Wednesday’s abatement of sellers in the US allowed for like action in some Asian markets while others continued moves lower. The Nikkei was the standout, up nearly 4%, on broad strength. The Energy sector led, up over 7%, with consumer discretionary names lagging but still up nearly 3%. Australia’s ASX 200 also rallied with Energy in the lead there as well.
While South Korea was mostly flat China and Hong Kong fell with Energy there the laggard. Disappointing traders in China, Industrial Profits there fell 1.8% YoY in November after a previous increase of 3.6% in October. This was the first move down since 2015. Buoying yesterday’s gains late day in the States of course were comments that mid-level talks will occur January 7th between them and the US. That sentiment was evident early in Hong Kong with the market higher in the morning before turning south after lunch. Also helping the region the PBoC made positive comments including commitments to keep the proper growth pace for GDP along with capital increases to up bank stock confidence. Post the close, exports for November in Hong Kong fell vs an expected increase of 7.7%.
Shares in ZTE fell 3.4% as they and Huawei are again in the Trump administration crosshairs. A US press story noted an executive order expected next month could prevent US firms from purchasing products sold by the two firms. Of interest Huawei’s CEO said FY revenue guidance for 2018 should be up 21% YoY with 26 5G contracts already in hand. Speaking of 5G the UK’s Defense Minister expressed concerned over the bandwidth as Hauwei has played a role in its development.
Sinopec fell 4.7% after two executives at its trading arm were suspended on suspicion they caused severe losses for the unit. Earlier a former general manager for the firm was jailed for 12 years for corruption.
Refrigeration giant Hoshizaki +15% on word they will meet requirements to remain a listed firm. The firm also released 3Q earnings which beat estimates while increasing their dividend.
After a better start European indices are now to the downside as are US futures. Germany leads to the downside with big weakness in Real Estate, Utilities, and Industrial names. That market is one of several that has been closed for the last three days with CPI readings expected tomorrow there.
On the sector front all are lower with Telcos, Basic Resources, and Food down by ~1.6%. Chemis, Health Care, Insurers, and Travel round out the names down by over a percent with Retail holding in post solid sales seen in the States.
The ECB’s economic bulletin was mostly positive but did highlight trade and emerging market concern. It did though see continuing need for ‘significant monetary policy stimulus’ leading one to assume curtailment of easing measures are not in the cards. It is assumed TLTRO’s could be reinstated along with the full QE program if need be.
Trading platform Plus500 +2.5% said they see a strong end to the year with market volatility allowing for more action across their pad.
Oil explorer Sound Energy +20% is bubbling higher with word they have found success at a Moroccan field.
|CH||4)||Swift Global Payments CNY||Nov||—||2.09%||1.70%||—|
|CH||5)||Industrial Profits YoY||Nov||—||-1.80%||3.60%||—|
|JN||6)||Housing Starts YoY||Nov||-0.10%||-0.60%||0.30%||—|
|JN||7)||Annualized Housing Starts||Nov||0.957m||0.957m||0.950m||—|
|JN||8)||Construction Orders YoY||Nov||—||-10.70%||-16.50%||—|
|FI||9)||Consumer Confidence Index||Dec||—||16.1||18.3||—|
|SP||11)||Retail Sales YoY||Nov||—||1.50%||4.70%||—|
|SP||12)||Retail Sales SA YoY||Nov||1.40%||1.40%||1.80%||2.10%|
|HK||15)||Trade Balance HKD||Nov||-40.0b||-45.0b||-44.5b||—|
|EC||16)||ECB Publishes Economic Bulletin|
|SZ||17)||Credit Suisse Survey Expectations||Dec||—||-22.2||-42.3||—|
|AS||18)||Bank Austria Manufacturing PMI||Dec||—||53.9||54.9||—|
|IN||19)||Fiscal Deficit INR Crore||Nov||—||68042||53851||—|