USD Index FUTs move lower into year end

Asia Market Update: Asian indices trade mixed, HK Tech firms extend gains; USD Index FUTs move lower into year end.

General Trend

- Hang Seng outperforms as TECH index extends gain

- Hang Lung Properties’ transaction with US gov’t delayed by China/HK

- Gainers in Shanghai include Consumer, Industrial and IT firms; Financial and property cos. lag

- Kospi trades at record high in final trading session of the year, chipmakers rise ; KRW gains

- Australian equities decline amid REIT ex-dividends

- In last trading day of 2020, Nikkei has modest drop after rising over 2.6% during prior session; Topix Pharma, Iron/Steel, Electric Appliances and Real Estate indices are among the decliners ; Transport and Securities indices rise

- USD/CNH declines toward 6.50

- Dalian Iron Ore FUTs decline by over 5%, China plans to cut crude steel production in 2021

- Note today is the last day of trade for the year for Japan and Korea markets

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.0%

- IRI.AU Guides He Net to break even at A$2.0M v A$11.8M y/y, Rev A$34-37M v A$53.2M y/y; trading performance has been below expectations

Japan

- Nikkei 225 opened -0.0%

- 4552.JP Signs agreement to produce Astrazenena coronavirus vaccine

- (JP) Japan planning to issue Govt backed green bonds (1st time) - Nikkei

- 9984.JP To offer at home low cost COVID tests in Japan – Nikkei

- 9449.JP Receives license in New York to issue stablecoin pegged to the Yen (JPY) - US press

Korea

- Kospi opened -0.0%

- 003550.KR Indonesia confirms MOU with LG Group for Electric Vehicle Batteries for $9.8B

- (KR) South Korea Nov Industrial Production M/M: 0.3% v 0.8%e; Y/Y: +0.5% v -0.5%e

- (KR) South Korea Nov Retail Sales M/M: -1.0% v -0.9% prior; Y/Y: -1.5% v -0.2% prior (2nd consecutive decline)

- 000270.KR Union votes to accept wage freeze amid pandemic (1st freeze since 2009)

- (KR) South Korea reports 1,050 COVID cases v 1,046 prior (2nd consecutive day above 1,000)

China/Hong Kong

- Hang Seng opened +0.5%; Shanghai Composite opened -0.1%

- (CN) China Stats Bureau NBS: revises 2019 GDP lower from 6.1% to 6.0%

- (CN) China PBOC statement after quarterly policy meeting: Reiterates to avoid a sudden shift in monetary policy while maintaining necessary support for the economy’s recovery

- China PBOC Open Market Operation (OMO): Injects CNY40B in 7-day reverse repos v CNY20B in 7-day reverse repos prior; Net Injection: CNY30B v CNY10B prior

- China PBOC sets Yuan reference rate: 6.5325 v 6.5451 prior

- (CN) China State Post Bureau issues first standard for unmanned aircraft delivery (drones)

- 300433.CN Apple Supplier Lens Technology reportedly accused of using forced labor in China - press

- 1099.HK Coronavirus vaccine has 79.3% efficacy, meeting technical standard of WHO and Chinese regulator, submitted application for use of vaccine

North America

- (US) Weekly API Crude Oil Inventories: -4.8M v +2.7M prior

- (US) Trump campaign appeals to Supreme Court over Wisconsin challenge, seeking review before Jan 6th

- INTC Third Point (Loeb) in letter reportedly urges Intel to explore strategic alternatives including 'potential divestment of certain failed acquisitions' – press (US session)

- (US) Louisiana Congressman Elect Letlow (R-LA) dies of coronavirus at the age of 41

Europe

- (EU) EU member states approve UK post-Brexit trade deal - press (as expected)

- (UK) PM Johnson expected to be able to get Brexit deal approved by parliament within a day

- (UK) PM Johnson approves extension of Tier 4 restrictions - UK's Times

Levels as of 12:15ET

- Hang Seng +1.7%; Shanghai Composite +0.9%; Kospi +1.8%; Nikkei225 -0.3%; ASX 200 -0.5%

- Equity Futures: S&P500 +0.5%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.1%

- EUR 1.2295-1.2246; JPY 103.61-103.27; AUD 0.7663-0.7602; NZD 0.7189-0.7144

- Commodity Futures: Gold +0.3% at $1,889/oz; Crude Oil +0.6% at $48.28/brl; Copper +0.7% at $3.57/lb