US/China Trade Talks Due To Conclude Today

General Trend:

• Samsung guided 2019 CAPEX lower y/y, expects annual earnings in 2019 to decline
• Asian currencies rally on Fed decision
• Little news seen as US/China trade talks due to conclude today
• US companies expected to report earnings on Thursday include Altria, Amazon, Celgene, Charter Communications, ConocoPhillips, Deckers, DuPont, GE, International Paper, Mastercard, Sherwin Williams, Sprint, The Blackstone Group, UPS, Valero Energy (including afterhours)

Headlines/Economic Data

Japan

• Nikkei 225 opened +1.3%
• (JP) JAPAN DEC PRELIM INDUSTRIAL PRODUCTION M/M: -0.1% V -0.5%E; Y/Y: -1.9% V -2.3%E
• (JP) Japan Investors Weekly Net Buying of Foreign Bonds: -¥102.6B v +¥822.9B prior; Foreign Buying of Japan Stocks: +¥166.6B v -¥66.7B prior
• (JP) Bank of Japan (BOJ) Summary of Opinions for Jan 22-23 meeting: Economy is expanding moderately, not feeling impact of US/China trade war yet; important to continue with monetary easing
• (JP) Bank of Japan (BOJ) Amamiya: Reiterates important to continue with easing; need to contain negative effects to continue easing
• (JP) Japan MoF sells ¥2.1T v ¥2.1T indicated in 0.10% (0.10% prior) 2-yr JGBs, avg yield: -0.167% v -0.127% prior, bid to cover 6.08x v 5.36x prior

Korea

• Kospi opened +0.7%
• (KR) Senior diplomatic talks between US and North Korea said to have gotten nowhere on denuclearization – press
• (KR) SOUTH KOREA DEC INDUSTRIAL PRODUCTION M/M: -1.4% V -0.2%E; Y/Y: 1.6% V 1.5%E
• (KR) South Korea Dec Construction Output y/y: -9.5% v -10.6% prior
• 005930.KR Reports final Q4 (KRW) Net 8.3T v 10.3Te; Op 10.8T v 10.8T prelim; Rev 59.3T v 59.0T prelim
• (KR) Bank of Korea (BOK) Gov Lee: Fed’s prudence will help to stabilize markets – Yonhap
• 017670.KR Reports Q4 (KRW) Net 484.9B v 804Be; Op 225.3B v 290Be; Rev 4.35T v 4.4Te; Guides FY19 Rev KRW18.0T v 17.5T y/y

China/Hong Kong

• Hang Seng opened +0.7%, Shanghai Composite +0.2%
• (CN) CHINA JAN OFFICIAL (NBS) MANUFACTURING PMI: 49.5 V 49.3E; Non-Manufacturing PMI: 54.7 v 53.8e; Composite PMI: 53.2 v 52.6 prior
• (CN) China Dec Swift Global Payments CNY: 2.1% v 2.1% prior
• (CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 14-day reverse repos v CNY50B in 14-day prior; Net: CNY50B injects v CNY50B injection prior
• (CN) China PBoC sets Yuan Reference Rate: 6.7025 v 6.7343 prior (strongest fix since July 2018)
• (CN) China 2018 gold demand 1,151t, +5.7% y/y; gold production 401t, -5.9% y/y
• (CN) China PBOC: Reiterates to further open up bond market

Australia/New Zealand

• ASX 200 opened +0.2%
• ORG.AU Reports Q2 production 63.1 PJ v 83.5 y/y v 64.3 q/q; Sales 64.2 PJ v 63.7 q/q
• FMG.AU Reports Q2 Iron Ore Shipments 42.5Mt v 42.6Me; production 49.2Mt v 47.5M y/y; Affirms FY19 production
• (NZ) S&P raises New Zealand Sovereign Rating outlook to positive from stable; Affirms AA rating
• (AU) Australia Dec Private Sector Credit m/m: 0.2% v 0.3%e; y/y: 4.3% v 4.4%e
• (AU) AUSTRALIA Q4 EXPORT PRICE INDEX Q/Q: 4.4% V 2.7%E; IMPORT PRICE INDEX Q/Q: 0.5% V 0.3%E
• (AU) Australia sells A$500M v A$500M indicated in April 2019 notes, avg yield 2.0115% v 1.9603% prior , bid to cover: 3.78x v 3.65x prior

Other Asia

• 2317.TW Responds to media: remains committed to promoting long term investment in the US and Wisconsin, global market has changed, will review current situation, adjust in accordance to clients’ needs

North America

• (US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 2.25-2.50%; REMOVES REFERENCE TO GRADUAL RATE INCREASES
• (US) US White House said to prepare emergency wall plan – US Press

Europe

• (UK) PM May may offer cash injections in order to win support from Labour – Times
• (DE) Germany Finance Ministry Jan Report: 2018 tax Rev €713.8B, +5.8% y/y
• (UK) Jan Lloyds Business Barometer: 19 v 17 prior
• (UK) Jan GfK consumer Confidence: -14 v -15e
• (UK) CBI Small Business Survey: Export sentiment falling at fastest pace since financial crisis; overseas political and economic worries highest since survey started in 1988

Levels as of 12:50ET

• Hang Seng +1%; Shanghai Composite +0.4%; Kospi +0.3%; Nikkei225 +1%; ASX 200 -0.4%
• Equity Futures: S&P500 +0.1%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.1%
• EUR 1.1475-1.1508; JPY 108.74-109.08 . ; AUD 0.7235-0.7273 ;NZD 0.6885-0.6924
• Commodity Futures: Gold +0.7% at $1,319/oz; Crude Oil +0.7% at $54.59/brl; Copper +0.1% at $2.776/lb