Mon, Mar 01, 2021 @ 06:47 GMT
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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


  • 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


  • 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) DOE CRUDE: +1.6M V +1.5ME
  • Looking Ahead: US March Chicago PMI due for release


  • (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
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