INDONESIA: Country Wrap: FX Reserves Fall in February. 

• China’s PMI Services for January declined to 51.0, from 52.2; likely impacted by the earlier than usual Lunar New Year Holiday.  This follows Monday’s release of the China PMI Manufacturing at 50.1.  The overall PMI composite saw a decline to 51.1 for January from 51.4 prior.  The PMI services result was the lowest reading since September and saw the employment component decline to 48.8 to mark the lowest contribution since April. (source: MNI – Market News).
• Trump Says There’s No Rush to Talk to China’s Xi (source: BBG)
• China’s monetary easing is likely to be delayed until Trump-Xi hold talks, as trade tensions with the US are adding to the downward pressure on the yuan, according to Societe Generale SA.  (source: BBG)
• In the first trading day after Lunar New Year holidays, equity markets were down for the major bourses with Shenzhen bucking the trend.  The Hang Seng bore the brunt of the selling down -1.06%, CSI 300 down -0.56%, Shanghai down -0.64% whilst Shenzhen had a good day up by +0.52%.
• CNY: Yuan Reference Rate at 7.1693 Per USD; Estimate 7.2813.
• Bonds: there was surprisingly little activity in the China bond market with the CGB 10YR unchanged at 1.63% and bond future activity muted. 

Chinese stocks opened higher but quickly turned lower as trade tensions weighed on sentiment. The CSI 300 Index fell 0.3%, led by declines in energy and utilities. Hong Kong stocks and Chinese e-commerce firms like JD.com dropped after the US Postal Service suspended inbound parcels from China and Hong Kong.

• Tungsten producers gained after Beijing announced export controls, and supermarket chain Pangdonglai saw a boost from strong Lunar New Year sales. Tech stocks, including the Star 50 Index, outperformed on AI optimism after DeepSeek’s new language model.
• Chinese software stocks, including Beijing Kingsoft Office, surged as traders returned from the holiday, driven by optimism over AI applications following DeepSeek’s release of a lower-cost large language model. In contrast, optical equipment makers declined amid concerns that reduced AI infrastructure spending could weigh on demand.
• Robotics-related stocks advanced after Unitree’s dancing robots gained attention during China’s Spring Festival Gala.
• Chinese Travel & Tourism stocks declined, with China Southern and Air China down ~4%, and Trip.com falling ~5%. However, regional tourism data was positive—Guangdong saw 80m visitors with ¥74b in tourism revenue (+7.5% YoY), Shanghai had 17.8m tourists (+6.1% YoY), and Beijing's retail sales from restaurants and stores hit ¥8.1b (+4.2% YoY).
• E-commerce & Logistics Hit by US Postal Suspension: Alibaba fell 2.1%, JD.com dropped 5.1%, and SF Holding declined as the US halted inbound parcels from China & Hong Kong, adding uncertainty to the sector.
• Elsewhere, China’s services activity slowed unexpectedly in January while maintaining its growth streak, according to the Caixin PMI, which fell to 51 from 52.2 (below the 52.4 forecast). The slowdown comes despite strong Lunar New Year demand, with firms citing market competition and trade uncertainties.