Asia Market Update: Nikkei 225 tracks strength in the US amid various holiday-related market closures: US Dollar Index hits lowest since late 2014
***Headlines/Economic Data***
General Trend:
- China, Hong Kong, Indonesia, Malaysia, Philippines,Singapore, South Korea, Taiwan and Vietnam are all closed for holidays; There is a US holiday on Monday, Feb 19th
- China equity futures gain in Singapore
- Japan’s government confirms Kuroda to be nominated for another term as BoJ Governor; BoJ Exec Dir Amamiya (‘Mr BoJ’) and noted academic/reflationist Wakatabe nominated as Deputy Govs
- Japanese sold net of ¥973.2B in foreign bonds in week ended Feb 16th
- RBA Gov Lowe reiterates recent interest rate guidance; said Australia sovereign credit downgrade would be ‘political event’
- US dollar trades generally weaker: EUR/USD hits highest level since Dec 2014, while the US Dollar Index hits the lowest level since that date.
Australia/New Zealand
-ASX opened+0.3%: closed -0.1%
- ASX 200 Consumer Discretionary Index -0.7%, Resources -0.6%, Financials -0.2%
-(AU) RBA Gov Lowe: Labor market is noticeably stronger than RBA expected; reiterates more likely that next interest rate move will be rate hike
-(AU) RBA Assistant Gov Ellis: Large degree of uncertainty around full employment est
-(AU) Australia sells A$400M v A$400M indicated in Dec 2021 Bonds, avg yield 2.2960% v 2.0730% prior, bid to cover: 5.03x v 8.54x prior
- (NZ) New Zealand Jan Non Resident Bond Holdings: 60.0% v 61.1%prior
China/Hong Kong
- Shanghai Composite and Hang Seng are closed for holiday
- China conglomerate HNA Group said to sell office building located in midtown Manhattan (1180 Sixth Ave) for more than $300M - US press
- US SEC blocks the sale of the Chicago Stock Exchange (CHX) to a group led by China investors (Chongqing Casin Enterprise Group)
Japan
- Nikkei 225 opened +0.4%: closed +1.2%
- TOPIX Iron & Steel Index +1.5%, Electric Appliances +1.4%
- Automakers trade generally higher: Toyota and Honda gain
- Bridgestone [5108.JP] rises over 1% ahead of FY earnings
- (JP) BoJ Gov Kuroda: Reiterates domestic economy expanding moderately, but price growth remains low; reiterates must maintain powerful easing for time being; Japan economy is 'already NOT in a state of deflation'
- (JP) Japan Fin Min Aso: Reiterates sudden FX moves have big effects on economy, watching foreign exchange moves 'carefully'
Korea
-Kospi closed for holiday
-(KR) South Korea Pres Moon reportedly could visit North Korea if North Korean stance changes - Russian press
North America
-US equity markets ended higher: Dow +1.2%, S&P500 +1.2%, Nasdaq +1.6%, Russell 2000+1%
-S&P 500 Utilities +2.2%, Technology +1.9%
-(US) DEC TOTAL NET TIC FLOWS: -$119.3B V +$33.5B PRIOR; NET LONG-TERM TIC FLOWS: $27.3B V $57.5B PRIOR
-(US) Senate bipartisan amendment on immigration fails to pass procedural vote
-GE [GE]: Said to have reached agreement to sell part of overseas lighting business to former executive for undisclosed figure -US financial press
Europe
- (UK) UK Govt said to be prepared to set out its vision for financial services in the post Brexit environment - financial press
-(DE) Germany EU budget contribution may rise €3.0-3.5B –German Press
-Roche [ROG.CH]: To acquire health IT and services company Flatiron Health for $1.9B
-Vivendi Universal [VIV.FR]: Reports FY adj net €1.31B v €755M, EBITA €987M v €724M, rev €12.4B v €10.8B y/y;Proposed dividend with respect to 2017: €0.45 per share, up 12.5%
-Deutsche Bank [DBK.DE]: Largest shareholder China HNA Group said to cut stake to 8.8% vs 9.2% prior - FT
Looking Ahead: UK Jan Retail Sales due for release
***Levels as of01:00ET***
- Equity Futures:S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.2%
- EUR 1.2495-1.2556 ;JPY 105.54-106.37; AUD 0.7932-0.7972 ;NZD 0.7389-0.7428
- Feb Gold +0.5% at $1,361.80/oz;Feb Crude Oil +0.5% at $61.66/brl; Mar Copper +0.3% at $3.256/lb