General Trend:
- Nikkei Futures underperform amid holiday in Japan, Yen strength and Iran news; Japan said to consider law that would restrict certain technology imports from China (US financial press)
- Shanghai Composite and Hang Seng reverse opening gains on Iran news
- Kweichow Moutai extends losses in China after recently disclosed financial results and guidance
- Equities rise in Australia led by Energy sector
- Australian and South Korean government bond yields decline on geopolitical concerns
- Korean Won (KRW) declines amid the geopolitical concerns related to North Korea and Iran
- US ISM Manufacturing data due later on Friday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.7%
- (AU) Australia PM Morrison: Inclined to cancel visit to India later in Jan due to bushfire ‘crisis’ in Australia
- (AU) Insurance Council of Australia: Notes ~5.26K claims related to bushfires in Australia
China/Hong Kong
- Shanghai Composite opened +0.1%, Hang Seng +1%
- Beijing-Shanghai High-Speed Railway prices A-share IPO at CNY4.88/share, to raise a total of CNY30.7B
- (CN) China PBoC said to believe that policy easing remains on track despite higher inflation; Maintains annual CPI target at ~3% for 2020
- (CN) PBOC official says the RRR in China is still relatively high by global standards, can be adjusted further – financial press
- (CN) China PBOC expected to conduct MLF and Reverse Repo in Jan, the operations could help deal with possible liquidity squeeze amid the approaching Lunar New Year Holiday [begins on Jan 25th] – China Press
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repos for the 9th consecutive session; Net drain CNY150B v drain CNY400B prior
- (CN) China PBOC sets Yuan Reference Rate: 6.9681 v 6.9614 prior
Japan
- Nikkei closed for holiday
- (CN) Japan said to consider law that would restrict certain technology imports from China – US financial press
Korea
- Kospi opened +0.8%
- (KR) North Korea state media warns of ‘immediate and powerful strikes’ against threats; North Korea’s official newspaper is said to have noted that any attempt to infringe on the state’s dignity and survival should be met by an ‘immediate and powerful’ strike – South Korea Press
Other Asia
- (IN) India is planning to place curbs on the imports of over 370 non-essential products, effective by March 2020; the move is partially seen by some as an attempt to limit imports of these goods from China – Local press
- (MA) Malaysia Nov Trade Balance (MYR) 6.5B v 13.0Be; Exports to China +4.1% y/y
Europe
- (IR) Media speculation that US airstrikes in Iraq have killed a commander of Iran supported Islamic Revolutionary Guard Corps; Iranian State Media and US official later both confirm that Soleimani has been killed
- (IR) Iran Supreme Leader Khamenei: ‘Severe retaliation’ await those who killed Iranian Commander Qassim Soleimani
- (IR) Iran Revolutionary Guard Corps officer said Iran will take ‘revenge’ on US for Soleimani
- (IR) Iran National Security Council expected to hold emergency meeting – press
- (UK) Dec BRC Shop Price Index: Y/Y -0.4% v -0.5%e
North America
- Tesla [TSLA]: Said to confirm starting price cut of 16% related to China-made Model 3 amid subsidy, the price of the vehicle has been reduced to ~CNY299.1K [after subsidies] – US financial press
Levels as of 00:20 ET
- Nikkei 225, closed, ASX 200 +0.6%, Hang Seng -0.3%; Shanghai Composite -0.2%; Kospi -0.1%
- Equity Futures: S&P500 -0.8%; Nasdaq100 -0.8%, Dax -1%; FTSE100 -0.6%
- EUR 1.1179-1.1168 ; JPY 108.63-107.99 ; AUD 0.7022-0.6962 ;NZD 0.6706-0.6670
- Gold +0.9% at $1,541/oz; Crude Oil +2.9% at $62.99/brl; Copper -0.5% at $2.809/lb
