Asian Indices Generally Decline After Weakness In US Equities, Oil Prices Remain A Focal Point

General Trend:

• WTI Crude Futures rise in Asia after recent losses, later erases gain
• Industrials and Consumer Discretionary firms were among the early gainers in Shanghai
• Shanghai property index lags; Chinese regulator warns on illegal activity related to Shenzhen property market
• Chinese liquor maker Kweichow Moutai rises over 2%, reported final FY19 results
• Financial and Property firms are among the decliners in Hong Kong
• ASM Pacific rises over 3% in HK after quarterly results and guidance
• TCL Multimedia Technology declines by over 3% in HK, Universal Electronics [UEIC] has requested a probe into TCL under the US Tariff Act
• Sectors moving lower in Japan include Automakers and Electric Appliances
• Japan Fin Min comments on coronavirus impact and regional banks
• Nintendo rises over 1% as activist investor takes stake
• Declining sectors in Australia include Resources, Energy and Consumer Discretionary
• South Korean Won (KRW) and equities remain weaker amid the recent concerns about the health of North Korea’s leader
• South Korea’s Seegene rises over 11%, received emergency approval in the US for coronavirus test
• South Korea’s President is seeking a 3rd extra budget, confirms support measures for local companies
• Facebook to invest $5.7B in India’s Jio Platforms
• Aussie spikes higher during Asian session, then pares gain
• Australia prelim March Retail Sales showed the strongest rise ever published in the Retail Trade Publication, data was supported by consumer staples
• Australia’s March Leading Index showed the most negative growth rate since the global financial crisis
• RBA said excess cash at exchange settlement (ES) accounts declined to A$71.3B v A$83.7B prior
• Australia to establish strategic fuel reserve, initially fuel reserve to be held in the US
• Harbin (located in the Heilongjiang province of China) tightened its travel restrictions due to coronavirus concerns
• HKMA intervened in the currency market by selling HKD (first time since 2015), the move came as the HKD traded at the strong end of pegged range [HK$7.75-7.85]
• US companies expected to report during the NY morning include, Biogen, Delta, Quest Diagnostics, First Cash Financial Services, Interpublic Group, Kimberly-Clark, Nasdaq, AT&T, Thermo Fisher and Textron.

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened -0.3%
• (AU) AUSTRALIA PRELIM MAR RETAIL SALES M/M: +8.2% V 0.5% PRIOR (Strongest ever in trade publications)
• (AU) Australia Mar Westpac Leading Index M/M: -0.8% v -0.4% prior (most negative growth rate since the global financial crisis)
• (AU) Australia Mar Skilled Vacancies M/M: -5.3% v -4.5% prior
• (AU) Australia Treasurer Frydenberg: No plans to change the Goods and Services Tax (GST) – local media
• (AU) Reserve Bank of Australia (RBA) offers to buy total of A$1.0B in bonds v A$500M prior
• (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$71.3B v A$83.7B prior
• (AU) Reserve Bank of Australia (RBA) adds A$550M to banking system through repos v A$2.54B prior
• (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$450M in govt bonds v NZ$450M sought as part of QE operations v NZ$450M prior
• (AU) Australia sells A$1.5B v A$1.5B indicated in 2.50% May 2030 bonds, avg yield 0.846%, 4.29x bid to cover
• (AU) Australia Energy Min: Australia to establish strategic fuel reserve; Initial allocation of A$94M; Working with industry to establish local storage

Japan

• Nikkei 225 opened -0.9%
• (JP) Japan Fin Min Aso: There is a need to watch coronavirus impact on regional banks in Japan; Capital adequacy ratio for local banks still appropriate
• (JP) Japan Banker Association reported to be considering cutting transfer fees – Nikkei
• 7201.JP Nissan expects annual worldwide sales to remain flat at around 5M units over next 3 years – Nikkei
• 9432.JP Looking at securitize and sell ¥3.0T in assets – Nikkei
• (JP) Tokyo, Japan Gov Koike: Tokyo urgently considering limiting supermarket customers

Korea

• Kospi opened -1.3%
• (KR) South Korea President Moon: Calls for 3rd extra budget of KRW40T, to be focused on key industries and job retention; Will increase policy finance rescue package to KRW135T from KRW100T; to inject KRW10T into job stability measures – Yonhap
• (KR) South Korea Mar PPI M/M: -0.8% v -0.3% prior; Y/Y: -0.5% v 0.7% prior
• (KR) North Korea succession thought to mean that if Leader Kim dies his sister would become the custodian of power – US financial press

China/Hong Kong

• Hang Seng opened -1.1%; Shanghai Composite opened -0.5%
• (CN) China National Health Commission Coronavirus Update for April 21st: 30 additional cases (23 imported) v 11 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 42 v 37 prior
• (CN) China President Xi: China will use stronger macro policy tools to cushion the epidemic fallout while making efforts to ensure that the epidemic will not rebound – China press
• (CN) China PBOC sets Yuan reference rate: 7.0903 v 7.0752 prior
• (CN) China PBoC Open Market Operation (OMO): Skips Reserve Repo Operations for the 15th consecutive session; Net CNY0B v CNY0B prior
• (HK) HKMA sells HK$2.8B into market due to strengthening of the Hong Kong dollar vs US dollar [Note: The HKD is pegged to the US dollar with the current trading band between HK$7.75-7.85, second intervention in 2 days]
• (HK) Follow Up from yesterday’s intervention: Hong Kong Monetary Authority (HKMA) first sold HK$1.55B after HK$ tested the stronger side of its band, it then bought HK$4.34B as it swung the other way – financial press
• (CN) China State Council: Will boost targeted assistance to those in need and small businesses amid efforts to address challenges facing the Chinese economy – Xinhua
• (CN) China Iron and Steel Association (CISA): Coronavirus impacts on China steel exports will be seen in Q2

Other

• RIL.IN Facebook invests $5.7B in telecom unit Jio Platforms for a 9.9% stake

North America

• (US) Senate approves the new $480B coronavirus relief bill by unanimous consent (as expected); House to vote on Thrs
• (US) CDC Director Redfield: possibility that the assault of the coronavirus on the US next winter will actually be even more difficult than the one we just went through because it is likely to coincide with the start of flu season
• (US) President Trump confirms immigration restrictions for 60-days, only apply to those seeking permanent residency
• EXPE Said to be close to deal to sell stake to Silver Lake and Apollo – financial press
• (MX) US Ambassador to Mexico Landau: Calls on Mexico to re-open factories along the boarder with US, lockdowns damaging the flow of parts and goods that feed businesses in the three nations of the North American free trade zone, “if we do not coordinate our response, these chains can evaporate” – press
• (US) NPD reports Mar US Video game sales $1.59B v $1.19B y/y (highest March since 2008)

Levels as of 1:15ET

• Hang Seng -0.4%; Shanghai Composite +0.2%; Kospi -0.4%; Nikkei225 -1.5%; ASX 200 -0.3%
• Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax -0.0%; FTSE100 +0.4%
• EUR 1.0864-1.0844; JPY 107.86-107.56; AUD 0.6349-0.6277; NZD 0.5996-0.5948
• Commodity Futures: Gold +0.9% at $1,702/oz; Crude Oil WTI -6.7% at $10.81/brl; Copper -1.6% at $2.21/lb