Mon, Mar 01, 2021 @ 06:47 GMT
Home Contributors Fundamental Analysis Japan Stands Its Ground That It Will Not Hold Trade Negotiation Talks

Japan Stands Its Ground That It Will Not Hold Trade Negotiation Talks

General Trend:

  • Asian equities trade mixed after largely negative US session
  • Foreigners net sell Japan equities for 5th straight week: There were record sales in the most recent week
  • Trade remains in focus: Conflicting press reports regarding whether China is eyeing import curbs on US soybeans
  • As expected, North and South Korea have started their high-level talks at the border village
  • Aussie trades at 2018 low amid declines in AUD/JPY
  • Australia Feb quarterly job vacancies hit highest level since data started in 1979 (7th straight quarterly rise)
  • Australia and Hong Kong money market rates continue to move higher
  • Traders are focusing on month-end, FY end and holidays
  • On Friday, market holidays are seen in countries including US, Australia, Hong Kong, New Zealand, India, Indonesia, the Philippines and Singapore.

Headlines/Economic Data

Japan

  • Nikkei 225 opened +1.1%; closed +0.6%
  • TOPIX Real Estate index +0.2%; Iron & Steel -1.3%, Securities -1.2% Electric Appliances -1%
  • Takeda Pharmaceuticals [4502.JP]: Declines over 6% after making bid for UK’s Shire
  • (JP) Japan Feb Retail Sales m/m: 0.4% v 0.6%e; Retail Trade y/y: 1.6% v 1.7%e
  • (KR) North Korea leader reportedly seeks summit talks with Japan for early June – Japanese press
  • (JP) Thus far in March, BoJ buying of ETFs at a monthly record of ¥830.9B ($7.8B) – Japanese Press
  • (JP) Japan Fin Min Aso: Will firmly refuse bilateral talks on US steel tariffs; tariffs on Japan steel will increase the cost of US goods; Historically USD/JPY has always risen when US-Japan interest rate differentials widened to 3%– parliament
  • (JP) Japan MoF sells ¥2.09T v ¥2.2T indicated in 0.10% (prior 0.10%) 2-yr JGBs; avg yield -0.138% v -0.160% prior; bid to cover 4.65x v 5.84x prior
  • Looking Ahead: March Tokyo CPI due to release on Friday, along with Feb Unemployment rate, Feb prelim Industrial Production

Korea

  • Kospi opened +0.1%
  • (KR) South Korea Apr Business Manufacturing Survey: 78 v 82 prior; Non-Manufacturing Survey: 80 v 82 prior
  • Hyundai Motor, 005380.KR To overhaul governance structure to bolster future growth and shareholder value; first changes will be made to business structure. Hyundai Glovis +15%
  • (KR) South Korea Finance Ministry: Reiterates FX policy related talks with the US are separate from trade talks. Disclosing FX intervention details is likely to ease worries about Korea getting currency manipulator label.
  • (KR) South Korea Feb Department Store Sales y/y: +8.9% v -9.6% prior; Discount Store Sales y/y: +23.5% v -20.2% prior
  • (KR) South and North Korea agree to hold previously announced summit on April 27th

China/Hong Kong

  • Hang Seng opened +0.4%, Shanghai Composite +0.2%
  • Hang Seng Energy index -0.5%, Utilities -0.5% Financials -0.4%; Telecom +0.8%
  • Shanghai Composite Property sub-index rises over 1%
  • (CN) US and China said to be in talks to leave soybeans out of trade dispute – HK Press; Follow up: US Soybean Export Council: China still considering import curbs on US soybeans
  • (CN) US Trade Rep Lighthizer said he expects about 60 days worth of public comment related to the China tariff list which will be published ‘soon’; suggested the tariffs may not be imposed until early June – CNBC
  • (CN) PBoC Open Market Operation (OMO): Skips OMO v skips prior; Net drains CNY40B v CNY10B prior (5th consecutive skip)
  • (CN) China PBoC sets yuan reference rate at 6.3046 v 6.2785 prior
  • (CN) China State Council approves to lower VAT rates as part of a tax reduction package amounting to CNY400B in 2018 – Xinhua
  • (CN) China FX regulator SAFE: Feb net inflow to China through Hong Kong fund program CNY430.6M
  • (CN) China Commerce Ministry (MOFCOM): Reiterates hopes US takes measures and resolves conflict with China through dialogue
  • (CN) China State Assets Supervisions and Administration Commission (SASAC) created warning lines for SOEs debt ratios under plan to reduce leverage
  • (CN) PBoC Adviser Sheng sees higher M2 growth in 2018 – Chinese Press

Australia/New Zealand

  • ASX 200 opened +0.1%; closed -0.5%
  • ASX 200 Telecom index -1.3%, Resources -1.2%, Consumer Discretionary -0.6%, Energy -0.6%; Financials flat
  • (NZ) New Zealand Feb Building Permits m/m: 5.7% v 0.2% prior
  • (AU) Australia Feb Private Sector Credit m/m: 0.4% v 0.3%e; y/y: 4.9% v 4.9%e
  • (AU) Australia Feb 3-month Job Vacancies: 4.4% v 2.7% prior
  • MYOB, MYO.AU Australia ACCC expresses concerns with acquisition of assets from Reckon
  • (NZ) New Zealand sells NZ$150M in 2033 bonds; bid to cover 2.41x

North America

  • US equity markets ended mostly lower: Dow -0.04%, S&P 500 -0.3%, Nasdaq -0.9%, Russell 2000 -0.04%
  • S&P 500 Energy -2%, Materials -1.3%; Real Estate +1.8%
  • FB Said to be stopping use of data from 3rd party data providers like Experian and Acxiom – recode
  • ACXM Confirms change to Facebook Relationship; does not expected to adjust FY18 guidance; FY19 Rev and profitability to be negatively impacted by ~$25M
  • (US) Fed’s Bostic: not seeing upward wage pressure despite low level of unemployment
  • (US) TREASURY $28B 7-YEAR NOTE AUCTION RESULTS: DRAWS 2.72%; BID-TO-COVER: 2.34 V 2.49 PRIOR AND 2.54 AVG OVER LAST 12 AUCTIONS
  • (US) DOE CRUDE: +1.6M V +1.5ME
  • Looking Ahead: US March Chicago PMI due for release

Europe

  • (UK) Opposition Labour Party reportedly is likely to vote in favor of a final Brexit agreement – UK’s Telegraph
  • (UK) Mar GfK consumer Confidence: -7 v -10e (10-month high)
  • Swiss Re [SREN.CH]: Softbank reportedly interested in taking $9.6B stake in Swiss Re; plans CHF100-105/shr offer for 25% stake – press
  • Tomtom [TOM2.NL]: Reportedly hires advisors to consider a sale or minority stake or the whole company – press
  • NEX Group [NXG.UK]: Confirms CME made takeover offer of £10/shr
  • Looking Ahead: UK Q4 Final GDP to be released, along with Germany prelim March CPI

Levels as of 02:00ET

  • Hang Seng +0.4%; Shanghai Composite +0.9%; Kospi +0.5%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 -0.0%
  • EUR 1.2335-1.2302; JPY 106.93-106.39; AUD 0.7676-0.7643;NZD 0.7212-0.7188
  • Apr Gold +0.2% at $1,327/oz; May Crude Oil +0.5% at $64.69/brl; May Copper +1.0% at $3.03/lb
Trade The Newshttp://www.tradethenews.com/
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