Asia Market Update: Quiet day in Asian equities and FX in post-Xmas trading; Ex-BOJ board member criticizes Gov Ueda's market communications; Online games in China try to recover losses; Lack of significant macro data for the market to focus on this week;
General Trend
- In unusually blunt criticism for Japan, former BOJ board member Takako Masai said that Gov Ueda's market messaging is 'confusing markets': “It is hard to see the BOJ change policy as quickly as markets expect, such as in January or April, when taking into account the (dovish) comments of each board member and the government's assessment of the economy"
- Online gaming stocks in China considering share buybacks after recent plunge
- South Korea Retail Sales for Nov better than prior month, with Dept store sales and Discount store sales returning to positive figures.
- Japan’s monthly 2-year JGB auction today drew its longest tail since Dec 2022 (2.1bps), with analysts saying there was a lack of sufficient short positions prior to the auction as well as few investors being inclined to take long positions.
- Japan Services PPI inflation as well as unemployment rate were unchanged for November
- Taiwan’s industrial production contracted for an 18th consecutive month.
- Singapore Nov industrial output falls further, while CPI slightly below consensus
- US equity FUTs reopened post-Xmas slightly higher, with both Nasdaq100 and S&P500 FUTs threatening to reach their pre-Xmas highs.
***Looking ahead (Asian time zone)***
- Fri China National PMI
*** Holidays in Asia this week***
- Tue Dec 26 New Zealand, Australia, Hong Kong, Indonesia
- Fri Dec 29 New Zealand, South Korea
***Headlines/Economic Data***
Australia/New Zealand
- ASX 200 closed for holiday
China/Hong Kong
- Hang Seng closed for holiday
- Shanghai Composite opens flat at 2,917
- China-listed online gaming stocks said to consider share buybacks after recent plunge due to proposed restrictions by NPPA in China designed to reduce game addiction - China press
- China might take measures to support equity inflows in 2024 - China Securities Journal
- China to boost industrial recovery with targeted measures - Ministry of Industry and Information Technology (MIIT)
- Research Alert: Will China’s developing links to the London Metals Exchange (LME) result in gold and silver undergoing non-Western controlled price discovery?
- China builds up private security to protect overseas interests and to ensure Chinese firms are protected abroad - SCMP (update)
- China Finance Ministry: Nov Net Local Government Debt Issuance (CNY): 210.9B v 226.7B prior (overnight update)
- China PBOC sets Yuan reference rate: 7.0965 v 7.1010 prior
- China PBOC Open Market Operation (OMO): Sells CNY383B in 7-day reverse repos; Sells CNY85B in 14-day reverse repos; Net injects CNY349B v Net injects CNY287B prior
Japan
- Nikkei 225 opens +0.1% at 33,295
- JAPAN NOV JOBLESS RATE: 2.5% V 2.5%E
- JAPAN SELLS ¥2.9T VS. ¥2.9T INDICATED IN 2-YEAR JGB BONDS; AVG YIELD: 0.0640% V 0.0460% PRIOR; BID-TO-COVER: 3.34X V 2.91X PRIOR
- Ex-BOJ board member Masai criticizes Gov Ueda's market messaging and says Ueda is 'confusing markets'. "As Chair of the policy meetings, the governor shouldn't speak beyond what has been decided at the board."
- Japan Foreign Min Kamikawa: Japan will take appropriate steps to avoid disruption of stable energy supply
- Japan PM Kishida plans to visit US in early March - Japan press
- Japan's FSA to reportedly impose business improvement orders today on four major insurers over alleged price fixing - Japan press
- Japan Fin Min Suzuki: Names Aioi Nissay Dowa and Sompo Japan as two of the offending insurers to undergo business administration orders
South Korea
- Kospi opens +0.4% at 2,609
- South Korea Nov Retail Sales Y/Y: 8.7% v 6.4% prior
- Samsung Electronics (005930.KR) Said to postpone Taylor (Texas) fab mass production until 2025 [reason not initially disclosed] - Press
Other Asia
- Taiwan Nov Industrial Production Y/Y: -2.5% v -1.5%e (overnight update)
- Taiwan Nov M2 Money Supply Y/Y: 5.3% v 5.7% prior; M1 Money Supply Y/Y: 3.0% v 3.3% prior (overnight update)
- Philippines Military Spokesperson: Philippines is not provoking conflict in the South China Sea; Is following international law
- Singapore Nov CPI M/M: -0.2% v 0.2% prior; Y/Y: 3.6% v 3.9%e
- Singapore Nov Industrial Production M/M: -7.8% v -5.1%e; Y/Y: 1.0% v 2.2%e
North America
- Apple (AAPL) Reportedly asked some of its supply chain partners in Taiwan and South Korea to help accelerate the development of its first foldable iPhone model; May launch as soon as end-2024 or during 2025
- Westinghouse (WAB) Co. building Small Nuclear Reactor named 'eVinci' for Saskatchewan Govt in Canada that can reportedly run for eight years or more without water - financial press
- 40-year low temperature for the month of December set in polar stratospheric cold wave – NASA
- (US) Pentagon: US strikes three facilities used by Kataib Hezbollah and other Iran-affiliated groups in Iraq as a response to a series of attacks against US personnel in Iraq and Syria
Europe
- (IL) Israel PM Netanyahu: War in Gaza with Hamas is not close to conclusion; Reiterates his stance it will take a long time; Will not succeed at freeing hostages without military pressure
Levels as of 00:20 ET
- Nikkei 225 flat; ASX 200 closed Hang Seng closed; Shanghai Composite -0.8%; Kospi +0.3%
- Equity S&P500 Futures +0.3%; Nasdaq100 +0.1%; Dax closed; FTSE100 closed
- EUR 1.009-1.1029; JPY 142.09-142.38; AUD 0.6792-0.6816; NZD 0.6291-0.6326
- Gold +0.3% at $2,075/oz; Crude Oil +0.4% at $73.85/brl; Copper +0.4% at $3.9188/lb