Asia Market Update: Markets trade mixed; UST FUTs dipped amid stimulus headline; Modest USD volatility seen, precious metals declined; CN trade beat ests.

General Trend

- Nikkei rises amid gains in large components (Fast Retailing, Softbank Group), Fast Retailing due to report Q1 results after the market close; Topix Brokerage and Information/Communication indices outperform, Marine Transportation index lags

- Hang Seng TECH index jumps over 2%, Alibaba and Tencent rise on reported reprieve from the US gov’t; CNOOC extends gain

- Gainers in Australia included Financials

- Shanghai Composite lagged during the morning session; Consumer firms declined, IT shares rose

- Taiwan Semi is due to issue Q4 profits, might give initial FY21 outlook

- State Street-managed Tracker Fund of Hong Kong (TraHK) to resume investments in shares that were banned by the Trump administration

- How will the US Senate deal with the issue of Trump and impeachment?

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday

- US President-elect Biden is expected to deliver stimulus proposal on Thurs. (Jan 14th)

- CNY300B in MLF funds are due to mature in China on Friday (Jan 15th); What will the PBOC do?

- Bank of Korea (BOK) due to hold rate decision on Fri.

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened 0.0%

- WHC.AU Reports Q2 managed saleable coal production 3.9Mt, +15% y/y; coal sales 4.5Mt, flat y/y; Narrows FY21 managed ROM coal production 21.0-22.5Mt (prior 21.0-22.8Mt); Sales 19-20Mt (prior 18.5-20Mt)

- (NZ) New Zealand sells NZ$450M in 2024, 2027, and 2041 bonds (all tenors had strong demand in first offering of 2021)


-Nikkei 225 opened 0.0%

- (JP) Bank of Japan (BOJ) Gov Kuroda: Economy is picking up, but economy remains in severe situation, financial system is maintaining stability; reiterates will not hesitate to add easing if needed - speaking at branch managers meeting

- (JP) JAPAN NOV CORE MACHINE ORDERS M/M: +1.5% V -6.5%E; Y/Y: -11.3% V -15.3%E; Machine orders are showing a pick up trend

- (JP) Japan Dec PPI (CGPI) M/M: 0.5% v 0.2%e; Y/Y: -2.0% v -2.2%e

- (JP) Bank of Japan (BOJ) Quarterly Regional Economic Report: maintains economic for 5 of 9 regions, raises 3 regions and cuts 1 region


-Kospi opened 0.0%

- (KR) South Korea Dec Bank Lending to Households (KRW): 988.8T v 982.1T prior (slowest growth since May 2020)

- (KR) South Korea Dec Exports Prices Y/Y: -5.4% v -4.9% prior; Import Prices Y/Y: -10.2% v -10.6% prior

China/Hong Kong

-Hang Seng opened +0.6%; Shanghai Composite opened -0.4%

- (CN) CHINA DEC TRADE BALANCE: $78.2B V $72.0BE (record high); Trade Balance with the US: $29.9B v $37.4B m/m ; 2020 Trade balance with US $316.9B v $295.8B y/y

- (CN) CHINA DEC TRADE BALANCE (CNY-DENOMINATED): 516.8B V 457.8BE; Steel product exports 53.7Mt (record high); Crude oil imports 542.4Mt (record high)

- (CN) China Customers Spokesperson: Steady recovery in Domestic economy provides foundation for trade growth, trade expected to continue to grow in 2021

- (CN) President Trump issues order amending previous order on investments in China military companies

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

- (CN) China PBOC monetary policy Dept chief Sun Guofeng: If policymakers continue setting numeric targets for M2 and aggregate financing growth based on prior numbers, credit supply may deviate from economic performance - research paper

- (CN) China to encourage local governments to conduct more over-the-counter bond sales in 2021, relates to the sale of bonds to retail investors; cites - US financial press

- (CN) US bans all imports of tomato and cotton products from Xinjiang, China due to forced labor, effective immediately

- (HK) Hong Kong arrests 11 people citing crime of helping activists flee – press

- (CN) China PBOC sets Yuan reference rate: 6.4746 v 6.4605 prior


- (TW) Taiwan President Tsai held video chat with US Envoy Craft, Craft made it clear that US stands with Taiwan

North America

- JNJ One-shot COVID vaccine, Ad26.COV2.S, is reportedly safe and generates promising immune response in early trial; Phase I and II study shows one shot COVID vaccine determined safe and gives antibodies, according to exec - CNBC

- (US) House of Representatives impeaches Pres Trump for a second time (as expected, 1st President to be impeached twice)

- (US) Fed Vice Chair Clarida: new Fed framework is an evolution, not a revolution; Will not raise rates until inflation achieves 2% goal; will not be 'cute about our crystal ball'; no rate hike until we get to 2% inflation for a year

- (US) Aides to Joe Biden said to tell allies in Congress that Biden's aid plan might be about $2.0T - CNN


- (UK) German Logistics Group DB Schenker: Temporarily suspends delivery of good from EU to Britain, citing high rate of faulty customs documents after Brexit

-(UK) UK records its highest daily death rate Jan 13th since pandemic started with 1,564 deaths v 1,325 prior record high

Levels as of 12:15ET

- Hang Seng +0.5%; Shanghai Composite -0.4%; Kospi +0.0%; Nikkei225 +1.1%; ASX 200 +0.4%

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

- EUR 1.2171-1.2136; JPY 104.19-103.53 ;AUD 0.7756-0.7729; NZD 0.7199-0.7171

- Commodity Futures: Gold -0.8% at $1,839/oz; Crude Oil -0.1% at $52.84/brl; Copper +0.2% at $3.62/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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex Majors