Aussie press seeks advice on Lowe’s rates, New Zealand releases jobs data, AUD/NZD rises
Asian Market Update: Stock indices rise amid gains on Wall Street, corporate earnings and continued Chinese holiday; Aussie press seeks rate advice from Lowe; New Zealand released jobs data, AUD/NZD rises.
– FOMC members apparently downplayed the need for a 50bps rate hike [Harker, Bullard].
– Nasdaq FUTs go up on Google.
– Nikkei 225 Extended Gain, Earnings Remain Focus; Sony trades higher ahead of earnings report; Topix Banks index rises ahead of megabank earnings [Mizuho, Mitsubishi UFJ, Sumitomo Mitsui Financial]; Brokerage Index wins after Nomura results.
– Denso cut its forecast due to supply issues.
– Other Japanese cos. due to the report results include Hitachi, Panasonic, Japan Airlines.
– The energy and resource indices are helping to push the S&P ASX 200 higher.
– Focus on holidays in China: Shanghai closed between January 31 and February 4; HK will be closed from February 1 to 3.
– Companies due to report during the New York morning include AbbVie, AmerisourceBergen, Allegheny Technologies, Avery Dennison, Boston Scientific, CH Robinson, Capri Holdings, Carpenter Technology, DR Horton, Brinker, Emerson Electric, Evercore, Humana, Howmet Aerospace, Johnson Controls, Marathon Petroleum, New York Times, Old Dominion Freight, Ferrari, Roper Technologies, Sally Beauty, Silicon Labs, Spirit Aerosystems, Spire, Thermo Fisher, Waste Management.
– The ASX 200 opened +0.5%.
– (AU) Reserve Bank of Australia (RBA) Gov Lowe: Wage price index expected to rise 2.75% this year, 3.0% next year; Still undecided on reinvestment of proceeds from bond holdings; Rising rates in 2022 is a plausible scenario.
– (NZ) NEW ZEALAND Q4 UNEMPLOYMENT RATE: 3.2% V 3.3%E (lowest record); Change in employment Q/Q: 0.1% vs. 0.3%e; Y/Y: 3.7% versus 3.8%e.
– (AU) Australia sells A$1.0bn vs. A$1.0bn shown in November 2031 1.00% bond; Average return 1.9267% vs. 1.6800% before; bid-to-cover 3.23xv 4.48x front [from Dec 8th].
– Nikkei 225 opened +0.8%.
– 6902.JP Reports 9M Net ¥193.4bn v ¥43.1bn y/y, Op ¥256.3bn v ¥66.6bn y/y, Rev ¥4.01t vs ¥3.51t y /at ; Cutting guidance.
– 9202.JP Reports 9M Net -¥102.8B v -¥309.6B y/y, Op -¥115.8B v -¥362.4B y/y, Rev ¥738.0B v ¥527.6B y/y (yesterday after close ).
– 8604.JP earns 9M Net ¥112.0bn vs. ¥308.5bn y/y, Pretax ¥177.1bn vs. ¥396.8bn y/y, Rev ¥1.19t vs. ¥1.39t y /a (yesterday after closing).
– Kospi closed for holidays.
– 000270.KR reports from April 2021 to date sales of electric vehicles (EV) equipped with their own EV platform of 100,000; The first 3 weeks of January sold 4,000 units – Yonhap.
– Hang Seng and Shanghai Composite closed for holidays.
– (AU) China to suspend meat imports from Teys Naracoorte factory in South Australia; the factory recently had a Covid outbreak, but no reason was given – SCMP.
– (CN) US Trade Representative Bianchi (USTR): Talks with China are not easy, China has failed to meet its phase one trade commitments.
– (US) Weekly API Crude Oil Inventories: -1.6m vs. -0.9m previously.
– GOOGL Q4 reports $30.69 vs $26.69, Rev $61.9B adj vs $59.3Be; Approves the 20-for-1 stock split in the form of a one-time special stock dividend on each share of the company’s Class A, Class B and Class C shares, effective July 2022.
– AMD Reports Q4 $0.92 vs $0.75e, Rev $4.83 Billion vs $4.52 Billion; Very solid Q1 and FY22 guides.
– EQR returns FFO Q4 $0.82 vs. $0.80e, Rev $645m vs. $629m.
– ELMS advises not to rely on the financial statements, which will be restated; Chairman and CEO steps down, Shauna McIntyre named interim CEO.
– (United Kingdom) Jan BRC Shop Price Index Y/Y: 1.5% vs. 0.8% before; retailers are increasing their prices at the fastest rate since 2012.
– (UK) Prime Ministers Johnson and Sunak have agreed a rebate and clawback scheme to help reduce the impact of soaring energy prices on household bills; Government can offer businesses access to £6.0bn in loans, equivalent to £200/household – British Press.
– (UK) Shadow MPC thinks the BOE should raise interest rates by at least 25 basis points at the next meeting to show it is serious about fighting inflation – financial press.
Levels from 12:15 a.m. ET
– Hang Seng closed; Shanghai Composite closed; Kospi closed; Nikkei225 +1.7%; ASX 200 +1.2%.
– Equity futures: S&P500 +0.5%; Nasdaq100 +1.1%, Dax -0.0%; FTSE100 +0.8%.
– €1.1278-1.1268; JPY114.81-114.64; AU$0.7146-0.7127; NZD 0.6650-0.6629.
– Commodity futures: gold -0.2% to $1,797/oz; Crude Oil +0.3% to $88.49/brl; Copper +0.1% to $4.44/lb.