Headlines/Economic Data
General Trend: Asian equity markets trade generally higher, despite declines in the US (*reminder: NYSE was closed on Monday for holiday)
Taiwan’s Taiex opens over 1% higher in catch-up rally after return from Lunar New Year break
Equity markets later pare gains
Australian commodity related companies decline after earnings reports (BHP, Fortescue, Santos)
Australia sells 10-year bonds at higher yield and lower bidto cover
Thailand reports 2nd straight customs trade deficit in Jan amid higher imports
Shanghai Composite resumes from Lunar Year Break on Thursday
Aussie and Australia bond yields unable to hold onto gains post wage price data
US Dollar (USD) trades generally firmer ahead of FOMC Minutes
Japan
Nikkei 225 opened +0.1%; closed +0.2%
Topix Electric Appliances Index +0.7%, Iron & Steel +0.6%; Securities -1.2%
Mega-banks trade generally lower
(JP) Japan reportedlyconsidering raising ¥2,000 ($19) casino entry fee – Japanese press
(JP) Japan Currency Head Asakawa: Reiterates yenmoves are one sided
(JP) Japan Feb prelim PMI Manufacturing: 54.0 v 54.8 prior
(JP) Japan PM Abe seeking more stimulus to support economy beyond Olympics, he raised thetopic at a meeting of the Council on Economic and Fiscal Policy –
Nikkei.Abe is preparing another round of economic stimulus to offset downward pressure following the consumption tax hike scheduled for October 2019 and the Olympics in 2020.
(JP) BoJ Funo: Takes time to improve productivity; no need to be pessimistic onJapan’s economy
Coca-Cola Bottlers Japan, 2579.JP Ricoh to sell stake in Coca-Cola Bottlers back to the company for ¥55.9B(~9.2% stake)
(JP) Japan Dec All Industry Activity Index M/M: 0.5% v 0.4%e
Korea
Kospi opened +0.1%
Automakers trade generally higher: GM said to be willing to invest $2.8B in Korean unit
(KR) Bank of Korea (BOK) Gov Lee: US tradeprotectionism is stronger than expected; prepared for faster than expected USrate hikes
(KR) South Korea Jan PPI M/M: 0.4% v 0.1% prior; Y/Y: 1.2% v 2.3% prior
(KR) South Korea Feb first 20-days Exports -3.9% y/y; Imports +13.6% y/y
(KR) North Korea officials have cancelled planned meeting with US VP Pence
GM South Korea Gov’t Official: GMwilling to make $2.8B investment in South Korea unit in the next 10 years
China/Hong Kong
Hang Seng opened +0.6%, Shanghai Composite closed for holiday
Hang Seng Energy Index +1.5%, Financials +1.3%, Info Tech+1.2%
Australia/New Zealand
ASX 200 opened -0.3%; closed 0.0%
ASX 200 Consumer Discretionary Index +0.9%, Financials flat; Resources -2%, Telecom -1%
BHP [BHP.AU]: Declines over 4% after H1 results
Fortescue [-4%], FMG.AU Reports H1 (A$) Net 681M v 667Me; adj EBITDA 1.83b v 1.8Be; Rev 3.68B v3.7Be
SevenGroup [+12.4], SVW.AU Reports H1 (A$) underlying net 159.8M v 88.3M y/y; EBIT 223.5M v 157.9My/y; Rev 1.40B v 1.6Be
(AU) Australia Jan Westpac Leading Index M/M:-0.2% v +0.2% prior
(AU) Australia sells A$600M v A$600M indicated in 2.75% Nov 2028 bonds, avgyield 2.9052% v 2.8862% prior, bid to cover 4.50x v 5.43x prior
(NZ) New Zealand Analysis on CPTPP: Economy may benefit from CPTPP by NZ$1.2B/yr
(AU) AUSTRALIA Q4 CONSTRUCTION WORK DONE Q/Q: -19.4% V -10.0%E
(AU) AUSTRALIA Q4 WAGE PRICE INDEX Q/Q: 0.6% V 0.5%E; Y/Y: 2.1% V 2.0%E
(NZ) Incoming RBNZ Gov Orr: Comfortable with planned reforms for the RBNZ;clear communication is critically important
(AU) IMF on Australia: Sees 2018 GDP at 2.9%; 2019 3.1% – Article IV Consultation
North America
US equity markets ended lower: Dow -1%, S&P500 -0.6%, Nasdaq -0.1%, Russell 2000-0.9%
S&P500 Consumer Staples -2.3%, Utilities -1.3%
WMT Walmart.com CEO Marc Lore saidto be preparing to leave Walmart – NY Post
(US) TREASURY SELLS $28B IN 2-YEAR NOTE AUCTION;DRAWS 2.255%; BID-TO-COVER RATIO: 2.72 V 3.22 PRIOR AND 2.86 AVG OVER THE LAST 12 (highest yield since Aug 2008)
(US) Treasury $55B 4-week bills draw 1.380%, BTC 2.48 (lowest BTC since July 2008)
Looking Ahead: US FOMC Meeting Minutes and Jan Existing Home Sales to be released , along with Weekly API Crude Oil Inventories
Europe
(EU) EURO ZONE FEB ADVANCE CONSUMER CONFIDENCE:0.1 V 1.0E
Looking Ahead: Euro Zone, France and Germany Feb Prelim Services and Manufacturing PMIs due for release
UK Dec Avg Earnings and Unemployment Rate data to be released, along with Jan Claimant Count Change
Levels as of 01:00ET
Nikkei225 +0.2%, Hang Seng +1.1%; Shanghai Composite closed for holiday; ASX200 0.0%, Kospi +0.6%
Equity Futures: S&P500 -0.1%; Nasdaq 100 +0.8%,Dax -0.1%; FTSE100 +0.1%
EUR 1.2344-1.2317; JPY107.90-107.28; AUD 0.7901-0.7848;NZD 0.7355-0.7326
Apr Gold -0.2% at $1,329/oz; Apr Crude Oil -1.0% at $61.16/brl; Mar Copper -0.4% at $3.18/lb
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