• APAC stocks mostly took impetus from the gains on Wall St where stocks were underpinned amid a softer yield environment.
• US equity futures were boosted after-hours following the big tech earnings (META +15%, AMZN +7%, AAPL -3%).
• European equity futures indicate a higher open with Euro Stoxx 50 future +0.8% after the cash market closed down 0.2% on Thursday.
• DXY sits around the 103 mark, AUD is attempting to recoup lost ground, other majors are broadly steady.
• Al Jazeera initially posted on X that Qatar said Israel agreed to a ceasefire proposal and Hamas gave positive confirmation. However, the post was later deleted.
• Looking ahead, highlights include US NFP, Durable Goods, UoM, Earnings from Unicredit, Regeneron, Gilead, Qualcomm, Exxon, Chevron, Aon & Abbvie.

US TRADE

EQUITIES

• US stocks advanced throughout most of the US session amid a lower yield environment after a rise in initial jobless claims data which surpassed all analyst estimates, while the gains in stocks were broad-based with the majority of sectors green with Consumer Discretionary, Staples and Industrials the outperformers although Energy lagged and was the sole sector in the red as it tracked crude prices lower on mixed reporting around a Gaza ceasefire.
• SPX +1.25% at 4,906, NDX +1.21% at 17,344, DJIA +0.97% at 38,519, RUT +1.39% at 1,974.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed Chair Powell will be interviewed on 60 Minutes this Sunday which will be aired at 19:00EST/00:00GMT.
• US Senate Majority Leader Schumer said the full text of the national security supplemental bill will be posted as early as Friday and no later than Sunday with the first vote to take place by Wednesday.
• Atlanta Fed GDPnow (Q1) rose to 4.2% from 3.0%.

EARNINGS

• Amazon.com Inc (AMZN) - Q4 2023 (USD): EPS 1.00 (exp. 0.80), Revenue 169.96bln (exp. 166.21bln).SALES BREAKDOWN:Online stores 70.54bln (exp. 68.91bln). Physical Stores 5.15bln (exp. 5.23bln). Third-Party Seller Services 43.56bln (exp. 41.96bln). AWS 24.20bln (exp. 24.22bln). GEOGRAPHICAL REGIONS: North America 105.51bln (exp. 102.88bln). International 40.24bln (exp. 38.96bln). KEY METRICS: Third-party seller services net sales excluding F/X +19% (exp. +15.9%). AWS net sales excluding F/X +13% (exp. +11.8%). Operating income 13.21bln (exp. 10.49bln). Operating margin 7.8% (exp. 6.17%). North America operating margin +6.1% (exp. +4.12%). International operating margin -1% (exp. -1.27%). Fulfillment expense 26.10bln (exp. 25.2bln). GUIDANCE: Q1 net sales view 138.0-143.5bln (exp. 142.01bln). Q1 operating income view 8-12bln (exp. 9.1bln). CFO said improved delivery speeds have led to increased purchase frequency by customers across major geographies, and there are no immediate plans for dividend. (Amazon/Newswires) Shares rose 7.1% after-market. Index weightings: SPX (3.5%), NDX (4.9%).
• Meta Platforms Inc (META) - Q4 2023 (USD): EPS 5.33 (exp. 4.96), Revenue 40.11bln (exp. 39.17bln); authorised 50bln increase to share buyback programme and declared cash quarterly dividend of 0.50/shr. KEY METRICS: Advertising revenue 38.71bln (exp. 38.12bln). Facebook DAUs 2.11bln (exp. 2.07bln). Facebook MAUs 3.07bbln (exp. 3.06bln). Ad impressions +21% (exp. +24.6%). Average Family service users per day 3.19bln (exp. 3.11bln). Average Family service users per month 3.98bln (exp. 3.93bln). GUIDANCE: Q1 revenue view 34.5-37bln (exp. 33.34bln). Meta (META) noted the FTC is seeking to substantially modify consent order on Meta and if contesting is unsuccessful, this could impose additional restrictions on its ability to operate and would adversely impact its business. CEO said the Co. is getting ready to roll out AI services more widely in coming months, adds Threads now has more people using it daily than initial launch and Metaverse focus this year is going to be growing mobile version of Horizon. CFO said Co. will discontinue reporting of Facebook monthly and daily active users, Co. expects to maintain an active share repurchase program. (Meta/Newswires) Shares rose 15.2% after-market. Index weightings: SPX (2.2%), NDX (4.2%).
• Apple Inc (AAPL) - Q1 2024 (USD): EPS 2.18 (exp. 2.10), Revenue 119.58bln (exp. 117.91bln). Greater China revenue 20.82bln (exp. 23.5bln). REVENUE BREAKDOWN: Products 96.46bln (exp. 95.14bln).iPhone 69.70bln (exp. 68.55bln). Mac 7.78bln (exp. 7.9bln). iPad 7.02bln (exp. 7.06bln). Wearables, home and accessories 11.95bln (exp. 12.02bln). Service 23.12bln (exp. 23.37bln). KEY METRICS: Total operating expenses 14.48bln (exp. 14.62bln). Gross margin 54.86bln (exp. 53.56bln). Cash and cash equivalents 40.76bln (exp. 38.81bln). Apple expects March quarter total revenue and iPhone revenue to be similar to the previous year after accounting for inventory replenishment. Expects gross margins between 46%-47% for fiscal Q2. Expects operating expenses of USD 14.3bln-14.5bln in fiscal Q2. Expects services business to show double-digit growth similar to the December quarter in fiscal Q2. CEO Cook said the Co. will make announcements this year on new AI features. CEO Cook added that FX was a headwind for China sales, and the decline in China sales was in part on a stronger USD. (Apple/Newswires) Shares fell 2.9% after-market. Index weightings: SPX (6.6%), NDX (8.7%), DJIA (3.2%)

