Morning Wrap (17.01.2025)

Asian markets traded mixed on Friday, with Chinese shares rising on robust GDP data while Japanese stocks declined sharply. China's CSI 300 gained 0.5% after Q4 GDP grew 5.4%, bringing 2024 growth to Beijing's 5% target. Japan's Nikkei fell 0,35% on BOJ rate hike expectations.

Japanese yen strengthened to 155.62 per dollar as markets price in potential BOJ rate increase at next week's meeting. Nintendo shares dropped 5% following lukewarm reception to Switch 2 reveal, weighing on the broader TOPIX which fell 0.7%.

U.S. President-elect Trump's Treasury nominee Scott Bessent pledged tougher sanctions on Russian oil and support for tax cut extensions during Senate confirmation. Markets await Monday's inauguration amid concerns over planned trade measures targeting China.

Oil prices climbed with Brent at $81.6 and WTI at $78.30, heading for fourth weekly gain as new U.S. sanctions on Russian energy disrupt supply chains. Yemen's Houthi militia expected to halt Red Sea attacks following Gaza ceasefire deal.

Gold steadied near one-month high at $2,712 as mixed U.S. economic data fueled rate cut speculation. Copper rose 0.2% to $9,268 on strong Chinese GDP, though gains were limited by Trump trade policy concerns.

Chinese soybean processors shift heavily to Brazilian imports for Q1 2025 amid fears of U.S. tariffs. Brazilian cargoes trading at $420/ton vs U.S. Pacific Northwest at $451/ton, with Q1 imports expected to fall to 17.3-18.0 million tons.

Dollar set to break six-week winning streak following softer U.S. inflation, though retail sales and jobless claims showed economic resilience. Asian currencies traded cautiously with Chinese yuan firming slightly on GDP data.

China's population declined for third straight year in 2024, falling by 1.39 million to 1.408 billion despite slight uptick in births. Aging population and low birth rates pose growing economic challenges.

SpaceX Starship exploded during test flight Thursday, disrupting Caribbean air traffic as debris fell. Company confirmed successful booster catch but spacecraft failure due to propulsion system leak.