Headlines/Economic Data
General Trend: Equities in China and Hong Kong outperform
Kospi supported by gains in chip sector
In Asia, S&P500 and Nasdaq Futures move between gains and losses
Nikkei pares opening gains
Shanghai Property Index rises over 3%, later pares gain
China PBoC said to ask banks to temporarily halt new loans after Jan New Yuan Loans hit record high
PBoC offers 1-year medium-term lending facility (MLF) ahead of Chinese Lunar New Year
USD/JPY declines as Japanese traders return from holiday
Japan Q4 Prelim GDP data due on Wednesday
Japan
Nikkei 225 opened +1.2%; closed -0.7% (was closed on Monday for holiday)
TOPIX Iron & Steel Index -1.2%
Pioneer [6773.JP] Declines over 9% after cutting FY forecast
Renesas Electronics [6723.JP] Declines over 2%, guided Q1 semiconductor sales lower q/q
Fujifilm [4901.JP]: Declines over 1% as activist Carl Icahn urged Xerox to vote against planned merger
Toyota Motor declines over 1% amid stronger yen
(JP) Japan Fin Min Aso: Trying to promote new type of tax free NISA program
(JP) Japan Jan PPI (CGPI) M/M: 0.3% v 0.3%e; Y/Y:2.7% v 2.7%e
(JP) Japan Econ Min Motegi: PM Abe stance on monetary policy must be maintained- answer when asked about Gov Kuroda being reappointed
(JP) Japan PM Abe: Undecided on next BoJ Gov
(JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates must maintain ‘powerful’ easing for economy, still distant to price target -speaking in parliament
Korea
Kospi opened +0.7%
Chip makers gain: Samsung Electronics and Hynix rise over 3%
Coway [021240.KR]: Declines over 6% after reporting FY earnings
Kangwon Land[035250.KR]: Declines over 1% as Q4 Op profit missed ests
(KR) South Korea Jan Export Price Index M/M:-0.4% v -1.5% prior; Y/Y: -3.5% v -2.0% prior; Import Price Index M/M: +0.7% v -0.7% prior; Y/Y:-2.4% v -0.9% prior
(KR) South Korea economist are worried about the fallout from a reversal ofcorporate tax rates and interest rates in Korea and the US; when the Fed raisesrates next time, it will create the first rate reversal between the twoeconomies in 11 years – Korean press
China/Hong Kong
Hang Seng opened +1.3%, Shanghai Composite +0.7%
Hang Seng Info Tech Index +3.5%, Materials +3%, Industrial Goods +2.8%, Consumer Goods +2.5%, Property/Construction +2.3%, Financials+2.3%, Services +2.3%
(CN) China PBOC has asked banks to defer new loans until after Feb 15th (start of Lunar New Year)
(CN) CHINA JAN NEW YUAN LOANS (CNY): 2.900T V2.050TE (fresh record high) after the closeyesterday
(CN) CHINA JAN M2 MONEY SUPPLY Y/Y: 8.6% V 8.2%E; M1 MONEY SUPPLY Y/Y: 15.0% V13.5%E after the close yesterday
(CN) CHINA JAN AGGREGATE FINANCING (CNY): 3.060T V 3.200TE afterthe close yesterday
USD/CNY (CN) PBOC SETS YUAN REFERENCERATE AT 6.3247 V 6.3001 PRIOR
(CN) CHINA PBOC LENDS CNY393B V CNY398B PRIOR IN 1-YR MEDIUM-TERM LENDINGFACILITY (MLF) AT RATE OF 3.25% V 3.25% PRIOR
(CN) PBoC: Skipped Open Market Operation (OMO) for 15th straight session
(CN) China Insurance Regulator (CIRC): Insurance firms offshore financingbalances backed by domestic guarantees cannot exceed 20% of net assets at endof prior quarter
Sunny Optical, 2382.HK Reports Jan handset lens setsshipments +19.6% y/y; Guides FY17 Net to rise more than 120% y/y
HNA unit HKICIM to sell Kai Tak sites to Henderson Land for HK$16.0B
Australia/New Zealand
ASX 200 opened +0.1%; closed +0.6%
ASX 200 Telecom Index +0.7%, Resources +0.8%, Financials +0.4%
(AU) RBA’s Assistant Gov Ellis: Retail competition to work against wage pressures, no reason yet to change full employment est from 5%
(AU) Australia Bureau of Agricultural and Resource (ABARES): Total area plantedto summer crops is estimated to have increased by 2% in 2017-18 to 1.3M hectares,-9% from Dec forecast
(AU) Australia sells A$150M v A$150M indicated in Nov 2027 indexed bonds, bidto cover 4.20x, avg yield 0.85333%
(AU) Australia Jan NAB Business Confidence: 12 v 10 prior; Conditions: 19 v 13prior
PilbaraMinerals (+10%), PLS.AU Reports Pilgangoora Project Pre-Feasibility Study results, DefinitiveFeasibility Study to complete by mid 2018
(NZ) New Zealand Government 6-Month FinancialStatements; Budget Surplus NZ$1.09B, +NZ$779M more than forecasted
Other Asia
(TW) Taiwan Final Q4 GDP due for release during European session
North America
US equity markets ended broadly higher: Dow +1.7%, S&P500 +1.4%, Nasdaq +1.6%,Russell 2000 +0.9%
S&P500 Materials +2%, Technology +1.8%
(US) White House released 2019 budget plan: seeks$1.7T of cuts to mandatory spending and receipts
AmerisourceBergen (ABC) Walgreens said to be in early stage talks to acquire the company – US financial press
GM GM Korea to shut down one of its factors; Confirms that it needs support from stakeholders to normalize its business in South Korea; to take charges of up to $850M
Wynn Resorts [WYNN]: Special Committee retains law firm Gibson, Dunn & Crutcher LLP and expands review
Looking Ahead: US Weekly API Crude Oil Inventories due later today
Europe
(UK) BOE’s McCafferty (dissenter): interest rates will have to rise gradually – press interview; UK economy is holding up relatively well,so rates will probably start rising sooner than previously thought
(SA) South Africa’s Zuma reportedly wants 3-month notice period before resigning – press; Reportedly Zuma was given 48 hours to resign
Michelin[ML.FR]: Reports FY17 Op Net €2.74 v €2.75Be, Rev €22.0B v €20.9By/y; Guides initial FY18 Recurring Op income higher y/y, FCF over €1.1B
Looking Ahead: UK Jan CPI data due later today, along with the IEA Monthly report
Levels as of 01:00ET
Nikkei225 -0.7%, Hang Seng +1.6%; Shanghai Composite +1.1%; ASX200 +0.6%, Kospi +0.7%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.2%,Dax -0.2%; FTSE100 -0.2%
EUR 1.2312-1.2284; JPY108.78-108.24; AUD 0.7874-0.7848;NZD 0.7272-0.7247
Apr Gold +0.2% at $1,328/oz; Mar Crude Oil +0.6% at $59.62/brl; Mar Copper +0.9% at $3.11/lb
