Asia trades mostly higher, precious metals rise, oil extends gains

General Trend

- Fast Retailing (largest Nikkei component) rises ahead of expected earnings report on Thursday (Jan 14th), Softbank rises over 4%; Topix Marine Transportation index rises over 2%, Pharma index drops

- Energy firms rise in HK, Lenovo moves higher on planned Shanghai IPO

- Shanghai Composite traded flat during morning session; Property index rose, Consumer firms declined

- Chinese vaccine maker (Sinopharm) announces Chairman resignation

- Australia’s Energy index rose over 3%, Resources up over 1%; Consumer Staples and Financials lagged

- US Corn FUTs rise over 3%, US issued WASDE crop report on Tuesday

- China Dec Trade Balance data is due on Jan 14th (Asia Thursday)

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened -0.1%

- CDV.AU Board accepts offer from Shandong Gold

- PMV.AU Guides H1 (A$) EBIT 221-233M, +75-85% y/y; Online sales A$146.2M, +60% y/y

- (NZ) New Zealand Dec Heavy Truckometer Index M/M: +0.4% v +0.1% prior

- (AU) Reserve Bank of Australia (RBA) offers to buy A$1.0B in Semi Govt Bonds v A$1.0B prior

Japan

-Nikkei 225 opened -0.1%

- (JP) Bank of Japan (BOJ) said to be considering cutting GDP outlook for FY19/20 - Nikkei

- (JP) Japan Regional Banks Association Chief: Bank of Japan should avoid deepening negative rates

- (JP) Japan Dec M2 Money Supply Y/Y: 9.2% v 9.2%e (fastest increase on record); M3 Money Supply Y/Y: 7.6% v 7.6%e

- (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.10% 5-year JGBs; avg yield -0.111% v -0.118% prior, bid to cover 3.83x v 3.96x prior

Korea

-Kospi opened +0.1%

- (KR) North Korea Leader Kim reiterates calls to strengthen nuclear capabilities - closing comments of Party Congress

- (KR) South Korea Dec Unemployment Rate: 4.6% v 4.1%e (10-year high); Jobs -628K v -273K prior (10th consecutive decline in jobs, largest job loss since Dec 1999)

- 005930.KR Said to reveal new shareholder return program along with final Q4 numbers on Jan 28th - Korea Press

China/Hong Kong

-Hang Seng opened +0.1%; Shanghai Composite opened +0.1%

- (CN) Shijiazhuang, China starts 2nd round of nucleic acid tests for all residents as it declares state of emergency - Xinhua

- (CN) China Securities Journal: Recent Reverse Repo Ops have shown policy direction intent to keep policy appropriate and to not take a sharp turn in 2021 - CSJ

- (CN) China Foreign Ministry spokesperson Zhao Lijian: Any attempt of undermining China's core interests will meet "resolute counterattacks" from the Chinese side and will not succeed

- 992.HK Board proposes issuance of 1.34B CDRS on Shanghai Star Board; would represent no more than 10% of the total number of ordinary shares

- (CN) US-China Business Council: The cost of US tariffs on China has far exceeded any benefits derived from them, so the incoming administration in Washington should roll them back

- China Daily

- (CN) China PBOC Open Market Operation (OMO): Injects CNY2B in 7-day reverse repos v CNY5B in 7-day reverse repos prior; Net drain CNY8B v Net drain CNY5B prior

- (CN) China PBOC sets Yuan reference rate: 6.4605 v 6.4823 prior

Data out yesterday after the close:

- (CN) CHINA DEC M2 MONEY SUPPLY Y/Y: 10.1% V 10.7%E

- (CN) CHINA DEC NEW YUAN LOANS (CNY): 1.260T V 1.25TE

- (CN) CHINA DEC AGGREGATE FINANCING (CNY): 1.720T V 2.185TE

North America

- (US) VP Pence: Trump Administration energy directed to orderly transition; invoking 25th amendment not in best interest of the US

- (US) Weekly API Crude Oil Inventories: -5.8M v -1.7M

- (US) Sen Maj Leader McConnell reportedly believes Trump committed impeachable offenses and that the attack on Capitol gives GOP a chance to purge the president - NY Times

- (US) No. 3 GOP Rep Cheney (WY) will vote to impeach Pres Trump - press

Europe

- (IE) Ireland Foreign Affairs Min Coveney: To receive €1.0B from the €5.0B EU post Brexit fund - financial press

- CA.FR Couche-Tarde confirms friendly talks have been started, no certainty of agreement or transaction

- (IT) Italy govt coalition partner Renzi to announce tomorrow if he will drop out of coalition - press

Levels as of 12:15ET

- Hang Seng +0.2%; Shanghai Composite +0.1%; Kospi +1.1%; Nikkei225 +1.2%; ASX 200 +0.1%

- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.2%

- EUR 1.2220-1.2201; JPY 103.81-103.53; AUD 0.7782-0.7761; NZD 0.7239-0.7217

- Commodity Futures: Gold +0.8% at $1,859/oz; Crude Oil +1.1% at $53.77/brl; Copper -0.1% at $3.64/lb