Wed, Mar 03, 2021 @ 15:08 GMT
Home Contributors Fundamental Analysis Asian Market Update: Trading Subdued Amid Japanese Holiday And Ahead Of Rate...

Asian Market Update: Trading Subdued Amid Japanese Holiday And Ahead Of Rate Decisions

Headlines/Economic Data

General Trend:

  • Asian equity indices trade generally higher, in line with Tuesday’s US session
  • Energy producers track outperformance in S&P500 Energy index
  • Chinese automaker Geely reports mixed FY17 results
  • Tencent rises ahead of earnings report (due after market close)
  • G20 releases final communique amid lingering trade tensions
  • Fitch affirms China’s sovereign rating but notes risks related to trade
  • Aussie (AUD) and Kiwi (NZD) in focus ahead of Thursday’s Australia employment data and RBNZ rate decision
  • Australian short interest rates rise ahead of Wednesday’s Fed decision and forecasts
  • Canadian Dollar (CAD) and Mexican Peso (MXN) rise amid NAFTA speculation
  • Various US companies price secondary offerings ahead of Fed meeting

Australia/New Zealand

  • ASX 200 opened +0.3%; closed +0.2%
  • ASX 200 Energy Index +1.2%, Resources +0.7%, Financials +0.6%; Utilities -0.9%, Telecom -0.7%, REIT -0.6%
  • Nufarm [NUF.AU] rose over 5% after reporting H1 results and issuing guidance.
  • (AU) Australia sells A$1.0B v A$1.0B indicated in 2.25% Nov 21 2022 Bonds, avg yield 2.3449% v 2.3582% prior, bid to cover 3.94x v 4.10x prior
  • (NZ) New Zealand Feb Credit Card Spending M/M: +0.7% v -0.6% prior; Y/Y: 7.0% v 4.6% prior

China/Hong Kong

  • Shanghai Composite opened +0.3%, Hang Seng +0.9%
  • Hang Seng Energy Index +2.5%, Property/Construction +2.3%, Info Tech +1.4%, Financials +0.8%
  • Shanghai Composite Property index rises over 1%
  • (CN) US Treasury Sec Mnuchin: I discussed with PBOC Chief Zhou the importance of bilateral economic relationship and fair and reciprocal trade
  • (CN) China Vice Commerce Min: China will actively take measures to safeguard domestic industries’ interests in response to US trade investigations
  • (CN) Fitch affirms China sovereign rating at A+; Trade tensions with the US have clearly risen, posing downside risk to Fitch’s baseline outlook
  • (CN) PBoC Gov Zhou: China’s economy better than expected – G20 Central Bank Gov Meeting
  • (CN) PBoC sets yuan reference rate at 6.3396 v 6.3246 prior
  • (CN) China PBoC Open Market Operation (OMO): Skips OMO (second straight session) v skipped prior; Net: drain CNY40B v CNY40B drain prior


  • Nikkei 225 closed for holiday
  • (JP) BoJ Gov Kuroda: Fed or any other central bank would undoubtedly normalize if their economies are in good shape and they achieve price targets; Does not believe normalization will have a direct negative effect on global growth; Normalization concern was not a key topic at G-20
  • (JP) Japan LDP Policy Chief Kishida: Japan needs exit strategy from ‘easy money’, reiterates relaxed monetary policy needs to remain for now


  • Kospi opened +0.1%
  • SK Innovation [096770.KR] to acquire shale assets in the US
  • (KR) Bank of Korea Gov Lee: Reiterates need to keep policy interest rate accommodative as inflationary pressure is not strong from demand side; Declines comment on timing of next rate hike – Parliamentary Hearing
  • (KR) South Korea March 1-20 Exports Y/Y: 9.3%; Imports Y/Y: 5.8%
  • (KR) South Korea President Moon said to note summit between South Korea/North Korea/US is possible – South Korea Press

North America

  • US equity markets ended mostly higher: Dow +0.5%, S&P500 +0.2%, Nasdaq +0.3%, Russell 2000 flat
  • S&P500 Energy +0.9%; Utilities -0.5%
  • FedEx [FDX]: Reports Q3 $3.79 v $3.09e, Rev $16.5B v $16.2Be; Raises Adj FY18 $15.00-15.40 v $13.51e (prior $12.70-13.30)
  • Nordstrom [JWN] declines over 2% in the after hours: Board’s special committee terminated talks with Nordstrom Family after the parties were unable to agree on price.
  • (US) US government said to drop demand on Canada and Mexico autos in NAFTA talks – Canadian Press
  • (US) Airlines including Delta and American said to cancel flights ahead of expected storm in the Northeast
  • (US) Weekly API Oil Inventories: Crude: -2.7M v +1.2M prior


  • G20 draft communique: recognize need for further dialogue and actions on trade issues; Leaders to stand by language from last year’s Hamburg statement (which said members “recognize the role of legitimate trade defense instruments”)
  • G20 releases final communique: Confirms leaders recognize need for further dialogue and action on trade
  • (EU) Germany Fin Min Scholz: biggest worry at G20 meeting was potential trade war with US
  • (EU) ECB’s Visco (Italy): G20 agrees that trade wars are negative sum games; haven’t heard any voices at the G20 against multilateralism
  • (UK) EU chief Brexit negotiator Barnier: We have a clear UK commitment on the Ireland border; The Ireland backstop solution will be included in the Brexit treaty
  • Ubisoft [UBI.FR]: Vivendi agrees to sell its 27.3% interest in Ubisoft to Tencent and Ontario Teachers for €2B; Ubisoft signs strategic partnership with Tencent to promote games in China

Levels as of 01:00ET

  • Hang Seng +1.1%; Shanghai Composite +0.5%; Kospi +0.1%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 flat, Dax +0.1%; FTSE100 flat
  • EUR 1.2240-1.2267 ; JPY 106.43-106.56; AUD 0.7680-0.7704 ;NZD 0.7168-0.7189
  • Feb Gold +0.1% at $1,313/oz; Feb Crude Oil +0.2% at $63.66/brl; Mar Copper +0.1% at $3.041/lb
Trade The News
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading