General Trend:
- Samsung confirms Q1 results to miss expectations, little impact seen on share price
- 7-Eleven owner Seven & I declines over 2% in Japan following its guidance
- Japan Finance Min comments on regional banks and financial services sector M&A
- Australian equities lag as financials decline amid rate cut expectations; Iron ore miners trade mixed
- Apple supplier Largan Precision March sales +24.9% y/y (vs. +14.1% prior)
- LG Electronics may issue Q1 guidance later today
- Japan Feb wages decline at fastest pace since 2015, lower bonuses and revisions cited
- Japan Economy Min declines to confirm dates for US trade talks
- Japan March official reserves rise to multi-year high
- US President Trump: China trade deal could be within the next four weeks
- Press speculation regarding possible US/China summit around the late June G20 meeting in Japan (June 28-29th)
- China Vice Premier Liu He is currently visiting the US for trade talks (April 3-5th)
- On April 3rd, White House Adviser Kudlow suggested that the China delegation could stay in the US for longer than 3 days
- Philippines y/y CPI slows further in March (3.3% v 3.5%e), Peso (PHP) declines
- Philippines Central Bank (BSP) Dep Gov Guinigundo: Sees potential rate cut when inflation slows to 3.0%
- Markets are closed today in China, HK and Taiwan in observance of holidays
- Reserve Bank of Australia (RBA) Dep Gov Debelle is expected to speak on the state of the economy on Wed (April 10th), RBA Financial Stability Review is due to be released on Friday (April 12th)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.3%
- (AU) Australia Mar AiG Performance of Construction Index: 45.6 v 43.8 prior
- (AU) Australia sells A$900M v A$900M indicated in 2.50% May 2030 bonds, avg yield 1.9247% v 1.9459% prior, bid to cover: 3.03x v 3.03x prior
- (AU) Australia thermal coal prices have largest weekly decline since 2008 – financial press
- (AU) Australia opposition party pledges to increase spending related to the health care sector ahead of elections, announced A$2.3B cancer-care spending package – financial press
China/Hong Kong
- Shanghai Composite and Hang Seng closed for holidays
- (CN) Pres Trump: If we reach a trade agreement, will have a summit with Pres Xi in Washington; should know in the next 4 weeks; Talks may continue for four weeks and another two after that to get it on paper
- (CN) China Vice Premier Liu He: New consensus reached on text related to US/China economic and trade agreement; to continue to work hard to conclude trade talks ASAP – Xinhua
- (CN) China President Xi calls for early conclusion of China-US trade text, Xi said substantial progress made in US trade talks – Chinese Press
- (CN) Nikkei says US/China summit in Japan in late June is possible
- (CN) Some market observers are still cautious on property market in China despite signs of recovery – South China Morning Post
- (IN) India has started a crackdown on online purchases of goods from e-commerce platforms in China, relates to the evasion of the customs duty and goods and services tax – Indian press
Japan
- Nikkei 225 opened +0.1%
- (JP) JAPAN FEB REAL CASH EARNINGS Y/Y -1.1% V 0.8%E (fastest decline since June 2015); LABOR CASH EARNINGS Y/Y: -0.8% V 0.9%E
- (JP) Japan Feb Household Spending Y/Y: 1.7% v 1.9%e
- (JP) Japan Mar Official Reserve Assets: $1.29T v $1.28T prior (multi-year high)
- (JP) JAPAN FEB PRELIMINARY LEADING INDEX CI: 97.4 V 97.2E; COINCIDENT INDEX: 98.4 V 98.9E
- (JP) Bank of Japan (BOJ) Quarterly Public Opinion of Household Sentiment: Households maintain 1-year inflation outlook at 3.0%; Household maintains 5-year inflation outlook at 2.0%
- (JP) Japan Fin Min Aso: Regional banks need sustainable business models; must take steps to ensure regional banks don’t ‘disappear’; Mergers are one way of maintaining financial services
- (JP) Japan Economy Min Motegi: Trying to have trade talks with US this month; will announce dates when decided
Korea
- Kospi opened flat
- Samsung Electronics: Guides Q1 (KRW) Op 6.2T ($5.5B) v 6.9Te; Rev 52.0T ($45.8B) v 53.0Te; Q1 Op guidance implies a decline of ~60% y/y (lowest since 2016)
- (KR) South Korea President Moon approval rating declines to 41% (record low) vs 43% prior – Gallup Poll
- (KR) North Korea has built a ballistic nuclear missile submarine – South Korean Press
Other
- (PH) Philippines Mar CPI Y/Y 3.3% v 3.5%e (2nd straight month within inflation target range; lowest since 2017)
- (SG) Monetary Authority of Singapore (MAS) to publish semi-annual monetary policy statement and Q1 advance GDP data on April 12th (Friday)
- (TH) Thailand Central Bank Official Alisara: Baht (THB) volatility to continue on higher uncertainties; has enough tools to manage likely volatility in the baht
North America
- (US) Pres Trump: nominations of Cain and Moore to the Fed are not meant to send any signal whatsoever to the Fed
- (SA) Saudi Arabia said to have discussed plans to ‘ditch the US dollar’ from oil trades if the US passes NOPEC; The NOPEC bill is not expected to pass in the US and the threat related to the US dollar could be part of Saudi Arabia’s contingency planning, according to the article – financial press
Europe
- (UK) EU’s Tusk said to offer UK a 12-month extension on Brexit – financial press
- (IE) Ireland Central Bank lowers 2019 GDP forecasts for to 4.2% from 4.4% prior; states Brexit is not only risk to economy
Levels as of 1:20 ET
- Nikkei 225, +0.3%, ASX 200 -0.8%, Hang Seng closed; Shanghai Composite closed; Kospi +0.1%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 flat
- EUR 1.1230-1.1218 ; JPY 111.80-111.59 ; AUD 0.7125-0.7107 ;NZD 0.6764-0.6748
- Gold -0.2% at $1,292/oz; Crude Oil flat at $62.09/brl; Copper -0.2% at $2.911/lb
