HomeContributorsFundamental AnalysisAsian Market Update: Court Unanimous In Upholding South Korea President Park Impeachment

Asian Market Update: Court Unanimous In Upholding South Korea President Park Impeachment

Court unanimous in upholding South Korea President Park impeachment

Asia Mid-Session Market Update: Court unanimous in upholding South Korea President Park impeachment; PBOC officials justify use of reserves to prop up CNY

US Session Highlights

(US) FEB IMPORT PRICE INDEX M/M: 0.2% V 0.1%E; Y/Y: 4.6% V 4.4%E


ECB leaves rates and QE targets unchanged, as expected

(EU) ECB’s Draghi: Reiterated view that interest rates to stay low or lower for extended period; Signs that the cyclical recovery may be gaining momentum; risks surrounding euro zone growth outlook have become less pronounced but remain tilted to the downside

ECB raises 2017/2018 GDP and inflation forecasts (inflation stays below 2% target)

US markets on close: Dow flat, S&P500 +0.1%, Nasdaq flat

Best Sector in S&P500: Healthcare

Worst Sector in S&P500: Real Estate

Biggest gainers: SIG +8.7%, MRO +8.1%, FTR +4.4%, NRG +4.0%, EW +3.9%

Biggest losers: SPLS -5.3%, PPG -3.7%, AAL -3.5%, RIG -3.1%, SPG -3.1%

At the close: VIX 12.3 (+0.4pts); Treasuries: 2-yr 1.38% (+1bps), 10-yr 2.60% (+5bps), 30-yr 3.18% (+4bps)

US movers afterhours

PAY Reports Q1 $0.21 v $0.21e, R$457M v $449Me; +0.8% afterhours

ALR Loses in effort to immediately regain Arriva’s Medicare billing rights – press; -3.2% afterhours

LOCO Reports Q4 $0.12 v $0.13e, R$92.5M v $90.8Me- Guides initial FY17 $0.65-0.69 v $0.69e, SSS 0-2%; -4.4% afterhours

ULTA Reports Q4 $2.24 v $2.13e, R$1.58B v $1.54Be; Adds $425M to buyback plan (2.5% of market cap); Guides Q1 $1.75-1.80 v $1.80e; R$1.24-1.27B v $1.28Be; -5.0% afterhours

SGRY Reports Q4 $0.35 v $0.20e, R$306.0M v $298Me; Guides initial FY17 EBITDA +10-15% y/y, Rev +9-11% y/y, implies $1.25-1.27B v $1.29Be; -9.8% afterhours

ZUMZ Reports Q4 $0.74 v $0.66e, R$263.6M v $262Me- Guides Q1 -$0.21 to -$0.17 v -$0.03e, R$178-182M v $185Me, SSS 0% to +2%; -14.3% afterhours

FNSR Reports Q3 $0.59 v $0.61e, R$380.6M v $389Me; Guides Q4 $0.50-0.56 v $0.57e, R$360-380M v $389Me; -16.5% afterhours


(US) Washington State joining Hawaii in requesting that US federal judge bans the latest Executive Order restricting travel from the Middle East – US press

(US) Jon Huntsman accepts Pres Trump’s offer to become ambassador to Russia – NY Times

Asia Key economic data:


(AU) AUSTRALIA JAN HOME LOANS M/M: 0.5% V -1.0%E; 3rd straight increase

(NZ) NEW ZEALAND FEB CARD SPENDING M/M: -0.6% (first decline in 6 motnsh; biggest decline in 22 months) V -0.4%E; TOTAL M/M: -1.0% V 2.5% PRIOR

Asia Session Notable Observations, Speakers and Press

Asian equity indices are markedly higher as more positive sentiment has resurfaced in Asia; Nikkei225 is the best performer, as higher US yields continue to support the greenback at the expense of the Yen; Risk-on flows have also put a bid in US equity futures going into tomorrow’s NFP report, as traders bet the risk of a strong print following blow-out ADP numbers earlier this week. USD/JPY was up over 40pips above 115.30, a fresh 6-week high. In other FX majors, AUD/USD and NZD/USD are also higher by some 25pips from the lows, reversing some of the USD-strength driven weakness.

