General Trend:
- Japanese real estate companies gain, heavily weighted Nikkei components (Fast Retailing, Softbank) also advance
- Financials outperform in China
- MSCI to raise inclusion factor of China A-shares in its indexes to 20% from 5% currently through a 3 step process (as speculated)
- Japan Q4 Capex data suggests upward revision to GDP (financial press)
- Australia Feb House Prices have 17th straight m/m decline (CoreLogic)
- New Zealand terms of trade hurt by lower dairy prices
- South Korea Feb exports have largest drop in ~3-years, chip exports -24.8% y/y
- China annual meeting of parliament is due next week, National People’s Congress (NPC) to meet on March 5th (Tues) to discuss economic and political policies
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.3%
- (AU) Australia Feb Commodity Index: 129.7 v 124.5 prior; Y/Y: 9.1% v 6.9% prior [led by higher iron ore, LNG and alumina prices]
- (AU) Australia Feb CoreLogic House Price M/M: -0.9% v -1.2% prior (17th straight decline); Y/Y: -6.3% v -5.6% prior
- (NZ) New Zealand Q4 Terms of Trade q/q: -3% v -1.0%e
- (NZ) New Zealand Feb ANZ Consumer Confidence: 120.8 v 121.7 prior
- (NZ) New Zealand Jan Building Permits m/m: +16.5% v +5.1% prior
China/Hong Kong
- Shanghai Composite opened +0.5%, Hang Seng +0.3%
- (CN) CHINA FEB CAIXIN MANUFACTURING PMI: 49.9 V 48.5E (3rd consecutive contraction)
- (CN) MSCI to raise inclusion factor of China A-shares in its indexes to 20% from 5% currently through a 3 step process (as speculated)
- WTO rules against China; China’s Farm subsidies exceed WTO limits
- (CN) China PBOC Open Market Operation (OMO): Skips OMO v skipped prior; Net: CNY40B drain v CNY0B prior
- (CN) China PBoC sets Yuan Reference Rate: 6.6957 v 6.6901 prior
- (CN) China online lender Dianrong said to plan to cut 2,000 jobs – US financial press
- (HK) Macau Feb Gaming Rev (MOP) 25.4B v 24.9B prior; +4.4% y/y v 4.8%e
Japan
- Nikkei 225 opened +0.5%
- (JP) JAPAN Q4 CAPITAL SPENDING (CAPEX) Y/Y: 5.7% V 4.5%E; CAPITAL SPENDING EX-SOFTWARE: 5.5% V 3.3%E
- (JP) JAPAN JAN JOBLESS RATE: 2.5% V 2.4%E
- (JP) Japan Feb Tokyo CPI Y/Y: 0.6% v 0.4%e; CPI Ex-Fresh Food (Core): 1.1% v 1.0%e
- (JP) Bank of Japan (BOJ) announces Bond purchases for month of Mar (amends the 5-10 year range higher but reduces frequency; 1st change in program in 3 months)
Korea
- Kospi closed for holiday
- (KR) SOUTH KOREA FEB TRADE BALANCE: $3.1B V $3.3BE
- (KR) South Korea Finance Ministry: Result of Hanoi (Vietnam) summit could increase volatility in financial markets, impact of summit on local markets were ‘limited’
- (KR) South Korea President Moon approval rating rises to 49% v 45% prior (highest since Dec) – Gallup Poll
North America
- (US) Fed Chair Powell: Reiterates FOMC will be ‘patient’ as it determines future rate moves
- (US) Fed’s Mester (hawk, non-voter): Does not initially comment on monetary policy nor economic outlook
Levels as of 12:45 ET
- Nikkei 225, +1.1%, ASX 200 +0.4%, Hang Seng +0.2%; Shanghai Composite +0.1%; Kospi closed
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.5%, Dax +0.4%; FTSE100 +0.3%
- EUR 1.1377-1.1362 ; JPY 111.77-111.32 ; AUD 0.7110-0.7084 ;NZD 0.6823-0.6803
- Gold -0.1% at $1,314/oz; Crude Oil +0.4% at $57.42/brl; Copper flat at $2.944/lb
