Reply To: Traders Market Weekly: Inflation and Bank Earnings


Japan’s Nikkei was the weakest link, returning from yesterday’s holiday. A stronger yen, which coincided with a Nikkei report that PM Kushida will aim to speak with the new BOJ Governor about whether to adjust the 2% inflation target, has garnered some attribution for the weakness. Conversely, the Hang Seng surged with a 3.2% gain as investors took a liking to the prospect of China providing more fiscal support, particularly for major property developers.
In other news, Bloomberg reports that China is going to pause its semiconductor investment plan due to the rising COVID costs it is incurring, the Bank of Japan conducted another unscheduled bond purchase operation, and the Japanese press is reporting that PM Kishida and President Biden are slated to discuss North Korea, Ukraine, and Taiwan on January 13.
Japan’s December Manufacturing PMI 48.9 (expected 48.8; last 49.0)
India’s Nikkei Services PMI 58.5 (expected 55.5; last 56.4)