General Trend
- Equities have remained higher after the positive openings. Financials have traded generally higher amid the rise in long-term gov’t bonds yields, Energy shares track recent rise in oil prices; Most indices are currently closer to the best levels.
- Hang Seng has risen over 2% after declining 3% during the prior session [Property and TECH indices outperform]; Shanghai Property index rose over 6% [some pointed to new rules related to land transfers], Consumer Staples continued to lag.
- Chipmakers rise in South Korea; Australian Resources, Energy and Financial names move higher; Japanese automakers track the strength in US autos
- Earnings reactions: [Australia]: Qantas, Sandfire Resources, Medusa Mining, Flight Centre, Ramsay Health Care rise; A2 Milk, Stockland decline; [Hong Kong]: Standard Chartered declined; [US] NVIDIA declined
- RBA again stepped up bond purchases amid rise in yields
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
- Companies expected to report during the NY morning include American Tower, Best Buy, Cars.com, Cleveland-Cliffs , CIBC, Donaldson Company, Dominos Pizza, Gildan Activewear, Granite Construction , Keurig DR Pepper, Mercadolibre, Melco Resorts, Moderna, Norwegian Cruise, Nielsen, Netease.com, PG&E, PROG Holdings, Quanta Services, Papa Johns, Sanderson Farms, J. M. Smucker, SolarWinds, TD Bank, LendingTree, VIPShop, Wayfair
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (NZ) New Zealand Fin Min Robertson: RBNZ will take account of housing in its policy decisions; changes will be made to RBNZ committee remit
- (AU) AUSTRALIA Q4 PRIVATE CAPITAL EXPENDITURE Q/Q: 3.0% V 1.0%E
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$5.0B in Govt bonds v A$2.0B prior
- APT.AU Reports H1 (A$) Net -79.2M v -31.6M y/y; adj EBITDA 47.9M v 7.7M y/y; Rev 417.2M v 220.3M y/y; Enters into transactions to increase ownership of Afterpay US to 93% from 80%, launches A$1.25B convertible notes offering
Japan
- Nikkei 225 opened +1.4%
- 7269.JP Chairman Osamu Suzuki confirms to retire; Raises FY20/21 Rev ¥34.8T (prior Rev ¥3.0T) – yesterday after the close
- Japan JGB yields rise: 5-year yield rises to -0.060% (highest since March 2020), 10-year yield rises to 0.125% (highest since Nov 2018)
- 7203.JP Reports Jan global sales 835.7K units, +3.9% y/y (5th consecutive rise); Global production 864.3K units, +4% y/y (5th consecutive rise)
- (JP) Japan Fin Min Aso: Not currently thinking of cutting sales tax (in line)
Korea
- Kospi opened +1.1%
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 0.50%; AS EXPECTED
- 068270.KR European Medicines Agency (EMA) started rolling review of regdanvimab, also known as Regkirona Inj, its COVID antibody treatment
China/Hong Kong
- Hang Seng opened +1.5%; Shanghai Composite opened +0.9%
- (CN) China PBOC to conduct CNY5.0B in 3-month Central Bank Bill Swap (CBS) operation on today’s session v CNY5.0B prior
- (CN) China PBOC Open Market Operation (OMO): Injects CNY20B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net injects CNY0B v Net injects CNY10B prior
- (CN) China PBOC sets Yuan reference rate: 6.4522 v 6.4615 prior
- 2628.HK Responds to the whistle blower; special investigation team has been formed to investigate – CSJ
- (CN) China issues new rules on land transfers for 2021 – Sina
North America
- (CN) US President Biden Trade Nominee Tai said to view China as rival and partner – US financial press
- (US) Fed Vice Chair Clarida: FOMC will keep accommodating until outcomes are reached; will take some time for economy to return to pre-virus levels
- FB Reportedly examining potential news agreements in Canada with local media outlets – press
- JNJ Speculation that FDA could authorize COVID vaccine as soon as this weekend – US financial press
Europe
- STAN.UK Reports FY20 adj Pretax $2.5B v $4.2B y/y, Adj Op Rev $14.8B v $15.3B y/y; Announces share buyback program of $254M
- (DE) ECB’s Schnabel (Germany): pandemic poses risks to short term outlook; Euro area is much better able to deal with lockdowns, this second one is having less of an impact; introduction of a digital euro is still an open issue – ECB
Levels as of 12:15ET
- Hang Seng +1.8%; Shanghai Composite +0.8%; Kospi +2.9%; Nikkei225 +1.5%; ASX 200 +0.8%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.3%; FTSE100 +0.3%
- EUR 1.2183-1.2156; JPY 106.14-105.83; AUD 0.7978-0.7953; NZD 0.7449-0.7420
- Commodity Futures: Gold -0.2% at $1,795/oz; Crude Oil -0.1% at $63.16/brl; Copper +0.3% at $4.34/lb
