Key News
Asia equities were largely higher except for Singapore and India’s small pullback in advance of the US’ highly anticipated CPI release. Overnight China’s December CPI was released at +1.8% versus November’s +1.6%, meeting expectations of 1.8%, while PPI was -0.7% versus November’s -1.3%, which was light versus expectations of -0.1%. The inflation release gives policy ample room to continue monetary easing and pro-consumption fiscal policies against the backdrop of low consumer inflation. CNY appreciated overnight versus the US dollar closing +0.23% at 6.74.
Hong Kong and China’s choppy sessions swing from positive to negative though closing positive. The Hang Seng Index turned from -0.99% to +1.23%, closing +0.36%, while the Hang Seng Tech was off +1.13%, -2.78% at one point though it closed at -1.32%. Today was almost the opposite of yesterday, as value sectors had a good day while growth stocks/sectors struggled. Hong Kong’s most heavily traded were Tencent -2.62% on a notable sell day from Mainland investors via Southbound Stock Connect, Alibaba HK -1.86% and Meiutan -0.57% while JD.com +032% and NetEase +3.73%. The big winner was auto and EV with BYD +5.25%, Nio +0.62%, and Li Auto +1.03% though Xepng -3.64% on an analyst downgrade. Short activity was moderate though NetEase Hong Kong’s turnover was short turnover versus 11% yesterday.
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