Dec 29 Asian Macro Initial Thoughts Asian to open flat but work higher.


29 Dec

Asian Futures Nikkei Futures opened higher but now flat,  HK ADR’s +41pts and Australia trading higher in early trades.   S Korea consumer confidence missed. But with the outlook for Tech remaining +VE expect markets to work higher.
US Futures opened flat Dow +16pts , S&P and NDX +0.1%.

DOW +0.68%, NDX +0.74%, S&P +0.87%, Russel 2K -0.38% having opened higher markets effective traded sideways through the day.  Telcos, Consumer Discretionary and Tech all strong.  Covid cases remain a concern with Dr Fauci warning of another surge in cases despite the vaccines and over 1m people having been vaccinated so far.
Banks JPMorgan Chase +0.7%, Citigroup +0.9% and Wells Fargo +0.3%, AMEX +0.9%
Work from home names: Facebook +3.6, Apple +3.6%, Amazon +3.5%, Netflix +1%, Disney +3%,  Zoom Video -6.3%, Alphabet +2.3% and Microsoft +1%,
Tech Most started at highs but sold down through the day; NXP +0.5%, Nvidia -0.7%, Micron +0.1%, AMD -0.2%, Skyworks +1.3%
Re-opening stocks  Boeing -0.5%, Caterpillar -0.7%, Simon Property +1.3%, Kohl’s +3.1%, Nordstrom +2.3%, Gap -0.5%, United Airlines +1.5%, Carnival +4.2%, Wynn Resorts +0.9%, Chevron -0.5%, Exxon Mobil +0.3%,  
Lock down names Campbell Soup -0.3% General Mills +0.4%, JM Smucker +0.2%
DATA
Dallas Fed Manufacturing Dec 9.7 vs 12 Nov (F/cast was 2)
USD was stronger vs Yen & flat vs Euro. Bitcoin -0.4% @ 26,626.60, VIX +0.8% @ 21.7, US T10 @ 0.926% small rise on Trump’s signing of covid bill
OIL Brent -0.72%, WTI -1.1%
Gold -0.33%, Silver +1.9%, Copper +0.31%. Gold initially rose on stimulus bill being signed.
AHEAD Redbook, Case-Shiller Home Price

DAX +1.49%, CAC +1.2%, FTSE Market closed re-opens Tuesday. DAX and CAC opened higher as Trump signs the US stimulus bill and on news of the Brexit deal. DAX traded sideways but the CAC worked better through the day.
Saipem +4% on news of signing a deal with the Italian Navy
Deutsche Post +2.7% as CEO says the firm is expecting a record Profit.
DATA
EUROZONE No data
GERMANY No data
FRANCE 
Unemployment Benefit Claims Nov 36.6k vs -56.6k Oct (F/cast was 21k)
Jobseekers Total Nov 3.5863m vs 3.5497m Oct (F/cast was 3.5707)
UK Market was closed.
AHEAD
EUROZONE No data due
GERMANY No data due
FRANCE No data due
UK No data due

JAPAN Nikkei futures opened higher but now flat, expect market to work higher in cautious trading.  Yen currently 103.78
No data due 
Govt announced finding the S African mutated vision in Japan comes in addition the UK discovered mutation. Govt urges calm and has already banned non resident foreigners. It has also suspended the Go Travel campaign.  Comes after Tokyo recorded 708 new COVID-19 cases Sunday, a day after Japan saw a record 3,881 infections, including a high of 949 in the capital.
Former transport minister Yuichiro Hata was confirmed to have died from the new coronavirus, his political party said Monday, making him the first sitting member of Japan's Diet to fall victim to COVID-19.
"Demon Slayer", the animated movie has shattered a nearly two-decade record to become Japan's top-grossing movie, its distributor said on Monday.
Toyota Motor  released the C+pod, a compact electric vehicle that comfortably seats two. For the time being, the company plans to sell the vehicles to companies and local governments as a means of expanding their use through initiatives such as car sharing. To further lay the groundwork for the use of such vehicles in Japan, Toyota also aims to improve infrastructure by establishing charging facilities.
Hoards of Miura, Kanagawa Prefecture’s daikon radishes, the area’s specialty item, are being tossed out amid sluggish restaurant demand as novel coronavirus infections spread.  Illustrates the problem the agriculture sector is facing -VE for sentiment.
Mari Mobility Development Inc, lost its appeal regarding the popular tourist attraction once known as MariCar. As a result, their three-year legal battle with Nintendo has ended in favor of the video game giant.

