Asian stocks saw choppy trading as traders awaited US inflation data for clues on the path of Federal Reserve policy. The yen gained.
The MSCI Asia Pacific Index was up less than 0.1%, with shares in Japan and Hong Kong turning lower. European equity futures edged higher while contracts for US stocks were little changed. The dollar gauge steadied after dropping 0.4% in the previous session. The consumer price report comes at a crucial time for global markets, after a spate of solid US economic data trimmed Fed rate cut expectations and triggered a debt selloff. Wednesday’s muted moves are in contrast to risk-on gains in Asia in the previous session, when a report that Donald Trump’s incoming team is considering gradual tariff hikes buoyed sentiment. A hot US CPI print will “will translate into a higher dollar and higher rates, meaning general tightening of financial conditions for Asia,” said Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities. “We expect a quieter session today, especially after some larges moves in Japanese and Chinese stocks yesterday.” The yen strengthened 0.4% against the dollar, as Governor Kazuo Ueda said the Bank of Japan will decide on a potential rate hike at next week’s meeting, adding that he has heard encouraging views on pay from various industries. Forecasters expect the monthly report on US consumer prices to show a fifth month of firm increases. The 10-year Treasury yield fell two basis points in Asia. Some bond traders are betting that the relentless selloff in Treasuries will soon lose momentum, in part because of questions around how President-elect Donald Trump’s policies will take shape. The People’s Bank of China pumped a near-historic amount of short-term cash into its financial system on Wednesday, dialing up liquidity support amid a cash squeeze with the new year holiday looming. China’s short-term interbank lending rates dropped. The injections show “that the PBOC easing stance has not changed,” said Xiaojia Zhi, economist at Credit Agricole CIB. “The PBOC would need to inject more liquidity via other tools to meet high seasonal liquidity demand” for tax payment and pre-Lunar New Year liquidity, and prevent a surge in interbank rates, she said. Elsewhere in Asia, Bank Indonesia is expected to keep its key rate at 6% after it made repeated interventions to stabilize its currency over the past month. In South Korea, investigators arrested President Yoon Suk Yeol after launching a pre-dawn operation to bring the impeached leader in for questioning over his short-lived martial law declaration. In corporate news, the US plans to unveil more regulations aimed at keeping advanced chips made by Taiwan Semiconductor Manufacturing Co. and other producers from flowing to China, part of a flurry of measures introduced by the Biden administration during its final days in office. Eurozone industrial production data is due ahead of the US inflation reading. Wall Street is also gearing up for the unofficial start of the earnings season, with results from big banks hitting the tape on Wednesday. Lenders including JPMorgan Chase & Co. and Wells Fargo & Co. are expected to show continued gains from trading and investment banking, which helped offset net interest income declines caused by higher deposits and sluggish loan demand. In commodities, oil steadied after dropping by the most in more than a month as the impact of US sanctions against Russian flows continued to reverberate. US After Hours LOT +6.4% driving higher on 2024 vehicle delivery results; VCEL -11%, LASR -6.2% among laggards following guidance.
