Global Market Quick Take: Asia – December 19, 2023 Global Market Quick Take: Asia – December 19, 2023 Global Market Quick Take: Asia – December 19, 2023

Global Market Quick Take: Asia – December 19, 2023

Macro 5 minutes to read
Redmond Wong

Chief China Strategist

Summary:  USDJPY bounced to 142.60 ahead of the Bank of Japan's monetary policy decisions. The BoJ is expected to maintain current policies, and traders await signals if there will potentially be a January move. Brent crude rose 1.9% to $78.0 as BP halted Red Sea transits due to Yemeni militant threats. The S&P 500 gained 0.5%, and the Nasdaq 100 added 0.6% to 16,730, led by major tech stocks. However, Apple slid 0.9% after announcing a U.S. sales suspension of some Apple Watch models due to patent issues.


The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: The S&P 500 gained 0.5%, extending its rise to 4,741. The Nasdaq 100 added 0.6% to 16,730, driven by mega-cap technology stocks. Meta, Amazon, Alphabet, and Nvdia each gained over 2%. However, Apple slid 0.9% after announcing to suspend sales of Apple Watch Series 9 and Ultra 2 in the U.S. by an import ban due to patent issues. U.S. Steel soared 26.1% after agreeing to the takeover ty Nippon Steel.

Fixed income: Treasuries consolidated with yields bouncing off lows slightly after the dramatic post-FOMC movements last week. The 10-year yield rose by 2bps to 3.93%, while the 2-year yield remained flat. All eyes are on today’s BoJ meeting and the US PCE inflation data which is due Wednesday.

China/HK Equities: The Hang Seng Index declined by 1% to 16,629, and the Hang Seng Tech Index dropped by 1.3%. XPeng plummeted 6.7% after Taobao, a subsidiary of Alibaba, disclosed its plan to trim its stake in the EV maker to 7.5% from 10.2%. COSCO Shipping surged 7.5% and Orient Overseas rose 4.2%. This came after the world’s largest liners, Maersk, Hapag-Lloyd, CMA CGM, and MSC suspended Red Sea and Suez voyages due to risks of attacks off Yemen. The Shanghai Containerized Freight Index gained 5.9% last Friday from a week ago as spot Europe-Asia freight rates increased. In the mainland, the CSI300 slid 0.4%. Shipping stocks gained, while new energy names tumbled.

FX: Ahead of the conclusion of the BoJ monetary policy meeting this Asian morning, USDJPY bounced modestly to 142.60. The market in general, is expecting the BoJ to keep policies unchanged. Traders’ focus is on whether the BoJ will pave the way for a potential January move in its communication from the meeting. Meanwhile, EURUSD gained 0.3% to 1.0920, and AUDUSD was little changed, trading at around 0.6700.

Commodities: The Brent crude oil price rose by 1.9% to $78.0 after BP stopped its oil tankers from transiting the Red Sea due to risks of attacks on vessels by Yemeni militants. WTI crude oil gained 1.5% to $72.50. Gold ticked up 0.4% to $2,027.

Macro: The event of the day is the conclusion of the Bank of Japan meeting. For a more in-depth discussion, please refer to Charu Chanana’s note.

Macro events:  Bank of Japan decisions, S housing starts & building permits (Nov), US Manheim used vehicles index (Dec).

Earnings: Accenture, FedEx

In the news:

  • Oil and gas prices surge as BP stops Red Sea shipments following Houthi attacks (CNN)
  • Apple to Halt US Sales of Smartwatches After Patent Loss (Bloomberg)

 

For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.