SOUTH KOREA Expect markets to open flat a consumer confidence weaker than expected revealing covid cases are a concern.  
Data out 
Consumer Confidence Dec 89.8 vs 97.9 Nov (F/cast was 95)
Govt announced the UK variant of the covid virus discovered in S Korea.  KDCA reported 808 new cases as of midnight Sunday, the lowest since a record 1,241 infections were logged on Friday.  Follows Govt saying they would be extending social distancing measures until early January.
Delivery Hero will sell South Korean food delivery app Yogiyo as part of the conditions for regulatory approval of its $4 billion takeover of top South Korean food delivery app owner Woowa Brothers.
The US is expected to become the most promising market for local carmakers next year, while China is to yield the greatest opportunities for chipmakers, according to big data analysis released Monday by the state-run Korea Trade-Investment Promotion Agency’s. It's report looks into market prospects of major markets overseas for Korean exporters expected to lead the post-pandemic economic recovery. +VE
Samsung Electronics share price hit a new intraday high surpassing 80,000 won ($73) during intraday trading Monday. It closed +1.2% to close at 78,700 won -- the highest closing price since a 50-to-1 stock split in 2018 -- bringing its market cap to a new high of 469.8 trillion won. This accounted for over 24 percent of all 906 constituents of the Kospi, the main board of the Korea Exchange.
S-Oil is continuing to make investments in promising startups in the fields of batteries, new materials, smart factories and carbon emissions, said the oil refining company as it announced Monday its fifth investment. +VE
Local convenience store chain GS25 is bringing instant vegan tteokbokki to its stores, the company said Monday. Tteokbokki is a popular Korean street food of rice cakes in chili sauces.  The products, under the name Veggie Garden, are 100 percent meatless, and have been certified vegan by the Korea Agency of Vegan Certification and Services. +VE
South Korea said Monday it will gradually diversify its energy mix by using more sustainable sources, such as solar power, and scale back the use of coal and nuclear power, in line with the country's goal to achieve zero carbon emissions by 2050.  +VE Renewables
China's antitrust watchdog has approved the merger between two South Korean shipbuilding giants, sources said Monday, possibly paving the way for the creation of the world's largest shipyard. +VE

TAIWAN Expect market to open higher but upside muted having closed at a new high on Monday.
No data due.
Three passengers who on Sunday arrived on the first direct flight from the UK since stricter rules were imposed on travel from the country are among eight new imported COVID-19 cases the Central Epidemic Command Center (CECC) reported yesterday.
The Presidential Office’s information security budget would be increased by 50% next year, as it faces an overwhelming 400,000 cyberattacks per month on its computer systems, officials said yesterday.
Consumer sentiment weakened slightly this month as Taiwanese gained more confidence about stock investments and income levels, but lost interest in purchases of durable goods, a National Central University survey showed yesterday.
The government’s business climate monitor last month signaled “green” for the fourth straight month as the nation’s economic recovery held firm, thanks to robust demand for both tech and non-tech products, the National Development Council said yesterday.
MediaTek Inc plans to fully acquire broadband chip supplier IC Plus Corp for NT$1.51 billion (US$52.94 million) through one of its subsidiaries, the company said on Sunday.  Airoha Technology Corp, a MediaTek subsidiary, has offered to buy all 68.55 million shares of IC Plus at NT$22 per share, MediaTek said in a regulatory filing.  The figure represents a 15.8 percent premium on IC Plus’ closing price of NT$19 on Friday.

CHINA Expect market to open higher but upside limited on concerns of more anti China acts from Trump. Dropping temperatures likely to put more pressure on Power companies -VE
No data due
Mainland China reported 21 new coronavirus infections on December 27, down from 22 a day earlier, the national health authority said on Monday. The National Health Commission, in a statement, said 15 were imported infections originating from overseas, Reuters reports. Six locals infected are all in Liaoning province.
Drugmakers from AstraZeneca PLC and GlaxoSmithKline PLC to BeiGene Ltd have agreed to cut prices of some of their newest innovative drugs in China by an average of 50.6% to be covered by the country’s national insurance fund. A total of 119 new therapies — treating everything from pulmonary diseases and diabetes to cancers and lupus — were added for coverage by the state-run medical safety net after drawn-out negotiations, the Chinese National Healthcare Security Administration said in a notice posted on its Web site yesterday.  -VE Pharma.
All EU member states back China investment deal, sources say according to an SCMP article.  Agreement ‘could be reached’ this week following movement on major sticking point. No country had raised ‘stop sign’ clearing way for political endorsement, diplomat says
China Datang Corp is nearing an agreement to buy a majority stake in three thermal power plants in Indonesia for about US$400 million, people familiar with the matter said. The state-backed energy giant is in advanced talks with PT Dian Swastatika Sentosa for a 75 percent stake in its three independent thermal power plants with a total capacity of 600 megawatts, the people said. An announcement could come as soon as this week, the people said. Negotiations could still be delayed or fall apart, they said.
A Chinese court in closed session on Monday heard the case of 10 Hong Kong activists alleged to have fled the territory for Taiwan amid anti-China protests and held in a Chinese prison for four months as their relatives appealed for a swift resolution. The court said it will hand down the verdict someday later on.
China expressed anger on Monday after U.S. President Donald Trump signed into law measures to further bolster support for Taiwan and Tibet, which had been included in a $2.3 trillion pandemic aid and spending package. -VE
Chinese state media outlets have hit out at a BBC report on forced labour in Xinijang, saying it was inaccurate and more like a scripted drama. The report headlined “China’s ‘tainted’ cotton” released earlier this month that said it had seen evidence that hundreds of thousands of Uygurs were being forced to pick cotton. The BBC also said its reporters had been consistently followed and obstructed throughout their visit to the region. -VE
China's meteorological authority issued an orange alert Monday for a cold wave as a strong cold front will sweep across most parts of central and east China, tate media Xinhua reports. Until Thursday, the temperature in most parts of central and east China is expected to drop by 10 degrees Celsius, while temperatures in some areas in northwest, northeast, north and south China will drop by 12 degrees Celsius to 16 degrees Celsius, according to the National Meteorological Center (NMC).
Alibaba antitrust probe: home province vows to bring platform economy into ‘new stage’  The Zhejiang Communist Party pledged on Monday to bring progress to the platform economy, answering a call from Beijing to tame capital expansion Zhejiang is China’s platform economy and fintech leader thanks in part to the presence of Alibaba and Ant Group.
Japan’s new ambassador to China has urged the country to look at the reasons why it has a poor image among many Japanese people and said it remains to be seen whether Beijing can meet the high standards required to join the Trans-Pacific Partnership. Slight -VE