APAC TRADE

EQUITIES

• APAC stocks mostly took impetus from the gains on Wall St where stocks were underpinned amid a softer yield environment and with US equity futures boosted following the big tech earnings.
• ASX 200 printed fresh all-time highs with real estate and tech front running the gains amid softer yields.
• Nikkei 225 gained with headlines dominated by another busy day of earnings results, while Aozora Bank suffered another double-digit drop after it recently flagged losses linked to US commercial property loans.
• Hang Seng and Shanghai Comp were both initially boosted with outperformance in automakers after their January delivery updates, while tech names were supported after China's NPPA approved 32 imported online games. However, stocks then gradually reversed course after the PBoC continued to drain liquidity despite next week's Lunar New Year holiday.
• US equity futures (ES +0.5%, NQ +1%) hold on to their after-market gains following earnings from Meta and Amazon which lifted their shares by over 15% and 7%, respectively, although Apple shares faltered despite beating on top and bottom lines as its Greater China sales disappointed.
• European equity futures indicate a higher open with Euro Stoxx 50 future +0.8% after the cash market closed down 0.2% on Thursday.

FX

• DXY kept within a tight range of between 102.98-103.07 ahead of the looming NFP report and after recently suffering amid a decline in yields due to banking concerns and after data showed jobless claims rose above forecasts and unit labour costs were softer than expected.
• EUR/USD took a breather after gaining a firm footing above 1.0800 following recent dollar pressure.
• GBP/USD held on to post-BoE spoils after the three-way vote split and suggestion that they are not yet at the point to cut rates.
• USD/JPY was lacklustre after a brief dip below the 146.00 handle on narrowing US-Japan yield differentials.
• Antipodeans were marginally supported amid the mostly positive risk environment.
• PBoC set USD/CNY mid-point at 7.1006 vs exp. 7.1655 (prev. 7.1049).
• BoC Governor Macklem reiterated that if new developments push inflation higher, the BoC may still need to hike rates, while he wants to see inflationary pressures continue to ease and a clear downward momentum in underlying inflation.

FIXED INCOME

• 10-year UST futures continued to pull back from the 113.00 level following the prior day's bull-flattening which was spurred by rising jobless claims and banking sector concerns.
• Bund futures gave back their gains after failing to sustain a footing at the 136.00 level.
• 10-year JGB futures remained afloat amid the BoJ's presence in the market for over JPY 1.4tln of JGBs.

COMMODITIES

• Crude futures found some slight reprieve after dropping yesterday on conflicting Gaza ceasefire reports.
• Spot gold traded sideways but held on to most of the recent gains which were spurred by a weaker dollar.
• Copper futures were rangebound with price action subdued amid the glum mood in its largest buyer China.

CRYPTO

• Bitcoin traded indecisively and was initially boosted before slipping back beneath the USD 43,000 level.

NOTABLE ASIA-PAC HEADLINES

• China National Press and Publication Administration approved 32 imported online games, according to Reuters.

DATA RECAP

• South Korean CPI MM (Jan) 0.4% vs. Exp. 0.4% (Prev. 0.0%)
• South Korean CPI YY (Jan) 2.8% vs. Exp. 2.9% (Prev. 3.2%)
• Australian Home Loans MM (Dec) -4.1% vs Exp. 1.0% (Prev. 1.0%)
• Australian PPI QQ (Q4) 0.9% (Prev. 1.8%)
• Australian PPI YY (Q4) 4.1% (Prev. 3.8%)

GEOPOLITICS

• Al Jazeera initially posted on X that Qatar said Israel agreed to a ceasefire proposal and Hamas gave positive confirmation. However, the post was later deleted, while a Qatari official said there was no ceasefire deal yet for Gaza.
• Hamas said they are still in the stage of consultation between internal and foreign leaders on the exchange deal, while it received the Paris truce proposal but has not given a response to any parties and it is still being studied. Furthermore, it cannot say the current stage of negotiations is zero, but also cannot say they have reached an agreement.
• Israel's Defence Minister said Hamas' Khan Younis brigade has been dismantled and Israel will also move against Rafah on Gaza's border with Egypt.
• White House official said US President Biden is signing an order implementing new measures to target activities that undermine peace in the West Bank, while the order includes financial sanctions and visa restrictions which apply to both Israelis and Palestinians.
• Yemen's Houthis said they targeted a British merchant vessel in the Red Sea.
• North Korea fired several cruise missiles off its west coast, according to South Korea.