HomeContributorsFundamental AnalysisRBNZ And MAS Decisions Due On Wednesday

RBNZ And MAS Decisions Due On Wednesday

General Trend

  • Asian equity markets opened mixed.
  • Hang Seng rises after prior decline, later pares gain [Financial and Property cos. trade generally higher, China Mar new loans beat ests; HK TECH index rebounds from opening decline; Alibaba extends gain]
  • Shanghai Composite ended the morning session flat, the index later moved lower [Consumer and IT indices rose; Financials lagged]
  • Nikkei has remained higher [Topix Iron & Steel, Retail, Securities and Insurance indices are among the gainers; Electric Power & Gas index drops amid report related to FTC inspections]
  • Japan earnings remain in focus [Takashimaya and AGC rise]
  • S&P ASX 200 is near session lows [Energy and Resources indices lag]
  • US equity FUTs are modestly lower.
  • Commodity currencies move lower; NZD declines ahead of RBNZ decision.
  • Australia 10-year bond yield rose ahead of the syndicate pricing.
  • China said Q2 trade growth could be impacted by high base comparison.
  • PBOC advisor commented on inflation expectations and future Fed policy.
  • BoJ Gov spoke on ‘weak yen’.
  • Various press outlets commented on the yet to be released US Treasury FX report.
  • Companies due to report earnings during the NY morning include Fastenal.
  • US Mar CPI data due later today.

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened 0.0%
  • (NZ) New Zealand Q1 Business Confidence: -13% v -6% prior.
  • IGO.AU Regis Resources to acquire 30% stake in Tropicana project for A$903M cash.
  • (AU) Australia total weekly payroll jobs change for Mar 14-27th: +0.1% v -0.2% prior; Wages -0.4% v +1.0% prior.
  • (AU) Australia Mar NAB Business Confidence: 15 v 18 prior; Business Conditions: 25 v 17 prior (Conditions at record high)
  • (AU) Australia AOFM sells A$14B in 1.90% of Nov 2032 Bonds via syndication, bid to cover 3.42x.

Japan

  • Nikkei 225 opened +0.2%.
  • 9501.JP Japan PM Suga: Confirms Govt has decided to release Fukushima Contaminated water into the sea, within 2 years.
  • (JP) Former Bank of Japan (BOJ) Member Sakurai: Does not see new rate cuts without additional crisis.
  • (JP) Japan Fair trade commission raids offices of various utility companies on suspicion of anti trust operations – Press.
  • (JP) Bank of Japan (BOJ) Gov Kuroda: It will take time, but BOJ can achieve 2% inflation target.
  • (JP) Japan Industry Ministry METI: Sees Q1 Steel Production 23.2Mt, -1.8% q/q; Steel Product Demand Incl Exports +20.6% y/y.
  • 6502.JP Oasis says buyout proposal for ¥5.0K/shr too cheap, company worth at least ¥6.2K/shr.

Korea

  • Kospi opened +0.1%.
  • 005930.KR President of visual displays Jong-hee and other officials traveled to Taiwan to meet with suppliers Mediatek, Novatek and AUO to secure key components – Taiwan press.
  • (KR) South Korea President Moon: Reiterates view that Domestic economy will return to pre coronavirus pandemic levels in H1.

China/Hong Kong

  • Hang Seng opened +0.4%; Shanghai Composite opened -0.1%.
  • (CN) China PBOC sets Yuan reference rate: 6.5454 v 6.5578 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 Net Inject CNY10B prior.
  • (CN) Treasury Sec Yellen reportedly will not designate China as a currency manipulator in biannual report – press.
  • (CN) China Academy of Information and Communications Technology expects that the 14th Five-Year Plan will include investments totaling CNY10.53T (CNY1.78T for infrastructure), main focus expected to be 5G infrastructure – China Press.
  • (CN) China Ministry of Finance: Offering tax preferences through 2030 for imports by qualified display companies buying raw materials and parts that can’t be produced domestically.
  • (CN) CHINA Q1 TRADE BALANCE (CNY): 759.3B v 98.3B Y/Y; Exports: 38.7% v -11.4% y/y; Imports: 19.3% v -0.7% y/y.
  • (CN) CHINA MAR TRADE BALANCE (CNY): 88.0B V 328.8BE; Exports y/y: 20.7% v 28.6%e; Imports y/y: 27.7% v 17.6%e.
  • (CN) CHINA MAR TRADE BALANCE: $13.8B V $52.0BE; Exports: 30.6% v 38.0%e; Imports: 38.1% v 24.4%e.
  • (CN) China Customs: Closely watching international shipping changes, steady domestic growth has boosted trade; High base comparison will bring challenges to trade growth in Q2.
  • (CN) China Huarong (largest bad debt investor in China) sees its bond prices move to record low – FT
  • Yesterday after the close.
  • (CN) CHINA MAR M2 MONEY SUPPLY Y/Y: 9.4% V 9.5%E.
  • (CN) CHINA MAR NEW YUAN LOANS (CNY): 2.730T V 2.30TE.
  • (CN) CHINA MAR AGGREGATE FINANCING (CNY): 3.340T V 3.70TE.

Other

  • (TW) Taiwan Dollar weakness attributed to US Being ready to label Taiwan as a currency manipulator, as it meets all 3 criteria – FT.

North America

  • (US) Pres Biden brought up idea of a $0.05 rise in the gas tax in a meeting today, but doesn’t want to raise gas tax according to a NJ Democratic congressman.
  • (US) SEC said to have told accountants that warrants do not count as equity, trying to calm down SPAC frenzy with accounting talks.
  • (US) Fed’s Rosengren (non-voter): Economy’s likely path suggests rate rise debate is about 2 years off, there is a lot of slack that must be closed, too much uncertainty to be specific on rate rise currently.
  • FDX CEO Smith: President Biden tax proposals would reduce capital investment and significantly degrade US competitiveness; we pay all US Federal, State, and local taxes – Statement.

Europe

  • CSGN.CH May report Q1 Underlying pretax >$3.7B [in line], also said to be cutting staff bonuses which is contributing $600M to pretax profit – FT.
  • (IT) Italy govt said to be accelerating plans for up to €40B stimulus package – financial press.

Levels as of 01:15ET

  • Hang Seng +0.6%; Shanghai Composite -0.3%; Kospi +0.9%; Nikkei225 +0.8%; ASX 200 -0.1%.
  • Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 -0.1%.
  • EUR 1.1917-1.1886; JPY 109.75-109.36; AUD 0.7631.7595; NZD 0.7036-0.7005.
  • Commodity Futures: Gold -0.2% at $1,729/oz; Crude Oil +0.4% at $59.92/brl; Copper -0.4% at $4.00/lb.
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