Thursday Morning Coffee - Markets Update - 28 Dec 2023 - APAC Mixed - Yen Rises on BOJ Ambiguity, Hang Seng Extends Gains

Markets Update: APAC - Yen Rises on BOJ Ambiguity, Hang Seng Extends Gains, China PMI in Focus.

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Global Markets Roundup: 28 Dec 2023

BOJ Muddies the Waters: Governor Ueda hints at potential tweaks to yield curve control and negative rates, pushing JPY higher. China Equities Rebound: Hong Kong leads with property and tech gains, supported by easing online gaming restrictions. Data Watch: Japan reports mixed industrial production and retail sales, China national PMI due tomorrow.

Market Snapshot:

• JPY gains: USD/JPY approaches recent highs near 141.20 as BOJ hints at potential policy shifts.

• Hang Seng outperforms: Up 0.3% at 16,678, extending gains for second day on property and tech strength.

• Shanghai Composite mixed: Opens flat at 2,913.

• ASX 200 at record high: Rises 0.1% to 7,565 despite ex-dividend pressure on REITs.

• US equity futures march on: S&P500 and Nasdaq100 up slightly despite year-end slowdown.

Details:

• BOJ Governor Ueda's comments on potential changes to bond buying and negative rates spark speculation and push yen higher.

• Hong Kong benefits from China's softened tone on online gaming and approval of new games.

• Mainland property stocks see a second-day rally in Hong Kong.

• China warns against further rate cuts, citing potential harm to households and capital outflows.

• Swiss franc declines towards 2014-15 lows despite SNB intervention.

• Hapag-Lloyd remains cautious on Red Sea security, rerouting ships via Cape of Good Hope.

• Korea industrial production surges at fastest pace since May 2022.

• Japan data mixed: industrial production misses but retail sales beat estimates.

Additional Notes:

• Kweichow Moutai raises liquor prices, boosting China consumer staples index.

• Hapag-Lloyd's caution highlights ongoing concerns about Red Sea security.

• BOK report shows record corporate debt-to-GDP ratio in South Korea.

Levels as of 06:20 GMT:

• Nikkei 225: -0.4%

• ASX 200: +0.7% (record high)

• Hang Seng: +2.1%

• Shanghai Composite: +1.2%

• Kospi: +1.0%

• S&P500 Futures: +0.1%

• Nasdaq100: +0.2%

• Dax: +0.4%

• FTSE100: +0.4%

• EUR/USD: 1.1101-1.1123

• USD/JPY: 141.12-141.84

• AUD/USD: 0.6837-0.6872

• NZD/USD: 0.6335-0.6370

• Gold: +0.2% at $2,096/oz

• Crude Oil: -0.2% at $73.97/brl

• Copper: +0.1% at $3.9607/lb

Looking Ahead:

• China National PMI data on Friday could offer insights into the health of the manufacturing sector.

• New Zealand and South Korea have holidays on Friday.
  

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General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team