Asia Market Update: US stocks erased earlier gains as Fed prepares to hike rates; Asian equities see big losses, 2-year UST yield extends rise [curve flattens]; Hotter NZ CPI generally ignored; Samsung dropped amid cautious guidance.
- Commodity currencies drop with the focus on higher interest rates, equity declines.
- Metals also decline.
- USD/CHF and USD/JPY have traded generally flat [focal points have included US rates, Russia, equity declines].
- US equity FUTs erased gains amid volatile session, Nasdaq FUTs dropped 2%.
- Nikkei 225 has dropped by >3%, despite the higher open [Tech declines weigh on big component Softbank Group; Fanuc rises on guidance].
- Will BOJ purchase ETFs today?
- Japanese companies due to report earnings include Canon Inc, Fujitsu, Shin-Etsu Chemical, Advantest, Fuji Electric, Japan Exchange.
- Hang Seng has dropped by over 2.5% [Mainland Property and TECH indices lag].
- Evergrande drops amid ongoing restructuring concerns; HK property developers continue to raise capital [Times China, Logan Property].
- Shanghai Composite has declined by >1% after opening flat.
- S&P ASX 200 dropped >2.9% following holiday [Higher rates weighed on the Telecom, REIT and Consumer Indices].
- LG Energy Solutions starting trading in South Korea [LG Chem drops >7%].
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- Companies due to report during the NY morning include Alliance Data, Blackstone, Comcast, Danaher, Dow, HCA, International Paper, JetBlue, Southwest Airlines, McDonald’s, McCormick, Marsh & McLennan, Altria, MSCI, NetScout, Nucor, Rogers Communications, Rockwell Automation, Sherwin-Williams, Textron, Valero.
- ASX 200 opened +0.2%.
- (AU) AUSTRALIA Q4 EXPORTS PRICE INDEX Q/Q: +3.5% V -2.6%E; IMPORTS PRICE INDEX Q/Q: 5.8% V 1.4%E.
- OZL.AU Reports FY21 copper production 125.5Kt v 97.6Kt y/y; gold production 237.3K oz v 258.0K y/y.
- (NZ) NEW ZEALAND Q4 CPI Q/Q: 1.4% V 1.3%E; Y/Y 5.9% V 5.8%E (>31 year high).
- (AU) Australia Dec Westpac Leading Index: -0.03% v 0.22% prior.
- (NZ) New Zealand sells NZ$200M in bonds v NZ$200M indicated.
- (NZ) New Zealand Q4 RBNZ Sectoral Factor Model inflation Index Y/Y: 3.2% v 3.0% prior (highest since Q1 2009); Sectoral Factor Model Non-Tradable Core Y/Y: 5.3% v 4.5% prior.
- Nikkei 225 opened +0.5%.
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥107.1B v +¥928.2B prior; Foreign Net Buying of Japan Stocks: ¥10.2B v ¥562.9B prior.
- (JP) Japan MOF sells ¥3.0T v ¥3.0T indicated in 0.00% 2-year JGBs: Avg Yield: -0.0540% v -0.093% prior; bid-to-cover: 3.87x v 4.25x prior.
- 8697.JP Reports 9M Net ¥38.0B v ¥37.4B y/y, Pretax ¥55.9B v ¥54.5B y/y, Op ¥56.0B v ¥54.4B y/y, Rev ¥100.6B v ¥97.3B y/y; To cancel 1.5% of shares on Feb 10th.
- Kospi opened 0.0%.
- 005930.KR Reports final Q4 (KRW) Net 10.8T v 6.6T y/y (v 11.1Te); Op 13.9T v 13.8T prelim (v 9.1T y/y) , Rev 76.6T v 76.0T prelim (v 61.6T y/y).
- (KR) North Korea again fires projectile towards East Sea and landed just outside Japan's EEZ - Yonhap.
- (KR) South Korea Vice Fin Min Lee: South Korea will try to divide bond sales with balance; To coordinate with Bank of Korea on Govt bond purchases if needed.
- (KR) Bank of Korea (BOK): Will take market stabilizing steps if needed.
- (KR) South Korea reports record high covid cases, 14.5K.
- (KR) South Korea Dec Department Store Sales Y/Y: 36.5% v 9.6% prior; Discount Store Sales Y/Y: -6.1% v -10.3% prior.
- (KR) South Korea Dec Terms of Trade 87.7, -10.4% y/y (9-year low).
- Hang Seng opened -1.4%; Shanghai Composite opened 0.0%.
- (CN) China Foreign Min Wang: US Tone on China policy is unchanged, Wrong behaviors from US on China hurt bilateral ties, Urges US to stop playing cards on Taiwan.
- (HK) Hong Kong Monetary Authority (HKMA) Will monitor market developments as Fed sees rate hikes; Money markets operating normally.
- (CN) China Gold Association: 2021 gold consumption 1,120.9t v 820.9t y/y; gold production 328.9K oz v 365.3t y/y.
- (CN) China PBOC sets Yuan reference rate: 6.3382 v 6.3246 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 Dec Industrial Profits Y/Y: 4.2% v 9.0% prior (slowest pace since Apr 2020).
- (CN) China Market Regulator Vice Min Pu Chun: China to help market entities to continue recovering; China to improve anti monopoly enforcement.
- 3333.HK China speculated to consider breaking up company to contain a real estate crisis - Press.
- (HK) Hong Kong Chief Exec Lam to provide an update on coronavirus restrictions in the afternoon - SCMP.
- (US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 0.00-0.25%; AS EXPECTED; SAYS 'IT WILL SOON BE APPROPRIATE' TO RAISE RATES.
- (US) Fed Chair Powell: With elevated inflation and strong labor market, Fed will continue to adapt policy; Policy has been adapting to an evolving environment - post rate decision statement.
- (US) Fed Chair Powell: It is not possible to predict the path of policy rates; Will be guided by data and evolving outlook - post rate decision Q&A.
- MRNA Does first person in omicron vaccine trial, no timetable given for when results will be available.
- TSLA Reports Q4 $2.54 v $2.11e, Rev $17.7B v $16.1Be; CEO: Sees volume to grow 'comfortably above 50%' in 2022- earnings call comments.
- (UK) Sue Gray report on alleged Downing Street lockdown restriction violations now expected to be published Monday (prior thought to be today) – press.
- (UK) Dec Car Manufacturing 62.3K unit , -12.7% y/y; 2021 Car Manufacturing 859.6K unit (lowest annual figure since 1956), -6.7% y/y SMMT.
Levels as of 00:15ET
- Hang Seng -2.7%; Shanghai Composite -1.1%; Kospi -3.2%; Nikkei225 -3.4%; ASX 200 -1.8%.
- Equity Futures: S&P500 -1.3%; Nasdaq100 -1.5%, Dax -2.0%; FTSE100 -2.0%.
- EUR 1.1243-1.1215; JPY 114.79-114.47; AUD 0.7122-0.7069; NZD 0.6661-0.6601.
- Commodity Futures: Gold -0.9% at $1,813/oz; Crude Oil -0.9% at $86.54/brl; Copper -0.6% at $4.43/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.