A Saturday call made by President Trump and Chinese leader Xi Jinping is likely to set a positive tone for APAC opening today, though many markets are running half-day and will be closed tomorrow for the New Year holiday break.

President Trump described the phone call as a ‘big progress’ over US-China trade deals, covering all areas of dispute.

Lack of details to substantiate a breakthrough in trade talks, however, it is unclear how long a technical rebound in US equity markets seen last week will sustain. US consumer confidence sentiment has fallen to five-month low, alongside with a string of missing manufacturing PMIs from China and European countries. This has painted a cloudy outlook of global demand as the fast-paced growth is probably over, and trade uncertainties has become a major disruptive factor for capex and business continuity.  

Asian markets, ex-Japan, opened mildly higher as investors struggled to strike a balance between trade hope and disappointing China manufacturing PMIs, which fell to contraction territory of 49.4 in December, below consensus forecast of 49.9. This marks the end of 33 months of consecutive expansion as the country’s manufacturing sector is expected to face adverse impact from US trade tariffs. Shanghai Composite registered 24.6% losses this year, ranked the worst performing equity market globally.

Market Calendar – China official manufacturing PMIs

Global markets YTD performances

MARKETPE_RATIOPrice Change Year To Date Percent
S&P 500 INDEX17.0-7.0
DOW JONES INDUS. AVG.15.4-6.7
NASDAQ COMPOSITE INDEX40.1-4.6
HANG SENG INDEX9.7-14.8
SHANGHAI SE COMPOSITE11.7-24.6
S&P/ASX 200 INDEX15.7-6.2
Straits Times Index STI11.3-10.0
Nifty 5022.03.1
FTSE Bursa Malaysia KLCI19.2-5.6
JAKARTA COMPOSITE INDEX19.7-2.5
STOCK EXCH OF THAI INDEX14.4-10.8
KOPSI INDEX9.8-17.3
NIKKEI 22513.9-12.1
Euro Stoxx 50 Pr13.4-14.8
TAIWAN TAIEX INDEX12.5-8.6
HO CHI MINH STOCK INDEX15.6-9.3
MSCI EM11.5-16.9
MSCI WORLD15.5-11.1
DOLLAR INDEX SPOT 4.6
US 10-YEAR TREASURY -1.9
WTI CRUDE OIL -24.7
Gold Spot $/Oz -1.8
JPY-USD X-RATE -2.1
EUR-USD X-RATE -4.7
GBP-USD X-RATE -6.1
USD-CNH Cross Rate -5.3

By Margaret Yang in Singapore

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