AU and JP equities trade modestly lower after directionless US session, various holidays in Asia

Asia Market Update: AU and JP equities trade modestly lower after directionless US session, various holidays in Asia; G7 to hold virtual meeting.

General Trend

- Japan and Australia equities moved lower after their openings; Energy, Resources and Consumer Discretionary indices lagged in Australia; Marine Transportation index declined over 4% in Japan, Brokerage index outperformed

- Earnings reactions: [Australia] Baby Bunting, Genworth Mortgage decline; [Japan]: TEPCO drops, Toshiba pares gain; Renesas and Japan Display rise

- Japan companies expected to report earnings include Rakuten, Olympus, Yamaha Motor, Asics, Asahi Group, Japan Post Insurance, Japan Post Holdings, Japan Post Bank, Sompo Holdings, T&D Holdings, Dai-ichi Life, Lion Corp, Suruga Bank, JGC Holdings, Leopalace21, Pola Orbis, Toppan Printing, Yamazaki Baking, Cyberdyne

- Companies expected to report during the NY morning include American Axle, Enbridge, Huntsman Corp, Moody’s, Newell Brands

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.1%

- (AU) Victoria State Premier Andrews: Announces Stage 4 restrictions for Victoria, entering into 5-day lockdown beginning Midnight

- Woolworths: Reinstates product sales limits in Victoria state due to lockdown

- (AU) Australia sells A$1.0B v A$1.0B indicated in 3.25% April 2029 bonds, avg yield: 0.9258% , bid to cover 4.78x

- (NZ) Reserve Bank of New Zealand (RBNZ): Seeks to buy NZ$570M in government bonds during the week of Feb 15th, flat w/w

- (NZ) New Zealand Jan Manufacturing PMI: 57.5 v 48.3 prior

- (NZ) New Zealand Jan Food Prices M/M: 1.3% v 0.1% prior

China/Hong Kong

- (CN) Shanghai Composite closed for holiday, returns on Feb 18th (Thursday)

- (HK) Hang Seng closed for holiday, returns for trading on Feb 16th (Tuesday)

- (US) White House Press Sec Psaki: We are not in a rush on China trade review

- (CN) China Global Times Editor in Chief Hu Xijin: two-hour Biden-Xi call sends a 'very positive message'

- Huawei: Said to be seeking UK Court order for records from HSBC relating to Huawei CFO - Press

Japan

- Nikkei 225 opened +0.2%

- (JP) Nikkei 225 Feb Options settle at 29,718

- (JP) Japan Econ Min Nishimura: Japan will maintain State of Emergency in 10 regions

- (JP) Japan Fin Min Aso: Domestic economy still in severe shape; Some foreign economies showing recovery signs

Korea

- (KR) Kospi closed for holiday, returns for trading on Feb 15th (Monday)

North America

- (US) Treasury Sec Yellen and President Biden to receive economic briefing on Friday (Feb 12th)

- (US) US Treasury Sec Yellen and Fed Chair Powell to participate in virtual meeting of G7 Finance Ministers on Friday (Feb 12th)

- (US) US House Panel advances $15.0B stimulus measure related to payroll aid for airlines (as expected)

Europe

- (IT) Five-Star Party votes in online member survey to support a Draghi govt – press

- (UK) BOE's Haldane (chief economist): country's economic recovery should be one to remember after a year to forget - press interview

- (UK) Govt reportedly to maintain social distancing requirements into the fall 2021 - press

Levels as of 00:20 ET

- Nikkei 225, -0.2%, ASX 200 -0.6% , Hang Seng closed; Shanghai Composite closed ; Kospi closed

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

- EUR 1.2135-1.2118 ; JPY 104.84-104.71 ; AUD 0.7763-0.7734 ;NZD 0.7241-0.7209

- Gold -0.2% at $1,822/oz; Crude Oil -0.7% at $57.81/brl; Copper -0.3% at $3.7687/lb