Aussie Q4 GDP Due On Tomorrow’s Session

Mar 05 19, 08:01 GMT

General Trend:

Chinese markets fluctuate in early trade: IT and Property shares outperform, materials and financials lag
China releases 2019 GDP, CPI targets (as expected) and outlines plans for the year
Iron/Steel, Securities, Machinery and Electric Appliance companies weigh on Japanese market
Softbank drops over 1%
IHI declines over 3% in Japan, confirmed inspection related to engine parts
Childcare firm Pigeon drops over 7% post earnings
Fast Retailing and Adastri rise after respective monthly sales reports
Consumer Discretionary and Resources companies weigh on the Australian equity market
Australia Q4 exports data misses ests ahead of upcoming GDP report
Little initial impact seen on markets from RBA statement
Philippines Peso (PHP) weakens as CPI moves back within target

Headlines/Economic Data

Japan

Nikkei 225 opened -0.5%
(JP) Japan Fin Min Aso: Cashless points system will help increase spending overall and reduce demand volatility
(JP) Reportedly Japan to ease competition rules on local bank mergers – Japanese press
7013.JP Confirms was inspected by Japan Transport Ministry. Reminder earlier: 7013.JP Japan Transport Ministry has probed IHI over allegations it assigned unqualified workers to check aircraft engines – Nikkei
(JP) Japan Feb PMI Services: 52.3 v 51.6 prior; PMI Composite: 50.7 v 50.9 prior
(JP) Japan and Turkey expect a board trade deal agreement in June – Nikkei
2811.JP To raises prices on large bottle drinks by 5-10%
(JP) Japan MoF sells ¥2.2T v ¥2.2T indicated in 0.10% (prior 0.10%) 10-yr JGBs, avg yield -0.002% v -0.013% prior, bid to cover 4.25x v 4.80x prior
7201.JP Former Chairman Ghosn could be released by as early as today, Tokyo court accepted his bail application; bail has been set at ¥1.0B (~$8.9M) – Japanese Media

Korea

Kospi opens -0.4%
(KR) SOUTH KOREA FEB CPI M/M: 0.4% V 0.7%E; Y/Y: 0.5% V 0.7%E; CPI Core y/y: 1.3% v 1.1%e
(KR) SOUTH KOREA Q4 FINAL GDP Q/Q: 1.0% V 1.0%E; Y/Y: 3.1% V 3.1%E; 2018 GDP y/y 2.7% (6-year low) v 2.7% prelim
(KR) Moody’s cuts 2019 and 2020 GDP outlook for South Korea: Cuts 2019 GDP outlook from 2.3% to 2.1%; Cuts 2020 GDP outlook from 2.5% to 2.2%
(KR) South Korea special envoy on nuclear issues with North Korea will travel to US for talks this week – Yonhap
(KR) South Korea sells KRW1.75T v KRW1.75T indicated in 30-yr Govt Bonds; avg yield 2.075% v 2.085% prior

China/Hong Kong

Hang Seng opens -0.5%; Shanghai Composite opens -0.3%
(CN) CHINA NPC: SETS 2019 GDP TARGET AT 6.0-6.5% v ~6.5% in 2018; CPI ~3.0% v ~3.0% in 2018 (both inline with expectations); Fiscal policy to be proactive, monetary policy to be prudent; cuts VAT for some sectors and top bracket
(CN) China may announce 3.0% cut to manufacturing VAT rate this week, which could add 0.6% to GDP this year – financial press
(CN) CHINA FEB CAIXIN PMI SERVICES: 51.1 V 53.5E; PMI Composite: 50.7 v 50.9 prior
293.HK In talks to acquire shares in Hong Kong Express Airways and Hong Kong Airways from HNA Group, no deal reached yet
(CN) China PBOC Open Market Operation (OMO): Skips OMO v skipped prior (4th consecutive skip); Net: CNY120B drain v CNY40B prior
(CN) China PBoC sets Yuan Reference Rate: 6.6998 v 6.7049 prior
(CN) China SASAC Official Xiao: Has not discussed plan to merge 3 state automakers; planning additional support for auto industry
(CN) China Banking and Insurance Regulatory Commission (CBIRC) Chief Guo Shuqing: China did not manipulate yuan or engage in competitive devaluation of yuan; China and US can reach an agreement on opening financial sector
(CN) China Commerce Min Zhong Shan: Some areas in trade talks have achieved a breakthrough; Working teams from both sides are talking right now
(CN) Former PBOC Adviser Li: Exchange rate risk controllable this year
(CN) China Agri Min: To give corn and soybean subsidies in 2019

Australia/New Zealand

ASX 200 opened -0.1%
(AU) AUSTRALIA Q4 BOP CURRENT ACCOUNT BALANCE (A$): -7.2B V -9.2BE; NET EXPORTS OF GDP: -0.2% V -0.1%E
(AU) RBA LEAVES CASH RATE TARGET UNCHANGED AT 1.50%; AS EXPECTED; No notable changes in wording, affirms GDP and inflation outlooks
(AU) Australia Feb AiG Performance of Services Index: 44.5 v 44.3 prior
COL.AU Enters 50/50 JV with Australian Venue Co related to Coles’ Hotels and Queensland Retail Liquor business, to receive cash A$200M at completion of deal
(AU) Australia Feb Final PMI Services: 48.7 v 49.3 prelim; PMI Composite: 49.1 v 49.7 prelim
NEM.AU Confirms rejection of Barrick bid; Goldcorp combination represents superior value creation opportunity; Provides long term guidance

Other Asia

(SG) Singapore Feb PMI: 49.8 v 50.1 prior
(IN) President Trump: India has not assured US that it will provide ‘equitable and reasonable’ access to Indian markets
(PH) PHILIPPINES FEB CPI M/M: +0.1% V -0.6% PRIOR; Y/Y: 3.8% V 4.0%E

North America

(US) According to NY Fed economist study, tariffs have cost US firms and consumers $3.0B in additional tax costs, and companies an additional $1.4B in deadweight losses. A separate study noted farmers and blue collar workers in areas that voted for Trump had been the biggest victims of the tariffs.

Europe

OPEC sources: Unlikely to make any output policy decision at its April meeting; more likely to do so in June – press
(UK) FEB BRC LFL SALES Y/Y: -0.1% V 0.1%E
(UK) Trade Secretary Liam Fox cancels Brexit briefings – FT

Levels as of 12:50ET

Hang Seng -0.3%; Shanghai Composite 0.0%; Kospi -0.8%; Nikkei225 -0.6%; ASX 200 -0.4%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.0%, Dax +0.1%; FTSE100 +0.1%
EUR 1.1326-1.1352; JPY 111.73-111.95; AUD 0.7067-0.7093; NZD 0.6790-0.6828
Commodity Futures: Gold +0.2% at $1,289/oz; Crude Oil -0.5% at $56.31/brl; Copper +0.8% at $2.93/lb