General Trend
- Financial and Property firms decline in HK and Shanghai; Chinese press commented on additional property-related curbs, HK said to plan to lock down part of a district
- CNOOC declines on MSCI index removals
- Topix Iron/Steel, Insurance and Securities indices drop, Marine Transportation rises; Tokyo Steel is expected to report earnings
- Australian Energy, Resources and Financial firms decline
- Taiwan Semi declines after results from Intel
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- Alphabet: Says to block search engine in Australia if it is forced to pay for news – financial press
- (AU) Australia Preliminary Dec Retail Sales M/M: -4.2% v -1.5%e
- (AU) AUSTRALIA JAN PRELIMINARY PMI MANUFACTURING: 57.2 V 55.7 PRIOR; PMI Services: 55.8 v 57.0 prior
- (AU) Australia sells A$700M v A$700M indicated in 3.25% April 2025 bonds, avg yield: 0.2509%, bid to cover 7.4x
- (NZ) NEW ZEALAND Q4 CPI Q/Q: 0.5% V 0.2%E; Y/Y: 1.4% V 1.1%E
- (NZ) New Zealand Treasury Dec Activity Index +1.5% y/y
- (NZ) Reserve Bank of New Zealand (RBNZ): Postponing majority of statistical releases due to recent data breach
China/Hong Kong
- Hang Seng opened -0.4%, Shanghai Composite -0.1%
- (US) Treasury Sec-designate Yellen: Does not intend to alter China tariffs until allies consulted, new approach needed for meaningful China pressure; Will work with Biden to fight currency manipulation; US will take on China’s abusive, illegal practices; will use all tools
- (CN) China FX Regulator SAFE: Chinese Commercial Banks purchased net of CNY435.8B in FX in Dec (or $66.6B); Dec China banks net purchases of FX from clients CNY426.7B (highest level since 2014); For 2020 purchased Net $158.7B
- (CN) China FX Regulator SAFE Spokeswoman Wang: Current CNY exchange rate is in reasonable and balanced range; International factors may boost fluctuations in Domestic FX Market; Stepping up monitoring of cross border flows in bond market; Expects Q4 current account surplus to be flat q/q (Q3 $92.2B); Urges companies to boost risk neutral thinking on FX
- (CN) Shenzhen, China said to have tightened rules around home purchases – CSJ
- CNOOC [883.HK]: To be removed from MSCI indices, effective from Jan 26th; cites US Executive Order 13959
- (HK) Hong Kong said to plan to ‘lock down’ part of the Yau Tsim Mong District [located in Kowloon] – SCMP
- Honor (Former unit of Huawei) secures partnerships with Intel, Qualcomm, and Micron in addition to other suppliers
- (CN) China PBOC Open Market Operation (OMO): Injects CNY2B in 7-day reverse repos v CNY250B in 7-day reverse repos prior; Net Inject CNY0B v Net inject CNY248B prior
- (CN) China PBOC sets Yuan reference rate: 6.4617 v 6.4696 prior
- (HK) Hong Kong Govt said to consider issuing 5-year, 10-year and 30-year USD denominated green bonds
Japan
- Nikkei 225 opened -0.6%
- (JP) JAPAN DEC NATIONAL CPI Y/Y: -1.2% V -1.3%E (Fastest decline since Sept 2010), CPI EX-FRESH FOOD (CORE) Y/Y: -1.0% V -1.3E
- (JP) Japan Government Official: Our stance will be to reflect as broadly as possible price moves (including those for cellphone charges) on CPI, but no details set yet
- (JP) JAPAN JAN PRELIMINARY PMI MANUFACTURING: 49.7 V 50.0 PRIOR; PMI Services: 45.7 v 47.7 prior
- (JP) Japan Govt said to have privately concluded that the Olympics will be cancelled, and to try securing Tokyo Olympics in 2032 – press
- (JP) Japan Dep Chief Cabinet Sakai: No truth to report of possible Olympics cancellation
- (JP) Japan PM Suga: Determined to ‘realize Olympics’ with close cooperation with Tokyo and IOC; Cabinet has approved the amended bill on coronavirus management today (Jan 22nd)
- (JP) Japan Vaccine Chief: Govt has taken back comment that it will procure enough vaccines for all citizens in targeted program by June
- (JP) Japan Fin Min Aso: New Coin Issuance of ¥500 to be delayed past Sept 2021
Korea
- Kospi opened +0.1%
Other Asia
- (ID) Indonesia Central Bank (BI) Gov Wayjiro: Still room for further rate cuts, BI will focus on lowering bank lending rates first
- (TH) Thailand Commerce Ministry: Baht currency (THB) will be risk factor for economy this year; THB may strengthen or stabilize in 2021
North America
- (US) US Chief of Staff Klain: Looking at all measures used towards China: Want congress to act urgently on relief plan; President Biden to speak on response to ‘economic crisis’ at 2:45 PM EST on Fri. (Jan 22nd)
- (US) Follow Up: US Senate Republican Leader McConnell: Confirms he proposes House present to the Senate the Trump impeachment charge on Jan 28th and Trump be given 2 weeks after that to prepare before the trial starts
Intel: Discloses that hacker was able to get financially sensitive information, prompting the early release of financial results today – FT
Europe
- (UK) Said that UK Ministers are seeking to close borders to foreigners – UK Press
- (UK) Jan GFK Consumer Confidence: -28 v -30e
Levels as of 00:20 ET
- Nikkei 225, -0.2%, ASX 200 -0.3% , Hang Seng -1.3%; Shanghai Composite -0.6% ; Kospi flat
- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.3%, Dax -0.3%; FTSE100 -0.3%
- EUR 1.2177-1.2160 ; JPY 103.61-103.48 ; AUD 0.7770-0.7740 ;NZD 0.7226-0.7190
- Gold -0.2% at $1,862/oz; Crude Oil -1.2% at $52.52/brl; Copper -0.8% at $3.6193/lb
