Global Market Quick Take: Asia – January 23, 2025

Key points:

• Macro: Focus will be on Trump’s pre-taped interview with Fox at 21:00 EST
• Equities: Netflix surged 9.7% with record new subscribers
• FX: Canadian dollar was one of the weakest performers in G10
• Commodities: Gold hit its highest intraday level since late October
• Fixed income: 5-year yield led the gains among US Treasury yields

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Disclaimer: Past performance does not indicate future performance.

Macro:

• We will watch Trump's pre-recorded interview with Fox News for any fresh news on his policies and views, which will air at 21:00 EST/02:00 GMT.
• Ukrainian President Zelensky emphasized that the US must participate in any peacekeeping efforts, aiming for the war's conclusion to benefit President Trump, not Putin. Trump noted on Truth Social his positive relationship with Putin but warned that without a timely deal, he would impose significant taxes, tariffs, and sanctions on Russian goods sold to the US.
• Chinese officials from CSRC finance ministry and PBOC will have a briefing at 9am today to announce measures to stabilize the stock market.

Equities: 

• US - U.S. stocks closed higher, with the S&P 500 rising 0.61% and the Nasdaq 100 climbing 1.33%, buoyed by strong earnings and favorable corporate news amid evaluations of President Trump’s policy changes. Nvidia and Microsoft rose 4.4% and 4.1% amid the tech rally, while smaller-cap stocks faced pressure due to President Trump's tariff signals, with the Russell 2000 down 0.61%
• Netflix surged 9.7% with record new subscribers, Procter & Gamble increased 1.9% on robust results, and Oracle rose 6.7% after announcing a joint venture with SoftBank and OpenAI for a $500 billion AI investment.
• EU- DAX continues to trade at record highs, gaining 1% yesterday to close at 21,254. Biggest gainers include Siemens Energy (+6.5%) and Adidas AG (+6%)

FX:

• The dollar stayed stable, while the Canadian dollar weakened due to potential U.S. trade tariffs, with USDCAD up 0.4% to 1.4380.
• EURUSD dropped 0.1% to 1.0417. ECB President Christine Lagarde confirmed a cautious approach to easing monetary policy. EURCHF decreased 0.1% to 0.9442, with the Swiss National Bank ready to intervene again if needed.
• GBPUSD fell 0.2% to 1.2327 as UK borrowing exceeded forecasts and USDJPY rose 0.6% to 156.46.

Commodities:

• Oil prices dipped slightly after an industry report showed a 1 million barrel increase in U.S. crude stockpiles and a rise in fuel inventories. Markets are watching for potential trade actions by the Trump administration.
• Gold surged to its highest intraday level since late October, with traders focusing on the global economic outlook as U.S. President Donald Trump detailed his trade and immigration policies.

Fixed income:

• Treasuries ended a quiet session with slight increases in front and middle yields. The long-end rebounded due to strong demand from a successful 20-year bond auction. The 5-year notes led the selloff, rising about 2.5 basis points and flattening the 5s30s curve by 2 basis points. New Zealand and Australian bonds declined alongside Treasuries before their local debt auctions. In Japan, note sales are set to occur as the central bank begins a two-day meeting, where an interest rate hike is anticipated to be discussed by policymakers.

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