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Equity Indices Trade Mixed amid Holiday Impact and Recent Gains on Wall Street

Asia Market Update: Equity indices trade mixed amid holiday impact and recent gains on Wall St.; Evergrande’s bond payment deadlines in focus.

General trend

  • PBOC increased OMO cash injection amid focus on year-end and Evergrande.
  • USD/JPY remained below ¥115.
  • 2-year UST yield rises above 0.75% [highest since Mar 2020].
  • US Natural Gas FUTs extend gain.
  • US equity FUTs trade slightly lower in Asia.
  • Nikkei 225 has pared gain after rising over 1.4%; Exporters trade generally higher after the overnight rise in USD/JPY.
  • Hang Seng has traded slightly lower after the higher open; Casino and Tech names trade generally weaker [Macau casino names weaker on the report of the first omicron case in the gambling hub]; Property index rises.
  • Shanghai Composite ended morning trading slightly lower (-0.2%).
  • AU and NZ markets return from extended holiday on Wed.
  • South Korea ex-dividend date is on Wed (Dec 29th).

Headlines/Economic data

Australia/New Zealand

  • ASX 200 closed for holiday.


  • Nikkei 225 opened +1.0%.
  • (JP) JAPAN NOV JOBLESS RATE: 2.8% V 2.7%E, Job-To-Applicant Ratio: 1.15 v 1.16e, seasonally adj jobless rate M/M for the first time in 6-months.
  • (JP) JAPAN NOV PRELIMINARY INDUSTRIAL PRODUCTION M/M: 7.2% V 4.8%E (record high increase); Y/Y: 5.4% V 2.9%E; Dec production m/m: 1.6% (prior +2.1%); Japan Govt raises industrial production assessment.
  • 7974.JP President Furukawa: Supply of Nintendo Switch may decline in 2022 due to global chip shortage and continued logistics issues – Japan press.
  • (JP) Japan Fin Min Suzuki: Prices still need to be watched closely, must watch inflation expectations on market, no plans at all now for an extra budget next year.


  • Kospi opened +0.2%.
  • (KR) South Korea Dec Consumer Confidence: 103.9 v 107.6 prior; Households’ inflation expectation for next 12 months: 2.6% v 2.7% prior.
  • 005380.KR Suspends hydrogen car project for Genesis model (had the goal of launching in 2025) – Korean press.
  • 015760.KR To raise household gas prices in May, July and Oct.
  • 036460.KR Planning to raise prices in Q1 of 2022 – press.
  • (KR) South Korea Govt purchases 200Kt of rice to help stabilize prices – Yonhap.
  • (KR) South Korea Finance Ministry: To cut tariffs on ~90 products during 2022, to strengthen competitiveness of small businesses and stabilize prices of key materials – Press.

China/Hong Kong

  • Hang Seng opened +0.3%; Shanghai Composite opened +0.1%.
  • Evergrande [3333.HK] Said to have ~$255M in bond coupon payments due on Dec 28th (Tues) [~$50.4M relates to Jun 2023 USD bond, ~$204.8M relates to Jun 2025 USD bond].
  • (CN) China PBOC Open Market Operation (OMO): Sells CNY200B (largest in 2 months) in 7-day reverse repos v CNY50B prior; Net inject: CNY190B v CNY40B prior.
  • (HK) Macau reports its 1st imported omicron case.
  • (CN) China PBOC sets Yuan reference rate: 6.3728 v 6.3686 prior.
  • 700.HK To only allow minors 1 hour of game playing each night over new year holiday – Sina.
  • (CN) China State Planner releases new negative list for foreign investment; Restrictions on foreign ownership in passenger car manufacturing are removed, effective 2022 – press.
  • (CN) According to Shanghai Securities News: China monetary policy in 2022 will focus on releasing liquidity from marginal easing into areas like small business.
  • (CN) China CICC: CSRC’s draft regulations stating that companies can list overseas as VIE if they register with regulators and meet compliance rules will help eliminate regulatory uncertainties facing both overseas-listed Chinese companies and investors.
  • (CN) China Govt to increase forex (FX) market monitoring in 2022 – financial press.

North America

  • (US) CDC shortens recommended time for isolation of people who test positive for COVID from 10 days to 5 days, if asymptomatic.


  • (US) White House issues proclamation on aluminum and steel imports from EU.

Levels as of 00:15ET

  • Hang Seng -0.1%; Shanghai Composite -0.2%; Kospi +0.1%; Nikkei225 +1.0%; ASX 200 closed for holiday.
  • Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 +0.1%.
  • EUR 1.1331-1.1318; JPY 114.94-114.76; AUD 0.7241-0.7229; NZD 0.6823-0.6805.
  • Commodity Futures: Gold +0.1% at $1,811/oz; Crude Oil +0.3% at $75.78/brl; Copper -0.4% at $4.45/lb.
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