Asia Market Update: Equity indices decline after weakness on Wall St.; JP equities lag, JGB yields and Yen rise amid focus on BOJ; Hawkish Fed speak continues; China GDP in focus.

General trend

- China Dec Trade Surplus well above ests, imports miss ests.

- South Korea bond yields rise amid BOK comments on inflation; SK also announced smaller than speculated extra budget.

- UST yields rise in Asia.

- US equity FUTS have moved between slight gains and losses.

- Japanese equities have extended declines amid focus on BOJ and stronger Yen.

- Shanghai and HK equity markets traded modestly lower during the morning sessions; Shanghai Property index extended drop.

- Transaction related to Ant Financial unit breaks down.

- S&P ASX 200 has been weighed down by Consumer Staples index.

- SAP issued prelim Q4 results and 2022 guidance, also announced buyback.

- PBOC generally conducts MLF operations around the 15th of the month.

- China Dec data and Q4 GDP due on Monday [Sunday night in the US].

- BOJ rate decision and economic forecasts are due on Tues (Jan 18th).

- US financial earnings in focus (BlackRock, Citi, JPMorgan, Wells Fargo).

- US Dec retail sales due later today.

- US equity markets are closed for holiday on Mon (Jan 17th).

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.4%.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2025 bonds, Avg Yield: 1.325%; bid-to-cover 5.28x.

- (AU) AUSTRALIA NOV HOME LOANS VALUE M/M: 6.3% V 0.4%E; INVESTMENT LENDING M/M: 3.8% V 8.0%E.

Japan

- Nikkei 225 opened -0.8%.

- (JP) Bank of Japan (BOJ) policy makers said to be debating when to 'telegraph' a rate hike that can come before hitting 2.0% CPI target; notes an actual rate hike is not imminent - financial press.

- (JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.500% 20-year JGBs, Avg Yield: 0.5320% v 0.4520% prior, bid-to-cover: 3.18x v 3.66x prior.

- (JP) Japan Fin Min Suzuki: Affirms to strive to reach FY25/26 primary budget balancing target; JGBs will not face a loss of principal, reiterates market confidence is important.

- (JP) Economist Poll: Japan wage hike policies are unlikely to start a virtuous growth cycle in 2022; Economists see 2021 GDP +2.7% (down from 2.8%), and 2022 GDP +3.0% (down from 3.1%).

Korea

- Kospi opened -0.8%.

- (KR) BANK OF KOREA (BOK) RAISES 7-DAY REPO RATE 25BPS TO 1.25%; AS EXPECTED.

- (KR) South Korea confirms to submit extra budget proposal to parliament before the Lunar New Year - South Korea press.

- (KR) South Korea may permit private gatherings of up to 6 people - South Korea press.

- (KR) South Korea Fin Min Hong: Planning KRW14T extra budget.

China/Hong Kong

- Hang Seng opened -1.0%; Shanghai Composite opened -0.3%.

- 3333.HK Main unit Hengda Real Estate exec: Bondholders approve proposed delay to CNY bond redemption and coupon payments.

- (CN) China 2022 infrastructure investment seen +8% y/y - Chinese press.

- (CN) China Zuhai City (Guangdong province) to conduct mass coronavirus testing on Fri (Jan 14th).

- (CN) China expected to release updated 5-year plan related to transportation - Chinese press.

- (CN) China soybean production to rise 40% by 2025 - SCMP.

- 1359.HK Says will not subscribe for shares of Chongqing Ant Consumer Finance [6688.HK]; cites commercial consideration and negotiation with Ant unit.

- (CN) China PBOC sets Yuan reference rate: 6.3677 v 6.3542 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v CNY0B prior.

- (CN) China President Xi to speak at World Economic Forum (WEF) video conference on Jan 17th (Mon).

- (CN) CHINA DEC TRADE BALANCE: $94.5B V $74.0BE; 2021 EXPORTS +29.9% Y/Y.

- (CN) CHINA DEC TRADE BALANCE (CNY-DENOMINATED): 604.7B V 453.7BE.

- (CN) China Ministry of Finance (MOF) sells 3-month bills and 30-year bonds.

- (HK) Hong Kong to extend current coronavirus restrictions for 2-weeks.

North America

- (US) Fed's Waller (Hawk, Voter): Does not favor 50bps hike in March; 3 hikes in 2022 is still a good baseline, if inflation remains 'stubbornly' high, there could be 4 or even 5 rate hikes.

- (US) Fed's Daly (non-voter, dove): Pace of balance sheet reduction can be faster than last time but should be predictable and not meeting-by-meeting; Don't want to raise rates while still buying bonds - press interview.

- (US) Fed’s Harker (voter): Pencils in three rate hikes for 2022 but four increases are not out of the question.

- (US) Supreme Court blocks Pres Bide.

- (US) WEEKLY EIA NATURAL GAS INVENTORIES: -179 BCF VS. -175 BCF TO -173 BCF INDICATED RANGE.

- (US) President Biden has selected Raskin to become the Vice Chair of supervision (as expected); Cook and Jefferson have been selected as Fed Governors.

Europe

- (DE) German Chancellor Scholz: Situation with Russia has not become less dangerous after start of talks but negotiations with Moscow are still important.

- (UK) UK expected to end COVID passes later in Jan - UK press.

Levels as of 00:20 ET

- Nikkei 225, -1.4%, ASX 200 -1.1% , Hang Seng -1%; Shanghai Composite -0.6% ; Kospi -1.5%.

- Equity S&P500 Futures: flat; Nasdaq100 flat, Dax -0.1%; FTSE100 -0.6%.

- EUR 1.1476-1.1451 ; JPY 114.22-113.64 ; AUD 0.7286-0.7264 ;NZD 0.6867-0.6849.

- Gold +0.3% at $1,826/oz; Crude Oil -0.3% at $81.84/brl; Copper flat at $4.5125/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 Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds steady below 1.0200 ahead of EU Sentix

EUR/USD holds steady below 1.0200 ahead of EU Sentix

EUR/USD is treading water below 1.0200 in early Europe. Moody’s cut Italy’s credit rating amid political jitters, Investors assess the US NFP-led big Fed rate hike bets. US-China tensions over Taiwan underpin the US dollar’s safe-haven demand. EU Sentix awaited. 

EUR/USD News

GBP/USD advances towards 1.2100 amid cautious optimism

GBP/USD advances towards 1.2100 amid cautious optimism

GBP/USD is edging higher towards 1.2100, underpinned by a steady US dollar amid a cautiously optimistic market mood. Bumper US NFP data ramped up aggressive Fed tightening expectations. UK political woes and a dovish BOE rate hike could cap the pound's upside. 

GBP/USD News

Gold could challenge $1,750, with big Fed rate hike bets back in play

Gold could challenge $1,750, with big Fed rate hike bets back in play

Gold price rejection at $1,795 recalls sellers, with eyes on $1,750 support again. US NFP blowout jacks up 75 bps Sept Fed rate hike bets to around 70%. The US dollar is likely to remain underpinned at the start of the inflation week.

Gold News

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures