Australia/New Zealand
ASX 200 opened +0.2%; closed +0.2%
ASX 200 Energy Index +0.8%, Resources +0.6%, Financials +0.1%; REIT -0.3%
China/Hong Kong
Hang Seng opened +0.5%, Shanghai Composite -0.1%
Hang Seng Consumer Discretionary Index +0.8%, Property/Construction +0.7%; Services Index -0.5%
Postal Savings Bank of China +1%: Says press report on HNA cutting stake ‘do not accord with the facts’
(CN) China CSRC (securities regulator): no change in pace of IPO reviews – press
(CN) China PBoC is not expected to raise rates in 2018 – China Daily
(CN) PBoC OMO: Skips OMO, cites high level of liquidity v CNY70B injected in 7,14 and 28-day reverse repos prior; Net drain CNY80B v CNY10B drain prior; For the week, PBoC injected net of CNY200B vs CNY80B injection w/w.
(CN) China sets yuan reference rate at 6.5821 v 6.5795 prior
(CN) China Development Bank (CDB) said to sell 20-year bonds at 5.14% – US financial press
(CN) China Banking Regulatory Commission (CBRC) to effectively prevent risks in property sector
(CN) China issues guideline related to development of drone industry: Targets CNY60B civil-use drone industry by 2020; Targets CNY180B civil-use drone industry by 2025.
(CN) China NDRC: To cut on-grid solar power prices for 2018
(HK) HK Chief Exec Lam: Cooling measures have not suppressed housing prices – HK Media
(HK)Hong Kong Monetary Authority (HKMA) to monitor capital outflows after year-end effect – HK Press
Japan
Nikkei 225 opened -0.1%; closed +0.2%
Mega-banks broadly higher: Mitsubishi UFJ +1.9%, Sumitomo Mitsui Financial +1.2%
Fast Retailing +0.7%
TOPIX Pharma Index -1.6%: Eisai -15% (phase 2 Alzheimer’s study did not meet endpoint)
Chip-related names track US declines: Tokyo Electron -2.4%, SUMCO -2%, Toshiba -1.5%
Kobe Steel -2%: Confirmed third party committee needs additional time for data falsification report, expects completion around the end of Feb; To change duties of 3 executives who were aware of fraud
Japan Cabinet approves annual general-account budget spending of ¥97.71T for FY18/19 (record); Approves FY17/18 supplementary budget with added spending of ¥2.71T (as expected); Confirms plans to sell new bonds worth ¥33.69T (9-year low)
Japan Fin Min Aso: Budget focuses on improving productivity and human capital; budget sticks to fiscal consolidation
Japan Econ Min Motegi: Government will continue to work toward achieving primary budget surplus
South Korea
Kospi opened +0.3% (declined over 1.7% prior session)
Samsung Electronics +1.3% (declined over 3.4% prior session);China NDRC said to have discussed memory chip prices with the company – Chinese Press
Cosmetics names under pressure, Amorepacific -2.5%; China Shandong said to have halted group tours to South Korea – South Korean Press
Korean Won +0.3%
South Korea Minister: Open to talks with North Korea without preconditions
South Korea denies press report related to military drill – South Korean Press (**Note: An earlier press report said that North Korea and South Korea were said to have discussed military drills and the upcoming 2018 Winter Olympics in South Korea)
South Korea denies press report related to military drill – South Korean Press
Looking Ahead: UN vote on new sanctions on North Korea due on Friday
Other Asia
(ID) Indonesia FSA plans to remove cap on bank deposit rates – Indonesia Press
(PH) Philippines expected to raise 2018 export growth forecast – Philippines Press
(PH) Philippines Central Bank (BSP) said to allow companies to borrow overseas without its approval
North America
US equities closed higher: Dow +0.2%, S&P500 +0.2%, Nasdaq +0.1%, Russell 2000 +0.5%
S&P500 Energy Sector +2.2%, Financials +0.9%
Nike -1.9% in the afterhours (reported Q2 results above ests, Q2 gross margin -120bps, Q2 North America Rev -5% y/y ex currency; affirmed FY18 Rev growth forecast)
(US) US Senate has enough votes to pass temporary stopgap funding measure; final vote 66-32 (**Note: The measure, which was passed earlier on
Thursday by the US House, will now go to President Trump for his signature; The bill funds the government through Jan 19th and avoids a government shutdown on Saturday, Dec 23rd)
(US) White House Economic Adviser Jeremy Katz said to resign – Washington Post
(US) Reportedly Larry Lindsey being considered for role of Fed Vice Chair; Lindsey is interested – CNBC (Lindsey, 63, is an economist who was director of the National Economic Council, and the assistant to the president on economic policy for the U.S. President George W. Bush)
M&A: Embraer: Boeing said to have held takeover talks but are currently at a standstill as they seek permission from Brazil govt to pursue a deal – press
Ignyta [RXDX]: Said to be in advanced talks regarding a sale – financial press
Looking ahead: US Nov Durable Goods, Core PCE Index, Personal Income, Personal Spending and New Home Sales due for release on Friday
Europe
(ES) Catalan separatists have won majority of seats in the regional parliament; The Separatists said to have won 70 out of 135 seats in the regional assembly, according to a financial press report.
(GE) Germany’s Sigmar Gabriel said to warn of minority government – US financial press (**Note: Gabriel has served as Germany’s Minister for Foreign Affairs since 2017 and Vice Chancellor since 2013)
EUR/USD: In early Asia, traded lower by 0.5% amid Germany’s Sigmar Gabriel reportedly warning of minority government, Catalan Separatists win of majority of seats in regional parliament
(UK) Lloyds Dec Business Barometer: 28 v 24 prior
Looking Ahead: UK third reading of Q3 GDP due for release
Levels as of 01:00ET
Hang Seng +0.4%; Shanghai Composite +0.1%; Kospi +0.5%
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 +0.1%
EUR 1.1817-1.1876; JPY 113.27-113.8 ; AUD 0.7701-0.7718; NZD 0.7007-0.7027
