Asia, Hong Kong’s Hang Seng loses more than 2%. China Evergrande’s electric car division collapses: VP arrested – MilanoFinanza News


Most Asian stocks fell after U.S. private sector employers hired more people than expected in December, suggesting the labor market remains strong, which should continue to support the economy. The ADP National Employment Report actually showed an increase of 164,000 jobs last month, the largest monthly gain since August. Economists had predicted an increase in private employment of 115,000 units. Which, according to ING economists, gives the Fed less impetus to start an aggressive easing policy. So much so that experts don’t expect any rate cuts to begin until May. CME’s Fedwatch tool shows traders have a nearly 63% chance of a 25 basis point rate cut in March, up from 73.4% last week. US stock index futures are down (-0.38% on the Dow Jones and -0.11% on the S&P500).

The Japanese stock exchange is closed for the holidays

Trading volumes in Asia were dampened by a holiday in Japan. The focus is on December inflation data in Tokyo, expected on Tuesday. In addition, reconstruction efforts following the damage caused by the devastating earthquake will almost certainly delay the Bank of Japan’s (BoJ) plans to ease its ultra-accommodative policy.

Chinese price lists are in red

Australia’s ASX 200 fell 0.81% ahead of inflation, trade and retail sales data expected later this week. China’s Shanghai Shenzhen CSI 300 and Ssec fell 1.3 percent and 0.85 percent, extending losses into the new year. Inflation and trade data due later this week are expected to reflect weakness in China’s economy.

China Evergrande’s electric car division collapsed: the vice president was arrested

Hong Kong’s Hang Seng index was the worst performer, falling by 2.17%. Evergrande New Energy Vehicle (Nev), the electric vehicle subsidiary of Chinese real estate giant Evergande, which was in default at the end of 2021, announced “that it has learned that its chief executive and vice president Liu Yongzhuo has been arrested” on suspicion. “certain crimes”. That sent the shares tumbling 23% when trading resumed, after a suspension pending a press release, to HK$0.32, but has since regained ground and is now down 6%. The stock fell 18.6% in the first week of 2024 after it announced last Monday that plans to sell shares in U.S.-listed NWTN had been abandoned.Hui Ka also Yan, president and founder of parent company Evergrande Group, the world’s most indebted real estate developer, is under investigation for alleged crimes, according to a statement from late September.

The yen is stabilizing against the dollar, short-term key resistance at 146.70

Overall, Asian markets fell in their first trading week of 2024 on growing doubts about whether the Fed will cut interest rates as early as March. Sentiment was also influenced by lingering concerns about conflict in the Middle East, as the war between Israel and Hamas shows no clear signs of de-escalation. In addition to inflation data from several major Asian economies, the focus this week is on the US consumer price index for December, which is expected on Thursday. The data is expected to show a slight pick-up in US inflation, with CPI expected to remain well above the Fed’s 2% annual target.Outlook, the dollar is flat against the yen: USD/JPY crosses 144.277. “The +573 pips/+4.9% five-day bounce on the USD/JPY cross from the Dec. 28, 2023 low of 140.25 to the Jan. 5 intraday high of 145.98 nearly hit a key reversal at 146.70,” points out Kelvin Wong , senior analyst at Oanda, who said that if short-term resistance at 146.70 is not broken, a break below 143.75 could trigger a potential bearish move that would expose the exchange rate to further intermediate supports at 142.20 and 140.70/25, and subsequently 139.20. On the downside, a break of 146.70 would cancel the bearish scenario and pave the way for further intermediate resistances at 147.45 and 148.30.

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