annabelle: this is daybreak asia we are counting down to asia's major market open. it sentiment for the start of the trading week is one that is quite positive. u.s. stocks inching higher with the friday close and the investors calling the fed to be forced to start cutting although we get the pushback from policymakers. paul: a real disconnect between what the market thinks will happen with the fed says will happen. mary daly talking about that's being premature. the markets keep on pushing higher. the nikkei closing on a record we have seen for a long time. annabelle: really going back to the days of economic bust of the bubble in the early 1990's. japan, the focus as well for markets come into this week is what we get from the doj because the policy decision is due on tuesday, no changes expected in terms of negative rates or why

sisi, the tension is going to be on how the governor is assessing progress made to achieve sustainable inflation. that is what is needed to end negative rates in japan. all of the doj watchers and our polls expecting the bank to keep its short-term policy right and -.1% and also to leave the program intact. continuing to harbor around a seven week low. against the greenback, stocks wise, one of the major beneficiaries, boosting the export as you see, the nikkei up up. in korea, trade data, we saw exports for the first 20 days of january falling 1% on the year. interestingly a to note we did get the chip exports and they rose nearly 20% on the year,

something that is more positive for the outlook for semiconductors and given we are starting to see those signs of unevenness coming through the market memory, sales are stronger and system chips continuing to slide. imports down more than 18% on the year, korea, a key economic bellwether, one of the first to report trading numbers, seen as a leading economic indicator. the continuing push higher to see how chip names are faring, the nasdaq 100 reaching an all-time high on friday. paul: information technology stocks performing best in australia, a modest risk on field, we only see energy stocks one of the few areas in the red at the moment, losing a little bit of ground and crude started trading and that is going to see

softness as well, 78-33 a barrel at the moment. a change to the aussie sitting below the $.66 level. take a look at yields in australia, they have been creeping up. we see yields creeping up for u.s. treasuries as well. we have the 10 year to start the trade in japan, we are seeing the yield moving up a tad bit, 4.13, we did discuss a moment ago those expectations around the fed easing, look at the markets pricing in a 50-50 chance of a cut in march. or pushback from mary daly, san francisco fed president who is a voting member of the committee this time around, she says cuts will be premature and any talk of cuts are getting ahead of the curve. annabelle: that rate differential between the fed and the doj has been one of the more interesting things to note for the japanese yen.

the outlook for the japanese equities because it is one of the reasons it has been cited for pushing higher. but a spring in our next guest who is positive on japan for the changing interest rate environment against a background of underlying structures with karen coulter is the head of equity research at ubp, the rate decision is tomorrow, no change expected. pushback as well, these estimates would see some sort of policy pivot. how does that factor into your thinking for japanese equities and performance over the next few rounds? >> good morning. we think that there will not be any changes and the bias has been to keep the short-term policy right negative. -- rate negative. that takes pressure off to change that in the short term. as you mentioned, the interest rate differential between japan and the u.s., it remains

unchanged and in that sort of scenario. definitely, the weaker yen has been a factor in terms of not only earnings for japanese corporate's but maybe more importantly for the correlation between the market. a little bit different. we think or the interest rate environment is at the moment, we have a widening spread between pens and the shorter-term rights, that widening spread is still japan, less than 1%. it is good for earnings. we are pretty focused on bank earnings in the upcoming results season which is the third quarter for japan. annabelle: when you have that sort of backdrop of a dovish boj, is that more important for japanese equities or in terms of

of governance reform? >> we are focused on both, the changing interest rate environment is an economic reality. it is happening. the corporate restructuring reform theme, it got a bit more juice when it was the jp acts last year that encouraged companies to get serious about it. we think that is a nice backdrop and we hope it is for real this time. we have the first list from the jp acts published on monday a week ago. which showed the large corporate's and the prime market a lot of -- 50% of companies have been defined as disclosing their lands to improve corporate value which means present your prices but when you get into the standard market, the response is much less impressive, there is certainly room to run in terms

of that theme. paul: the nikkei 500 points shy of a record, as monetary policy on both sides of the pacific gets ready to shift, is there temptation to take profit here? >> for us, i think it is referred to be a non-us market, we are not looking to take profit yet, we think it is a great start to the year, obviously, we do want to be selective in terms of sectors that we are interested in. i mentioned earlier, financials has underlying earnings growth, strong against the backdrop of the interest rate environment. we also like tech in japan. we likely semiconductor names there and the platform names like nintendo and sony. then we also think that with the cycle bottoming in terms of factory automation orders, we

