Nasdaq FUTs supported by SoftBank/OpenAI news, Large-cap tech earnings also in focus

Asia Market Update: Nasdaq FUTs supported by SoftBank/OpenAI news; Large-cap tech earnings also in focus; Yen firms ahead of Himino, Fed decision was earlier; Tokyo CPI due on Fri.

General trend

- SoftBank Group: Said to be in talks to invest up to $25.0B into OpenAI; the investment plan is said to be 'on top of' the Stargate commitment - FT.

- USD/JPY: Declines below ¥155; BOJ Himino is expected to speak on Jan 30th at 6:10 GMT, according to press report.

- (US) Ronald Reagan Airport [Arlington, Virginia]: Takeoffs and landings have been halted at DCA; emergency personnel are responding to 'incident' [comments about aircraft incident on airfield]; there was a confirmed small aircraft 'down' in Potomac River vicinity Reagan National Airport.
[US White House Spokeswoman]: It appears to be a military [Sikorsky H-60] helicopter collided with a jet [PSA Airlines Bombardier CRJ700 regional jet]

- American Airlines [AAL]: Follow Up: Says aware of reports regarding American Eagle flight 5342 [operated by PSA unit]; will provide information as it becomes available.

- Month-end flows in focus.

- Japanese consumer firms continue to announce price hikes.

- Chinese holiday continues.

- China Caixin Manufacturing PMI may come on Fri [Reminder Jan 27th: CHINA JAN MANUFACTURING PMI (GOVT OFFICIAL): 49.1 V 50.1E [first contraction in 4 months, matches the lowest since Aug 2024]; Non-Manufacturing PMI: 50.2 v 52.2e [25th month of expansion].

- China expanded market closures for Lunar New Year Holiday from 6 to 8 days [Jan 28th through Feb 4th], effective from Jan 28th 2025 – press.

- HK markets are closed on Jan 29th-31st for the Chinese Lunar New Year holiday.

- US GDP to be released; ECB to also set rates.

- Corporate earnings still in focus.

- Samsung Electronics: Full Q4 results to be released Jan 31st.

Headlines/economic data

Australia/New Zealand

-Australia Q4 Import Price Index Q/Q: +0.2% v -1.4% prior; Export Price Index Q/Q: +3.6% v -4.3% prior (2.5%e).

-NAB now expects the RBA to cut rates in Feb.

-New Zealand Jan ANZ Business Confidence: 54.4 v 62.3 prior.

-New Zealand Dec Trade Balance (NZD): 0.2B v -0.4B prior.

-New Zealand sells total NZ$500M vs. NZ$500M indicated in 2031, 2036 and 2041 bonds.

China/Hong Kong

-Hang Seng closed for holiday [**Note: HK markets are closed on Jan 29th-31st for the Chinese Lunar New Year holiday.].

-Shanghai Composite closed for holiday [**Reminder: China expanded market closures for Lunar New Year Holiday from 6 to 8 days [Jan 28th through Feb 4th], effective from Jan 28th 2025 - press].

-Hong Kong Monetary Authority (HKMA): Domestic interest rates may stay relatively high for 'some time'; will continue to closely monitor market developments; leaves base rate unchanged at 4.75% - response to US Fed decision [**Note:The HKD is pegged to the US dollar with the current trading band between HK$7.75-7.85]

-(US) Commerce Sec nominee Lutnick: Chinese tariffs should be the highest; US may need to impose new tariffs on allies.

Japan

-Advantest [6857.JP]: Trades lower by >3.0%; shares later rise by >5.0% [**Reminder Jan 29th: Reported 9M Net ¥121.2B v ¥47.1B y/y, Op ¥164.1B v ¥62.1B y/y, Rev ¥547.4B v ¥350.7B y/y; Raised outlook sharply; Noted high demand expected to continue for AI applications].

-Nissan [7201.JP]: Renault urges Nissan to secure higher premium from Honda - FT.

-Toyota [7203.JP]: Said to plan to raise Feb-Apr global production to 2.5M units, +10.4% y/y - Japanese press.

-Toyota [7203.JP]: Reports Dec Global Parent-only Vehicle Production: 770.7K units, -3.9% y/y; 2024 global sales volumes 10.8M units, -3.7% y/y; 2024 global production: 10.6M units, -7.8% y/y.

-Japan Fin Min Kato: Confirmed close cooperation on FX with US following video call with Treasury Sec Bessent.

-Japan debt-service costs are expected to rise by 25% by 2028 - US financial press.

-Bank of Japan (BOJ) announcement related to outright bond buying operations: 5-10 year and >25-year JGBs: Unchanged.

-There has been some focus on report related to BOJ move toward ‘shrinking’ balance sheet; refers to the announcement the BOJ made on Jan 24th – US financial press [https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2025/mpr250124b.pdf].
USD/JPY: Note: Japan Gotobi day in focus, refers to the 5th day of the month and dates that are multiples of 5; accounts are generally settled on Gotobi days.

- Japan releases weekly flows data [period ended Jan 24th]: Foreign buying of Japan equities: +¥753.0B v -¥66.1B prior; Japan buying of foreign bonds: +¥178.0B v +¥819.3B prior; Foreign buying of Japan bonds [long-term debt securities]: +¥127.2B v +¥876.1B prior.

Korea

- Kospi closed for holiday.

Other Asia

-Philippines Q4 GDP Q/Q: 1.8% v 1.9%e; Y/Y: 5.2% v 5.5%e.

North America

-(US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 4.25-4.50%; AS EXPECTED; INFLATION REMAINS SOMEWHAT ELEVATED (REMOVES REFERENCE TO MAKING PROGRESS TOWARD GOAL), UNEMPLOYMENT RATE HAS STABILIZED AT LOW LEVEL.

-Nvidia [NVDA]: (CN) Reportedly Trump Admin officials are discussing tighter curbs on NVIDIA sales in China, such as the H20 chips - press.

-Canada Foreign Min Joly: Discussed the flow of Fentanyl and precursors from China with US Sec of State Rubio; 'cautiously optimistic' about the talks related to tariffs.

Levels as of 00:20 ET

- Nikkei 225, +0.1%, ASX 200 +0.6% , Hang Seng closed; Shanghai Composite closed ; Kospi closed.

- Equity S&P500 Futures: +0.4%; Nasdaq100 +0.6%, Dax -0.1%; FTSE100 +0.1%.

- EUR 1.0428-1.0409 ; JPY 155.37-154.28 ; AUD 0.6243-0.6220 ;NZD 0.5668-0.5644.

- Gold +0.1% at $2,796/oz; Crude Oil flat at $72.59/brl; Copper -0.4% at $4.2730/lb.