Nikkei -0.08% Hang Seng +0.17% CSI -0.66% Shanghai -0.45% Shenzen -0.86%
Eur$ 1.0297 CNH 7.3467 CNY 7.3316 JPY 157.42 GBP 1.2202 CHF 0.9101 RUB 101.9519 TRY 35.5042 WTI$ 78.02 +0.67% Gold 2,682 +0.17% BTC 96,823 +0.40% ETH 3,218 +0.12%
S&P +0.06% Nasdaq +0.16% EuroStoxx +0.22% FTSE +0.21% Dax +0.12% SMI +0.18%
Macro :
- LA Faces High Winds and No Sign of Rain After Week of Flames
- Inflation Trajectory Still Looks Bearish for US Stocks
- Inflation Trajectory Still Looks Bearish for US Stocks
- EU Considers Gradual Ban on Russian LNG and Aluminum
- *ISRAEL, HAMAS AGREE IN PRINCIPLE TO HOSTAGE DRAFT DEAL: CBS
- US to Push TSMC and Samsung to Tighten Flow of Chips to China
- US Sanctions to Curb China’s Coal Imports from Russia: Fengkuang
- Luxury Stocks’ Recent Revival Faces a High-Stakes Earnings Test
- US Midcap Stocks Are Top Bets to Own Now, Goldman’s Kostin Says
Keep an eye on :
Keep an eye on :
- AZN LN : AstraZeneca Expects Some China Revenue Impact In Wake of Probes
- BIIB US : Biogen, Sarepta Quick Drug Approvals Show FDA Gaps, Report Says
- BLK US : *BLACKROCK'S WIEDMAN, POTENTIAL FINK SUCCESSOR, IS LEAVING FIRM
- BOSN SW : Bossard 4Q Sales CHF236.6M Vs. CHF242.2M Y/y
- BP/ LN : BP CEO Faces Crucial Test in Delayed Strategy Update (1)
- BMY US : Bristol Myers Says New Schizophrenia Drug Off to Strong Start
- BVIC LN : Pollen Street Group to Replace Britvic in FTSE 250 Index
- BVI FP ; Testing Firms SGS, Bureau Veritas Said In Talks to Combine (1)
- 1211 HK : BYD Strikes Deal Expanding Grab Drivers’ Access to Its Vehicles
- CLNX SM : Cellnex to Buy Back as Much as €800 Million in Stock in 2025
- DPLM LN : Diploma 1Q Organic Revenue +7%
- EUZ GY : Eckert & Ziegler Signs Pact With Chinese JV for Cancer Agent
- ENVI NA : Envipco Offer of 7.93m Shares by Holders Prices at NOK62/Share
- EXPN LN : Experian 3Q Organic Revenue Misses Estimates
- GRAB US : Citi Expects In-Line 4Q Results for Grab With Slight Upside
- HAS LN : Hays Sees Earnings Towards the Lower End of Consensus
- HLN LN : Pfizer Further Pares Haleon Stake With Offer to Sell 7.7% (700mil shares)
- IDS LN : International Distribution Says Performance in Line With Views
- INTC US : Intel to Separate Venture Capital Arm Into Standalone Fund
- JMT PL : J. Martins 4Q Sales Meets Estimates
- NDX1 GY : Nordex Achieves Order Intake of 8.3 GW in FY 2024
- PHGN SW : Partners Group Assets Under Management $152B, Up 7% Y/y
- PEP US : PepsiCo in Talks to Buy Minority Stake in Haldiram Snacks: ET
- RKT LN : Reckitt Aims to Boost US Production as Risk of Tariffs Looms
- REP SM : GeoPark, Repsol Not Proceeding With Deal Announced in November
- RR/ LN : Turkey’s Polat Enerji, Rolls-Royce Sign 132MWh Battery Deal
- SFL IM : Safilo, Under Armour Renew Eyewear Licensing Agreement
- SGSN SW : Testing Firms SGS, Bureau Veritas Said In Talks to Combine (1)
- SONOS US : Sonos Chief Product Officer to Leave; Interim CEO to Take Role
- SONOS US : Sonos Chief Product Officer to Leave; Interim CEO to Take Role
- 2330 TT : TSMC Likely to Post Biggest Profit Jump Since 2022: Preview
- UBI FP : Tencent, Guillemot Family Are Said to Mull Ubisoft Asset Venture
- VTY LN : Vistry Group Maintains FY Adjusted Pretax Profit Forecast
- UNO GY : Germany’s Uniper Stake Is Said to Draw Interest From UAE’s Taqa
- MF FP : Bureau Veritas in talks with rival SGS to create €32bn specialist in testing (26% of BVI)
- ZURN SW : Zurich Airport Dec. Passenger Traffic +8.1%