Headlines/Economic Data
General Trend: Asian equity markets open generally higher after Friday’s gains in the US
Hang Seng supported by Chinese automakers
China confirmed move which could allow President Xi to remain in power indefinitely
Shanghai Composite Property Index declines over 3%, later pares some of loss: In Jan, China property prices rose in fewer cities vs prior month
Shanghai traded rebar steel futures rise over 1% following speculation of additional output cuts; US President Trump said to favor 24% global tariff on steel imports.
China Feb official Manufacturing and Non-Manufacturing PMIs due on Wed
Fed Chair Powell due to hold Congressional testimony on Tuesday Feb 27th and Thursday March 1st.
US Feb Nonfarm payrolls and Average Hourly Earnings due for release on Friday
Japan
Nikkei 225 opened +1.1%; closed +1.2%
TOPIX Real Estate Index +1%, Information & Communications +1.4%, Securities +1.2%
(JP) Japan PM Abe cabinet approval rating 56% v 55% prior – Nikkei
(JP) BoJ Gov Kuroda: Reiterates BoJ will persistently continue powerful monetary easing to achieve price goal
(JP) Japan Govt to set up 5 zones for promotion of offshore wind power by 2030,with certification for operators to last as long as 30-yrs – financial press
(JP) Unions for mega banks in Japan not expected to seek wage increase – Japanese Press
(JP) Japan Dec Final Leading Index: 107.4 v 107.9 prelim; Coincident Index: 120.2 v 120.7 prelim
Korea
Kospi opened +0.6%
Energy companies gain: Kumho Petro Chemical rises over 3%
Steel makers trade generally higher.
005935.KR Launched Galaxy S9 at a Barcelona mobile trade show, looks physically very similar to last year’s model, many software upgrades
(KR) South Korea total financial firms assets under management (AUM) in 2017were KRW950T, +4.7% y/y, fresh record high – Korean press
(KR) South Korea sells 20-year bonds: avg yield 2.76% v 2.65% prior
Looking Ahead: Bank of Korea to hold policy decision on Tuesday (expected unchanged at 1.50%)
China/Hong Kong
Hang Seng opened -0.3%, Shanghai Composite +0.1%
Hang Seng Consumer Goods Index +1.3%, Materials +1.3%, Energy +1%, Property/Construction +0.4%, Financials+0.3%
Geely [175.HK] rises over 5% after announcing stake in Daimler
(CN) CHINAJAN PROPERTY PRICES M/M: RISE IN 52 OUT OF 70 CITIES V 57 PRIOR; Y/Y: RISE IN59 OUT OF 70 CITIES V 61 PRIOR; ChinaJan Avg New Home Prices M/M: -0.1% (1st decline in 32-months) v +0.5% prior; Y/Y: 5.4% v 5.8% prior
(CN) Communist Party has moved to repeal language from the constitution that says the head of state “shall serve no more than two consecutive terms”, which would allow China President Xi to stay in power indefinitely – Chinese press
(CN) China President Xi confidant Liu He saidto be a front runner to be next PBOC Gov – press
(CN) China CIRC orders three insurers to fixoverseas investment rule breaches – press
(CN) China Politburo statement: Reiterates Chinawill continue proactive fiscal policy and prudent monetary policy in 2018
USD/CNY (CN) PBOC SETS YUAN REFERENCERATE AT 6.3378 V 6.3482 PRIOR
(CN) China PBoC OMO: Injects CNY150B v CNY230B injected in 7-day, 28-day and63-day reverse repos prior; gross injection is equal to the net injection (3rdconsecutive day)
Great Wall Motor (+10%), 2333.HK Signs LOI with BMW for JV for new energy vehicle
(CN) China Standing Committee of the National People’s Congress: To extend the preparation period for reforms that will change the stock listing system from approval-based to registration-based, for another two years to Feb 29th, 2020
Sinopec: Sees 2018 crude oil imports from the US at over 10M tons v 5.57M y/y
Australia/New Zealand
ASX 200 opened +0.1%; closed +0.7%
ASX 200 Telecom Index +1.1%, Energy +0.8%, REIT +1.1%, Financials +1.2%; Utilities -0.6%
Bluescope Steel [BSL.AU] rises over 4% as H1 profits beat ests
QBE Insurance, QBE.AU Reports FY17 (A$) Cash loss 258M v loss 215Me; Statutory net loss 1.25B* vloss 834Me
(AU) Australia sells A$400M v A$400M indicated in 2.75% Nov 21, 2027 bonds, avgyield 2.7735% v 2.6201% prior, bid to cover 5.96x v 3.46x prior
Looking Ahead: New Zealand Jan Trade Balance due to be released on Tuesday
Other Asia
(TW) Taiwan Central Bank Gov Chin-Long: Targeting to have financial and price stability; sees challenges from capital flows
Taiwanese chipmaker Nanya Technology [2408.TW] rises over 1%: Plans to spend $300M on plant in China, says Taiwanese press report
(SG) Singapore Jan Industrial Production M/M: 6.7% v 2.9%e; Y/Y: 17.9% v 7.5%e
North America
GE Planning to restate 2016, 2017earnings; FY16 EPS to be reduced by $0.13; FY17 EPS reduced by $0.16 – 10K
(US) Reportedly Pres Trump wants to set 24% global tariff on steel imports (inline with the Commerce Dept recommendations) – press (Friday)
Europe
(EU) ECB’s Draghi reportedly is not happy with the lack of details about Latvia scandals – press
RealDolmen [REA.BE]: To be acquired by Gfi Informatique at €37.00/share for €196M
Looking Ahead: ECB Draghi expected to speak during NY morning
Levels as of 01:00ET
Nikkei225 +1.2%, Hang Seng +0.7%; Shanghai Composite +1.1%; ASX200 +0.7%, Kospi +0.1%
Equity Futures: S&P500 +0.1%; Nasdaq100 0.0%,Dax +0.2%; FTSE100 +0.1%
EUR 1.2325-1.2283; JPY 107.25 -106.44; AUD 0.7878-0.7829;NZD 0.7336-0.7277
Apr Gold +0.8% at $1,341/oz; Apr Crude Oil +0.4%at $63.81/brl; May Copper +0.5% at $3.24/lb
