General Trend:
- Interest rate sensitive sectors (property and financials) in Shanghai underperform
- Gaming firms trade broadly lower in HK despite the resumption of certain casinos in Macau; Sands China is expected to report earnings later today
- Kospi declines as South Korea continues to report additional coronavirus cases
- Consumer and Telecom firms are among the decliners in Australia, Financials outperform
- Sectors moving lower in Japan include Marine/Transportation and Electric Appliances
- Softbank Group rises after Sprint unit and T-Mobile confirmed the amendment to merger agreement
- BOJ Gov Kuroda: Ready to act, but don’t believe it’s needed now
- Japan Econ Min: Weak yen is a reflection of strong US economy
- China Commerce Ministry Official: Sees China Jan-Feb trade growth to slow sharply; Expresses cautious optimism about 2020 trade outlook.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) AUSTRALIA FEB PRELIMINARY CBA PMI MANUFACTURING: 49.8 V 49.6 PRIOR (4th consecutive contraction)
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Reiterates in favorable position with cash rate at 1%; Record low global rates are a challenge
- ING.AU Reports H1 (A$) underlying Net 42.0M v 55.4M y/y; underlying EBITDA 91.7M v 109.6M y/y; Rev 1.30B v 1.26B y/y
Japan
- Nikkei 225 opened -0.2%
- (JP) JAPAN FEB PRELIMINARY PMI MANUFACTURING: 47.6 V 48.8 PRIOR (10th consecutive contraction); PMI Services: 46.7 v 51.0 prior (lowest reading since April 2014)
- (JP) JAPAN JAN NATIONAL CPI Y/Y: 0.7% V 0.7%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.8% V 0.8%E
- (JP) Japan Econ Min Nishimura: Weak yen is a reflection of strong US economy
- (JP) Yen (JPY) loses safe-haven allure amid questions about policies in Japan – Nikkei
- 2503.JP ACCC will not oppose the proposed acquisition of Lion Dairy & Drinks by China Mengniu Dairy Company
- (JP) Japan Fin Min Aso: Will discuss global economy and digital currencies at G20, expects coronavirus impact to be discussed as well; No comment on FX moves
Korea
- Kospi opened -1.3%
- (KR) South Korea continues to have new coronavirus cases, Govt to hold special meeting on the virus
- 000660.KR Notes 800 of its workers are self-quarantined at South Korea headquarters after trainee had contact with a virus patient; said factory operations are not being impacted
- (KR) South Korea Feb 1-20 Exports y/y: 12.4% v -0.2% prior; Imports y/y: 4.7% v 3.0% prior; Chip exports y/y: +15.4% v +8.7% prior
China/Hong Kong
- Hang Seng opened -0.6%; Shanghai Composite opened -0.3%
- (CN) CHINA JAN M2 MONEY SUPPLY Y/Y: 8.4% V 8.6%E
- (CN) CHINA JAN NEW YUAN LOANS (CNY): 3.340T V 3.100TE
- (CN) CHINA JAN AGGREGATE FINANCING (CNY): 5.070T V 4.200TE
- (CN) China Vice Technology Min Xu: The fastest that coronavirus vaccine to be submitted for clinical trials will be around late April; to conduct larger chloroquine phosphate (anti-malaria treatment) trials for coronavirus
- (CN) China Hubei province coronavirus update for Feb 20th: 411 additional cases v 349 prior, Additional deaths 115 v 108 prior
- (CN) Follow Up: Hubei has revised its Feb 20th new cases of the coronavirus to 631 v 411 prior; cites the addition of 220 cases related to prisoners
- (CN) Hubei Province to keep businesses closed until March 10th (3rd extension)
- (CN) China banks have extended over CNY740B in credit support related to dealing with the impact of the coronavirus – Xinhua
- (CN) China National Health Commission Coronavirus Update for Feb 20th: 889 additional cases v 394 prior; Additional death 118 v 114 prior
- (CN) China PBOC sets Yuan Reference Rate: 7.0210 v 7.0026 prior (weakest fix since Dec 12)
- (CN) China PBoC Open Market Operation (OMO): Skips reverse repo operations for the 4th consecutive time, Net CNY0B v drains CNY0B prior
Other Asia
- (ID) China said to delay $5.0B investment in Indonesia Sulawesi, cites coronavirus outbreak – Local press
- (MY) Malaysia Jan CPI Y/Y: 1.6% v 1.7%e
- UOB.SG Reports Q4 (S$ ) Net 1.0B v 1.0Be; NII 1.64B v 1.61B y/y; declares special dividend of S$0.20/shr
North America
- (US) SEMI Jan North America-based Manufacturers of Semi equipment Billings: $2.34B, -5.9% m/m and +22.9% y/y
- FSLR Reports Q4 $1.48 adj v $2.87e, Rev $1.40B v $1.76Be
- TSLA Consumer Reports puts Model 3 on ‘top pick’ list for the first time, names it highest ranked US auto brand – press
Levels as of 00:20 ET
- Nikkei 225, -0.1%, ASX 200 -0.3%, Hang Seng -0.9%; Shanghai Composite +0.8%; Kospi -1.1%
- Equity Futures: S&P500 -0.4%; Nasdaq100 -0.5%, Dax -0.2%; FTSE100 -0.3%
- EUR 1.0793-1.0783 ; JPY 112.18-111.92 ; AUD 0.6625-0.6590 ;NZD 0.6344-0.6307
- Gold +0.4% at $1,627/oz; Crude Oil -0.5% at $53.61/brl; Copper flat at $2.591/lb
