Asian Equities Trade Mostly Higher, US Equity FUTs Extend Gains, 30-Yr Treasury FUTs Continued To Decline

Feb 08 21, 06:23 GMT

General Trend

Asian equities opened mostly higher after gains in the US on Fri; Markets have generally remained in positive territory; Australia, China and Japan have extended gains, HK pares advance; Nikkei has outperformed amid the focus on earnings (Nippon Steel, Kobe Steel, NTT, Softbank); Kospi lags on the Kia/Apple news; Financials trade generally higher as 10-year UST yields rise; Tech firms also trade mostly higher
Resources and Consumer Discretionary indices rise over 1% in Australia
Besides Tech, Consumer Discretionary and Industrial firms also outperform in Shanghai
Small gain seen in USD Index FUTs after loss on Fri.
Kia and Hyundai deny they are in talks to make the Apple electric car, but note they have had interest in partnerships for EV and autonomous
AstraZeneca COVID vaccine not found to work against South Africa variant
Glove makers in the region decline as COVID cases start to slow
UK considering a tax on companies that profiting on COVID
Japan companies expected to report earnings include Softbank Group, Isuzu, Orix Corp, Sumitomo Metal Mining, Kansai Paint, Japan Petroleum Exploration, Harmonic Drive Systems
Companies expected to report during the NY morning include Energizer, Global Payments, Hasbro

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.3%
(AU) China to unload some Australia stranded coal, Coal import ban remains in place
VOC.AU Confirms received offer from Mira at A$5.50/shr, A$3.42B, granted due diligence
(AU) Australia sells A$500M v A$500M indicated in 4.50% April 2033 bonds, avg yield: 1.3503%, bid to cover 4.87x

Japan

Nikkei 225 opened +0.2%
9984.JP Total dividend from Softbank Group Capital $4.0B, as dividend become payable, expect to record total dividends from subsidiaries and associates of ¥420B for FY20/21, no impact on consolidated results
(JP) Japan considering lifting COVID state of emergency in some areas, based on the law that takes effect Feb 13th allowing for fines against social distancing violators – Nikkei
(JP) Japan Chief Cabinet Sec Kato: No comment on current equity prices, we are closely watching market moves
Japan MoF sells ¥200B v ¥200B indicated in 0.20% 10-year inflation-linked JGBs: bid to cover: 3.07x v 3.31x prior

Korea

Kospi opened -0.2%
000270.KR No cooperation talks with Apple on electric vehicles (EV) ongoing
005380.KR No cooperation agreements on EVs happening, have requests from multiple companies to co-develop autonomous, electric cars
(KR) Bank of Korea (BOK) sells KRW840B v KRW700B indicated in 1-year Monetary Stabilization Bonds (MSB); avg yield 0.670% v 0.710% prior

China/Hong Kong

Hang Seng opened +1.2%; Shanghai Composite opened +0.2%
(CN) CHINA JAN FOREIGN RESERVES: $3.211B V $3.222TE; Gold reserves: $116.8B v $118.3B m/m; Gold reserves in Troy oz: 62.64M troy oz v 62.64M prior
(CN) Beijing, China to launch test related to digital currency over the Lunar New Year holiday – China Daily
(CN) China PBOC Open Market Operation (OMO): Injects CNY110B in 7-day reverse repos v CNY100B in 14-day reverse repos prior; Net Inject CNY10B v Net CNY0B prior
(CN) China PBOC sets Yuan reference rate: 6.4678 v 6.4710 prior
(CN) China PBOC Statement: sees less cash withdrawal needs ahead of Lunar New Year
(CN) China finalized anti-monopoly rules related to tech companies, market regulator (SAMR) released new anti-monopoly guidelines for internet platforms – financial press
1177.HK China’s National Medical Products Administration of the People’s Republic of China (NMPA) conditionally approves CoronaVac
(CN) China Finance Ministry and NDRC have asked local governments for their special funding needs submissions by Feb 21st ; 2021 new special bond issuance by local governments may total > CNY3.0T- Chinese press

Other

North America

(US) White House expected to propose a $3,600/month payment per child under age of 6 ($3,000 per child for ages 6 to 17) tomorrow; this is an expansion of the existing $2,000 Child Tax Credit – press

Europe

DLG.DE Confirms in advanced talks with Reneasas Electronics, Renesas may make an all cash offer of €67.50/shr, though no deal is certain
(EU) ECB chief Lagarde: Financing conditions have never been so attractive; Need a soft exit from stimulus once crisis allows
AZN.UK According to randomized, double blind study AstraZeneca/Oxford COVID vaccine does not protect against South Africa variant – FT

Levels as of 12:15ET

Hang Seng +0.3%; Shanghai Composite +1.0%; Kospi -0.5%; Nikkei225 +2.0%; ASX 200 +0.6%
Equity Futures: S&P500 +0.4%; Nasdaq100 +0.6%, Dax +0.7%; FTSE100 +0.4%
EUR 1.2055-1.2029; JPY 105.55-105.33; AUD 0.7682-0.7667; NZD 0.7214-0.7190
Commodity Futures: Gold 0.0% at $1,812/oz; Crude Oil +1.0% at $57.42/brl; Copper -0.3% at $3.62/lb