General Trend:
- Shanghai Composite rises over 2%, property index out performs in early trade
- Hong Kong Property index trades near record high
- Chinese liquor maker Kweichow Moutai rises over 4% post earnings
- China bank earnings remain in focus, Bank of China and Agbank expected to report later today
- Marine/Transportation sector out performs in Japan, Softbank rises over 1%
- Daiichi Sankyo rises over 15% in Japan, announced collaboration agreement with Astrazeneca
- DowDuPont declines over 2% in the afterhours, cut Q1 guidance
- US/China trade talks in China due to conclude later today
- China Vice Premier Liu He is expected to visit the US in early April for trade talks
- China’s March official PMI data is due for release on March 31st (Sunday). Manufacturing PMI is expected to contract for the 4 straight month, according to analysts.
- Japan’s Q1 Tankan survey is due to be released on April 1st (Monday)
- Bank of Japan (BOJ) is expected to release its April bond purchase schedule after today’s close
- S&P delegation to visit South Korea April 1-3 as part of its annual review (current rating AA, outlook Stable)
- Reserve Bank of Australia (RBA) cash rate decision expected on April 2nd (Tuesday)
- China yuan denominated government bonds and policy bank bonds will be phased into the Barclays Global Aggregate Bond Index in April
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- (AU) Australia Feb Private Sector Credit M/M: 0.3% v 0.2%e; Y/Y: 4.2% v 4.2%e
- (NZ) RBNZ Gov Orr: On reaction to policy review, pleased markets have shown they understand what we are focused on; Easing bias is the starting point for the MPC
China/Hong Kong
- Shanghai Composite opened +0.2%, Hang Seng +0.1%
- Huawei: Reports FY18 (CNY) Net 59.3B, +25% y/y; Rev 721.2B, +19.5% y/y; Business Groups had double digit growth in first two months of 2019
- (US) White House economic advisor Kudlow: China trade talks are policy driven, not driven by any timetable; some but not all China tariffs may stay in place – ExIm Bank
- (US) US Treas Sec Mnuchin: We had very productive working dinner last night, look forward to today
- (CN) China Deputy Head of FX: China has room to maneuver on debt but will be very serious about tackling deb risks
- (CN) China NDRC: To cut electricity tariffs for industrial and commercial use from April 1st; cites VAT rate cut
- (CN) China NDRC: To adjust trans-provincial natural gas pipeline tariffs, effective from April 1st; cites VAT rate changes
- (CN) China NDRC: To lower gasoline and diesel prices, effective from April 1st; cites VAT cuts
- (CN) China NDRC urges price cuts at state-owned scenic areas
Japan
- Nikkei 225 opened +0.9%
- (JP) JAPAN FEB JOBLESS RATE 2.3% V 2.5%E (lowest since Sept 2018)
- (JP) Japan Feb Preliminary Industrial Production M/M: 1.4% v +1.4%e; Y/Y: -1.0% v -1.1%e
- (JP) JAPAN FEB PRELIMINARY RETAIL SALES M/M 0.2% V +1.0%E; RETAIL TRADE Y/Y: 0.4% V 1.0%E
- (JP) Japan Mar Tokyo CPI Y/Y 0.9% v 0.9%e; CPI Ex-Fresh Food Y/Y: 1.1% v 1.1%e
- (JP) Japan Fin Min Aso: No change in view global economy is recovering ‘moderately; not considering extra economic measures at this time
Korea
- Kospi opened +0.5%
- (KR) South Korea Feb Industrial Production M/M: -2.6% v -0.7%e; Y/Y: -2.7% v -0.5%e
- (KR) South Korea Feb Retail Sales M/M: -0.5% v +0.2% prior
- (KR) South Korea Pres Moon to visit the US April 10-11th; US President Trump to meet with Moon at April summit
- (KR) South Korea Pres Moon falls to 43% v 45% prior (record low)- Gallup Poll
Other
- (VN) Vietnam Q1 GDP Y/Y: 6.8% v 6.5%e
North America
- (US) Fed’s Williams (moderate, voter): US economy is in a very good place; Not worried about the chance of recession as some in the private sector are – comments in Puerto Rico
- (US) Fed’s Clarida (moderate, voter): Fed can be patient amid global risks and muted inflation; Fed must pay ever closer attention to global growth risks
- (US) US Fed’s Bullard (Dove, voter): premature to contemplate rate cut here
Europe
- (UK) UK govt source: votes on Friday will not be meaningful vote number three
- (UK) UK BBC Political Editor Kuenssberg: Gov source confirms they are laying motion now to give MPs vote tomorrow on only the withdrawal agreement – tweet
- (UK) Parliamentary Speaker Bercow accepts new Brexit deal vote; govt’s motion will cover only withdrawal agreement
- (UK) Mar GfK Consumer Confidence: -13 v -14e
- (UK) Mar Lloyds Business Barometer: 10 v 4 prior
Levels as of 1:20 ET
- Nikkei 225, +0.8%, ASX 200 +0.1%, Hang Seng +0.9%; Shanghai Composite 2.5%; Kospi +0.5%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.3%
- EUR 1.1236-1.1220 ; JPY 110.93-110.53 ; AUD 0.7091-0.7072 ;NZD 0.6789-0.6774
- Gold -0.1% at $1,294/oz; Crude Oil +0.6% at $59.63/brl; Copper +0.7% at $2.897/lb