think there is some highest quality best in class names in japan that we also think are areas we are interested in as well. to selective rather than taking profits off of the table. paul: you are quite constructive about japan but i know you are bearish when it comes to china. at what point does try not just get so cheap that you cannot ignore it anymore? >> that has been the question for quite a while. i think a lot of the problems in china or self-inflicted. the crackdown on tech the real estate, even though it is a year ago, the response to covid, these are still dragging on the market and for us, ultimately, we think to get more constructive on china, you need to have a resolution to the property sector. it needs to be comprehensive and needs to pull in banks and

valuations on its own is the catalyst, clearly, evaluation is cheap in china. there are so many reasons why for that, and we think that the was obvious catalyst is a final resolution of the property sector. that were easy, it would be done already, we think it is probably not something for the first quarter. annabelle: how long are you expecting the first quarter being optimistic? many say that the economy will be in the doldrums over the first few quarters of this year at least. when you price for any sort of meaningful pick up -- when do you price for any sort of meaningful pick up in price? >> if you are referring to china equities, i think the first quarter of next year, they have, as i have said, a large problem, it is difficult to tackle and the need to bring in a cannot

not be done by real estate companies themselves. we are past the self-help stage. needs to be a comprehensive resolution including the banks which the reason that they treat so cheaply, if be by summer i think that is also optimistic. it is on the timetable of the government in china which is not so protectable. paul: all right, that is the head of equity research for age at upb. still to come we will have a preview of this week's bank of japan with moody's analytics. first, a major shakeup in the republican presidential race, ron desantis dropping out ahead of the new hampshire primary. details on the story, next. this is bloomberg. ♪

>> i am suspending my campaign. i am proud to have delivered on

100% of my promises and i will not stop now. it is clear to me that republican primary voters want to give donald trump another chance. i signed a pledge to support the republican nominee and i will honor that pledge. we cannot go back to the old republican guard of yesteryear. annabelle: that was ron desantis announcing his withdrawal from the 2024 u.s. presidential race and endorsing donald trump who will be facing off with nikki haley and tuesday's new hampshire primary. we are joined by senior washington senior editor who is in new hampshire. wendi, it is an incredible personal fortunes for ron desantis who was once considered the most formidable challenger to donald trump. what happened? >> it was almost like until the u.s. republican primary voters got to know him, he was the most

formidable. there was this sense that he had a lot of the same attitudes as donald trump in terms of older warrior and in terms of the border and in terms of what they call woke diversity efforts and things like that. i know then, he launched his campaign with this twitter space that was an absolute disaster, all sorts of technical issues and he has this sort of, he has a little awkward in his presentation to people and they thought they did not have to talk to national media, only for the media at the beginning, it was a bradley byrne campaign. until he actually got into the race, it looked like he could win and then he started talking and campaigning and things sort of went downhill from there. paul: it was see the natural home for dissent's supporters would be the donald trump camp. are we in a situation where nomination is donald trump's to

lose or is there a path to victory for nikki haley? >> there is a slim path to victory for nikki haley but it is so slim that i think it is donald trump's to lose and i think that is what our reporting shows. if she wins in new hampshire, she would be catapulted to the next primary which is in her home state although donald trump is much more popular than she is in south carolina. if she loses that, even after new hampshire win, that would slow her momentum or install it. that path is not there after that. she is going to do very well in new hampshire because she has the support of democrats and independents who are trying to stop donald trump i as republicans and voting for her. that is not going to happen in the state that follows. we really think right now, it is donald trump's to lose as you say.

annabelle: the focus has been on age in this contest so far but really it has been directed to biden's agent particular. donald trump is someone who is into his 80's if he is elected again, nikki haley has been stepping up her criticism and attacks on him which is something we have also seen republican candidates be reluctant to do so far. how much do you think the attention will shift to acting donald trump based on age and concerns that come with that? >> it is definitely a talking point that people are going to bring up and he did not help himself and he is 77 years old now, he did not help himself the other day when he seemed to confuse nikki haley with former u.s. house speaker nancy pelosi. he has this sort of line that he has about how she during the

