Equity indices trade generally higher amid earnings from Apple and Hynix

Asia Market Update: Equity indices trade generally higher amid earnings from Apple and Hynix; Chinese markets lag ahead of extended holiday; Volatility has persisted.

General trend

- 2-year UST yield trades near 1.20%; Generally quiet currency session seen.

- Nikkei 225 has gained >2% [USD/JPY is above ¥115].

- Japanese cos. due to report earnings include Daiwa Securities and KDDI.

- S&P ASX 200 also rose by more than 2% [interest rate sensitive sectors rebounded].

- Hang Seng has underperformed [TECH and Property indices drop].

- Shanghai Composite rose during morning trading after dropping by 1%.

- China holiday in focus: Shanghai to close between Jan 31st and Feb 4th; HK to close Feb 1-3rd.

- Companies due to report during the NY morning include Autoliv, Booz Allen Hamilton, Caterpillar, Church & Dwight, Charter Communications, Colgate, Chevron, LyondellBasell, Moog, Phillips 66, Synchrony Financial, VF Corp.

- China PMI data due on Sunday [Official PMIs and Caixin Manufacturing PMI to be released on the same day].

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened +0.4%.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 1.75% Nov 2032 bonds, avg yield 1.9536% v 1.8898% prior; bid to cover 2.15x v 3.65x prior.

- (AU) Australia Q4 PPI Q/Q: 1.3% v 1.1% prior; Y/Y: 3.7% v 2.9% prior.

Japan

- Nikkei 225 opened 1.0%.

- (JP) JAPAN JAN TOKYO CPI Y/Y: 0.5% V 0.5%E; CPI (EX-FRESH FOOD) Y/Y: 0.2% V 0.3%E.

- (JP) Japan Fin Min Suzuki: To thoroughly discuss quarterly disclosure issue; hopes to have report on quarterly disclosure in Spring.

- (JP) Japan Industry Ministry (METI): Approved a permanent listing for electricity futures.

- (JP) Bank of Japan (BOJ) Gov Kuroda: Central banks will proceed at various paces on issuing digital currencies, but all share view on need for a stable and efficient settlements system.

- (JP) Japan Fin Min Suzuki: Closely watching developments on digital yuan (CNY), need to consider impact of capital restrictions in China.

Korea

- Kospi opened 0.1%.

- (KR) South Korea Dec Industrial Production M/M: +4.3% v -0.3%e; Y/Y: 6.2% v 1.8%e.

- (KR) South Korea Dec Cyclical Leading Index Change: -0.2 v -0.3 prior [6th straight decline].

- (KR) South Korea Finance Ministry: Sees limited direct impact from tension related to Russia and Ukraine.

- (KR) South Korea FSC Head Koh: Stock Market decline is 'excessive'; excessive anxiety unfavorable given South Korea's sound fundamentals [Kospi declined by 3.5% on Thurs].

- 660.KR (Hynix) Reports FY21 (KRW) Net 9.62T v 4.76T y/y; Op 12.4T v 5.01T y/y; Rev 43.0T v 31.9T y/y.

- (KR) South Korea confirms a record high of ~16.1K coronavirus cases.

- 000720.KR (Hyundai Engineering and Construction): Unit Hyundai Engineering said to withdraw planned IPO; cites weak investor demand.

- (KR) Bank of Korea (BOK): To hold meeting on Feb 3rd (Thurs) to review market situation; to strengthen monitoring of markets during upcoming holiday.

China/Hong Kong

- Hang Seng opened +0.1%; Shanghai Composite opened +0.4%.

- (CN) China state planner: To speed up the increase in coal storage in ports and to stabilize coal market prices.

- (HK) Hong Kong Dec Trade Balance (HKD): -32.8B v -27.0Be.

- (CN) China PBOC sets Yuan reference rate: 6.3746 v 6.3382 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY200B in 14-day reverse repos v CNY200B prior; Net inject CNY100B v inject CNY100B prior.

- (CN) China PBOC: To provide funds to banks to help cut carbon emissions; has provided funds to certain banks for funding for green projects.

- (CN) Mutual funds in China said to have increased efforts to support the equity market - US financial press.

- (HK) Hong Kong said to consider imposing a vaccine mandate for entry into malls and use of public transit - Press.

- (CN) China 1-day repo rate hits 1-year lows.

- (CN) China National Space Admin Official: China and Russia to jointly launch an international lunar station - Press.

Other

- (TW) Taiwan Jan PMI Manufacturing: 55.1 v 55.5 prior (19th straight expansion).

North America

- (US) US calls for open meeting at UN Security Council to discuss Russia - press.

- Treasury's $53b 7-year note auction results: draws 1.769%, bid-to-cover ratio: 2.36 v 2.21 prior and 2.28 avg over prior 12 auctions.

- (US) Dec pending home sales M/M: -3.8% V -0.4%E; Y/Y: -6.6% V -4.0%E.

- (US) Weekly EIA natural gas inventories: -219 BCF VS. -216 BCF TO -214 BCF indicated range.

- (US) US Federal Court has invalidated Interior Department's Nov Gulf of Mexico oil and gas lease sale.

Levels as of 00:20 ET

- Nikkei 225, +2.2%, ASX 200 +2.2% , Hang Seng -0.7%; Shanghai Composite +0.3% ; Kospi +1.4%.

- Equity S&P500 Futures: +0.6%; Nasdaq100 +1.1%, Dax -0.4%; FTSE100 +0.2%.

- EUR 1.1155-1.1138 ; JPY 115.47-115.25 ; AUD 0.7047-0.7022 ;NZD 0.6605-0.6569.

- Gold +0.2% at $1,797/oz; Crude Oil +0.6% at $87.14/brl; Copper +0.1% at $4.4217/lb.

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