Asia-Pacific shares, China, yuan, Bank of Japan, Hang Seng index
Hong Kong’s John Lee announces further easing of measures
Hong Kong will remove all mandatory PCR tests for inbound travelers, Chief Executive John Lee said in a press briefing announcing further easing of the city’s Covid restrictions.
Lee added the city will also cancel the vaccine pass scheme, adding that the government will adopt “more targeted measures” for elderly vaccination.
Hong Kong will also remove all social distancing measures, including a ban on group gatherings of more than 12 people, Lee said, adding the measures will take into effect Dec. 29.
– Jihye Lee, Lee Ying Shan
Hong Kong to scrap Covid tests for arrivals, SCMP reports
Hong Kong is slated to scrap its mandatory PCR tests for inbound travelers, South China Morning Post reported, citing people familiar with the matter.
The report added that Hong Kong will fully drop its vaccine pass scheme, which requires proof of three doses of Covid vaccination to enter certain premises – the city will also remove a mandatory five-day home isolation for close contacts.
Hong Kong Chief Executive John Lee is expected to announce the latest updates in a media briefing at 3:30 p.m. local time.
The measures will also include lifting a current ban on public gatherings of more than 12 people, while maintaining rules for wearing masks.
—Lee Ying Shan
Hong Kong reopening stocks rise on China’s reopening measures
Nio shares plunge after trimming fourth quarter delivery outlook
Hong Kong-listed shares of Chinese EV maker Nio dropped 9.11% in Asia trading hours after the company lowered its fourth quarter delivery outlook, citing supply chain disruptions from Covid outbreaks in major Chinese cities.
The company now expects to deliver between 38,500 to 39,500 vehicles, down from its initial projection of 43,000 to 48,000 vehicles, according to the updated delivery guidance.
Its New York-listed shares saw an 8% drop during U.S. trading hours.
— Rebecca Picciotto, Lee Ying Shan
South Korea expected to see a further drop in exports and imports
South Korea’s export growth in December is expected to mark the third month of annualized drop, according to economists polled by Reuters.
Average forecasts project exports to fall 10.1% in December on an annualized basis – a slight improvement after seeing a drop of 14% in November, when it saw the biggest contraction since May 2020.
Economists expect the country’s import growth in December to have dropped 0.6%, resulting in a trade deficit of about $6.7 billion.
South Korea is scheduled to release its trade data on January 1.
— Lee Ying Shan
Bank of Japan says yield curve tolerance adjustment doesn’t mean monetary policy change
The Bank of Japan reiterated that its latest decision to expand the yield curve control tolerance range does not mean a change in its direction of monetary policy, according to the Summary of Opinions from its December meeting.
“The expansion of the range of 10-year JFB yield fluctuations from the target level is not intended to change the direction of monetary easing,” it said.
“It is a policy measure to make the current monetary easing … more sustainable,” it added.
Japan’s central bank added that reviewing its inflation target of 2% is “not appropriate.”
“Revision of that value is not appropriate since it could make the target ambiguous and the monetary policy response inadequate,” it said.
– Jihye Lee
Tesla’s Asia suppliers fall after production halt reported at Shanghai plant
Shares of Tesla suppliers in Asia fell as production at the company’s Shanghai plant reportedly remained paused after seeing a wave of Covid infections among its Chinese workforce.
South Korea’s LG Chem fell 3.66% and Japan’s Panasonic lost 0.31% in early Asia trade. Shares of Contemporary Amperex Technology, also known as CATL, fell 3.39%.
– Jihye Lee
Oil prices supported by China reopening and Moscow’s decree to ban oil sales
Oil prices rose on the back of a potential demand boost fueled by China’s reopening, as well as Moscow’s announcement to ban oil sales to countries participating in the U.S.-led price cap on Russian crude.
Brent crude futures rose 0.2% to $84.50 a barrel, while the U.S. West Texas Intermediate futures gained 0.19% to $79.7 a barrel.
According to a decree by Russian President Vladimir Putin, which was published on the Kremlin portal, Moscow said the established ban “applies to all stages of sales up to and including the final buyer.”
– Lee Ying Shan
U.S. weighs new rules for travelers from China
The U.S. government is considering imposing new Covid rules for travelers from China, officials said.
“There are mounting concerns in the international community on the ongoing COVID-19 surges in China and the lack of transparent data, including viral genomic sequence data, being reported from the PRC,” officials said.
Separately, Japan announced on Tuesday it would require a negative Covid test for visitors from China starting Dec. 30.
Read the full story here.
– Jihye Lee
China’s factory activity…
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