HomeContributorsFundamental AnalysisHang Seng TECH Index Rebounds From Over 3% Drop

Hang Seng TECH Index Rebounds From Over 3% Drop

General Trend

  • Asian indices have remained mixed following the directionless open; Markets have pared losses led by the Shanghai Composite and Hang Seng TECH indices amid report related to China State Funds; Financials have generally outperformed again on today’s session
  • Markets in HK and Shanghai were closer to their best levels as of the end of the morning sessions; Tech indices in HK and Shanghai have remained volatile; Shanghai Consumer Staples index rebounded from over 3% drop; Chinese automakers rise amid Feb sales figures
  • Japanese equity markets are higher following the flat open [Yen has weakened; Financials outperform; Electric Appliances index lags, Panasonic drops on acquisition speculation];
  • Australian equities pared advance [Financials trimmed gains; Energy and Resources indices declined]
  • Taiwan Semi may release Feb sales later today (US financial press)
  • RBA Gov Lowe is due to speak on Wed at the Australian Financial Review Business Summit (10 pm GMT)
  • Companies expected to report earnings during the NY morning include Dicks Sporting Goods, Daqo New Energy, Navistar, Children’s Place

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.1%
  • VOC.AU To be acquired by consortium of MIRA and Aware Super for A$5.50/shr cash
  • (NZ) New Zealand Q4 Manufacturing Activity Q/Q: -0.6% v +10.0% prior; Volume Y/Y: 0.5% v +17.3% prior
  • (AU) Australia sells A$150M v A$150M indicated in 0.75% Nov 2027 indexed bonds, avg yield -0.8026%, bid to cover 3.81x
  • (AU) Australia Feb NAB Business Confidence: 16 v 12 prior (highest since 2010); Conditions: 15 v 9 prior

Japan

  • Nikkei 225 opened 0.0%
  • (JP) JAPAN Q4 FINAL GDP Q/Q: 2.8% V 3.0%E; GDP ANNUALIZED Q/Q: 11.7% V 12.6%E; Business Spending Q/Q: 4.3% v 4.0%e (confirms 1st increase in 3 quarters)
  • (JP) Japan Jan Household Spending M/M: -7.3% v -3.1%e; Y/Y: -6.1% v -2.1%e
  • 6752.JP Said to be in talks to acquire American software and consultancy company Blue Yonder for ¥700B – Nikkei (yesterday after the close)
  • (JP) Japan Econ Min Nishimura: Manufacturing industry is very strong, especially electronic components, semiconductors and car sectors; hope firms will continue to make forward looking investments
  • (JP) Japan PM Suga has nominated Junko Nakagawa for the Bank of Japan (BOJ) board, to replace Takako Masai whose term is due to end on June 29th
  • (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.10% 5-year JGBs; avg yield -0.062% v -0.1010% prior, bid to cover 3.25x v 3.49x prior

Korea

  • Kospi opened -0.2%
  • (KR) South Korea Vice Fin Min: Markets may continue to be volatile, closely watching markets to respond swiftly if needed; Recovery expectation and inflation concerns are mixed
  • (KR) South Korea Financial Services Commission and Financial Supervisory Service: to extend eased liquidity coverage ratio regulations for banks by an additional 6 months, to end of Sept (prior end of March) – Yonhap

China/Hong Kong

  • Hang Seng opened +0.4%; Shanghai Composite opened -0.2%
  • (CN) China PBOC Deputy Gov Chen Yulu: China to improve money supply mechanism; to guide more financial resources to smaller companies – Chinese press
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v CNY0B prior
  • (CN) China PBOC sets Yuan reference rate: 6.5338 v 6.4795 prior (weakened by 0.8% most since July 2018)
  • (HK) Hong Kong to hold postponed (from Sept due to COVID) Legislative Council election in December to account for electoral changes introduced by China – local press
  • (CN) China Feb Retail Passenger Vehicle Sales: 1.19M units v 2.18M prior, +368% y/y – PCA
  • (CN) China Commerce Ministry (MOFCOM): 2021 consumption to see rapid growth (yesterday after the close)

Other

  • (TW) Taiwan Minister of Economic Affairs Wang Mei-hua: Taiwan has enough water to maintain chip supply until May – local press

North America

  • GPS Reportedly hires adviser to considering selling its China business amid sluggish sales – press
  • (US) Feb NY Fed Survey of Consumer Expectations: expected changes in gas prices and rents both rise; One year-ahead inflation expectations at 3.1% in Feb vs 3.0% in Jan (highest since Jan 2014)

Europe

  • (UK) PM Johnson: over a third of UK population has now received the COVID vaccine

Levels as of 12:15ET

  • Hang Seng +1.5%; Shanghai Composite +0.2%; Kospi -0.6%; Nikkei225 +0.9%; ASX 200 +0.5%
  • Equity Futures: S&P500 +0.8%; Nasdaq100 +1.4%, Dax +0.2%; FTSE100 -0.2%
  • EUR 1.866-1.1836; JPY 109.23-108.86; AUD 0.7667-0.7621; NZD 0.7141-0.7103
  • Commodity Futures: Gold +0.4% at $1,685/oz; Crude Oil +0.7% at $65.53/brl; Copper +0.8% at $4.11/lb

 

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