Headlines/Economic Data
General Trend: Nikkei and Australian equities decline following gains on Monday’s session
HSBC FY17 Adj Revenues rise 5% y/y primarily driven by higher revenue in 3 main global businesses; To issue up to $7.0B in Tier 1 capital
Indian banks continue to detail exposures related to billionaire jeweler Nirav Modi amid fraudulent transactions at Punjab National Bank
India Bank index declines by over 1%, Rupee drops
Japan
Nikkei 225 opened -0.4%; closed -1.0%
Topix Electric Appliances Index -1.5%, Real Estate -1.4%, Securities -1.1%
Large banks decline
Automakers trade generally lower and reverse gains from Monday’s session
(JP) Japan Econ Min Motegi: Japan will soon be out of deflationary situation
(JP) Japan FSA has urged local banks to review foreign bond management – Asahi
(JP) Japan Fin Min Aso: Expect BOJ to keep working with govt to beat deflation;reaching 2% inflation is a way to prove Japan has beat deflation
(JP) Japan corporate poll shows that a little over 50% of Japanese companies do not plan to raise base pay this year
7211.JP Mitsubishi confirms considering raising stake in Mitsubishi Motors, no decision has been made yet
Looking Ahead: Japan prelim Feb Manufacturing PMI due for release on Wed
Korea
Kospi opened -0.4%
Samsung, [-1.7%],005930.KR To cut OLED panel productionby 60% amid slow iPhone X sales – Nikkei
(KR) South Korea PM Lee Nak-yon: GM Korea decided to shut down its Gunsan plantand the US Trump administration is putting together measures restricting steelimports; pushing us into a difficult situation – Korean press
(KR) Economists note a failure to properly respond to currency fluctuationscould lead to sparking foreign capital flight or dampening exports from SouthKorea – Korean press
GM Korea union demanding debt for equity swap and a new production model; said to have offered ~$2.2B debt for equity swap for Korean operations
(KR) South Korea to allow non-financial firms to currency trade, starting in March – Korean press
(KR) South Korea Fin Min Kim reiterates market decides FX rate and to take steps on Won (KRW) if needed – South Korean Press
China/Hong Kong
Hang Seng opened %, Shanghai Composite closed for holiday
Hang Seng Financials Index -1.4% (HSBC declines after earnings report)
Alibaba Pictures [+7%], 1060.HK, strength attributed to strong Lunar New year box office
Rusal [486.HK]: Declines over 3% as the company denied any plan to change CEO
(CN)China Housing Ministry: Will interfere if local property curbs go against China’s policy direction – press
HSBC, HSBA.UK Reports FY17 Adj pretax $20.99B v $19.3B y/y, Adj Rev $51.5B v $50.2B y/y; To issue $5.0-7.0B in tier 1 capital in H1
Australia/New Zealand
ASX 200 opened -0.2%; closed flat
ASX 200 Resources Index -0.8%, Telecom -0.6%, Financials -0.4%
Telecom Vocus Communications [VOC.AU] declines over 10% after cutting dividend and outlook
BHP [BHP.AU] declines ahead of earnings report
(NZ) New Zealand Q4 PPI Input Q/Q: 0.9% v 1.1% prior; PPI Output Q/Q: 1.0% v 1.0%prior
(AU) RBA Assistant Gov Bullock: Mortgage stress in Australia is stillrelatively low; Banking system is strong and well capitalized, supportedby prudent lending standards
(AU) RESERVE BANK OF AUSTRALIA (RBA) FEB MINUTES:Low rates helping to reduce unemployment and lift inflation
NAB.AU Said to be getting ready to layoff the first 1.0K roles under the A$1.0B cost cutting initiative last year
Looking Ahead: Australia Q4 wage price index due for release on Wednesday
Other Asia
(SG) Singapore Fin Min:Planning 2ppt raise to GST from 2021-20215 taking the rate to 9% in order tosupport aging society
(SG) Singapore Minister: Property tax isnt about cooling the market, we are competitive despite higher tax
North America
Mosaic [MOS] Reports Q4 $0.34* v $0.27e,Rev $2.1B v $1.89Be
NXP Semiconductors [NXPI]: Qualcomm said to be working on deal price for NXP, said to be in low $120/shr – CNBC
Johnson & Johnson [JNJ]: Said to be exploring the sale of $2B product sterilization unit – press
Looking Ahead: Wal-Mart due to report earnings during NY morning
Europe
(UK) PM May said to have a contingency plan to withhold payments of the £40B Brexit bill if EU leaders backtrack on their post-Brexit free trade deal commitments – financial press
(UK) According to letter seen last week, Netherlands government to ‘activate hard Brexit’ plan amid lack of clarity from the UK –Sky News
(UK) BOE Gov Carney: Brexit is what moves the GBP, not speculation about any future trade deal with the US; Bitcoin has pretty much failed as a store of value or medium of exchange
Looking Ahead: Germany Feb ZEW data due for release
Levels as of 01:00ET
Nikkei225 -1.0%, Hang Seng -0.4%; Shanghai Composite closed for holiday; ASX200 -0.0%, Kospi -1.2%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 +0.0%
EUR 1.2412-1.2379; JPY106.86-106.56; AUD 0.7933-0.7889;NZD 0.7374-0.7348
Apr Gold -0.9% at $1,343/oz; Apr Crude Oil +1.1% at $62.20/brl; Mar Copper -0.5% at $3.19/lb