january 6 insurrection at the capital, how she didn't not call security quickly enough. he told it the other night using nikki haley's name. he confused the two women, that is being attributed just as when biden or joe biden seemed to forget things, it is being attributed to age and perhaps he is too old to be president and we will have to see, donald trump does seem more physically agile then biden does right now but if he starts slipping up, confusing things, that argument will not last. paul: that is wendi benjamin sent in new hampshire. benjamin netanyahu has rejected what he said or unacceptable terms presented by hamas to release the remaining hostages. that is give more on the story from michael. no appetite from benjamin

netanyahu to establish peace or a cease-fire. what is wrong with the domestic israeli political lens? >> there has been a buildup of protests from the families of the hostages. they have been held for more than 100 days now, the last cease-fire was at the end of november, we are pointing towards another eight weeks but nothing has been heard from them , there are protests over the weekend outside of his private residence and a steady apartheid of his official residence and he has come out and said that hamas' the man's is that israel cease-fire and return to israel. he says it is unacceptable. others have said it is totally reasonable. it is hard to see it is that black-and-white if that is what the negotiation would involve. there is talk that washington and the wall street journal was

reporting that egypt, qatar, and the u.s. undertaking another effort to try to step in with a phased out diplomatic proposal whereby the hostages would be released and palestinian prisoners would be released and we would end up with a cease-fire. israel is prepared to accept, a two week break and fighting whereas the hamas leadership felt they did not get enough the last cease-fire. annabelle: and then, there is of the actions in the red sea and we have heard the uae is warning that time is running out before this developed into a wider middle eastern crisis. where is that flash point what most likely is going on in gaza and the red sea? >> that is a good question and we have seen in the past week

that the conflict has spread. we had the situation with iran bombing the area in turkestan and iraq, the israeli intelligence space, we had iran and pakistan is nuclear armed, iran is a threshold nuclear power, both sides signaled that they didn't want to go any further, but the attacks on u.s. forces in iraq and syria, they are proxies. it brings iran into the frame. have avoided direct conflict with the u.s., shadowboxing between the two. this issue with the maritime corridor is difficult to resolve. the u.s. and u.k. can keep targeting missiles but it is difficult, one ship from iran, it is hard to stop the houthi

being armed and there are no ground forces. cat and mouse, the houthis move missiles or put them underground, it is a difficult time and the red sea, it is hard to see how it will be resolved soon. paul: michael heath, breaking news across the bloomberg at the moment, mace is confirming it has received an unsolicited nonbinding proposal from amberg a kabul to acquire all of the standing shares in the company. $21 per share, macy's says this is actionable and not going to end a nondisclosure agreement or anything of the sort. they threatened to take the offer for macy's to shareholders. if macy's does not step up negotiations, that is the latest on the $5.8 million $21 a share bay to the company last month --

made to the company last month. this is bloomberg. ♪

paul: you are watching daybreak asia, russia says ukrainian schilling has killed at least 25 people near the russian control city of donetsk. a moscow backed official says the attack hit a shopping area on the city's outskirts. russia wants the un security council to discuss the incident on monday calling it a treasure is an civilians. -- an effect on civilians. moscow will continue trying to expand beyond its borders, speaking to bloomberg and in davos, this is posing fresh risks to trade. >> it is clear that 2024 is

going to be a challenging year as we see political conflict continuing. russia aggression against ukraine, a conflict in the middle east, all of this has potential for the disruption of trade and supply chains. the forecast for the global trade for this year according to the concession, it is quite positive. when he 3.3% growth in trade. it carries a number of risks. >> one of the biggest worries is the commitment to ukraine a. i do not know how much of the commission is prepared to go to make sure that hungry signs off on this package? >> we are working intensively on this and on the first of february we will have a summit and we are hopeful that the agreement is going to be reached because we are already reviewing

the proposal, 50 billion euros ordered in june of last year and we are already approaching february. ukraine needs financing, we need to take--make decisions and provide financing and it is critical because we are seeing the u.s. side. they are discussing their financial support. >> when you look at the risks out there, what do you worry about the most? donald trump and the presidency? in the white house? is it for right -- far right elections or a trade war with china? >> my biggest worry is russia against ukraine and if we are not containing this aggression and we are not open in russia, it is actually going further and starting aggressive wars. they are talking about this, if

you look now on this russia so-called presidential election, putin is campaigning on a slogan that russia's orders are ending nowhere. sending to other countries, europe needs to strengthen its defense capacity and provide all necessary support to ukraine. annabelle: that was the european commission vice president speaking to bloomberg's francine lacqua and taking a look at how markets are trending here, euro stoxx 50 was pointing to further gains in the open. get over here kids. time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the internet to survive. huh, powers out. [ gasp ] are they gonna to die? worse, they are gonna get bored. [ gasp ] wait look! they figured out a way to keep the internet on.

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>> this information or misinformation and the election interference is going to be a real challenge we all have to

tackle. >> we are talking too much about donald in europe. we should prepare ourselves for a possible second term for donald trump by fostering our european competitiveness. >> the best defense of that is the way we want to look at it is attack ad to attack properly you need to be strong at home. young strong means having a strong deep market. having a real single market. >> we have now got to trillion dollar deficits with no end in sight. i don't know the country frankly is prepared for four more years of that. those things all pull very negatively. i think it is going to be a bumpy year. or than anything else, we have got to be resilient. we have got to be prepared to react. >> i think the path is the inflations past.

they have got to start lowering at some point. they are going to be thoughtful. >> >> we get three rate cuts in or more as i expect it will. expect a rate cut this year but the question of the season. paul: some of the highlights of our conversations at last week's world economic forum. a number of central bank decisions are due this week. starting with the bank of japan on tuesday. bloomberg economics sees the boj likely to stand pat with governor ueda. meanwhile, the ecb holds its first monetary policy meeting on thursday. president christine lagarde told us the essential european bank is likely to cut rates later on this year. other decisions we are watching will be from canada, sri lanka and malaysia.

in a few hours we are going to get china's loan prime rates. in the u.s. we be watching for data from the fed's preferred inflation measure. that is on friday as well as fourth-quarter gdp figures. let's. ring in a senior economist at moody's analytics. a lot on the docket this week but i want to start in japan or we have the important central bank meeting. no change expected at this meeting. there is a sense of inevitability we are going to see rates normalize. when do you see that happening? >> our expectation is we will see a move in april. heading into the april move, the transparency around the bank of japan's decision-making will be critical. they have had this ultra accommodative monetary policy stance for some time should now we are talking about moving out of it to make sure it is in orderly transition we need to see the clear communication. paul: how far above zero can the boj go?

>> our view is not much if at all. they have committed almost to moving away from the ultra accommodative stance. at the same time the domestic demand environment is so sluggish. it is not showing signs of a revival. at the same time the external conditions are quite weak. we are seeing the external performance being sluggish. we not expecting that to improve until the second half of this year. we are not going to see an aggressive move anytime soon. paul: what is your outlook for growth and consumption in japan? >> overall gdp growth in japan, looking at a 0.1 the post-pandemic revival has faded in japan. consumption is solved. private investment is solved. also the weak external conditions. not a whole outgoing rate in japan. they will have to tread carefully when the central bank does move.

annabelle: one area we have seen consumers holding up has been the u.s. strong consumption. lots of data this week including the fed's preferred inflation gauge. what is going to be standing out you the most or if we do see good news, is that going to be something that changes any expectations around the fed? >> it is interesting in the u.s. because what we have seen is the economy overall has proved resilient on 70 different fronts. the consumer is one of those areas it has been resilient. one of the key drivers of the resilience has come down to the strong labor markets. you have an unemployment rate sitting below 4%. it has been below 4% for two years. it is an incredibly strong performance. will be continuing to watch the labor market. continuing to watch the cooling inflation environment which is setting up a nice stage for

these fed rate cuts to come to pass. at this stage our money is on the may rate cut as when the accommodative easing starts to begin. annabelle: working react -- where we can expect to see further easing as china. policymakers perhaps a little less room to wiggle but what sort of policy support are you expecting this year? >> our view is china is going to grow at 5% this year but to get to the 5% growth, a lot needs to go right. we need to see that ongoing policy support particularly on the physical front. and a terms of policy priority, but we will see is the property market continues to get support from developers as well as homebuyers. what we are seeing is more deep

correction in the property market is manifesting in different areas of the economy and causing weakness in domestic demand. property market is going to remain a focus on the other end, we are going to see issues that are continually not be able to easily be resolved. the clearest example would be the high youth unemployment rate. what we are going to see as policymakers continue to focus on areas like the labor market and weak spots like high youth unemployment because of the structural issues that causes. paul: that is an important risk to know. youth unemployment got reported again. this time with students stripped out. 14.9%. does that speak to a broader risk going on in china? this idea of the social compact with the government. you can rule on democratically provided living standards keep getting better. things are not looking good at the moment. we have a contracting population. what is the path out of this for the chinese government?

