Headlines/Economic Data
General Trend: Asian equities track Friday’s gains in US markets
Asian steelmakers trade generally higher
Australia’s Bluescope [BSL.AU] Steel gains over 3% on exemption from US tariffs
Commodity currencies gain after rise in equity markets
Shanghai Rebar Steel Futures extend losses amid US steel tariffs announcement
Japan
Nikkei 225 opened +1.7%; closed +1.7%
TOPIX Securities Index +1.8%, IRON & Steel +1.6%
Mega-banks track Friday’s gains in US financials
(JP) Japan Q1 BSI Large All Industry Q/Q: 3.3 v 6.2 prior; Large Manufacturing: 2.9 v 9.7 prior
(JP) Japan PM Abe and Finance Min Aso said to face pressure related to Moritomo Gakuen land transaction – financial press
(JP) Japan LDP Moriyama: Moritomo documents were altered. According to financial press that has seen Moritomo document, 14 places in the doc were altered. Japan PM Abe’s name was removed, Fin Min Aso’s wife’s name was removed
(JP) Japan Fin Min Aso: confirms Moritomo documents were altered 14 times, apologizes; reiterates no intention to resign – speaking at press conf
(JP) JAPAN FEB PRELIMINARY MACHINE TOOL ORDERS Y/Y: 39.5% V 48.8% PRIOR
Korea
Kospi opened +1.1%
(KR) South Korea preparing to file WTO complaint against the US after request to withdraw its safeguard measures on Korean washers. This is amid intensifying tension over Trump’s decision to impose tariffs on imported steel products – Korean press
Kia Motors, 000270.KR South Korea tax offices has launched an investigation into the company – Korean press
(KR) South Korea to decided if it will join the CPTPP in the first half of this year – Korean press
(KR) Bank of Korea sells KRW800B in monetary stabilization bonds (MSBs): yield 1.96%
(KR) Bank of Korea (BOK) sells 3-month Monetary Stabilization Bonds (MSB); Yield 1.55% v 1.54% prior
China/Hong Kong
Hang Seng opened +1.7%, Shanghai Composite +0.4%
Hang Seng Energy Index +2.2%, Services +1.9%, Information Technology +1.8%, Financials +1.7% Materials +1.6%, Property/Construction +0.7%
Shanghai Composite Property index declines over 2%
(CN) China should prepare emergency plan for financial risks – China Daily
(CN) US government said to have asked China for a $100B plan to cut trade deficit – FT
(CN) China officially removed presidential term limits form the constitution on Sunday – press
(CN) China State Assets Supervision and Administration Commission (SASAC) chairman Yaqing: reducing debt and curbing risks remain priorities for China’s state owned enterprises (SOE), will continue with restructuring and deleveraging efforts – Chinese press
(CN) PBoC Gov Zhou: China has done most of what it takes to pave the way for expanded usage of yuan globally – Xinhua
(CN) China Foreign Min Wang: Time the China threat theory is permanently laid to rest; despite elements of competition China and US ties are defined more by partnership than rivalry – Xinua
(CN) PBOC sets yuan reference rate at 6.3333 v 6.3451 prior
(CN) China PBoC Open Market Operation (OMO): Injects CNY90B in 7 and 28-day reverse repos (first OMO in 6 sessions) :Net injection CNY90B v CNY40B drain prior
Prada [+19%], 1913.HK Reports FY17 Net €249.9M v €278.3M y/y, EBIT €360M v €431.2M y/y, Rev €3.01B v €3.18B y/y
Australia/New Zealand
ASX 200 opened +0.7%; closed +0.7%
ASX 200 Resources Index +1.7%, Financials +0.7%
Newcrest Mining, NCM.AU Reports limited breakthrough of tailings material was identified at Cadia northern tailings dam embankment; to adversely impact FY18 production
(AU) Australia PM Turnbull: Australia steel tariff exemptions from US a ‘win-win’; will not take WTO complaint related to US tariffs
Woodside [+1.2%]; WPL.AU Enters into agreement with BHP on proposed development of Scarborough Gas Field; to offer 14.4M entitlements not taken up earlier
(NZ) New Zealand PM Ardern: Will seek exemption from US steel tariff
(NZ) New Zealand Debt Management Office: To offer NZ$1.5-2.0B in 3.0% April 2029 bond through syndication (on March 13th), pricing guidance is 16-19bps/April 2027 bond; cancels bond auction planned for March 15th
(NZ) RBNZ acting Gov Spencer to speak on Tuesday, March 13th; to focus on macro-prudential policy
North America
(US) Fed’s Bullard (dove, non-voter) reiterated 4 interest rate hikes in 2018 could slow the economy – FT
(US) White House: Refers issue of raising minimum age to buy rifles to 21 from 18 to commission led by Educational Sec Devos.
Broadcom [AVGO]: Reportedly Intel considering M&A, including possible bid for Broadcom – financial press
Europe
(UK) If there is a ‘no-deal’ Brexit, companies in the UK and EU could face £58B in extra annual costs – Report by Oliver Wyman and Clifford Chance
(IR) Iran Oil Minister Zanganeh said OPEC could agree in June to begin reducing oil output cuts in 2019 – US financial press
Deutsche Bank, DBK.DE Said to be planning to cut its retail unit by 20% over the next 4-yrs – German press
Innogy SE [IGY.DE]: RWE agreed in principle to sell 76.8% stake in co. to E.ON for total value of €40/share (~16% premium to prior close) in exchange for 16.67% stake in E.ON in addition to other business interests; E.ON to also receive €1.5B cash payment
(UK) Chancellor of Exchequer Hammond (Fin Min): to provide govt’s half-yearly update of Britain’s public finance figures on Tuesday, Mar 13th – financial press
Levels as of 02:00ET
Hang Seng +1.5%; Shanghai Composite +0.6%; Kospi +1.0%
Equity Futures: S&P500 +0.4%; Nasdaq100 +0.6%, Dax +0.6%; FTSE100 +0.1%
EUR 1.2325-1.2305; JPY 106.97-106.35; AUD 0.7873-0.7847;NZD 0.7323-0.7280
Apr Gold -0.1% at $1,323/oz; Apr Crude Oil +0.1% at $62.09/brl; May Copper -0.1% at $3.14/lb