Among key speakers, PBoC Gov Zhou and Dep Gov Yi Gang covered a range of topics at a local conference. Zhou forecast more stability in CNY this year, calling the recent volatility as normal, while also advocating for more open bond market to foreign investment. Zhou also said FX reserves had grown too fast over the past 15 years, and the recent use of funds in normalizing Yuan is acceptable. Dep Gov Yi added China will not devalue Yuan to stimulate exports after this week’s surprise trade deficit.

South Korea has taken a big step in normalizing its political situation at a time when extra vigilance is needed to deal with North Korea provocations. South Korea Court Justices unanimously uphold Pres Park’s impeachment, and a new election is expected to be held in the next 60 days. Finance officials are closely monitoring for any protracted impact on the markets, while analysts with NAB note the political transition is constructive as candidates for the post are all in favor of reforming the chaebol system.


(CN) PBoC Gov Zhou Xiaochuan: Fed factor contributing to volatility in FX; CNY expeted to be stable this year – press

(CN) Goldman Sachs raises China 2017 GDP forecast to 6.6% from 6.5% prior guided


(JP) According to one survey, analysts are unanimous in expectation for BOJ to leave all policy settings unchanged next week – press


(KR) South Korea Court Justices unanimously upholds Pres Park impeachment; South Korea to hold a special presidential election within 60 days

(KR) South Korea Finance Ministry: Closely watching financial markets

(KR) NAB: Impeachment ruling for Korea’s Pres Park is a positive for Korean stocks – press

Asian Equity Indices/Futures (00:30ET)

Nikkei +1.4%, Hang Seng +0.2%, Shanghai Composite flat, ASX200 +0.6%, Kospi +0.3%

Equity Futures: S&P500 +0.2%; Nasdaq +0.3% Dax +0.1%; FTSE100 +0.1%

FX ranges/Commodities/Fixed Income (00:30ET)

EUR 1.0570-1.0600; JPY 114.90-115.35; AUD 0.7500-0.7525; NZD 0.6890-0.6915

Apr Gold -0.5% at $1,197/oz; Apr Crude Oil +0.6% at $49.61/brl; May Copper flat at $2.58/lb

SLV iShares Silver Trust ETF daily holdings fall to 10,268 tonnes from 10,303 tonnes prior; 11-month low

GLD: SPDR Gold Trust ETF daily holdings fall 2.7 tonnes to 834.1 tonnes; lowest since Feb 9th; 3rd straight decline; Apr Gold extending decline below $1,200; 5-week lows

(CN) PBOC SETS YUAN MID POINT AT 6.9123 V 6.9125 PRIOR; first stronger setting in 4 sessions

(CN) PBoC skips open market operations for 2nd straight session; Drains net CNY110B this week vs CNY280B

(JP) BOJ announces amounts to buy in upcoming QE operation; lowers 1-3-yr JGB purchases to ¥300B from ¥320B

(AU) Australia MoF (AOFM) sells A$600M in 5.75% 2021 Bonds; avg yield: %; bid-to-cover: 5.26x

Asia equities/Notables/movers by sector

Consumer discretionary: TWE.AU Treasury Wine +3.2% (Seeks to maintain earnings margin in Asia); DLX.AU Dulux Group +2.3% (Ellerston initiates holding); RFG.AU Retail Food Group +2.5% (UBs initiates holding)

Consumer staples:090430.KR Amorepacific Corp +0.4% (South Korea court ruling)

Financials: 665.HK Haitong International Securities Group -0.9% (FY16 result); 4.HK Wharf +8.8% (FY16 result, to scrap i-CABLE); 8795.JP T&D Holdings +4.2%, 8750.JP Dai-Ichi Mutual Life Insurance +3.0% (Nomura raises rating)

Industrials: 368.HK Sinotrans Shipping -7.5% (FY16 result); CSR.AU CSR +5.1% (JPMorgan raises rating); 9202.JP ANA Holdings Inc +3.5% (Tier 1 firm raises rating)

Technology: 2038.HK FIH Mobile -1.9% (FY16 result); 6502.JP Toshiba Corporation +1.2% (asset sale consideration); 1097.HK i-Cable Communications -35.5% (Wharf scraps interest); 732.HK Truly International Holdings -13.9% (profit warning)

Materials: JSP.IN Jindal Steel +4.7% (India court rejects pleas on coal block bid); ILU.AU Iluka -1.8% (Gearing likely to remain elevated among increased capex outlook)

Healthcare: NRT.AU Novogen Limited -8.6% (CFO resigns)

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading