Asia Market Update: Asia trades higher amid holidays and record close for the S&P 500; US jobs report due later today.
General trend
- Asian markets have remained higher amid various holidays; Tech firms rise after gains on the Nasdaq.
- Nikkei is trading near the session highs [Topix Electric Appliances and Information & Communication indices rise; Marine Transportation and Financial cos. lag; Mizuho declines after press report related to Archegos].
- Shanghai Composite rose modestly during the morning session [IT and Consumer indices outperformed; Financials lagged].
- Samsung extends gain in South Korea.
- Commodity currencies see modest gains in Asia.
- Shanghai market to be closed on Monday (April 5th).
- The HK market is due to be closed for holiday from April 2nd to April 6th.
- Australia and NZ markets are closed April 2-5th.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 closed for holiday.
China/Hong Kong
- Hang Seng closed for holiday, Shanghai Composite opened +0.2%.
- (CN) China PBOC monetary policy Dept chief Sun Guofeng: Impact of any new US policies on China will be limited.
- (CN) China PBoC reiterates stance that current financial risks are controllable.
- (CN) Senior PBOC official Zou Lan: Keeping close watch on foreign investment in bond market, believe Chinese bond market is resilient.
- (CN) China PBoC Wang Xin: Have launched multi-lateral digital currency research pilot with Hong Kong, Thailand and UAE.
- (CN) Current China PBOC official Li Bo is expected to become Deputy Gov at the PBOC – Chinese press.
- (CN) China State Planner NDRC: To ensure decline in steel production for 2021; To launch nationwide inspection on steel capacity cuts.
- (CN) China Commerce Ministry (MOFCOM): Reiterates stance that US and China should address concerns via dialogue; reiterates opposition to unilateral imposition of tariffs; China expected to release e-commerce 5-year plan in H2 2021 [comments from April 1st].
- (HK) US Sen GOP Leader McConnell: HK news shows China’s tightening totalitarian grip, US must work with partners to impose consequences.
- (CN) China Industry Ministry (MIIT): To increase the production of coronavirus vaccines.
- (CN) Shanghai Stock Exchange (SSE) has started on-site inspections related to certain bond sales, to tighten its scrutiny related to the issuance of corporate bonds – Chinese press.
- (CN) China PBOC sets Yuan reference rate: 6.5649 v 6.5584 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.
Japan
- Nikkei 225 opened +1.1%.
- (JP) Bank of Japan (BOJ)’s Noguchi: (new Board member) support BoJ’s current policy stance as it has stopped the trend of falling prices; To decide later if BoJ should cut rates further into negative territory [comments from April 1st ].
- (JP) Japan PM Suga has delayed trip to US to meet with President Biden until Apr 16th [versus April 9th prior] – Japan Press.
- (JP) Japan Fin Min Aso: Declining to comment on impact of Archegos on specific companies; Monitoring situation on Archegos impact.
- (JP) Japan Mar Monetary Base Y/Y: 20.8% v 19.6% prior.
Korea
- Kospi opened +0.6%.
- *(KR) SOUTH KOREA MAR CPI M/M: +0.1% V -0.1%E; Y/Y: 1.5% V 1.5%E (fastest annualized pace since Jan 2020).
North America
- (US) President Biden to give remarks on Jobs report at 11:00EST on Apr 2nd.
- (US) Top White House aides to meet with industry and tech execs on April 12th to discuss semiconductor shortage – press.
- (US) Said that President Biden has no ambitions to revive State and Local Tax Deduction (SALT) – Press.
- [MRNA]: Confirms FDA has approved to allow up to 15 coronavirus doses per vial; FDA has authorized cos’ COVID-19 Vaccine to be kept at room temperature conditions once removed from the refrigerator for administration for 24 hours [an increase from the previous 12 hours].
Europe
- OPEC+ delegate says majority of OPEC+ members support a 1-month roll over of production cuts; discussions are ongoing – press.
- (SA) Saudi Oil Min: confirms voluntary Saudi cuts will be eased by 250K in May, 350K in June, and 400K in July.
- (DE) German Finance, Econ Ministry: German Government to agree to further aid for companies hit by Covid-19.
- AstraZeneca [AZN.UK]: Said that UK has linked 25 blood clot cases to coronavirus vaccine – FT.
- AstraZeneca [AZN.UK]: US NIH’s Fauci has ‘general feeling’ the US will not need the AstraZeneca vaccine, even if the vaccine is authorized – financial press.
- (NL) Dutch PM ‘narrowly’ survives no-confidence vote (72 voted for no-confidence out of 150 seats).
Levels as of 01:20 ET
- Nikkei 225, +1.5%, ASX 200 closed , Hang Seng closed; Shanghai Composite +0.3% ; Kospi +0.6%.
- Equity S&P500 Futures: +0.2%; Nasdaq100 +0.3%, Dax closed; FTSE100 closed.
- EUR 1.1784-1.1769 ; JPY 110.67-110.52 ; AUD 0.7638-0.7614 ;NZD 0.7042-0.7010.
- Gold closed; Crude Oil closed; Copper closed.
