USD fluctuates after prior gain

Asia market update: TECH declines after losses on Wall St.; USD fluctuates after prior gain; Key US macro events in focus [FOMC minutes, ISM, JOLTS].

General trend

- Asian equities decline.

- Industrial Bank extends decline in China.

- Japan markets to return from holiday on Jan 4th (Thurs).

Headlines/economic data

Australia/New Zealand

-ASX 200 opens -0.4% at 7,601.

-Australia PM Albanese To look at more cost-of-living relief in the budget.

-Reserve Bank of Australia (RBA) predicted to start to cut rates from Sept 2024 [inline]; cites some economists - Australian press [**Reminder Nov 10th 2023: (AU) Australia central bank (RBA) statement on monetary policy (SOMP): Forecasts assume cash rate peaks around 4.50%, before declining to 3.50% by end 2025].

China/Hong Kong

-Hang Seng opens -1% at 16,624.

- Shanghai Composite opens -0.2% at 2,957.

-China 'may' continue cutting interest rate and RRR in 2024 - Chinese press.

-Reportedly Chinese official at press regulator was removed last week, said to be linked to the new rules announced by NPPA that curbed video game industry and sent shares of Tencent and other companies lower - press.

-NetEase: To establish 'minor mode' for gaming products - Press [**Reminder Dec 21 2023: (CN) China regulator (NPPA) issues draft rules for online game industry to prevent excessive game time; Sets spending limits and bans daily login rewards; Games must strictly control play time for minors, and must prevent minors from tipping hosts - China press].

-China to increase soybean production for self-sufficiency rate - financial press.

-China PBOC sets Yuan reference rate: 7.1002 v 7.0770 prior.

-China PBOC Open Market Operation (OMO): Sells CNY14B in 7-day reverse repos; Net drains CNY558B v drains CNY869B prior.

-Hang Seng Indexes Company Limited (“Hang Seng Indexes”) will announce the results of the 2023Q4 review of the Hang Seng Family of Indexes on 16 February 2024 (Fri).

Japan

-Nikkei 225 closed for holiday.

- Japan PM Kishida comments on recent earthquake: Bad weather and further tremors are expected in the region.

Korea

-Kospi opens -1% at 2,643.

-Kia Motors: Guides 2024 vehicle sales 3.2M units [**Reminder Jan 2023 Kia: Guides FY23 global sales 3.2M units].

- Bank of Korea (BOK) Gov Rhee: To adopt a mix of policies; Need to prepare for the possibility of financial uneasiness.

Other Asia

-Philippines Stock Exchange: Says trading is halted; stand by for further announcements.

Europe

-(US) CENTCOM: On Jan 2nd Houthis fired 2 anti-ship ballistic missiles; no commercial ships in the area reported damage.

-Maersk: We will continue to pause all cargo movement through the Red Sea and the Gulf of Aden while we further assess the constantly evolving situation.

-Germany to accelerate write-offs for gas pipelines - Germany press.

Levels as of 00:20 ET

- Nikkei 225, closed, ASX 200 -1.4% , Hang Seng -1.1%; Shanghai Composite -0.3% ; Kospi -2.1%.

- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 -0.3%.

- EUR 1.0962-1.0938 ; JPY 142.18-141.86 ; AUD 0.6770-0.6750 ;NZD 0.6272-0.6244.

- Gold -0.1% at $2,072/oz; Crude Oil -0.1% at $70.28/brl; Copper -0.1% at $3.8655/lb.