Headlines/Economic Data
General Trend:
Fairly quiet Asian trading session for the FX majors post FOMC statement
Markets looking ahead to Apple’s earnings release on Thursday
Japan
Nikkei 225 opened +0.8%; closed +1.7%
TOPIX Iron & Steel Index gains over 2%, Securities higher by more than 1.5%
Mega-banks gain after reporting 9-month results and affirming outlooks: Sumitomo Mitsui higher by over 3%, Mizuho Financial gains more than 2%
Fujifilm [4901.JP]: Gains over 12% after confirming merger with Xerox
Fujitsu [6702.JP]: Declines over 9% as 9-month Op profit declined y/y
Nippon Steel [5401.JP]: Reports 9M Net ¥156.1B v ¥59.4B y/y; Op ¥138.0B v ¥62.2B y/y; Rev ¥4.16T v ¥3.33T y/y; Raises guidance for FY17/18 Net ¥180B v ¥170B prior
(JP) Japan Jan Final Manufacturing PMI: 54.8 v 54.4 prelim (highest since Feb 2014)
(JP) Japan MoF sells ¥2.3T v ¥2.3T indicated in 0.1% (prior 0.1%) 10-yr JGB; avg yield 0.088% v 0.078% prior; bid to cover 4.58x v 3.74x prior
Korea
Kospi opened +0.5%
Celltrion [068270.KR]: Declines over 2% after receiving US FDA warning letter
(KR) SOUTH KOREA JAN CPI M/M: 0.4% V 0.7%E; Y/Y: 1.0% V 1.3%E, CPI Core Y/Y: 1.1% v 1.5%e
(KR) SOUTH KOREA JAN TRADE BALANCE: $3.72B V $4.0BE
(KR) South Korea Major department stores have put a large number of delivery workers on standby for the Lunar New Year holiday, expecting stronger sales after adjustments to an anti-corruption law – Korean press
China/Hong Kong
Hang Seng opened +0.2%, Shanghai Composite -0.1%
Hang Seng Services Index -1.2%, Consumer Goods -0.8%
ZTE Corp [0763.HK]: Has dropped over 9% after announcing planned share sale
Lenovo, 992.HK Reports Q3 Net loss $288.8M v profit $125Me; Rev $12.9B v $12.5Be
(HK) Macau Jan Gaming Rev MOP26.3B, +36.4% v 27%e (largest gain since 2014)
USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.3045 v 6.3339 PRIOR
(CN) China PBoC: Skips OMO (6th straight session) v skipped prior
USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.3045 v 6.3339 PRIOR
(CN) CHINA JAN CAIXIN MANUFACTURING PMI: 51.5 V 51.5 PRIOR
(CN) China Commerce Ministry (MOFCOM): Reiterates hopes US does not politicize trade issues, still views US as ‘partner’ in trade
(CN) China 2017 gold consumption 1,089 tonnes, +9.4% y/y; production 426.1 tonnes, -6.0% y/y-
Australia/New Zealand
ASX 200 opened +0.5%; closed %
ASX 200 Consumer Discretionary Index +1.4%, Financials +1.1% Resources +1.1%, Energy +1.2%, Utilities +0.9%
(AU) Australia Treasurer Morrison: To tighten rules for key energy infrastructure and farmland M&A
(AU) AUSTRALIA DEC BUILDING APPROVALS M/M: -20.0% V -7.6%E; Y/Y: -5.5% V 11.5%E
(AU) AUSTRALIA Q4 EXPORT PRICE INDEX Q/Q: 2.8% V 2.0%E; IMPORT PRICE INDEX Q/Q: 2.0% V 1.5%E
Other Asia
(TW) Taiwan names current Deputy Gov Yang Chin-Long as new Central Bank Gov [**Note: Current Gov Perng has been Gov of the central bank since Feb 1998]
(ID) Indonesia Jan CPI m/m: 0.6% v 0.7%e; y/y: 3.3% v 3.3%e; Core y/y: 2.7% v 2.8%e (core CPI at multi-year low)
North America
US equity markets ended mostly higher: Dow +0.3%, S&P500 +0.1%, Nasdaq +0.1%, Russell 2000 -0.5%
S&P500 Real Estate sector +2.1%, Utilities +1.1%
PayPal [PYPL] declines over 11% in the afterhours: eBay said that Adyen will become its primary payments processing partner, replacing PayPal (timing uncertain)
eBay [EBAY]: Gains more than 8% in afterhours: Q4 $0.59 v $0.59e, Rev $2.60B v $2.61Be; Guides Q1 $0.52-0.54 v $0.51e; Rev $2.57-2.61B v $2.39Be
AT&T [T]: Higher by over 2.5% in the afterhours: Reports Q4 $0.78 adj v $0.66e, Rev $42B v $41.2Be; Guides initial FY18 $3.50 v $3.08e,
US Steel [X]: Gains over 2% in the afterhours: Reports Q4 $0.76 v $0.68e, Rev $3.13B v $3.07Be; Guides initial FY18 ~$3.88 v $3.28e
(US) FOMC HOLDS TARGET RATE RANGE AT 1.25-1.50% (AS EXPECTED); Vote was unanimous; Inflation to rise this year, stabilize around 2% in medium term
(US) Former Fed Chair Greenspan: We have stock market and bond market bubbles – TV interview
(US) DOE CRUDE: +6.8M V +2ME
Looking Ahead: Apple due to report quarterly results after the US equity close on Thursday; US Jan ISM Manufacturing PMI due for release
Europe
(UK) China Commerce Ministry: To sign £9B worth of deals with the UK when PMc May visits China
(EU) EU said to be considering a tax blacklist on UK post Brexit
(EU) ECB’s Coeure (France): Currency war is always a losing proposition – press interview
(EU) European Banking Authority (EBA) released macroeconomic scenarios related to 2018 EU-wide stress test; The adverse scenario encompasses a wide range of macroeconomic risks that could be associated with Brexit.
(IT) Forza Italia party denies reports about Berlusconi’s ill health; A report earlier this week said Berlusconi, age 81, was ordered by his doctor to stop campaigning and rest for at least 48 hours.
Levels as of 01:00ET
Nikkei225 +1.7%, Hang Seng -0.3%; Shanghai Composite -1.1%; ASX200 +0.9%, Kospi +0.3%
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.3%, Dax +0.3%; FTSE100 +0.3%
EUR 1.2429-1.2406; JPY 109.41-109.09; AUD 0.8063-0.8035;NZD 0.7381-0.7352
Apr Gold +0.4% at $1,347/oz; Mar Crude Oil +0.3% at $64.89/brl; Mar Copper +0.1% at $3.20/lb
