Headlines/Economic Data
General Trend: Asian equities open mostly higher ahead of expected tax vote by the US House
Japan
Nikkei 225 opened +0.3%; closed -0.2%
TOPIX Securities Index +1.2%, Information/Communications -0.4%
Fitch Affirms Ratings on Japanese Major Banks
(JP) According to Nikkei Bank of Japan (BOJ) is likely to keep monetary policy unchanged again in its final policy board meeting (Thursday); this would mark the first year with no policy change since Kuroda became gov in 2013
(JP) Japan Fin Min Aso: Want to watch before deciding on bitcoin regulation, has not been proven as a credible currency
(JP) Japan PM Abe: China has a big role to play in North Korea, want to take China ties to a new level; Want to have Japan/China/south Korea summit as soon as possible
(JP) Japan Cabinet Office (Govt) raises FY17/18 and FY18/19 GDP growth forecast citing improvement in domestic demand
Japan expected to start regular Diet session Jan 22nd – Sankei
Korea
Kospi opened +0.2%
Chipmakers trade higher, tracking gains in the US: Samsung Electronics +1%, Hynix+3.5%
Consumer Discretionary: Amorepacific -2.4%, LG Household -1.9%, Lotte Shopping -2.4%
(KR) SOUTH KOREA NOV PPI Y/Y: 3.1% V 3.5% PRIOR
(KR) South Korea calls on China to carry out its ongoing anti-dumping investigations into South Korean chemical products in a fair manner
(KR) South Korea President Moon advisor cancels meeting with largest firms – Korean press
Strong won is largest concern for South Korea exporters in 2018 – Korean press
097950.KR To raise KRW735.8B via private placement; -8%
China/Hong Kong
Hang Seng opened +0.5%, Shanghai Composite -0.1%
Hang Seng Information Technology Index +1.9%, Financials +0.9%
(CN) PBoC OMO: Injects CNY100B in 7,14 and 28-day reverse repos v CNY300B prior; Net injected CNY20B v CNY260B prior
(CN) PBoC sets yuan reference rate at 6.6098 v 6.6162 prior
(CN) China 2018 retail sales may be ~10% – China Securities Journal
Conglomerate HNA Group Seeking to sell $6.0B in foreign properties, including commercial properties in the US – US financial press
China City Construction: Confirmed that it failed to pay principal on medium-term note due on Dec 17th, 2017
China Putian Food Holdings [01699.HK]: Cancels CNY3B bond offering due to market fluctuations
Shandong Longlive [002604.CN] confirms that it had default in relation to asset management product – US financial press
Australia/New Zealand
ASX 200 opened +0.2%; closed +0.7%
ASX 200 Resources Index +1.4%, Energy +1%
(NZ) New Zealand Dec ANZ Activity Outlook: 15.6 v 6.5 prior; Business Confidence: -37.8 v -39.3 prior
(NZ) New Zealand Govt will not proceed with reforms to Dairy Act; planning strategic review of dairy industry
(AU) RESERVE BANK OF AUSTRALIA (RBA) DEC MINUTES: The low level of interest rates is continuing to support the Australian economy
-(NZ) NEW ZEALAND Q4 WESTPAC CONSUMER CONFIDENCE: 107.4 V 112.4 PRIOR
(NZ) Moody’s: New Zealand broad fiscal direction is unchanged
NZM.NZ New Zealand high court upholds regulator’s ruling that blocked NZME/Fairfax merger
ADO.AU Initiates Lithium-ion battery development project; +57%
SGH.AU Completes 100 to 1 share consolidation; -24%
RFG.AU Guides H1 Net ~A$22M v A$33.5M y/y; domestic franchise Rev lower than expected; -21%
Looking Ahead: New Zealand Q3 Current Account and Nov Trade Balance Data due on Wednesday
North America
US equities closed at record highs: Dow +0.6%, S&P500 +0.5%, Nasdaq +0.8%, Russell 2000 +1.2%
S&P 500 Materials +1.5%, Financials +1%; Utilities -1.1%
(US) Sen Collins (R-ME): I will vote for tax bill (** NOTE: Collins’ support gives GOP enough votes to pass tax bill in Senate this week even if Sen McCain remains in Arizona for cancer treatment)
(US) Fed’s Williams (2018 voter): two or three rate hikes likely in 2018, and three more in 2019 – press interview
(US) Fed’s Kashkari (dovish dissenter; non-voter in 2018): do not appear to be moving toward our inflation target; should not raise rates until we are more confident inflation will rise; Fed risks shortening the expansion by raising rates; Fed policy is very hawkish right now, depressing long-term yields; Too many Fed officials are using faith to hope inflation rises
M&A: McDermott [MDR] and CB&I [CBI] to combine in all-stock transaction valued at $6B; expected to be cash accretive, excluding one-time costs, within first year
(MX) S&P affirms Mexico Foreign Currency Sovereign Ratings, Lowers Local Currency Ratings On Revised Criteria; lowers short-term sovereign credit ratings to ‘A-/A-2’ from ‘A/A-1’; outlook stable
Looking Ahead: US House expected to vote on tax bill in the early afternoon on Tuesday (speculated around 1830 GMT); US Nov Building Permits and Housing Starts, along with Weekly API Crude Inventories due for release.
Europe
(UK) Prime Min May: European Court of Justice (ECJ) will have jurisdiction at the beginning of Brexit transition period
(PT) Portugal Fin Ministry announces €1B early IMF repayment – press
(CZ) Czech Central Bank’s Vice Gov Tomsik: Not considering tightening loan to value limits or other mortgage market recommendations currently
Looking Ahead: Germany Dec Ifo Survey due for release
Levels as of 01:00ET
Nikkei225 -0.2%, Hang Seng +0.9%; Shanghai Composite +0.6%; ASX200 +0.5%, Kospi -0.2%
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 -0.0%
EUR 1.1795-1.1776; JPY 112.67-112.54; AUD 0.7671-0.7656;NZD 0.7011-0.6985
Feb Gold +0.1% at $1,266/oz; Feb Crude Oil +0.3% at $57.37/brl; Mar Copper -0.7% at $3.12/lb
