Stock Market Update

The S&P 500 futures currently trade three points above fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Friday while markets in Australia, New Zealand, and Hong Kong were closed for Christmas/Boxing Day. Samsung and SK Hynix climbed amid reports that they will be ready to mass produce HBM4 memory in February. Japan's 2-yr yield hit its highest level since 1996 even though Tokyo Core CPI decelerated to 2.3% yr/yr in December from 2.8% in November. Japan's cabinet confirmed a record FY26 budget of JPY122.3 trln. State-owned banks in China are reportedly actively purchasing dollars in the spot market.

• In economic data:
  • Japan's November Housing Starts -8.5% yr/yr (expected 0.2%; last 3.2%) and Construction Orders 9.5% yr/yr (last -10.1%). November Industrial Production -2.6% m/m (expected -1.9%; last 1.5%) and November Retail Sales 1.0% yr/yr (expected 0.9%; last 1.7%). November Unemployment Rate 2.6%, as expected (last 2.6%). December Tokyo CPI 2.0% yr/yr (last 2.7%) and Tokyo Core CPI 2.3% yr/yr (expected 2.5%; last 2.8%)
  • Singapore's November Industrial Production -10.2% m/m (last 11.2%); 14.3% yr/yr (expected 14.2%; last 28.9%)

---Equity Markets---

• Japan's Nikkei: +0.7% (+2.5% for the week)
• Hong Kong's Hang Seng: CLOSED (+0.5% for the week)
• China's Shanghai Composite: +0.1% (+1.9% for the week)
• India's Sensex: -0.4% (+0.1% for the week)
• South Korea's Kospi: +0.5% (+2.7% for the week)
• Australia's ASX All Ordinaries: CLOSED

Major European indices remain closed for Boxing Day. Ukraine's President Zelensky is expected to visit Florida in the coming days to discuss the proposed peace plan.

• No data today

---Equity Markets---

• STOXX Europe 600: CLOSED (+0.2% this week)
• Germany's DAX: CLOSED (+0.2% this week)
• U.K.'s FTSE 100: CLOSED (-0.3% this week)
• France's CAC 40: CLOSED (-0.6% this week)
• Italy's FTSE MIB: CLOSED (-0.3% this week)
• Spain's IBEX 35: CLOSED (UNCH this week)