Sun, May 22, 2022 @ 22:53 GMT
HomeContributorsFundamental AnalysisHang Seng Outperforms, HK TECH Index Bounces After Tough Year

Hang Seng Outperforms, HK TECH Index Bounces After Tough Year

General trend

  • Generally quiet FX session seen; USD/JPY remains above ¥115.
  • WTI Crude trades modestly lower.
  • US equity FUTS extend declines in Asia.
  • Hang Seng pared gain but ended higher by 1.2% [TECH index rose by over 3.5%]; HSI ended 2021 down > 14%, TECH index declined by 33%; China South City Holdings [property developer] to receive equity investment from state-owned co.
  • Shanghai Composite ended morning trading higher [Property index outperformed]; the index has risen by ~6% in 2021.
  • S&P ASX 200 extended decline [Financials and Consumer indices declined]; the index rose by ~12% in 2021.
  • Tesla raised prices in China.
  • LIBOR transition in focus [On March 5, 2021, the United Kingdom Financial Conduct Authority (FCA) and Intercontinental Exchange (ICE) Benchmark Administration (IBA) announced that the one-week and two-month U.S. dollar (USD) LIBOR settings will cease to be published immediately after December 31, 2021. The publication of overnight and one-, three-, six-, and 12-month USD LIBOR settings will be extended through June 30, 2023].

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat, closed -0.7%.

Japan

  • Nikkei 225 closed for holiday.

Korea

  • Kospi closed for holiday.
  • (KR) SOUTH KOREA DEC CPI M/M: 0.2% V 0.0%E; Y/Y: 3.7% V 3.7%E [highest annualized pace in ~10 years].
  • (KR) Bank of Korea (BOK) Gov Lee: Reiterates timing of policy change depends on economy; reiterates will continue adjusting policy.
  • (KR) South Korea Nov Department Store Sales Y/Y: 9.6% v 21.0% prior; Discount Store Sales Y/Y: -10.3% v +1.4% prior.
  • (KR) South Korea Govt extends social distancing rules for an additional 2-weeks – Yonhap.
  • (KR) South Korea Fin Min Hong: South Korea Will seek macro policy mix to help exports and consumption; To manage economy and risk factors in 2022.

China/Hong Kong

  • Hang Seng opened +1.9%, closed +1.2%; Shanghai Composite opened +0.2%.
  • (CN) CHINA DEC MANUFACTURING PMI (GOVT OFFICIAL): 50.3 V 50.0E [highest since Jul].
  • (CN) China Agriculture Ministry said the end of Nov sow herd at ~43.0M heads, +4.7% y/y and -1.2% m/m – financial press.
  • (CN) China State Planner (NDRC): Urging quicker application of infrastructure REITs.
  • (CN) China PBOC Open Market Operation (OMO): Sells CNY10 0B in 7-day reverse repos v CNY100B prior; Net inject: CNY90B v CNY90B prior.
  • (CN) China PBOC sets Yuan reference rate: 6.3757 v 6.3674 prior.
  • (CN) China PBOC Advisor Liu Shijin: China should look to adjust structure of economy to achieve faster growth over short term macro policies.
  • (CN) During the China Spring Festival railway passenger trips are seen at 280M, +29% y/y – Xinhua.
  • Huawei: Q4 Rev seen at CNY178.2B, -19% y/y; 2021 Rev seen at CNY634B, down ~30% y/y – US financial press.
  • (CN) China President Xi to deliver New Year speech on Fri [Dec 31st] at 7pm local time [11 am GMT] – Xinhua.

North America

  • (US) WEEKLY EIA NATURAL GAS INVENTORIES: -136 BCF VS. -118 BCF TO -115 BCF INDICATED RANGE.
  • (US) DEC CHICAGO PURCHASING MANAGERS INDEX (PMI): 63.1 V 62.0E.
  • (US) INITIAL JOBLESS CLAIMS: 198K V 206KE; CONTINUING CLAIMS: 1.72M V 1.87ME.
  • (US) Reported that hundreds of homes have been destroyed in Boulder County Colorado – Press.
  • (US) California Gov Newsom announces state of emergency in several counties [relates to the recent winter storms].

Europe/Middle East

  • (RU) ChemRar Group announces the Russian Avifavir drug is effective against variants of COVID-19, including Delta and Omicro.
  • (RU) Kremlin spokesperson: Russia is happy with outcome of Putin-Biden talks; US side showed willingness to tackle core Russian concerns; Discussed Russia’s desired security guarantees.
  • Hunter Douglas [HDG.NL] 3G Capital to buy a 75% controlling stake in company at €175/shr; the total deal worth $7.1B.

Levels as of 00:20 ET

  • Nikkei 225, closed, ASX 200 -0.9% , Hang Seng +1.2%; Shanghai Composite +0.4% ; Kospi closed.
  • Equity S&P500 Futures: -0.2%; Nasdaq100 -0.2%, Dax closed; FTSE100 -0.5%.
  • EUR 1.1328-1.1314 ; JPY 115.12-115.02 ; AUD 0.7267-0.7243 ;NZD 0.6849-0.6820.
  • Gold +0.3% at $1,818/oz; Crude Oil -0.6% at $76.58/brl; Copper flat at $4.3908/lb.
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