Headlines/Economic Data
General Trend: Equity markets (ex-Japan) open 2018 generally higher, led by China and Hong Kong
Singapore Q4 GDP above estimates (first major Asian economy to issue Q4 GDP data)
China Dec Caixin PMI Manufacturing rises to highest level since Aug 2017
Taiwan Dec Manufacturing PMI hits multi-year high
Asian currencies gain: Korean Won (KRW) trades at highest level since Oct 2014; Singapore Dollar (SGD) hits highest since mid-2016; Taiwan Dollar (TWD) continues to trade at over 4 year highs
Japan
Nikkei 225 closed for holiday
Looking ahead: Japan to be closed for holiday on Wednesday
Korea
Kospi opened +0.3%
KRW rises to 3-yr high against USD, attributed to exporters selling dollars
(KR) South Korea Unification Min Cho: confirms have offered high ranking talks with North Korea on Jan 9th
(KR) South Korea Dec PMI Manufacturing: 49.9 v 51.2 prior
(KR) South Korea Finance Chief: Reiterates to take steps on drastic fx moves
(KR) Bank of Korea Gov: Further interest rate hikes should not be related to retirement of BoK Gov, but instead based on economic indicators
(KR) South Korea President Moon: To put policy in focus on jobs and household income
(KR) South Korea sells KRW1.0T in 3-month monetary stabilization bonds at 1.55%
005380.KR (Hyundai Motor) Vice Chairman: 2017 was the hardest year due to China sales slump; expect car demand to slow in major markets; -3% at the open
000270.KR (Kia Motor) Guides 2018 vehicles sales 2.88M units; Sees rising uncertainties including strong Korean Won (KRW) and geopolitical risks; 1.6%
035250.KR (Kangwon Land): To reduce casino operating hours and table facilities; -10.6%
090430.KR (Amore Pacific): +2.5%: China govt lifts ban on group tours to South Korea, according to a South Korean press report
China/Hong Kong
Hang Seng opened +0.4% before rising over 1% above 30,000; Shanghai Composite +0.2%
Hang Seng Property Index +2.8%: China may not adopt a property tax until 2020, said an earlier released Chinese press report.
(CN) CHINA DEC GOVT OFFICAL MANUFACTURING PMI: 51.6 V 51.6E; NON-MANUFACTURING: 55.0 V 54.7E
(HK) Macau Dec Gaming Rev +14.6% v ~20%e; Hang Seng Services Index -2% (weighed down by gaming stocks, Wynn Macau -3.5%, MGM China -3.5%)
(CN) PBoC: Skips OMO for 7th straight session; Net drains CNY290B
(CN) PBOC Gov Zhou reiterates prudent monetary policy and reasonable loan growth in 2018 – press
(CN) CHINA DEC CAIXIN PMI MANUFACTURING: 51.5 V 50.7E (highest reading since Aug 2017)
USD/CNY (CN) China PBoC sets yuan reference rate at 6.5079 v 6.5342 prior (strongest level since Sept 11th)
(HK) Overnight HK$ HIBOR -66bps (most since Nov 1st); 1-week HIBOR -47bps (most since Oct 2008)
54.HK Sells 66.69% stake in Hopewell Highway Infrastructure
Australia/New Zealand
ASX 200 opened flat, trading slightly lower with little direction; closed -0.2%
(AU) Australia Dec CoreLogic House Price Index M/M: -0.4% v -0.1% prior
(AU) Analysts caution that the risk of a rise in Australian inflation has not been adequately priced in – AFR
BLK.AU To raise A$36M through entitlement offering; to defer repayment of term loan to Jan 15th 2018; Names Milan Jerkovic as Executive Chairman as part of recapitalization plan
Other Asia
(SG) SINGAPORE Q4 ADVANCED GDP SAAR Q/Q: 2.8% V 1.6%E; Y/Y: 3.1% V 2.6%E; 2017 GDP: 3.5% v 2.0% prior v 3.0-3.5% official target
North America
(US) Democrats in high-cost, high-tax states are devising ways to blunt the impact of the recently passed tax law’s clampdown on the state and local tax (SALT) deduction – press
Looking ahead: US Weekly API Crude Oil Inventories to be released on Tuesday
Europe
(ES) Spain Econ Min sees Catalonia crisis cost at €1.0B
(UK) Economists see UK 2018 GDP growth of no more than 1.5% vs 1.4% forecast of the Office for Budget Responsibility (OBR) – FT Poll; The economists expect the BoE to raise rates by 50bps in 2018.
Looking Ahead: UK Dec Manufacturing PMI to be released
Levels as of 01:00ET
Nikkei225 closed, Hang Seng +1.7%; Shanghai Composite +1.0%; ASX200 -0.1%, Kospi +0.3%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax untraded; FTSE100 -0.1%
EUR 1.2023-1.2004; JPY 112.79-112.58; AUD 0.7843-0.7795;NZD 0.7122-0.7058
Feb Gold -0.0% at $1,309/oz; Feb Crude Oil +0.3% at $60.62/brl; Mar Copper -0.5% at $3.28/lb
