Upcoming FOMC minutes in focus
|Asia Market Update: Trump trades barbs with N. Korea, dollar slightly stronger; Upcoming FOMC minutes in focus
Headlines/Economic Data
General Trend:
-Asian currencies continue to exhibit strength in the new year. Thai Baht (THB) hits strongest level since April 2015; PBoC set yuan (CNY) at strongest since May 2016; Taiwan Dollar (TWD) continues to trade at over 4-year highs
Japan
-Nikkei 225 closed for holiday
Looking ahead: Equity markets in Japan resume trading on Thursday, following 3-day holiday; Japan Dec final manufacturing PMI to be released
Korea
-Kospi opened +0.2%
-Semiconductors track earlier gains in the US: Samsung Electronics +1.5%, Hynix +1.4%
-Posco Steel +5%, Hyundai Steel +2.6% (US Dow Jones Iron & Steel index rose 4.6% on Tuesday; positive broker commentary)
-073240.KR (Kumho Tire) +11%: KDB set up task forces to deal with Kumho Tire restructuring and M&A
-LG Display (034220.KR) +3%: To begin supplying OLED panels for over 15M new iPhone units which are expected to be unveiled in H2, says a press report.
-009540.KR Hyundai Heavy +9.5% (Issued FY18 sales guidance)**Reminder: On Dec 27, 2017 the company’s share price declined by over 28%, as it announced a plan to raise KRW1.29T in capital.
-(KR) Bank of Korea (BOK) Gov Lee: Reiterates stance of closely monitoring FX movements
- (KR) Korean press comments on rising number of mortgages in South Korea despite govt's measures to slow the housing market
(KR) Bank of Korea (BoK) sells KRW2.4T in 2-year monetary stabilization bonds: yield 2.06%
-(KR) Moody's: domestic and global credit impact of Korea conflict would depend on duration and severity
-(KR) North Korea Official: Kim Jong Un has given order to open boarder hotline between the Koreas at 06:30GMT to discuss inter-Korean dialogue
-(KR) South Korea Q4 Foreign Direct Investment (FDI) y/y: +49.8% v -9.0% prior; 2017 FDI record high
China/Hong Kong
-Hang Seng opened +0.5%, Shanghai Composite flat
-Hang Seng Services Index +1.7% (strength in airlines), Consumer Goods +1.5% (automakers gain), Materials +1.3%, Information Technology +1.2%; Telecom -1% (China Mobile -1.4%), Utilities -0.1%
-(CN) China researcher suggests China should allow yuan to fall this year; sees 2018 GDP at 6.5% -21st Herald
-(CN) PBOC may resume open market operations (OMO) in H2 of Jan - Chinese press
-(CN) China Securities Times Op Ed: PBOC should stabilize yuan fx rate
-(CN) Survey of analysts expects China to raise money market rates 3 times - financial press
-(CN) China PBoC: Skips OMO for 8th straight session; Net drains CNY90B v CNY290B prior
-USD/CNY (CN) China PBoC sets yuan reference rate at 6.4920 v 6.5079 prior (strongest setting since May 2016)
-(HK) Overnight HK$ HIBOR -66bps (most since Nov 1st); 1-week HK$ HIBOR -47bps (most since Oct 2008); 1-month HK$ HIBOR -7bps (most since Jan 2009)
Looking ahead: China Dec Caixin Services PMI to be released on Thursday
Australia/New Zealand
-ASX 200 opened +0.2%; closed: +0.2%
-ASX 200 Resources Index +1.4%, Energy +0.6%;Financials -0.2, Consumer Discretionary -0.5%
-MWY.AU Guides FY18 H1 earnings to be lower due to delayed export shipments; -3%
-YOW.AU Cuts FY18 Rev to +17% y/y (prior 55%); Names Mark Schuessler new CEO; -33%
Other Asia
-(PH) Philippines Central Bank (BSP): May tweak monetary stance if there is a 2nd CPI effect; To restore 28-day term deposits in due time
North America
-US equities ended higher: Dow +0.4%, S&P500 +0.8%, Nasdaq +1.5%, Russell 2000 +0.9%
S&P500 Energy Sector +1.6%, Consumer Discretionary +1.5%
-SEMI: Sees 2018 global fab equipment spending $63B, +11% y/y; 2017 global fab equipment spending $57B, +41% y/y (record high)
-(US) Sen Hatch (R-UT): plans to retire from the Senate at the end of term; Hatch was first elected to the Senate from Utah in 1976
Looking ahead: US Dec ISM manufacturing PMI to be released on Wednesday, along with Dec FOMC Minutes and Weekly API Crude Oil Inventories.
Europe
-(UK) UK reportedly considering joining the Trans Pacific Partnership (TPP) following Brexit - FT
-(EU) ECB's Nowotny (Austria): sees a risk of a European stock market bubble - press interview
Levels as of 01:00ET
- Nikkei225 closed, Hang Seng +0.0%; Shanghai Composite +0.5%; ASX200 +0.2%, Kospi +0.3%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 +0.0%
- EUR 1.2066-1.2042; JPY 112.39-112.17; AUD 0.7837-0.7806;NZD 0.7109-0.7073
- Feb Gold +0.0% at $1,316/oz; Feb Crude Oil +0.0% at $60.38/brl; Mar Copper -0.5% at $3.26/lb
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.