>> i think it is a difficult one. they need to continue to make sure there are sufficient jobs for graduates and improve the environment because social cohesion is so important to a successfully growing economy over a sustained period particularly when you have the backdrop of an aging population and a contracting population. continuing to provide the sufficient support for graduates . more broadly from an economic point of view, if we don't continue to bring in the youth effectively and find jobs for them on a long-term basis, it does erode the productive capacity of the economy. paul: thanks so much for joining us. still to come, skepticism over chinese assets spreading beyond stocks. investors expecting the yuan and government bonds to underperform. this is bloomberg. ♪

paul: let's take a look on how we are doing in markets in the asia-pacific. the nikkei five points away from recapturing the high we have not seen since 1990. better by 1.4%. the yen is extremely weak which

is a tailwind for stocks. 14811 against the u.s. dollar. in australia we are in positive territory by 7/10 of 1%. the kospi turning flat after a soft start. some gains for new zealand. this follows on a positive session for u.s. markets. all the major indexes closing on friday better by 1%. the chinese stock bulls will be hoping for a better week ahead when trading starts. a gauge of mainland equities listed in hong kong languished last week at the bottom of global index ratings for the year. let's bring in asia stocks managing editor. how is trading looking for this week? >> it does not look very bright if you look at the golden dragon performance on friday. u.s. stocks ended the day on record highs. the golden dragon were still down slightly.

that is quite telling on investor sentiment. the kind of intense bearishness we are seeing. we have entered a period where bearishness is so intense investors are only focusing on negative news right now. we did have positive news sent way such as though one trillion yuan special bond. the market did not bounce at all. you have not seen that type of lack of reaction for a long time. it does seem investors might start to discount all the right news. we are seeing deflationary pressure intensifying and growing skepticism on the gdp figure. i think we are looking at an even more grim milestone for this week for the hsc i to hit the lowest since 2005. and for the hang seng to hit the lowest since 2009.

annabelle: probably no surprise we are continuing to see bearishness in the yuan, government bonds and something that is likely to persist. >> i think it is indeed spreading. the idea is for rates and effects in china compared with other emerging markets. china has already cut rates and did a lot of easing last year. china's monetary authority has much less room to cut again then its major global peers. that is going to put some pressure on the yuan and a limit. to the upside for chinese bonds for bond investors, they are looking at the strength of the yen. if the yuan weakens and there is an over return of the chinese bonds reduced as well. annabelle: how is the rate outlook for other countries playing into the attractiveness of china debt? >> i think people of course are factoring in some kind of rate

cuts in the u.s. may not five times but maybe three times. the consensus expectation is for a slew of cuts coming through. and for other emerging markets like in indonesia and brazil. there rates are at high levels and some investors are saying they preferred those markets where rates have been elevated versus countries like china where a lot of cuts have been done so the upside is more limited for chinese government bonds right now. annabelle: that was our asia stocks managing editor. the performance of asia em stocks pretty interesting to note last week excluding china but we did see some big outflows given investors had been recalibrating their expectations around the fed. let's discuss that now.

we have our senior asia equities reporter joining us from singapore. not a great performance from asia x china last week but some are saying it could be a little bit more of a blip rather than a trend that is starting. >> it does not look like a trend et al. because this was the first outflow after 10 weeks of inflows. the outflow has been led by taiwan and india. if you look more granular lee, taiwan's outflow came after the vote. taiwan's outflows are deducing. dish are reducing should incomes india. we have seen outflows on the back of banks showing some slowdown in loan growth. that is dissipating. started on a positive note with

tech companies delivering better numbers. given the context of outflow coming for the first time in 11 weeks and this whole set up and optimism around earnings, it does look like a blip. if you look at msci taiwan and msci india related to the asia pacific index, both the markets are seeing significant upgrades. earnings upgrades this year. for msci asia, trending lower largely because of china. earnings are not disappointing. paul: we have seen the u.s. dollar or the bloomberg dollar spot index depreciating sharply so far in january. what impact is this going to have on emerging asia? >> the dollar index obviously has a negative correlation with all risky assets. that is definitely in play. the broad set up for not just equities but risk assets across the world is whether the u.s. is

going to see a soft landing on the back of the aggressive rate cuts by the fed. that narrative is at play. if you look where the u.s. market is, expectations of cooler inflation have taken some of the gauges to record highs. look where the msci emi's china is. there are more bulls in the camp who are hopeful of the off landing narrative would prevail sooner than later. keeping an eye on dollar index. at this point from what we are getting from our reporting, from what you have seen in terms of market positions signaling, it does look like it will not be a big threat for risk assets including asia emerging markets. annabelle: something we are seeing playing out this morning, the dynamic around the fed.

