Headlines/Economic Data
Asian equity markets trade generally higher
Wynn Macau rises after release of Jan-Feb results
China reports unexpected Feb trade surplus amid higher than expected exports and lower imports
China Jan-Feb steel products exports -27.1% y/y
Japan Jan Trade deficit beats expectations
In Feb, Japanese sold a net of ¥2.73T in foreign bonds.
Australia/New Zealand
ASX 200 opened +0.3%; closed: +0.7%%
ASX 200 Utilities Index +1.9%, Consumer Discretionary +1.3%, Telecom +1.1%, Financials +0.8%; Resources -0.5%
(AU) AUSTRALIA JAN TRADE BALANCE: A$1.06B V A$160ME
(AU) Australia Feb Port Hedland Iron Ore Shipments to China: 31.3M tons v 34.7M m/m
(NZ) New Zealand Q4 Manufacturing Activity Volume Q/Q: 1.0% v 0.3% prior; Manufacturing Activity Q/Q: 2.8% v 0.5% prior
China/Hong Kong
Shanghai Composite opened -0.1%, Hang Seng +1.1%
Hang Seng Services Index +2.3% (gaming companies rise), Consumer Goods +1.9%, Info Tech +1.7%, Telecom +1.5%, Energy +1.4%, Financials +1.3%, Property/Construction +1.2%
Wynn Macau [1128.HK]: Rises over 5% after reporting Jan-Feb Rev +19%
(CN) CHINA FEB TRADE BALANCE (USD): +$33.7B V -$5.7BE; Exports Y/Y: 44.5% v 11.0%e; Imports Y/Y: 6.3% v 8.0%e
(CN) CHINA FEB FOREIGN RESERVES: $3.135T V $3.155TE (1st MoM decline in 13 months; released on March 7th)
(CN) China PBoC Open Market Operations (OMO): Skips OMO (4th straight session): Net: CNY100B drain
(CN) PBOC SETS YUAN REFERENCE RATE AT 6.3239 V 6.3294 PRIOR
Japan
Nikkei 225 opened +1.1%; closed +0.5%
TOPIX Electric Appliances Index +0.9%, Real Estate +0.6%
(JP) JAPAN Q4 FINAL GDP SA Q/Q: 0.4% V 0.2%E; ANNUALIZED Q/Q: 1.6% V 1.0%E; Business spending Q/Q: 1.0% v 1.3%e; Deflator Y/Y: +0.1% v 0.0%e
(JP) Japan Jan Trade Balance (BoP Basis): -¥666.6B v -¥695.5Be
(JP) Japan Jan Current Account Balance: ¥607.4B v ¥437.4Be
(JP) Japan FSA: Orders suspension of business at cryptocurrency exchanges including Bit Station and FSHO for 1-month beginning on March 8th
Looking Ahead: BoJ policy statement due for release on Friday
Korea
Kospi opened +0.8%Samsung Electronics
Samsung Electronics [005930.KR]: Could report Q1 operating profit around KRW14T v KRW9.9T y/y; The profit is seen declining q/q (from KRW15.2T) amid declining demand for displays, says the report. – Yonhap
(NK) North Korea govt reportedly has offered a conditional halt to its ICBM program – Korean press
(KR) South Korea Finance Min Kim: Expects South Korea will not be labelled FX manipulator by the US Treasury
Other Asia
Singapore Exchange [SGX.SG]: Reports Feb total securities market turnover value S$32.8B, +12% m/m and +16% y/y (highest since May 2013); Feb total derivatives volume +45% y/y
North America
US equity markets ended mixed: Dow -0.3%, S&P500 -0.1%, Nasdaq +0.3%, Russell 2000 +0.8%
S&P500 Technology +0.6%; Consumer Staples -0.9%
(US) White House spokesperson Sanders: there could be potential carve outs for Canada and Mexico, and could extend to other countries as determined on a national security basis
(US) US steel and aluminum tariffs said to temporarily exempt Canada and Mexico for 30-days with extensions possible depending on NAFTA talks – Washington Post
(US) Separately, White House reportedly could have tariff signing ceremony at noon tomorrow – NYT
(US) CNBC’s Javers: there could be more conversations in the White House on Thurs or Fri about further trade actions, including possibly against China
(US) White House floats possible successors for Gary Cohn’s position; Some of the names being floated: Shahira Knight, Jim Donovan, Kevin Hassett, Larry Kudlow, Chris Liddell, Mick Mulvaney, Peter Navarro, Mark Calabria, Bob Steel. – press
(US) White House Trade Adviser Navarro: I’m not on the list to replace economic adviser Gary Cohn
(US) Fed’s Bostic (2018 voter, dove): Trade wars are not winnable; Have to see details on the final tariff plan to estimate the economic impact; December I was forecasting two rate hikes; has adjusted that to three now; Everything is on the table in regards to two, three or four rate hikes in 2018 – comments from Florida
(US) DOE CRUDE: +2.4M V +2.5ME;
Express Scripts [ESRX]: Cigna said to be near deal to acquire the company – US financial press
Europe
(EU) ECB Governing Council: ECB has no objections to Spain’s de Guindos taking vice presidency
(TR) Moody’s cuts Turkey sovereign rating one notch to Ba2 from Ba1; outlook to Stable from Negative
(UK) UK FEB RICS HOUSE PRICE BALANCE: 0% V 7%E (lowest since March 2013)
Looking Ahead: ECB rate decision expected later today
Levels as of 01:00ET
Hang Seng +1.3%; Shanghai Composite +0.3%; Kospi +0.6%
Equity Futures: S&P500 flat; Nasdaq100 flat, Dax flat; FTSE100 +0.2%
EUR 1.2396-1.2416 ; JPY 105.92-106.22; AUD 0.7814-0.7841 ;NZD 0.7272-0.7298
Feb Gold flat at $1,327/oz; Feb Crude Oil flat at $61.17/brl; Copper -0.4% at $3.120/lb
