HomeContributorsFundamental AnalysisMarket Update - Asian Session: USD Slightly Stronger Around The Globe

Market Update – Asian Session: USD Slightly Stronger Around The Globe

Headlines/Economic Data

General Trend: Nikkei and Australian equities decline following gains on Monday’s session

HSBC FY17 Adj Revenues rise 5% y/y primarily driven by higher revenue in 3 main global businesses; To issue up to $7.0B in Tier 1 capital

Indian banks continue to detail exposures related to billionaire jeweler Nirav Modi amid fraudulent transactions at Punjab National Bank

India Bank index declines by over 1%, Rupee drops

Japan

Nikkei 225 opened -0.4%; closed -1.0%

Topix Electric Appliances Index -1.5%, Real Estate -1.4%, Securities -1.1%

Large banks decline

Automakers trade generally lower and reverse gains from Monday’s session

(JP) Japan Econ Min Motegi: Japan will soon be out of deflationary situation

(JP) Japan FSA has urged local banks to review foreign bond management – Asahi

(JP) Japan Fin Min Aso: Expect BOJ to keep working with govt to beat deflation;reaching 2% inflation is a way to prove Japan has beat deflation

(JP) Japan corporate poll shows that a little over 50% of Japanese companies do not plan to raise base pay this year

7211.JP Mitsubishi confirms considering raising stake in Mitsubishi Motors, no decision has been made yet

Looking Ahead: Japan prelim Feb Manufacturing PMI due for release on Wed

Korea

Kospi opened -0.4%

Samsung, [-1.7%],005930.KR To cut OLED panel productionby 60% amid slow iPhone X sales – Nikkei

(KR) South Korea PM Lee Nak-yon: GM Korea decided to shut down its Gunsan plantand the US Trump administration is putting together measures restricting steelimports; pushing us into a difficult situation – Korean press

(KR) Economists note a failure to properly respond to currency fluctuationscould lead to sparking foreign capital flight or dampening exports from SouthKorea – Korean press

GM Korea union demanding debt for equity swap and a new production model; said to have offered ~$2.2B debt for equity swap for Korean operations

(KR) South Korea to allow non-financial firms to currency trade, starting in March – Korean press

(KR) South Korea Fin Min Kim reiterates market decides FX rate and to take steps on Won (KRW) if needed – South Korean Press

China/Hong Kong

Hang Seng opened %, Shanghai Composite closed for holiday

Hang Seng Financials Index -1.4% (HSBC declines after earnings report)

Alibaba Pictures [+7%], 1060.HK, strength attributed to strong Lunar New year box office

Rusal [486.HK]: Declines over 3% as the company denied any plan to change CEO

(CN)China Housing Ministry: Will interfere if local property curbs go against China’s policy direction – press

HSBC, HSBA.UK Reports FY17 Adj pretax $20.99B v $19.3B y/y, Adj Rev $51.5B v $50.2B y/y; To issue $5.0-7.0B in tier 1 capital in H1

Australia/New Zealand

ASX 200 opened -0.2%; closed flat

ASX 200 Resources Index -0.8%, Telecom -0.6%, Financials -0.4%

Telecom Vocus Communications [VOC.AU] declines over 10% after cutting dividend and outlook

BHP [BHP.AU] declines ahead of earnings report

(NZ) New Zealand Q4 PPI Input Q/Q: 0.9% v 1.1% prior; PPI Output Q/Q: 1.0% v 1.0%prior

(AU) RBA Assistant Gov Bullock: Mortgage stress in Australia is stillrelatively low; Banking system is strong and well capitalized, supportedby prudent lending standards

(AU) RESERVE BANK OF AUSTRALIA (RBA) FEB MINUTES:Low rates helping to reduce unemployment and lift inflation

NAB.AU Said to be getting ready to layoff the first 1.0K roles under the A$1.0B cost cutting initiative last year

Looking Ahead: Australia Q4 wage price index due for release on Wednesday

Other Asia

(SG) Singapore Fin Min:Planning 2ppt raise to GST from 2021-20215 taking the rate to 9% in order tosupport aging society

(SG) Singapore Minister: Property tax isnt about cooling the market, we are competitive despite higher tax

North America

Mosaic [MOS] Reports Q4 $0.34* v $0.27e,Rev $2.1B v $1.89Be

NXP Semiconductors [NXPI]: Qualcomm said to be working on deal price for NXP, said to be in low $120/shr – CNBC

Johnson & Johnson [JNJ]: Said to be exploring the sale of $2B product sterilization unit – press

Looking Ahead: Wal-Mart due to report earnings during NY morning

Europe

(UK) PM May said to have a contingency plan to withhold payments of the £40B Brexit bill if EU leaders backtrack on their post-Brexit free trade deal commitments – financial press

(UK) According to letter seen last week, Netherlands government to ‘activate hard Brexit’ plan amid lack of clarity from the UK –Sky News

(UK) BOE Gov Carney: Brexit is what moves the GBP, not speculation about any future trade deal with the US; Bitcoin has pretty much failed as a store of value or medium of exchange

Looking Ahead: Germany Feb ZEW data due for release

Levels as of 01:00ET

Nikkei225 -1.0%, Hang Seng -0.4%; Shanghai Composite closed for holiday; ASX200 -0.0%, Kospi -1.2%

Equity Futures: S&P500 -0.3%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 +0.0%

EUR 1.2412-1.2379; JPY106.86-106.56; AUD 0.7933-0.7889;NZD 0.7374-0.7348

Apr Gold -0.9% at $1,343/oz; Apr Crude Oil +1.1% at $62.20/brl; Mar Copper -0.5% at $3.19/lb

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