Asian equities trade mostly higher, US equity FUTs extend gains; 30-yr treasury FUTs continued to decline
|General Trend
-Asian equities opened mostly higher after gains in the US on Fri; Markets have generally remained in positive territory; Australia, China and Japan have extended gains, HK pares advance; Nikkei has outperformed amid the focus on earnings (Nippon Steel, Kobe Steel, NTT, Softbank); Kospi lags on the Kia/Apple news; Financials trade generally higher as 10-year UST yields rise; Tech firms also trade mostly higher
- Resources and Consumer Discretionary indices rise over 1% in Australia
- Besides Tech, Consumer Discretionary and Industrial firms also outperform in Shanghai
- Small gain seen in USD Index FUTs after loss on Fri.
- Kia and Hyundai deny they are in talks to make the Apple electric car, but note they have had interest in partnerships for EV and autonomous
- AstraZeneca COVID vaccine not found to work against South Africa variant
- Glove makers in the region decline as COVID cases start to slow
- UK considering a tax on companies that profiting on COVID
- Japan companies expected to report earnings include Softbank Group, Isuzu, Orix Corp, Sumitomo Metal Mining, Kansai Paint, Japan Petroleum Exploration, Harmonic Drive Systems
- Companies expected to report during the NY morning include Energizer, Global Payments, Hasbro
Headlines/Economic Data
Australia/New Zealand
-ASX 200 opened +0.3%
- (AU) China to unload some Australia stranded coal, Coal import ban remains in place
- VOC.AU Confirms received offer from Mira at A$5.50/shr, A$3.42B, granted due diligence
- (AU) Australia sells A$500M v A$500M indicated in 4.50% April 2033 bonds, avg yield: 1.3503%, bid to cover 4.87x
Japan
-Nikkei 225 opened +0.2%
- 9984.JP Total dividend from Softbank Group Capital $4.0B, as dividend become payable, expect to record total dividends from subsidiaries and associates of ¥420B for FY20/21, no impact on consolidated results
- (JP) Japan considering lifting COVID state of emergency in some areas, based on the law that takes effect Feb 13th allowing for fines against social distancing violators – Nikkei
- (JP) Japan Chief Cabinet Sec Kato: No comment on current equity prices, we are closely watching market moves
- Japan MoF sells ¥200B v ¥200B indicated in 0.20% 10-year inflation-linked JGBs: bid to cover: 3.07x v 3.31x prior
Korea
-Kospi opened -0.2%
- 000270.KR No cooperation talks with Apple on electric vehicles (EV) ongoing
- 005380.KR No cooperation agreements on EVs happening, have requests from multiple companies to co-develop autonomous, electric cars
- (KR) Bank of Korea (BOK) sells KRW840B v KRW700B indicated in 1-year Monetary Stabilization Bonds (MSB); avg yield 0.670% v 0.710% prior
China/Hong Kong
-Hang Seng opened +1.2%; Shanghai Composite opened +0.2%
- (CN) CHINA JAN FOREIGN RESERVES: $3.211B V $3.222TE; Gold reserves: $116.8B v $118.3B m/m; Gold reserves in Troy oz: 62.64M troy oz v 62.64M prior
- (CN) Beijing, China to launch test related to digital currency over the Lunar New Year holiday - China Daily
- (CN) China PBOC Open Market Operation (OMO): Injects CNY110B in 7-day reverse repos v CNY100B in 14-day reverse repos prior; Net Inject CNY10B v Net CNY0B prior
- (CN) China PBOC sets Yuan reference rate: 6.4678 v 6.4710 prior
- (CN) China PBOC Statement: sees less cash withdrawal needs ahead of Lunar New Year
- (CN) China finalized anti-monopoly rules related to tech companies, market regulator (SAMR) released new anti-monopoly guidelines for internet platforms - financial press
- 1177.HK China's National Medical Products Administration of the People's Republic of China (NMPA) conditionally approves CoronaVac
- (CN) China Finance Ministry and NDRC have asked local governments for their special funding needs submissions by Feb 21st ; 2021 new special bond issuance by local governments may total > CNY3.0T- Chinese press
Other
- (MY) Malaysia Dec Industrial Production Y/Y: +1.7% v -0.2%e
North America
- (US) White House expected to propose a $3,600/month payment per child under age of 6 ($3,000 per child for ages 6 to 17) tomorrow; this is an expansion of the existing $2,000 Child Tax Credit - press
Europe
- DLG.DE Confirms in advanced talks with Reneasas Electronics, Renesas may make an all cash offer of €67.50/shr, though no deal is certain
- (EU) ECB chief Lagarde: Financing conditions have never been so attractive; Need a soft exit from stimulus once crisis allows
- AZN.UK According to randomized, double blind study AstraZeneca/Oxford COVID vaccine does not protect against South Africa variant - FT
Levels as of 12:15ET
- Hang Seng +0.3%; Shanghai Composite +1.0%; Kospi -0.5%; Nikkei225 +2.0%; ASX 200 +0.6%
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.6%, Dax +0.7%; FTSE100 +0.4%
- EUR 1.2055-1.2029; JPY 105.55-105.33; AUD 0.7682-0.7667; NZD 0.7214-0.7190
- Commodity Futures: Gold 0.0% at $1,812/oz; Crude Oil +1.0% at $57.42/brl; Copper -0.3% at $3.62/lb
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