Japan And Singapore Exports To China Rebound

Mar 18 19, 07:03 GMT

General Trend:

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(AU) According to Deloitte Access Economics: Australia Morrison govt could spend up to A$12.0B/yr to deliver bigger personal income tax cuts and help it pass the “fairness” test with low to middle income voters – AFR
(NZ) New Zealand Feb Performance of Services Index: 53.8 v 56.3 prior
(NZ) New Zealand Institute of Economic Research (NZIER) Quarterly Outlook: Lowers 2019 GDP outlook
CIM.AU Thiess unit awarded A$1.7B contract in Botswana
(AU) Australia sells A$600M v A$600M indicated in 3.25% April 2029 bonds, avg yield 1.9691%, bid to cover 4.12x

Japan

Nikkei 225 opened +0.6%
7201.JP Renault, Nissan and Mitsubishi alliance to re-examine sales target of 14M cars worldwide by 2022 – Nikkei
(JP) JAPAN FEB TRADE BALANCE: ¥339.0B V ¥305.1BE; ADJ TRADE BALANCE: ¥116.1B V +¥86.0BE; Exports: YoY -1.2% v -0.6%e ; Imports: YoY: -6.7% v -6.4%e
(RU) Russia Pres Putin: Japan Russia peace treaty talks need a “short rest” if Japan is unwilling to withdraw from security cooperation pact with US over disputed islands – Nikkei
7203.JP President Toyoda: To invest $749M in 5 US plants to increase capacity and add hybrid SUV lines; will not leave the US – Speech at Economic Club of Washington
7201.JP Considering getting rid of chairman position, will announce its official proposal on March 27th – Japan press
(JP) Japan Jan Final Industrial Production M/M -3.4% v -3.7% prelim; Y/Y: 0.3% v 0.0% prelim

Korea

Kospi opened +0.1%
(KR) South Korea Feb Offshore Investors net bought KRW1.64T in domestic stocks v buying KRW3.74T prior (3rd consecutive month of net buying)
(KR) According to US monitor there is little to no activity is spotted at North Korea main nuclear facility in Yongbyon and its nuclear testing site in Punggye-ri
(KR) South Korea coast guard sizes China fishing boat for not complying with stop order and suspected illegal fishing – Yonhap
(KR) Bank of Korea (BOK) sells KRW250B in 6-month Monetary Stabilization Bonds (MSB), avg yield 1.81% b 1.82% prior
(KR) South Korea sells KRW1.75T v 1.75T indicated in 10-yr Treasury Bonds; avg yield 1.99% v 1.985% prior; bid to cover 2.94x v 2.76x prior

China/Hong Kong

Hang Seng opened +0.4%; Shanghai Composite opened +0.2%
(CN) Meeting between China President Xi and US President Trump now may be delayed to June (Originally through to be this month at Maralargo) – SCMP
(US) US Border Patrol: Seized 450,000 kg of pork smuggled into US from China; possibly infected with African Swine flu
(CN) China issued specific rules related to tax exemptions which seek to lower the amount of individual income tax paid on incomes earned overseas – Xinhua
(CN) China to allow local governments to set their own property tax rates – financial press
(CN) China PBoC sets yuan reference rate: 6.7088 v 6.7167 prior
(CN) China PBoC Open Market Operation (OMO): To inject CNY60B in 7-day reverse repos v CNY20B in 7-day prior; Net: CNY60B injection v CNY20B injected prior
(CN) Feb sales for China major excavator producers totaled 18.8K units, +68.7% y/y – Xinhua
(KR) China reviewing President Xi’s possible visit to North Korea in April – Korean press

Other Asia

(SG) SINGAPORE FEB NON-OIL DOMESTIC EXPORTS M/M: 16.0% V +4.3%E; Y/Y: 4.9% V -1.6%E; Electronic Exports y/y: -8.0% v -15.9% prior

North America

BA US Transport Dept. to probe the FAA’s approval of the Max 737, will focus on anti-stall system – US financial press
BA Reportedly Ethiopian Airlines plane that crashed had unusually high speed after takeoff – press Note: Ethiopian transport ministry says black box data shows similarities to Indonesian crash
GM Trump Tweet: “Because the economy is so good, General Motors must get their Lordstown, Ohio, plant open, maybe in a different form or with a new owner, FAST! Toyota is investing 13.5 $Billion in U.S., others likewise. G.M. MUST ACT QUICKLY. Time is of the essence!”

Europe

DBK.DE Confirms talks with Commerzbank, also reviewing strategic options
(UK) Various ministers indicate that PM May could cancel Brexit vote this week if there is not enough support – Telegraph
(ES) Bank of Spain Gov Hernandez de Cos: there is currently no risk of recession in Europe or Spain – financial press
(UK) Mar Rightmove House Prices M/M: 0.4% v 0.7% prior; y/y: -0.8% v 0.2% prior
(UK) British Chambers Of Commerce (BCC): Cuts 2019 and 2020 GDP growth forecasts: Cuts 2019 GDP growth forecast from 1.3% to 1.2%; Cuts 2020 GDP growth forecast from 1.5% to 1.3%

Levels as of 01:20ET

Hang Seng +0.8%; Shanghai Composite +1.3%; Kospi +0.0%; Nikkei225 +0.6%; ASX 200 +0.3%
Equity Futures: S&P500 +0.0%; Nasdaq100 +0.1%, Dax -0.0%; FTSE100 +0.2%
EUR 1.1319-1.1339; JPY 111.46-111.64; AUD 0.7078-0.7116; NZD 0.6840-0.6867
Commodity Futures: Gold -0.3% at $1,299/oz; Crude Oil -0.4% at $58.59/brl; Copper +0.3% at $2.92/lb