Asian Equities Trade Generally Lower, In Line With US Session

Apr 18 19, 06:10 GMT

General Trend:

Shanghai Property index extends declines seen in prior session
Press speculation Japan sales tax increase could again be delayed
Little reaction seen to better Aussie employment change, certain forward looking indicators show caution; markets still expect RBA rate cut
Bank of Korea cuts growth and inflation forecasts, implies less likelihood of rate hike

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.3%
(AU) AUSTRALIA MAR EMPLOYMENT CHANGE: 25.7K V +15.0KE; UNEMPLOYMENT RATE: 5.0% V 5.0%E
(AU) Australia Q1 NAB Business Confidence: -1 v 1 prior

China/Hong Kong

Shanghai Composite opened -0.1%, Hang Seng -0.1%
(CN) US and China reportedly have set a tentative timeline for next round of face-to-face trade discussions; seek to sign deal as soon as late May – press
(CN) Pres Trump: China trade talks are moving along nicely; “you’ll be hearing about” a China deal shortly
(CN) China Human Resources Ministry: Yu Jianhua appointed as Vice Commerce Minister & Deputy International Trade Negotiation Representative
(CN) China State Planner NDRC said to be drafting a series of stimulus measures of autos and electronics – financial press
(CN) China NDRC: Looking into speculation about car stimulus – Chinese media
(CN) China Cabinet reiterates stance to continue implementing prudent monetary policy
(CN) China said to encourage brokers to issue credit default swaps (CDS) related to private sector bonds – Chinese Press
(CN) China PBoC sets yuan reference rate: 6.6911 v 6.7110 prior (strongest CNY fix since March 21st)
(CN) China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repo v CNY160B injected in 7-day reverse repos prior: Net: CNY80B injection v CNY160B injection prior

Japan

Nikkei 225 opened flat
(JP) Japan Oct 2019 increase of sales tax might be delayed, cites LDP lawmaker Hagiuda – Local Press
(JP) Japan Finance Min Aso may discuss forex issues with US Treasury Sec Mnuchin next week; Aso is expected to travel to the US on April 25th (Thursday) – Japanese press
(JP) Japan Finance Min Aso: Deflationary mindset of company executives is changing; trade issues such as Brexit and China still present risks
(JP) JAPAN APR PRELIMINARY PMI MANUFACTURING 49.5 V 49.2 PRIOR

Korea

Kospi opened +0.1%
(KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 1.75%; AS EXPECTED; sees GDP growth and inflation below Jan projection; Omission of some references seen in prior statement does not mean easing of policy is now under discussion
(KR) North Korea leader Kim has overseen a test of a new tactical guided weapon – KCNA
(KR) South Korea Fin Min Hong: South Korea is not considering currency re-denomination – Yonhap

Other Asia

North America

(US) NY Fed’s Logan: Might need to respond to unanticipated changes in reserves by conducting repo operations; any discussion of a standing repo facility is in its early stages

Levels as of 1:20 ET

Nikkei 225, -0.8%, ASX 200 -0.1%, Hang Seng -0.6%; Shanghai Composite -0.2%; Kospi -1.2%
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.3%; FTSE100 -0.2%
EUR 1.1301-1.1289 ; JPY 112.08-111.87 ; AUD 0.7199-0.7165 ;NZD 0.6732-0.6711
Gold -0.2% at $1,273/oz; Crude Oil -0.1% at $63.73/brl; Copper -0.2% at $2.954/lb