General Trend
- Shanghai Composite rose by over 1% during the morning session; Consumer Staples index gained over 2%
- Hang Seng traded above 30K, Finance index traded higher
- Chinese telecoms (China Mobile, China Telecom, China Unicom) seek to have NYSE reverse delisting decisions as Biden comes into office, muted reaction seen in HK share prices
- BYD rises in HK despite HK$29.9B stock placement
- Topix Information/Communication index rises over 1%, Softbank tracks gain on the Nasdaq
- Australian Consumer and Financial firms were among the gainers
- LG Display rises over 10%, there is speculation that the firm might shift a mobile LCD production line to an automotive display production line
- China’s overnight rates continue to rise despite PBOC cash injections
- China commented on trials related to ‘infrastructure REITs’
- Japan’s monthly exports rose for the first time since 2018, shipments to China increased by over 10%
- BoJ Gov Kuroda is due to hold post rate decision press conference at 6:30 GMT; some focal points might include the upcoming March framework review, range related to yield target
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
- Biden promised to release details on trade plan on Jan 21st (Thursday) [comments from Nov 16th 2020]
- Companies expected to report during the NY morning include Baker Hughes, Fuelcell Energy, Travelers, Union Pacific
- ECB to hold policy decision later today
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.3%
- (AU) AUSTRALIA DEC EMPLOYMENT CHANGE: +50.0K V +50.0KE; UNEMPLOYMENT RATE: 6.6% V 6.7%E
- STO.AU Reports FY20 production 89 MMBOE v 75.5 y/y (record high); Rev A$3.39B v A$4.03B y/y
- WPL.AU Reports Q4 production 24.9 MMBOE v 25.7 y/y; Rev $0.9B v $1.3B y/y
Japan
- Nikkei 225 opened +0.7%
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED
- (JP) Bank of Japan (BOJ) Quarterly Outlook for Economic Activity and Prices: Cuts FY20/21 GDP outlook, raises subsequent years; Cuts FY20/21 CPI outlook, raises FY21/22
- (JP) Japan Dec Trade Balance: ¥751.0B v ¥930.5B prior; Adj Trade Balance: ¥477.1B v ¥719.2Be; Exports Y/Y: 2.0% v 2.4%e (First y/y increase since 2018)
Korea
- Kospi opened +0.3%
- 000270.KR Follow Up: Kia Motors said to lead the Apple car project – Road/Show
- (KR) South Korea Nov PPI M/M: 0.7% v 0.0% prior; Y/Y: 0.1% v -0.3% prior
- (KR) South Korea Jan 1-20th Exports Y/Y: 10.6% v 1.2% prior; Imports Y/Y: +1.5% v -8.0% prior; Exports to China y/y: +18.6% v -2.3% prior; Chip Exports y/y: +11.6% v +26.4% prior
China/Hong Kong
- Hang Seng opened 0.0%; Shanghai Composite opened +0.2%
- (CN) China has sanctioned various officials from the Trump administration including Pompeo – SCMP
- (CN) China Premier Li: Need to continue supporting economy as challenges remain (after the close yesterday)
- (CN) China reports 144 new COVID cases (9th day above 100) v 103 prior
- 941.HK Files request for delisting review with NYSE on Jan 20th; Review to be scheduled at least 25 business days from date request was filed
- 762.HK Files request for delisting review with NYSE; Review to be scheduled at least 25 business days from date request was filed
- (CN) Beijing (China) said to have locked down 5 neighborhoods, restricting 1.6M people, following 2 cases of the UK COVID variant – France 24
- BIDU Said to be planning to file for secondary listing in Hong Kong IPO after Lunar New year – press
- (CN) China PBOC Open Market Operation (OMO): Injects CNY250B in 7-day reverse repos v CNY280B in 7-day reverse repos prior; Net Inject CNY248B v Net inject CNY278B prior
- (CN) China PBOC sets Yuan reference rate: 6.4696 v 6.4836 prior
North America
- (US) President Biden: Vaccine most consequential logistical thing in US; We can meet existential threat of climate change
- (CN) President Biden NSC Spokesperson: China decision to sanction former Trump administration officials is “unproductive and cynical”; Biden looks forward to working with leaders in both parties to position America to out compete China
- (CA) Alberta (Canada) Premier Kenney: Canada should consider trade sanctions over the Keystone XL pipeline
- (US) Follow Up: Senate Finance Committing to hold open hearing on Yellen Friday
Europe
- AZN.UK Oxford Uni undertaking feasibility studies to reconfigure coronavirus vaccines to combat new variants, UK PM Johnson: MHRA capable of quickly approving modification – press
- (EU) EU to consider German endorsed plan that would ban UK residents from entering Europe as part of COVID measures (not to impact cargo); expected to be debated today – UK press
Levels as of 12:15ET
- Hang Seng +0.3%; Shanghai Composite +1.3%; Kospi +1.2%; Nikkei225 +0.8%; ASX 200 +0.8%
- Equity Futures: S&P500 +0.3%; Nasdaq100 +0.7%, Dax +0.1%; FTSE100 +0.2%
- EUR 1.2134-1.2103; JPY 103.67-103.39; AUD 0.7778-0.7742; NZD 0.7210-0.7168
- Commodity Futures: Gold +0.3% at $1,871/oz; Crude Oil -0.3% at $53.13/brl; Copper +0.5% at $3.66/lb
