· The Australian dollar and Chinese yuan rose on Thursday after China unexpectedly said it would halve tariffs on some U.S. imports, a goodwill gesture that added to hopes the global economy may be able to avoid a major shock from a virus outbeak.
The yuan CNY= advanced 0.2% to 6.9601 per dollar, its highest since Jan. 23, while the Australian dollar AUD=D3 rose by the same margin to $0.6759. The Korean won jumped half a percent KRW=.
The yen on Thursday slipped to a two-week low of 109.95 per dollar JPY=.
The greenback extended gains against the pound in Asian trade, gaining 0.1% to $1.2977 per pound, while sitting only a fraction below a two-month high against the euro EUR= at $1.0996.
· China to halve retaliatory tariffs on hundreds of US goods worth about $75 billion
China on Thursday announced that it will halve tariffs on hundreds of U.S. goods worth about $75 billion.
Tariffs on some U.S. goods will be cut from 10% to 5%, and from 5% to 2.5% on others, according to a statement from China’s Ministry of Finance. The adjustments will take effect from 1:01 p.m on Feb. 14, it said, but did not specify what time zone.
The cuts apply to about $75 billion worth of imports from the U.S. that was slapped with tariffs on Sept. 1, 2019, according to a separate statement on the ministry’s website. It was not immediately clear which products are covered by the suspension.
The statement said the move was made in order to “advance the healthy and stable development of China-U.S. trade.” It did not mention if it was related to the current coronavirus outbreak.
· China is considering delaying the annual meeting of its top legislative body, five people familiar with the matter said, as it grapples with a coronavirus epidemic that has forced drastic curtailment of travel and other activity to curb its spread.
The National People’s Congress (NPC), made up of about 3,000 delegates, typically gathers for a session lasting at least 10 days in Beijing, beginning on March 5, to pass legislation and unveil key economic targets for the year.
· China is likely considering using a disaster-related clause in its Phase 1 trade deal with the United States due to the coronavirus outbreak that has killed more than 500 and infected tens of thousands, the Global Times reported on Thursday.
The Global Times, published by the official People’s Daily newspaper of China’s ruling Communist Party, cited an unnamed Chinese trade expert close to the government as saying a decision on launching a consultation with the United States on the disaster clause is unlikely until the end of the first quarter.
· German industrial orders unexpectedly plunged in December on weaker demand from other euro zone countries, data showed on Thursday, suggesting that a manufacturing slump will continue to hamper overall growth in Europe’s largest economy.
Contracts for ‘Made in Germany’ goods fell by 2.1% from the previous month, the Statistics Office said. That was the biggest drop since February and compared with the Reuters consensus forecast for a 0.6% rise.
· Another group of nearly 350 Americans airlifted from the epicenter of China’s fast-spreading coronavirus outbreak were placed under quarantine at two military bases in California on Wednesday, as the number of confirmed U.S. cases of the disease rose to 12.
The travelers aboard two State Department-chartered cargo jets were met by personnel from the Centers for Disease Control and Prevention (CDC) for screening, and are to remain under mandatory quarantine for 14 days, the incubation period of the virus.
Five of the passengers arrived exhibiting possible symptoms, two of them children, and were immediately hospitalized, along with the mother of one of the youngsters, the CDC said.
· Authorities in Taiwan have issued a travel alert for Hong Kong and Macau, warning residents to avoid non-essential trips to the two SARs.
They have also announced that any Taiwan residents who return to the island after visiting the two places must be quarantined at home for 14 days, according to the Central News Agency.
It was not immediately clear whether the authorities are planning any measures to curtail visitors to the island from Hong Kong, although some reports suggested SAR residents arriving in Taiwan would also be subject to some kind of quarantine.
The Taiwan Centers for Disease Control said that from February 6, "travellers with a history of travel to China, Hong Kong and Macau are required to be under home quarantine after entering Taiwan."
· Finnish telecom network equipment maker Nokia (NOKIA.HE) reported on Thursday a surprise rise in October-December underlying profit, driven by cost cuts, and said most of its 2020 profit will be generated in the fourth quarter.
Nokia said October-December underlying earnings rose to 0.15 euros per share from 0.13 euros per share a year ago, beating the 0.13 euros consensus in a Refinitiv poll.
Nokia repeated its forecast for 2020 underlying earnings per share of 0.20 euros to 0.30 euros.
· Oil futures rose for a second day on Thursday amid investor optimism over unconfirmed reports of possible advances in combating the coronavirus outbreak in China which could cause fuel demand to rebound in the world’s biggest oil importer.
Brent futures rose by 77 cents, or 1.4%, to $56.05 a barrel by 0735 GMT, having risen 2.4% in the last session. U.S. West Texas Intermediate (WTI) futures gained 95 cents, or 1.9%, to $51.70 a barrel after rising 2.3% on Wednesday.
Reference: CNBC, Reuters
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