US Equity futures decline

Asia Market Update: Asian equity markets track Wednesday’s bounce in the US, US Equity futures decline; China industrial profits decline for the first time since 2015, upcoming China Commerce Ministry press conference in focus

General Trend:

- Equity futures fluctuate following gains on Wed

- Asian tech and energy names trade generally higher, Softbank rises over 6%

- Banks, Fast Retailing and Marine/Transportation names gain in Japan

- Japanese automakers trade generally higher, Toyota gains over 4%

- China Airlines decline, follows recent rise in oil prices

- Sinopec declines over 6%, UNIPEC unit said to have suffered losses

- Australian equities supported by the Energy and Resources sectors

- Oil Futures decline after gains on Wed

- USD/JPY tracks decline in the equity futures, NZD/JPY -0.4%

- It remains unclear when partial US government shutdown will end, Senate adjourned until Thursday (Dec 27th)

- China Commerce Ministry is expected to hold weekly press conference later on Thursday

Headlines/Economic Data

Japan

- Nikkei 225 opened +2.0%

- (JP) Japan Securities Clearing Corporation (JSCC) says emergency margin call triggered for index futures: Nikkei 225 Futures rose over 5.5% on Wed

- (JP) Some economists increasingly expect the BoJ to ease monetary policy further in 2019 amid equity declines - Japanese Press

- 6465.JP Hoshizaki reportedly probably will meet deadline to avoid delisting - Japanese press [+15%after releasing results]

- 8028.JP FamilyMart plans to launch its own cashless payment service in July 2019 – Nikkei

- 7201.JP Tokyo prosecutors to bring fresh charges against former Chairman Ghosn related to payments to Saudi businessmen - press

Korea

- Kospi opened +0.2%

- (KR) South Korea Dec Consumer Confidence: 97.2 v 96.0 prior (1st increase in 3-months)

- (KR) South Korea, Seoul to raise taxi fare 27% to KRW3,800, starting end of January, first increase in 5-yrs – Yonhap

- (CN) South Korea said to release defense white paper early 2019 that will delete content that makes North Korea Govt and Army as an enemy - Xinhua

China/Hong Kong

- Hang Seng opened +0.7%, Shanghai Composite +1.2%

- (CN) US and China reportedly plan for "mid-level" trade talks week of Jan 7th in China, headed by US Dep Trade Rep Gerrish

- (CN) China PBOC Ma: Bank lending, money supply, and in a broader context, total social financing, will maintain a proper growth pace to cope with GDP growth, capital increase to boost confidence in bank stocks

- (CN) China's first domestically produced regional jetliner, the ARJ21-700, completed its first manned over water demonstration flight in southern China's island province of Hainan – Xinhua

- (CN) China Nov Industrial Profits YTD y/y: +11.8% v 13.6% prior; Nov CNY594.8B, -1.8% m/m (1st decline since late 2015)

- (CN) China PBoC sets yuan reference rate: 6.8894 v 6.8845 prior

- (CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 7-day and 14-day reverse repos v CNY30B injected in 14-day reverse repos prior; Net: CNY30B injection v CNY10B drain prior

- HUAWEI.CN UK Defense Sec Williamson reportedly has raised concerns about the role Huawei has in 5G development - UK press

- 1133.HK Harbin Electric Group and Harbin Electric Co to merge, HEC to be absorbed by HEG in HK$4.56/shr cash deal for H shares

- Sinopec: UNIPEC unit said to have suffered losses, two top officials have been suspended at the oil and gas trading unit - financial press

Australia/New Zealand

- ASX 200 opened +0.1%

- MMJ.AU Unit Medipharm Labs Corp, expands annual production capacity by 50%

- SFR.AU Exercise its option to enter into JV agreement with White Rock Minerals for the Red Mountain Project

Other Asia

- 2354.TW Increasing efforts to expend into semiconductor and chip making sector, in order to diversify away from its heavy reliance on manufacturing smartphones as the global smartphone market slows - China Daily

North America

- (US) President Trump: prepared to wait 'whatever it takes' to achieve border security, wall funding (Reminder US Govt remained on partial shutdown)

- (US) White House Econ Adviser Hassett: Fed Chair Powell's job is not in jeopardy; Powell is 100% safe; there's no hidden liquidity crisis - Fox Business interview

Europe

- (FR) EU Budget Commissioner Oettinger: France President Macron lost authority with his draft 2019 budget but remains a strong supporter of EU, EC will tolerate budget deficit of more than 3% as a one time exception next year; Chance of UK staying in EU has increased slightly over the past months, but still expect UK to leave EU next year

Levels as of 01:00ET

- Nikkei 225, +3.6%, ASX 200 +1.9%, Hang Seng flat; Shanghai Composite flat; Kospi flat

- Equity Futures: S&P500 +0.1%; Nasdaq100 -0.1%, Dax +1.6%; FTSE100 +1%

- EUR 1.1391-1.1348 ; JPY 111.38-110.85 ; AUD 0.7078-0.7054 ;NZD 0.6742-0.6712

- Feb Gold +0.2% at $1,272/oz; Jan Crude Oil -1% at $46.14/brl; Feb Copper +0.2% at $2.705/lb