Updated throughout the day
January 18, 2016 5:30 p.m. HKT
Asian bourses closed mostly lower on Monday, with Hong Kong leading the pack as the Hang Seng Index fell to another new low. The territory’s benchmark slid 1.45% to 19,237.45 – its lowest level in three years – largely due to a rekindled oil rout which dragged the region’s energy sector down 2.5%. Japan’s Nikkei 225 did slightly better, trimming it losses to just 1.12% after a 2.81% fall shortly out of the gate.
China however went totally against the grain. Buoyed by Beijing’s decision to slap reserve requirements on offshore renminbi deposits, the nation’s Shanghai Composite edged higher in the afternoon session to finish the day up 0.44%.
Here’s what else you need to know:
U.K. benefit reform demands appeal to rest of EU. Britain’s contentious push to curb EU migrant benefits is appears to be gaining traction in Europe, with countries such as France and Germany considering whether they’d introduce their own variants of the reforms U.K. Prime Minister David Cameron is seeking. Financial Times
Beijing to slap reserve requirements on offshore renminbi deposits. China announced on Monday that it will be imposing reserve requirements on offshore renminbi deposits, forcing banks to set aside a portion of CNH deposits at the PBoC and raising the costs of offshore renminbi financing. The PBoC, however, has yet to mention the rate. This is China’s newest move in stabilizing the yuan and stamping capital outflows. Financial Times
Wealth of richest 1% equal to other 99%. The richest 1% now has as much wealth as the rest of the world combined, according to Oxfam. It uses data from Credit Suisse from October for the report, which urges leaders meeting in Davos this week to take action on inequality. BBC
Japan makes plans for pension fund to invest in stocks. Japan’s government is preparing legislation that would allow its $1.1 trillion public pension reserve fund to directly buy and sell stocks, a plan that is sparking divisions over the state fund’s role in private markets. Wall Street Journal
Oil prices slide to 2003 low. With Iran “now free to sell as much oil as it wants to whomever it likes at whatever price it can get,” oil prices plunged to new lows on Monday with Brent falling to $27.67 a barrel while WTI tanked to $28.84. However, they have since recovered to $28.52 and $29.06, respectively. The U.S. lifted its sanctions against Iran over weekend after the U.N.’s nuclear watchdog said Tehran had met its commitments to curtail its nuclear program. Reuters
Missing Hong Kong bookseller appears on Chinese state television. Gui Minhai, a China-born Swedish national and co-owner of Mighty Current publishing company, said he had been on the run after receiving a suspended two-year jail term for causing a drunk-driving death. SCMP (paywall)
Tsai Ing-wen elected Taiwan’s first female president. Ms Tsai, leader of the pro-independence Democratic Progressive Party, vowed to preserve the status quo in relations with China, adding Beijing must respect Taiwan’s democracy and both sides must ensure there are no provocations. BBC
CSRC chief issues rare apology. Xiao Gang, chairman of the China Securities Regulatory Commission, said on Saturday that while the recent volatility revealed “the immaturity of the Chinese markets,” it also exposed several shortcomings in its supervision, adding: “certain institutions have allowed illegal and irregular transactions to prosper, instead of upholding their responsibilities and stabilizing the market.” Shanghai Daily
Yuan to stabilize this week. China’s embattled currency is set to stabilize even further this week after the People’s Bank of China stepped in to fend of speculators. Analysts however are warning that things may be different following the Lunar New Year: “As a result of the PBOC’s intervention, offshore yuan may stabilise around 6.60 over the short term. But after Lunar New Year, it may start to weaken again, especially when most of the underlying negative fundamental drivers remain unchanged.” SCMP (paywall)
AIIB president: U.S., Japan are “welcome” to join. Jin Liqun, president of the China-led Asian Infrastructure Investment Bank (AIIB), recently told the press that the door is open for the U.S. and Japan to join the Beijing-based development bank. Nikkei Asian Review
Vanguard attracts record cash for fourth consecutive year. The low-cost asset manager attracted $256 billion of net new money last year — more than any rival and an increase of 5.3% on 2014. In the past five years total net inflows almost $1trillion, more than twice the sum attracted by the entire hedge fund industry over the same period. Financial Times (paywall)
U.S. imposes new sanctions on Iran over missile test. The new sanctions prevent 11 entities and individuals linked to the missile programme from using the US banking system.The move came after international nuclear sanctions on Iran were lifted on Sunday. BBC
You won’t believe this…
Police operator “missed emergency call” because she was ordering pizza. Frances Francois, from Broward County, spent eight minutes on the phone to Poppy’s Pizza last September as a desperate caller tried to get help for a man who had fainted. “Let me have a lunch special, the pizza lunch special, two cheese pizzas and a coke,” she can be heard saying in a recorded telephone call. Telegraph
Photo: november-13