Asia Market Update: China Jan trade stronger than expected, but notes drastic drop in imports from the US; Equities trade generally mixed ahead of US/China trade talks

General Trend:

- Telecom Services index declines in China, gained over 6% on Wed ahead of trade talks

- S&P ASX 200 Energy index outperforms , Woodside Petroleum rises after earnings

- Telecom index drops in Australia after earnings from Telstra

- Australia’s AMP declines over 8%, reported net outflows from wealth management business

- Large gold miner Newcrest declined after H1 results

- Real Estate index outperforms in Japan, Q4 housing investment rose at fastest pace since 2017

- Japan Q4 GDP rebounds on domestic demand, external demand weighs

- New Zealand Dollar (NZD) and bond yields extend gains following recent RBNZ statement

- China Commerce Ministry may hold weekly press conference later today

- The high level US/China trade talks are due to occur in Beijing from Feb 14-15th (Thursday-Friday).

- US President Trump said to be considering 60-day extension for deadline on higher tariffs for China imports - US financial press

- US companies expected to report earnings on Thursday include Applied Materials, Arch Coal, Avon, Bombardier, CBS, CME Group, Canopy Growth, Coca-Cola, Fannie Mae, Generac, NVIDIA and Waste Management (includes after hours)

 

Headlines/Economic Data

Japan

- Nikkei 225 opened flat

- (JP) Japan 2019 Spring Wage Talks: Nissan, Honda labor unions all requesting ¥3,000 base pay raise, flat y/y; Toyota makes no request yet -Japanese press

- (JP) JAPAN Q4 PRELIM GDP Q/Q: 0.3% V 0.4%E; ANNUALIZED Q/Q: 1.4% V 1.4%E; GDP Business Spending q/q: 2.4% v 1.8%e

- (JP) Japan Economy Min Motegi: Economy is in gradual recovery; expects domestic demand to lead recovery; China-bound exports of goods weakened in Q4; will closely monitor effects of trade issue on global economy

-(JP) Bank of Japan (BoJ) said to be shifting its view on CPI, to wanting to include effect of sales tax hike (prior wanted to exclude, on grounds it would be a temporary factor); now expects targeted policies to nearly offset the effect - Nikkei

Korea

-Kospi opens -0.3%

- (KR) South Korea and Russia sign action plan to boost bilateral cooperation; key areas of cooperation between the two countries, including shipbuilding, natural gas, railways, electricity, agriculture, Arctic shipping routes and fisheries – Yonhap

- 034020.KR Reports Q4 (KRW) Net -421.7B v -109.7B y/y; Op 1.0T v 913.4B y/y; Rev 14.8T v 13.8T y/y

- 000240.KR Reports Q4 (KRW) Net 67.7B v 87.2B y/y, Op 146B v 140B y/y, Rev 1.73T v 1.68T y/y

- (KR) South Korea President Moon approval rating slides back under 50%; economic issues cited -Korean Press

China/Hong Kong

-Hang Seng opens -0.4%; Shanghai Composite opens -0.2%

- (CN) CHINA JAN TRADE BALANCE (CNY): 271.2B V 245.0BE; Exports y/y: 13.9% v 3.8%e; Imports y/y: +2.9% v -1.9%e

-(CN) CHINA JAN TRADE BALANCE: $39.2B V $34.3BE; Exports y/y: +9.1% v -3.3%e; Imports y/y: -1.5% v -10.2%e

- High level US China trade talks have started, as expected

- (US) Pres Trump: Trade talks with China are going very well

- (CN) US President Trump said to be considering 60-day extension for deadline on higher tariffs for China imports - US financial press

-(CN) China PBoC Open Market Operation (OMO): Skips reverse repo operations for 4th consecutive session; Net: CNY200B drain v CNY270B drain prior

-(CN) China PBoC sets Yuan Reference Rate: 6.7744 v 6.7675 prior

-(CN) China manufacturers increasingly turning to automation; 100M jobs threatened; Dongguan city allocated $56M to increase automation in 2018 - SCMP

Australia/New Zealand

- ASX 200 opened +0.1%

- TWE.AU Reports H1 (A$) Net 219.2M v 187.2M y/y; EBITSA 338.3m v 283.3M y/y; Rev 1.54B v $1.5Be

- NCM.AU CEO: Will keep disciplined approach to growth, do not need M&A; gold at $1,300/oz or higher is good for miners

- TLS.AU Reports H1 (A$) Net 1.2B v 1.7B y/y; EBITDA 4.3B v 5.1B y/y; Rev 13.8B v 14.4B y/y

- (AU) Australia Feb Consumer Inflation Expectation: 3.7% v 3.5% prior

- (AU) Australia sells A$500M v A$500M indicated in April 2019 notes, avg yield 1.9478% v 2.0115% prior, bid to cover 4.34x v 3.78x prior

Other Asia

-(MY) Malaysia Q4 GDP Q/Q: 1.4% v 1.3%e; Y/Y: 4.7% v 4.5%e

-(MY) Malaysia Central Bank (BNM): Reiterates monetary policy remains accommodative and supportive of economic activity; External uncertainties will continue to impact outlook for Ringgit (MYR)

- STEL.SG Reports Q3 (S$) Net 822.8M v 959.2M y/y; Op 972.6m v 1.12B y/y; Rev 4.63B v 4.58B y/y

North America

-(US) Fed's Harker (non-voter, moderate): we are in wait and see mode on rates; sees one rate hike in 2019 and one in 2020

-(US) Pres Trump: will look out for 'landmines' in the govt funding bill but does not want to see a shutdown; giving funding bill a very serious look

- (US) DOE CRUDE: +3.6M V +2ME; GASOLINE: +0.4M V +1ME; DISTILLATE: +1.2M V -1.5ME

-(US) Senator Rubio (R-FL) plans to 'soon' introduce legislation aimed at taxing corporate stock buybacks like dividends, move seen as attempt to increase corporate investment - financial press

Europe

- (UK) Jan RICS House Price Balance: -22% v -20%e (lowest since July 2012)

 

Levels as of 12:50ET

- Hang Seng -0.3%; Shanghai Composite -0.1%; Kospi 0.0%; Nikkei225 0.0%; ASX 200 -0.1%

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

- EUR 1.1249-1.1284; JPY 110.86-111.12; AUD 0.7085-0.7123; NZD 0.6793-0.6834

- Commodity Futures: Gold -0.3% at $1,311/oz; Crude Oil +0.7%at $54.26/brl; Copper +0.2% at $2.78/lb

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: it's all about the Fed

The greenback closed the week on a high note, as data released Friday topped the market's consensus, suggesting that the US economy remains in good shape, and therefore the US Federal Reserve won't need to take a dovish turn.

EUR/USD News

GBP/USD recovers to 1.2600 as UK politics become clearer

While overall US Dollar (USD) strength continues to dominate market sentiment, the GBP/USD pair recovers to near 1.2600 as an outcome of the UK PM’s race becomes clearer during early Monday.

GBP/USD News

USD/JPY: Tokyo open welcomes risk-on amid quiet trading

The USD/JPY pair trades little positive to 108.60 by the time Tokyo markets open on Monday. Lack of major negative news triggered a market move against the US Dollar.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more

Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Majors

Cryptocurrencies

Signatures