that was our bloomberg senior equities reporter joining us from singapore. we will have more ahead from daybreak: asia. this is bloomberg. ♪

>> we don't want to loosen policy to quickly only to find inflation get stuck way above target. that would be a very scarring miss.

we don't want to try to get to two so quickly like overnight just to get that squeezed out that we end up having this big run-up. paul: that was the san francisco president -- fed president mary daly into knowing to push back on expectations for fed rate cuts this year. the trend we are seeing in treasuries this morning suggesting there is conviction the fed is going to begin reducing its benchmark rate as soon as march. something to keep tracking to we are seeing moves across the curve continuing to hold above the 4% level. that dynamic of high yields. something that has been weighing on the hong kong property market given the hong kong monetary authority follows what the fed does. what is shaping the dynamic of the real estate seen here in the city is chinese developers.

they have now retreated from hong kong with the unprecedented downturn in the mainland economy. let's bring in our asia investing in real estate reporter. is this a permanent shift we are seeing in chinese developers in the city or is it more shorter-term or midterm well they wait for the recovery in china? >> depends on how fast developers can recover. with a lot of government help, the developers are still struggling to pay debt and consumer confidence is low. what is for sure is the landscape has shifted in 2018 we are seeing mainland developers telling hong kong developers get used to the record lend bidding prices. we are seeing their presence -- their presence in the city significantly fade.

paul: what is this going to mean for hong kong's property market? >> it could mean that the hong kong developers would have more market suites. they would the able to better control market. in think the caveat would be it does not mean the picture is any rosier for hong kong developers. residential sales are low. in the commercial seen developers are struggling to find tenants. it depends on how they set prices and how they want to collaborate. to see how they went to navigate the prolonged market downturn. annabelle: the prolonged market downturn for hong kong, we are seeing it evidenced because rents continue to be low. we are seeing landlords who cannot sell their properties. they are putting a bag of the market to lease. commercial properties, we're looking at office blocks the don't have major tenants. what is going to shift the

dynamic at is there a question of oversupply in the city? >> i think what is going to shift the dynamic is the influx of mainland chinese nationals. a lot of them have come under various tenant schemes the government has put out. for the residential market, we have seen the government introduced a series of measures to encourage buying such as for those without permanent residency. you don't have to pay the duty right now. we're in a wait and see attitude to see if those measures have any impact. for the commercial sector, depends on the performances of the business. hong kong is seen as a gateway to mainland china. if the china slowdown continues, the companies may not be able to lease bigger and better offices eventually. annabelle: when it comes to the property market -- i really meant for the office market. when it comes to the residential

side, do you think there has got to be any meaningful change of expectations for property owners as to the actual value of their property because sometimes it can be the case people cling to prices that we saw come as you said in 2018 and even earlier. >> the outlook by most analysts as prices will continue to drop. nowadays, people in hong kong. instead of buying property, they choose to rent and that is not good for those trying to sell their property. the bigger trend as we have been reporting for the last few years, people moving out of hong kong. that decreases the available population for buying the properties. paul: asia investing in real estate reporter thanks for joining us. it's take a look at some of the stocks to watch when the market open does get underway and mainland china in a little over 30 minutes time.

keep in and i on battery makers. following a new u.s. rule that will ban the pentagon from producing batteries from china's biggest manufacturers. let's take a look at how we are doing in markets on the asia-pacific. the nikkei once again having a strong session. better by 1.5%. helped along in no small part by an extremely weak yen. 14812 against the greenback. another point to note for the nikkei, we are just about 400 points away from eclipsing a record we have not seen since 1990. the kospi in positive territory after a sluggish start. we are also in positive territory by 7/10 of 1%. annabelle: i think moving to the

downside or in the other direction has been chinese equities because we have seen more than $6 trillion of value being erased by the peak a couple years ago. a big focus for investors is whether we can start to see any sentiment shift. the outlook is looking a little rosy but you have got to put it in context because we did have a dismal week. a gauge of mainland firms listed in hong kong at the bottom of equity rankings. we will speak with the allianz global investors to discuss the rate policy outlook in asia. we get an outlook on chinese equities with the foundation asset management that is it from daybreak: asia. our coverage continues. ♪

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david: good monday morning