Asian Equities Trade Generally Higher Amid Gains In Shanghai And HK

General Trend

• Following the mixed opens, most indices are trading higher; Tech trades generally higher [Hang Seng TECH index rises over 4%; JD.com rises ahead of earnings];
• Shanghai and Hong Kong ended morning sessions closer to the best levels [Financials rose in Shanghai after better bank lending data, Consumer Staples Index also outperformed; China Unicom declines ahead of earnings report; Aluminum giant China Hongqiao drops in HK on equity raise]; Chinese press commented on recent market volatility
• Japanese equities have moved higher after the flat open [Marine Transportation, Retail, Banks, Iron & Steel and Information & Communications indices rise; Air Transportation and Real Estate indices lag]
• Australian equities lag again on today’s session [Resources and Financial indices drop; Consumer Discretionary index outperformed (Travel-sensitive firms rise on stimulus measure)]
• Oracle declined by over 5% in afterhours following results/guidance
• New Zealand bond yields decline amid bond auction results
• Taiwan Central Bank Gov commented on FX manipulation
• China Premier Li is due to hold press briefing during the afternoon following the conclusion of the NPC
• China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
• Companies expected to report during the NY morning include JD.com, Party City, Revlon, Via Optronics

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened -0.2%
• (AU) Australia Govt expected to announce A$1.2B stimulus package aimed at tourism, including subsidized flights – AFR
• ANZ.AU Planning to cut 850 jobs in China over the next 18 months, to keep ~800 employees in 8 locations in China after layoffs completed – SMH
• (AU) Australia Mar Consumer Inflation Expectation Survey: 4.1% v 3.7% prior
• (AU) Reserve Bank of Australia (RBA) has doubled the fee charged related to the lending out of April 2023 and April 2024 government bonds to 100bps; the move will make it more expensive to short these bonds – financial press

Japan

• Nikkei 225 opened 0.0%
• (JP) Bank of Japan (BOJ) said to seek freer yield fluctuations following the upcoming March review
• (JP) Japan Feb PPI (CGPI) M/M: +0.4% v 0.5%e; Y/Y: -0.7% v -0.7%e
• 7267.JP Accepts labor union request for bonus increase to 5.3-months salary as part of 2021/22 Spring wage talks
• (JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.5% 20-year JGBs: avg yield: 0.5130% v 0.4820% prior; bid to cover 3.40x v 3.13x prior

Korea

• Kospi opened +0.2%
• (KR) South Korea Mar 1-10 Imports Y/Y: 31.4% v +71.9% prior; Exports Y/Y: 25.2% v +69.1% prior
• (KR) Bank of Korea (BOK) Confirms ending collateralize loan programs by the end of March on schedule
• (KR) Bank of Korea (BOK): Inflation could increase faster than expected; To closely monitor local bond yields with long term maturity

China/Hong Kong

• Hang Seng opened 0.0%; Shanghai Composite opened +0.4%
• (CN) China CSRC said to be considering tougher requirements to list on Shanghai STAR board, including requiring proof of technology credentials – press
• (CN) China Securities Times: China fund investors should remain calm during volatility
• (CN) At the end of 2020 capacity utilization in Jiangsu, China province’s car industry 33%, -20ppt from national avg – Chinese press
• (CN) China PBOC sets Yuan reference rate: 6.4970 v 6.5106 prior
• (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 Semiconductor Industry Association set up work team with US counterpart to discuss export curbs supply chain safety and encryption technology
• (CN) CHINA FEB NEW YUAN LOANS (CNY):1.360T V 950BE
• (CN) CHINA FEB M2 MONEY SUPPLY Y/Y: 10.1% V 9.4%E
• (CN) CHINA FEB AGGREGATE FINANCING (CNY): 1.710T V 910BE

Other

• (SG) Congestion getting worse at Singapore port with avg number of wait days in Feb 52, +60% y/y (4 year high) – press
• (TW) Taiwan Central Bank Gov Yang: US may label currency manipulator – speaking to lawmakers

North America

• ORCL Reports Q3 $1.16 v $1.11e, Rev $10.1B v $10.1Be; Increases share buyback by $20B (9.4% of market cap), raises dividend 33% to $0.32 from $0.24
• (CN) US Secretary of State Blinken and National Security Advisor Sullivan to meet with their China counterparts Yang Jiechi and Wang Yi in Alaska next week
• (US) Treasury Sec Yellen: today was a pivotal day for the US economy [with passage of the $1.9T stimulus bill]
• (US) Press Secretary Psaki: Americans should receive stimulus checks in March; Biden Wants to make increase in Child tax credit Permanent

Europe

• (UK) PM Johnson pledges £100M to build offshore wind power projects in Red Wall area – press

Levels as of 12:15ET

• Hang Seng +1.4%; Shanghai Composite +1.9%; Kospi +2.2%; Nikkei225 +0.5%; ASX 200 -0.2%.
• Equity Futures: S&P500 +0.5%; Nasdaq100 +0.7%, Dax +0.0%; FTSE100 +0.3%.
• EUR 1.1935-1.1916; JPY 108.67-108.36; AUD 0.7750-0.7723; NZD 0.7209-0.7131.
• Commodity Futures: Gold +0.5% at $1,730/oz; Crude Oil +0.9% at $64.99/brl; Copper +1.6% at $4.09/lb.