Asian Equities Trade Directionless Amid Mixed US Session, Lack Of Fresh Trade News

Apr 09 19, 06:30 GMT

General Trend:

Real Estate companies and Securities brokers decline in Japan
Sony rises over 6% on reports activist investor Third Point acquired stake
Japan currency processing machinery companies gain, gov’t announced plans for new banknotes.
Chinese automakers gain in Hong Kong after release of March sales; Geely +2%, Great Wall Motor +2%
Chinese automakers support gains in Consumer Discretionary sector, property and telecom services indices also out perform
Materials sector lags in China as Aluminum Corp of China, Baoshan Steel and Anhui Conch Cement decline
Aussie iron ore miners trade generally higher, China iron ore prices hit record high
Australia’s Crown Ltd rises over 20%, confirmed M&A talks with Wynn Resorts
China 1-year swap rate rises as analysts debate policy outlook
Japan Economy Min confirms US trade talks to start next week (April 15-18th)
Analysts ponder whether economic slowdown will force Japan to again delay sales tax increase (financial press)
Taiwan’s UMC and AU Optronics expected to report monthly sales today
China Premier Li is expected to visit Europe from April 8-12th
RBA Dep Gov Debelle is expected to speak on the state of the economy on Wed

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
(AU) AUSTRALIA FEB HOME LOANS M/M: 0.8% V +0.5%E (first rise since Oct 2018); Owner Occupier Loan Value m/m: 3.4% v 1.0%e; Investment Lending m/m: 0.9% v -1.0%e
SMR.AU Reports Q3 saleable coal production 691kt v 302kt y/y; Raises FY19 production guidance to 2.3 MT (guided 2.15Mt prior); affirms FY19 Underlying EBITDA guidance of A$140-155M
CWN.AU Confirms talks with Wynn Resorts, board has not considered most recent offer of A$14.75/shr in 50% cash and 50% shares
(UK) UK’s FCA signed two MOU’s with Australian Securities and Investments Commission agree to strengthen cooperation post-Brexit
(AU) Australia sells A$150M v A$150M indicated in 2.50% Sept 2030 indexed bonds, avg yield 0.33%, bid to cover: 5.3x

Japan

Nikkei 225 opened slightly lower
7013.JP Internal investigation reveals 7,138 instances of inspection misconduct over 2-year period
(JP) Japan Economy Min Motegi: Confirms first round of trade talks with US to begin next week; will first decided on which goods will be included
SNE Reportedly Third Point (Loeb) has built an activist stake in Sony – press
(JP) Japan MoF sells ¥1.9T v ¥1.9T indicated in 0.10% 5-yr JGB: avg yield: -0.164% v -0.144% prior, bid to cover: 5.31x v 5.15x prior

Korea

Kospi opened +0.1%
(KR) South Korea President Moon and US President Trump expected to produce a “meaningful” outcome on North Korea’s denuclearization process when they hold talks in Washington later this week – Yonhap
000030.KR Acquired two local firms as part of efforts to boost non-banking sector and diversify its business portfolio – Yonhap

China/Hong Kong

Hang Seng opened flat; Shanghai Composite opened -0.1%
(CN) Spain Ambassador to China de Mazarredo: China needs to open its markets and level the playing field, needs to take more responsibility by reviewing trade (comments ahead of EU/China summit in Belgium)
(CN) China PBoC expected to resume open market operations (OMO) soon, to inject liquidity – China press
(CN) China PBoC Open Market Operation (OMO): Skips for 14th consecutive session: Net: CNY0 v CNY0 prior
(CN) China PBoC sets yuan reference rate: 6.7142 v 6.7201 prior
(CN) China City of Chongqing March new home sales 2.12M sq meters, +64.3% y/y – SCMP
(CN) Political economy professor Minxin Pei: US/China trade war inactivity could lead to the ‘worst recession in recent Chinese history’ – SCMP
(CN) China cuts tax to 13% from 15% on personal items bought overseas, as part of plan to boost consumption – SCMP

North America

Europe

(US) US Trade Representative (USTR) proposes tariffs to counter EU aircraft subsidies, releases for public comment a prelim list of EU products to be covered by additional duties, USTR estimates the harm from the EU subsidies of $11B/year
(UK) Parliament passes law that blocks no deal Brexit
(UK) UK Govt Spokesperson: “We are committed to finding a way through. That will require the parties to work at pace in order to address outstanding issues and so ministers and their shadow counterparts will be holding talks tomorrow”; Ministers to resume Brexit talks with Labour party Tuesday
(UK) Mar BRC Sales Like-For-Like Y/Y: -1.1% v -0.8%e (biggest drop since April 2018)
(UK) UK Mar Barclaycard Consumer Spending Y/Y: 3.1% v 1.2% prior
(UK) EU to set a high price for delaying Brexit including UK to give up rights in future EU budget and trade talks; will force UK into no deal Brexit if it seeks to cancel election to European parliament May 23rd

Levels as of 1:20 ET

Nikkei 225, flat, ASX 200 0.1%, Hang Seng +0.3%; Shanghai Composite -0.2%; Kospi +0.3%
Equity Futures: S&P500 -0.1%%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 +0.1%%
EUR 1.1270-1.1255 ; JPY 111,58-111.27 ; AUD 0.7131-0.7109 ;NZD 0.6751-0.6737
Gold +0.1% at $1,303/oz; Crude Oil +0.2% at $64.53/brl; Copper +0.3% at $2.943/lb