General Trend
- Asian 10-year yields generally track a decline in UST yields.
- Financials generally underperform in Asia after dropping in yields.
- Hang Seng has remained higher [HK TECH index rises over 3%].
- Nikkei 225 has lagged and remained lower amid the stronger Yen [Topix Marine Transportation, Securities and Air Transportation indices are among the decliners; Iron & Steel index outperforms; Toshiba rises on speculation related to possible counterbids].
- Japanese companies continue to report earnings [J. Front Retailing declines; Izumi rises; ABC-Mart and Ryohin Keikaku are expected to report later today].
- Shanghai Composite ended the morning session modestly higher after the flat open [Consumer indices outperformed; Financial and Property indices lagged].
- Australian equities moved higher after the flat open [REIT and Utilities indices rise amid lower gov’t bond yields; Resources and Consumer indices also rose; Financials lagged; Capral rises on takeover offer].
- US equity FUTs have traded flat during Asia.
- SAP rises in US afterhours after issuing guidance; Modest rise seen in DAX futures.
- Taiwan Semi is due to release earnings on Thursday (April 15th).
- Chinese vaccine makers issue statements [Cansino and Sinopharm] after JNJ news.
- Tencent said to delay USD bond offering; China Huarong’s US dollar bonds extend declines.
- Japanese utility said to cancel Yen-denominated green bond sale.
- Australia Mar Employment data due on Thursday (April 15th).
- Bank of Korea (BOK) rate decision also due on Thursday.
- China PBOC tends to conduct MLF operations around the 15th of the month.
- Companies expected to report during the NY morning include Bed Bath and Beyond, First Republic Bank, Goldman Sachs, Infosys, JPMorgan Chase, Lovesac, Wells Fargo.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.3%.
- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 0.25%; (AS EXPECTED).
- (AU) Australia Apr Westpac Consumer Confidence: 118.8 v 111.8 prior (highest level since Aug 2010); M/M: 6.2% v 2.6% prior.
- CIM.AU CEO: Affirms FY21 Guidance (A$) Net 400-430M, targeting dividend payout ratio 60-65% of Net – AGM.
Japan
- Nikkei 225 opened -0.1%.
- TOSBF Reportedly KKR planning to outbid CVC’s ¥5,000/shr offer for the company – press.
- 6502.JP CVC said to make offer to purchase company as soon as this week – Nikkei.
- 6502.JP Chairman Nagayama: CVC Offer was not substantive; Ex CEO Kurumatani decided to step down as Toshiba recovery has been firmly in place – Press conference.
- 6502.JP Confirms press report that CEO Kurumatani to resign; Chairman Tsunakawa to become President, effective immediately.
- (JP) JAPAN FEB CORE MACHINE ORDERS M/M: -8.5% V +2.5%E; Y/Y: -7.1% V +2.4%E (2nd consecutive decline).
Korea
- Kospi opened 0.0%.
- (KR) South Korea Mar Exports Prices Y/Y: 5.6% v % v +0.6% prior (4th consecutive increase); Import Prices Y/Y: 9.0% v -0.3% prior.
- (KR) South Korea Mar Unemployment Rate: 3.9% v 3.9%e (Lowest since August 2020).
- (KR) South Korea Mar Bank Lending to Households (KRW): 1,009.5T v 1,003.1T prior (slowest growth since May 2020).
China/Hong Kong
- Hang Seng opened +1.1%; Shanghai Composite opened 0.0%.
- (CN) China Govt: Opposed to any official US Taiwan exchanges; Reminder: An unofficial US delegation to meet with Taiwan President Tsai Thursday – Taiwan press.
- 2799.HK Unless the China government intervenes a selloff at China Huarong Asset Management is set to widen – FT.
- (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 CNY0B prior.
- (CN) China PBOC sets Yuan reference rate: 6.5362 v 6.5454 prior.
- (CN) China Market Regulator (SAMR): Internet Platform companies have pledged to avoid Anti Competitive behavior.
- (HK) Macau Chief Exec Seng: Planning to amend laws to regulate the issuance of digital currency.
- (CN) China central Govt said to want failing local govt financing vehicles (LGFV) to restructure or fail if they can’t repay their debts.
- (CN) PBoC To conduct stress tests on ~4.0K China banks in 2021 to prevent risks.
Other
- (SG) SINGAPORE CENTRAL BANK (MAS) SEMI-ANNUAL MONETARY POLICY STATEMENT: MAINTAINS POLICY, BOTH WIDTH AND CENTER OF CURRENCY BAND UNCHANGED; Raises 2021 CPI forecasts.
- (SG) SINGAPORE Q1 ADVANCED GDP Q/Q: +2.0% V 1.7%E; Y/Y: +0.2% V -0.5%E.
- (TW) Seeing another report that unofficial US delegation to meet with Taiwan President Tsai Thursday – Taiwan press.
North America
- (US) Weekly API Crude Oil Inventories: -3.6M v -2.6M prior.
- PFE CEO: can deliver 10% more doses to US by end of May than previously agreed.
- TLEVICPO.MX Confirms to merge Televisa’s content and media assets with Univision; will receive $3.0B in cash, $750M in common equity and $750M in preferred equity in a $4.8B deal.
Europe
- SAP.DE Reports prelim Q1 (Non-IFRS) EPS €1.04 v €0.85 y/y; Op profit +24% y/y; Rev €6.35B v €6.52B y/y; Cloud Rev +13% y/y at cc; raises FY21 guidance.
Levels as of 01:15ET
- Hang Seng +1.4%; Shanghai Composite +0.2%; Kospi +0.4%; Nikkei225 -0.3%; ASX 200 +0.7%.
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.0%, Dax +0.2%; FTSE100 +0.1%.
- EUR 1.1965-1.1946; JPY 109.08-108.75; AUD 0.7668-0.7635; NZD 0.7094-0.7047.
- Commodity Futures: Gold -0.3% at $1,742/oz; Crude Oil +0.8% at $60.63/brl; Copper -0.1% at $4.03/lb.
