General trend
- Equity markets in Asia are broadly higher following the mixed openings; most indices are closer to session highs; Financials trade mostly higher, Tech underperforms after Nasdaq decline
- Hang Seng and Shanghai Composite have outperformed as financials rise amid targeted RRR cut speculation [Shanghai Banks index gains over 3%; ICBC rises over 4% in HK ]; Gaming firms rise in HK on Macau news; Hang Seng TECH index lagged after Nasdaq decline
- Australia S&P ASX 200 ended closer to the best levels [Resources and Financial indices rose];
- Nikkei 225 is near the opening level [Gainers include Iron/Steel and Transportation cos.; Electric Appliances and Information & Communication indices lag]
- Kospi gained following the lower open [financials rise]
- Little initial reaction seen after better than expected Aussie GDP
- Companies expected to report during the NY morning include Dollar Tree, Lincoln Educational, Wendy’s
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) AUSTRALIA Q4 GDP Q/Q: 3.1% V 2.5%E; Y/Y: -1.1% V -1.8%E
- (AU) Australia Council of Financial Regulators quarterly meeting: Housing lending standards are generally being met, regulators will consider possible responses should things deteriorate and financial risks increase; ASIC and RBA have communicated expectation that ASX commission independent expert review on ASX outage
- (AU) Australia total payroll jobs change for Jan 30th-Feb13th: 0.0% v +1.3% prior; Wages +2.1% v 0.4% prior
- (AU) Australia Treasurer Frydenberg: The unprecedented global stimulus efforts during the coronavirus pandemic are creating financial stability risks – Press
Japan
- Nikkei 225 opened +0.3%
- (JP) Bank of Japan (BOJ) Board member Kataoka (Ultra-Dove): Desirable to lower rates to strengthen easing; Personally believe strengthening easing with Yield Curve Control and Policy commitment – speaking in Gunma prefecture
- (JP) Japan PM Suga: Will listen to experts on decision for state of emergency; Not much time left to make decision on extending state of emergency
- (JP) Japan said to be considering extension of Tokyo State of Emergency by 2-weeks (decision due March 4th (Thurs) – Press
- (JP) Japan Feb Final PMI Services: 46.3 v 45.8 prelim (confirms 14th straight contraction)
- (JP) Tokyo officials consider requesting a 2-week extension of COVID state of emergency – Nikkei
- (JP) Japan Lower House passes FY21/22 budget of ¥106.6T (record size) (yesterday after the close)
Korea
- Kospi opened -0.1%
- (KR) South Korea Fin Min Hong: Govt to focus on creating 300K jobs by 2025 in the service sector which has been most impacted by pandemic – Yonhap
China/Hong Kong
- Hang Seng opened +0.5%; Shanghai Composite opened -0.2%
- (CN) CHINA FEB CAIXIN PMI SERVICES: 51.5 V 52.0 PRIOR
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY0B v Net drain CNY0B prior
- (CN) China Securities Journal analysts says PBOC may cut the RRR for certain banks in March – press
- (HK) Hong Kong Feb PMI (Whole Economy): 50.2 v 47.8 prior (highest since March 2018)
- (CN) China PBOC sets Yuan reference rate: 6.4565 v 6.4625 prior
- (CN) China Market Regulator issues fines for platforms Meituan, Pinduoduo, along with Didi Chuxin citing improper pricing
- (HK) Macau casinos will no longer require nucleic acid test certificate to enter, effective Midnight March 3rd
Other
- (SG) Singapore Feb PMI (Whole Economy): 54.9 v 52.9 prior (highest since June 2018, 3rd consecutive expansion)
North America
- (US) Pres Biden: we now expect to have enough vaccine doses for every American by the end of May (vs prior forecast of end of July)
- (US) Fed’s Daly (non-voter, dove): recent rise in inflation expectations has been encouraging; a surge in inflation pressures remains unlikely; if policy becomes less accommodative, Fed could change maturity of bond purchases
Europe
- (UK) Chancellor of the Exchequer Sunak (Fin Min) extends furlough pay for UK workers through Sept – press
Levels as of 12:15ET
- Hang Seng +1.7%; Shanghai Composite +1.4%; Kospi +0.8%; Nikkei225 +0.5%; ASX 200 +0.8%
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax +0.5%; FTSE100 +0.6%
- EUR 1.2093-1.2083; JPY 106.89-106.68; AUD 0.7838-0.7813; NZD 0.7303-0.7278
- Commodity Futures: Gold -0.0% at $1,733/oz; Crude Oil +0.4% at $59.97/brl; Copper -0.5% at $4.19/lb
