japanese equities decline
  • USD/CHF trades at over 5 yr low

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) AUGUST MINUTES: RECOVERY LIKELY TO BE SLOWER THAN PREVIOUSLY EXPECTED, CORONAVIRUS OUTBREAK IN VICTORIA HAVING MAJOR IMPACT ON DOMESTIC ECONOMY IN Q3; Under baseline scenario borders are expected to be shut until mid-2021
  • (AU) China begins anti-dumping probe into Australia Wine, relates to wines that contain 2 liters or less from Australia
  • (AU) Australia Trade Min: Confirms China is considering a request to launch countervailing duties investigation
  • (NZ) ANZ Bank sees Reserve Bank of New Zealand (RBNZ) cutting Official Cash Rate (OCR) To -25bps in April 2021
  • (NZ) New Zealand July Non Resident Bond Holdings: 51.6% v 49.9% prior

China/Hong Kong

  • Hang Seng opened +0.5%, Shanghai Composite +0.1%
  • CanSino [6185.HK]: As of Aug 18th, enrollment of Phase III clinical trial related to potential coronavirus vaccine has not started
  • (US) US Commerce Department to add another 38 Huawei affiliates in 21 countries to economic blacklist
  • (US) Sec of Commerce Ross: China and US officials are continuing talks at various levels; China has been purchasing large amounts of agricultural products; New rules on Huawei closes existing loopholes; Looking at Tiktok but no formal steps on Alibaba – Fox Business (from Aug 17th)
  • (US) White House advisor Navarro: China Phase 1 trade deal is on track and China is buying ‘epic’ amounts of US goods; China is keeping its word on trade purchases – CNBC interview (from Aug 17th)
  • (US) President Trump: will create tax credits for companies that bring jobs back from China (from Aug 17th)
  • (HK) Hong Kong to launch 3rd round of coronavirus relief
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v Injects CNY50B in 7-day reverse repos prior; Net Injection CNY50B
  • (CN) China PBOC sets Yuan reference rate: 6.9325 v 6.9362 prior

Japan

  • Nikkei 225 opened flat
  • (JP) Japan MoF sells ¥899.4B v ¥900B indicated in 0.6% 30-year JGBs, avg yield 0.6170% v 0.6120% prior, bid to cover 3.44x v 3.9x prior

Korea

  • Kospi opened -0.1%
  • (KR) South Korea reported to be preparing stricter coronavirus restrictions in Seoul – Yonhap
  • (KR) South Korea confirms 246 additional coronavirus cases, 1 additional death
  • (KR) South Korea sells 10-year treasury bonds avg yield 1.380% v 1.420% prior

Other Asia

  • (ID) Indonesia July Trade Balance: $3.3B v $0.7Be

North America

  • Boeing [BA]: Reportedly job cuts will be more than original 10% target; co. plans to offer an additional voluntary layoff package to employees – Financial Press
  • (CA) Canada Fin Min To resign, according to Canada Press; Morneau later confirms resignation as Finance Min, will not run again in the next federal election

Levels as of 1:20 ET

  • Nikkei 225, -0.2%, ASX 200 +1% , Hang Seng +0.2%; Shanghai Composite +0.4% ; Kospi -0.6%
  • Equity S&P500 Futures: flat; Nasdaq100 +0.1%, Dax -0.1%; FTSE100 -0.4%
  • EUR 1.1896-1.1865 ; JPY 106.06-105.56 ; AUD 0.7231-0.7208 ;NZD 0.6569-0.6534
  • Gold +0.1% at $2,001/oz; Crude Oil -0.4% at $42.73/brl; Copper flat at $2.9068/lb

 

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