Article / 02 January 2017 at 8:00 GMT

Morning Markets: Asian equities limp into 2017

 

Watchlist

  • India: Manufacturing PMI (0500 GMT) 
  • Brazil: Manufacturing PMI (1200 GMT)
The 2017 trading year has kicked off to a soggy start with the only two major regional markets that were open – India and South Korea – ending flat to lower while bourses in Australia, Shanghai, Hong Kong, Singapore and Thailand were closed for national public holidays. European markets will likely be rather quiet too as participants ramp up slowly to the new year.

It's also a rather tame day in terms of economic data with only a scattering of PMIs to take on board. For the rest of the week, the most captivating points of interest will be the ongoing administration handover from US president Obama to Donald Trump. Friday's nonfarm payrolls will also command attention.

Overnight, we heard that China's manufacturing sector showed signs of strengthening in December, with the PMI hitting a high of 51.4. The services PMI for Asia's largest economy was upbeat as well. But Chinese citizens are paying a heavy price for economic growth, with industrial haze blanketing the north of the nation this week. 

Market signals

Asian session

  • China's Manufacturing PMI came in at 51.4 for December, a post-2012 high
  • China's Services PMI for December was a robust 54.5
  • Highways are closed and flights have been disrupted in northern China by heavy smog
  • The haze became severe on January 1, and could last until later this week
  • Thailand had the top-performing stock market in south-east Asia in 2016, rising 19.62%
  • Indonesia's Jakarta Composite Index gained 15.32% in 2016; it was second in the region
  • India's BSE was open for trading today
  • Indian PM Narendra Modi defended his poorly implemented banknote crackdown
  • Modi announced cash handouts, cheap loans and tax breaks
  • The Tokyo Stock Exchange is closed on January 2 and 3, for public holidays
  • Bourses in Australia, Shanghai, Hong Kong, Singapore and Thailand were closed today

Forex ahead

  • The US dollar lost ground against the yen; it was worth ¥116.7750 at 0156 GMT
  • The yuan hovered near 7 to the US dollar; USD was buying 6.9721 yuan at 0157 GMT
  • The Australian dollar held above 0.72; it was worth 0.7215 at 0158 GMT

From the Floor will return on January 3

In opinion

1..2..3
Diverging monetary policies between the US and Europe and political uncertainty in the EU could be factors at play that are driving down German bond yields, says James Picerno.


2016 in a nutshell
If we learned anything in 2016 it is that conventional wisdom is merely conjecture dressed up as conviction writes Michael O'Neill.
 nnn
Manufacturing picked up in China in December, but people in smog-bound Beijing, Tianjin and other northern cities are paying a heavy environmental price for industrial growth. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com 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 Rules of Engagement and (v) Notices applying to Tradingfloor.com 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 Bank Group by which access to Tradingfloor.com 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 Bank 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 Bank 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 Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com 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 Bank Group and should not be construed as a record of ourtrading 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. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail