Asian Indices Trade Mixed Amid Chinese Holiday And Focus On The Coronavirus

Jan 24 20, 07:05 GMT

General Trend:

Various service cancellations have been reported amid the impact of the coronavirus on Chinese Lunar New Year holiday travel; Beijing said to cancel large-scale Lunar New Year events, Huanxi Media [1003.HK] canceled a film premier which was scheduled to occur on the first day of the Lunar New Year
Macau Chief Executive Ho last-seng said the government may close all casinos after a second case of coronavirus reported in Macau; canceled Lunar New Year parade
Hang Seng index closed higher by 0.2% (half-day session), gaming stocks traded mixed
Japanese equity markets have traded generally flat; Declining sectors include insurance and securities brokers, real estate and Iron/Steel sectors rise
Gainers in Australia include financial and consumer companies, resources sector lags
Lunar New Year Holiday Schedule: China markets to be closed Jan 24-30th for Lunar New Year holiday, Hong Kong markets to be closed Jan 27-28th for Lunar New Year Holiday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
(AU) AUSTRALIA JAN PRELIMINARY PMI MANUFACTURING: 49.1 V 49.2 PRIOR
(AU) Analysts continue to revise RBA easing expectations after recently released Dec jobs data beat ests: Westpac now expects the RBA will delay its next rate cut until April 2020
(AU) Australia Resources Min Canavan: Considering a national gas reservation policy
(NZ) NEW ZEALAND Q4 CPI Q/Q: 0.5% V 0.4%E; Y/Y: 1.9% V 1.8%E
(NZ) New Zealand Q4 RBNZ Sectoral Factor Model Inflation Index y/y: 1.8% v 1.7% prior; Sectoral Factor Model Non-Tradable Core Y/Y: 2.8% v 2.7% prior

China/Hong Kong

Shanghai Composite closed for holiday, Hang Seng opened +0.1%
(CN) China Xinhua: Total coronavirus cases at 830 vs 639 prior; death toll now at 25 as of Jan 23; China is also said to have confirmed the first death outside of Hubei (central China), Hebei (northern China) officials confirmed an 80-year old man had died from the virus.
(CN) Follow Up: 10 cities in Hubei Province (China) have suspended some public transportation; Officials in Chibi and Xiantao (Hubei province) announced travel restrictions – Press
(CN) Hubei said to seek additional financial support from the China Central gov’t amid the coronavirus outbreak – financial press
(CN) China begins construction on hospital in Wuhan to deal with escalating coronavirus infection; hospital is scheduled to be completed in 6 days – China Press
World Health Organization (WHO) Emergency Coronavirus committee panel Chair: It is a bit too early to consider that this is a public health emergency of international concern
(US) US Commerce Sec Ross: new limits on US supply to Huawei is coming soon; US wants to end Huawei-prompted flouting of the law

Japan

Nikkei 225 opened +0.2%
(JP) JAPAN DEC NATIONAL CPI Y/Y: 0.8% V 0.7%E; CPI EX FRESH FOOD (CORE) Y/Y: 0.7% v 0.7%e (highest reading since May 2019)
(JP) JAPAN JAN PRELIMINARY PMI MANUFACTURING: 49.3 V 48.4 PRIOR (9th consecutive contraction); Services PMI: 52.1 v 49.4 prior
(JP) Bank of Japan (BOJ) Dec minutes (two meetings ago): Households short term inflation expectations have declined since Oct due to consumption tax hike

South Korea

Other Asia

North America

(US) US President Trump says additional action needed to prevent foreign producers from circumventing tariff rate quotas on large residential washers
(US) SEMI Dec North America-based Manufacturers of semi equipment Billings: $2.49B, +17.5% m/m and +17.8% y/y (highest level since June 2018)

Europe

(UK) UK said to seek first post Brexit trade deal with Japan – UK Press
(UK) Incoming Bank of England (BOE) Gov Bailey: UK is ill-prepared for asset price falls -UK press
(TR) Turkey Fin MIn: Lira ‘looks competitive’ at 5.7-5.9 against the USD [currently at ~5.9328] – Japanese press

Levels as of 00:20 ET

Nikkei 225, +0.1%, ASX 200 +0.1%, Hang Seng +0.2% (half-day session); Shanghai Composite closed; Kospi closed
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 +0.1%
EUR 1.1059-1.1050 ; JPY 109.58-109.43 ; AUD 0.6852-0.6837 ;NZD 0.6624-0.6599
Gold -0.4% at $1,559/oz; Crude Oil +0.5% at $55.84/brl; Copper -0.3% at $2.726/lb