Mon, Mar 01, 2021 @ 06:26 GMT
Home Contributors Fundamental Analysis Global Trade Tensions Ease As China And US Talk Sending Equities Higher

Global Trade Tensions Ease As China And US Talk Sending Equities Higher

General Trend:

  • Markets continue to gain amid press headlines that China and US are looking to ease trade dispute
  • Improvement in risk appetite supports Asian currencies
  • China set yuan at highest level since 2015 devaluation
  • Australia Iron Ore miner Fortescue cuts price guidance, notes subdued China demand
  • South Korean chipmakers decline amid speculation China may purchase more US chips


  • Nikkei 225 opened +0.9%; closed +2.7%
  • Japanese automakers and steelmakers outperform
  • Panasonic [6752.JP] rises over 4% after receiving positive broker commentary
  • (JP) Japan Feb PPI Services y/y: 0.6% v 0.7%e
  • (JP) Japan Trade Min Seko: Working steadily to deal with US tariff issue
  • (JP) Japan former tax agency head Sagawa: PM Abe, his wife Akie, Fin Min Aso and their top aides did not give instructions to change documents about a land deal
  • (JP) Japan MoF sells ¥500B v ¥500B indicated in 0.90% (prior 0.90%) 40-yr bonds, yield at lowest price 0.885%; bid to cover 3.19x v 3.67x prior
  • (JP) 48% of respondents said Japan PM Abe should resign amid Moritomo land scandal – Asahi Poll


  • Kospi opened +0.7%
  • (KR) South Korea Mar Consumer Confidence: 108.1 v 108.2 prior
  • (KR) North Korea leader Kim Jong Un reportedly is visiting China – press; would be his first known visit outside North Korea since taking power
  • GM Korea said to plan to file for bankruptcy by April 20 if no agreement is reached – South Korea Press

China/Hong Kong

  • Hang Seng opened +1.4%, Shanghai Composite +1.0%
  • Hang Seng Telecom index +2.9%, Info Tech +2.1%, Materials +1.8%, Services +1.4%, Industrials +1.3%, Utilities +1.3%, Consumer Goods +1.1%, Property/Construction +1.1%, Financials +0.5%
  • Angang Steel [347.HK] rises over 5% after FY17 results beat ests
  • China Unicom [762.HK]: Rises over 5% amid positive broker commentary
  • Tiande Chemcial [609.HK] declines over 7%: FY17 profits and margins declined
  • (US) Reportedly USTR could announce the list of specific tariffs against China as soon as Tuesday; will still be a 30 comment period – CNBC
  • (CN) China govt officially files WTO appeal of US steel and aluminum tariffs – press
  • (CN) PBoC Open Market Operation (OMO): Skips OMO v skips prior; Net drains CNY10B v CNY70B prior (3rd consecutive skip)
  • (CN) China PBoC sets yuan reference rate at 6.2816 v 6.3193 prior (strongest setting since August 11, 2015)
  • (CN) China Jan-Feb Industrial Profits CNY968.9B, +16.1% y/y v 10.8% in Dec
  • (CN) China said to urge northern cities to close factories amid smog concerns – financial press
  • (HK) Hong Kong sells HK$11B in 6-month bills, avg yield 1.08%
  • (HK) Telegraph comments on Hong Kong Monetary Authorities (HKMA’s) plan to defend its US dollar currency peg. HKD has recently hit the weakest level in 33 years amid risk of capital flight and the ‘surge’ in US dollar Libor rates.

Australia/New Zealand

  • ASX 200 opened +0.3%; closed +0.7%
  • ASX 200 Consumer Discretionary index +1.6%, Financials +0.2%
  • Avanco Resources [AVB.AU] Receives cash and stock offer from Oz Minerals worth A$0.168/share (~118% premium to prior close)
  • Fortescue [FMG.AU] Reports H1 revenue realization was 68% of avg Platts 62 CFR index v 70-75% prior; notes slower than expected recovery in contractual realizations amid weak China demand
  • (AU) Australia sells A$150M v A$150M indicated in 1.25% Aug 2040 indexed bonds, avg yield 1.0113%, bid to cover 3.33x
  • (AU) Australia Feb HIA New Home Sales m/m: -1.4% v -2.1% prior

Other Asia

  • TSMC, 2330.TW At full capacity due to high Android chip demand – Taiwan press
  • (ID) Indonesia FSA: Sets maximum surcharge for systemic banks equal to 3.5% of risk weighted assets

North America

  • US equity markets ended broadly higher: Dow +2.8%, S&P500 +2.7%, Nasdaq +3.3%, Russell 2000 +2.2%
  • S&P500 Technology +3.8%, Financials +3.3%
  • GGP [GGP]: Brookfield revises offer to $23.50/share in cash (vs $23.00 prior); GGP shareholders can elect between cash or share proposals
  • (US) Fed’s Quarles (hawk, FOMC voter): US economy ‘performing well’
  • (US) Fed’s Dudley (dove, FOMC voter): Does not discuss monetary policy in prepared remarks


  • Deutsche Bank, DBK.DE Said to have approached senior executive at Goldman to replace its CEO Cryan – UK Press
  • (EU) ESMA said to ban binary options and restrict CFD for retail investors
  • Levels as of 02:00ET
  • Hang Seng +0.9%; Shanghai Composite +0.8%; Kospi +0.7%
  • Equity Futures: S&P500 +0.5%; Nasdaq100 +0.6%, Dax +0.4%; FTSE100 +0.3%
  • EUR 1.2458-1.2442; JPY 105.75-105.42; AUD 0.7758-0.7728;NZD 0.7303-0.7282
  • Apr Gold -0.2% at $1,352/oz; May Crude Oil +0.3% at $65.77/brl; May Copper +0.8% at $3.01/lb
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