Asia Market Update: BOJ holds policy steady; S. Korea starts new cryptocurrency measures and will implement tariffs on US goods
***Headlines/Economic Data***
General Trend: Asian equities track US gains
- Traders looking ahead to BoJ Gov Kuroda's post rate decision press conference (expected around 6:30 GMT)
- US dollar (USD) generally weaker versus Asian currencies: PBoC fixed yuan at multi-year high for 3rd straight session
- GBP/USD: During Asian session, the pair briefly traded above 1.40 for the first time since June 2016 Brexit vote
Japan
-Nikkei 225 opened +0.5%; closed +1.3%
- (JP) Japan's Topix passes 1,900 for the first time since 1991
- TOPIX Real Estate Index +2.0%, Securities +1%, Information/Communication +0.8%
- Automakers trade generally higher: Honda +1.5%, Toyota +0.9%, Nissan +0.9%
- (JP) BoJ Jan Loan Officer Opinion Survey: Company loan demand 8 v 6 prior
- (JP) Japan and France will agree on a defense logistics framework ahead of state visits – press
- (JP) BOJ Quarterly Outlook for Economic Activity and Prices, Affirms all GDP and CPI forecasts
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED: vote again 8-1 as Kataoka again dissents
Looking Ahead: Japan: BoJ Gov Kuroda due to hold post rate decision press conference after the close
- Tokyo Steel expected to report earnings after the close
Korea
- Kospi opened +0.3%
- Financials trade broadly higher: Industrial Bank of Korea +2.9%, Woori Bank +2.7%, Shinhan +1.7%
- LG Display, 034220.KR Reports Q4 (KRW) Net 36.9B v 203Be; Op 44.0B v 250Be; Rev 7.1T v 6.9Te
- LG Electronics [066570.KR]: -1.5% (Trump administration approves safeguard tariff action on imported washing machines)
-(KR) Reportedly South Korea govt has asked state banks to refrain from overseas bond offerings, in order to minimize impact on FX - Korean press
- (KR) Six South Korean banks will begin issuing new trading accounts for cryptocurrencies next week by introducing a system that bans the use of anonymous accounts in cryptocurrency transactions - Korean press
China/Hong Kong
-Hang Seng opened +0.7%, Shanghai Composite +0.1%
- Hang Seng Information Tech Index +1.3%, Services +1.2% (strength in gaming names, Wynn Macau +5%), Financials +1.3%
- (CN) China Premier Li: Needs to be solid efforts to push reforms and innovation in 2018 (Chairing a plenary meeting of the State Council) – Xinhua
- (HK) IMF concludes Hong Kong Article IV Consultation talks: Sees Hong Kong SAR* 2018 GDP growth of 2.8%
- (CN) HSBC's Asian Economics Research co-head Neumann: The use of the yuan is expected to increase going forward – Xinhua
-(CN) China to consider more tax cuts to sustain economic recovery - Xinhua
- (CN) China PBOC OMO: Injects CNY170B v CNY100B injected in 7,14 and 63-day reverse repos prior: Net injection CNY0B v CNY20B injected prior
- USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.4009 v 6.4112 PRIOR (strongest level since Dec 7th, 2015)
- Leshi Internet, 300104.CN Says faces operational difficulty without new investment; to fix cash shortage through borrowings and capital raisings (halted)
Australia/New Zealand
- ASX 200 opened +0.1%; closed %
- ASX 200 Energy Index +1.5%, Resources +0.8%, Financials +0.8%
- QBE.AU Guides FY17 combined ratio ~104% (prior 100-102%); To book A$700M impairment charge against North America assets, starts strategic review of Latin America operations; opens -5%
Other Asia
- (PH) PHILIPPINES Q4 GDP Q/Q: 1.5% V 1.6%E; Y/Y: 6.6% V 6.7%E, 2017 GDP Y/Y: 6.7% V 6.7%E
-(SG) SINGAPORE DEC CPI M/M: -0.1% V +0.2%E; Y/Y: 0.4% V 0.5%E
North America
- US equity markets ended higher: Dow +0.6%, S&P500 +0.8%, Nasdaq +1%, Russell 2000 +0.5%
-S&P500 Energy Sector +2.2%, Consumer Discretionary +1.1%, Tech +1%
-WHR Trump administration approves safeguard tariff action on imported washing machines - press
- Netflix [NFLX]: Gains over 8% in afterhours: Reports Q4 $0.41 v $0.41e, Rev $3.29B v $3.28Be; Guides Q1 $0.63 v $0.57e, total Rev $3.69B v $3.52Be; Q4 Total streaming net adds 8.3M v 5.3M q/q v 6.3M forecast
- Steel Dynamics [STLD] Reports Q4 $1.28* v $0.49e, Rev $2.3B v $2.17Be
- (US) Senate gained sufficient votes to end govt shutdown
- (US) House passes stop gap govt funding bill (as expected), President Trump will sign and then go into effect
Looking Ahead: Weekly US API Crude Oil Inventories to be released
- Companies expected to report earnings on Tuesday include JNJ, Procter & Gamble, State Street, Texas Instruments, Travelers, United Continental, Verizon
Europe
- GEA Group [G1A.DE]: Guides FY17 adj EBITDA €585M v €566M y/y; Rev €4.58B v €4.49B y/y; Guides FY18 Operating EBITDA €590-640M
- Logitech [LOGI]: Reports Q3 $0.65 v $0.56 y/y, Rev $812M v $667M y/y: Raised FY18 guidance
- Volkswagen [VOW3.DE]: Guides 2018 China growth similar to 2017, sees passenger car market up around 4% and sees its own growth as similar
Looking Ahead: Germany Jan ZEW Survey due for release
***Levels as of 01:00ET***
- Nikkei225 +1.3%, Hang Seng +1.2%; Shanghai Composite +0.6%; ASX200 +0.8%, Kospi +1.1%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 +0.1%
- EUR 1.2276-1.2251; JPY 111.03-110.55; AUD 0.8029-0.7982;NZD 0.7354-0.7314
- Feb Gold +0.3% at $1,335/oz; Mar Crude Oil +0.6% at $63.98/brl; Mar Copper -0.2% at $3.19/lb