HONG KONG  ADR’s +41pts @ 26,355 with Chinese Financial weak.
No data due but after market Monday 
Balance of Trade Nov HK$-25.6b vs -36.8b Oct (F/cast was -10b)
Exports Nov +5.6% YoY vs -1.1% Oct
Imports Nov +5.1% YoY vs +0.5% Oct
Hong Kong reported 61 new covid cases Monday. 

IPO
HUISEN INTL (02127.HK), debut; closed at $1.75 in grey market, down 1.1% against the listing price $1.77, on volume of 62.7 million shares and turnover of $109 million, PhillipMart data showed.  Excluding the handling fees, a book loss of $40 was reported per board lot of 2,000 shares.
CGII HLDGS (01940.HK), debut, closed at $1.67 in grey market, up 21.9% or $0.3 against the. offer price $1.37, on volume of 11.3 million shares and turnover of $19.5 million, PhillipMart data showed. Excluding the handling fees, a book gain of $600 was reported per board lot of 2,000 shares.

Short Selling  Monday 9.5% vs 13.3% Thursday
Top Shorts Hengan (1044) 61%, Bud Apac (1876) 49%, Ping An (2318) 40%, Bank of China (3988) 35%, Sands China (1928) 33%, Henderson Land (12) 30%, Anta (2020) 30%, Hang Lung Property (101) 29%, BankComm (3328) 29%, HK & China Gas (3) 26%, Country Garden (2007) 26%, New World Dev (17) 25%

BUYBACKS/INSIDER DEALING 
S HARBOURHOLD (01663.HK) announced that the company's chairman and substantial shareholder, Wong Lam Ping, acquired an aggregate of 630,000 ordinary shares of the Company in the open market at an average price of approximately $0.16 per share on 28 December 2020, involving $100,800.
COUNTRY GARDEN (02007.HK) Co-Chairman Yang Huiyan had on 22 December acquired 4.237 million shares, involving roughly $41.681 million, according to shareholding disclosures at the Stock Exchange.
FIH (02038.HK) announced that it had repurchased 4.50 million shares through the Stock Exchange today (28th), involving $3.825 million.
CNOOC (00883.HK) announced that it was notified by China National Offshore Oil Corporation, the controlling shareholder of the Company, that as at 23 December 2020, the latter acquired an aggregate of 254 million ordinary shares of the Company on market, representing approximately 0.57% of the total issued shares of the Company.
ALIBABA announced increasing its share buyback on Monday to US $10bn
WATCH
CKH HOLDINGS (00001.HK) announced that the Group entered into a Memorandum of Understanding (MOU) with Ooredoo Q.P.S.C. (Ooredoo) to combine their Indonesian telecommunications businesses.  The negotiations are on a potential transaction to combine PT Hutchison 3 Indonesia, a subsidiary of CK Hutchison, and PT Indosat TBK, a subsidiary of Ooredoo. CK Hutchison and Ooredoo will proceed with negotiations on an exclusive basis until 30 April 2021.  The potential transaction remains subject to, amongst others, satisfactory due diligence, agreement on terms, signing of definitive agreements and obtaining of all required corporate and regulatory approvals.
Cathay Pacific and other airlines invest in digital health passport. The Common Trust Network, an initiative by Geneva-based nonprofit The Commons Project and the World Economic Forum, has partnered with several airlines - including Cathay Pacific, JetBlue, Lufthansa, Swiss Airlines, United Airlines and Virgin Atlantic, as well as hundreds of health systems. +VE
Chinese "blind box" toymaker Pop Mart International (9992) fell up to 15 percent after being criticized by state media regarding a boom in its mystery boxes.  Pop Mart generates most of its profits from "blind box" toys - a mystery box containing a collectible figurine. Xinhua News Agency said over the weekend that the boxes are causing overspending among the young. -VE

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