Equities Rise Into The End Of Q1 Amid Focus On Trade Talks

Mar 29 19, 07:10 GMT

General Trend:

Shanghai Composite rises over 2%, property index out performs in early trade
Hong Kong Property index trades near record high
Chinese liquor maker Kweichow Moutai rises over 4% post earnings
China bank earnings remain in focus, Bank of China and Agbank expected to report later today
Marine/Transportation sector out performs in Japan, Softbank rises over 1%
Daiichi Sankyo rises over 15% in Japan, announced collaboration agreement with Astrazeneca
DowDuPont declines over 2% in the afterhours, cut Q1 guidance
US/China trade talks in China due to conclude later today
China Vice Premier Liu He is expected to visit the US in early April for trade talks
China’s March official PMI data is due for release on March 31st (Sunday). Manufacturing PMI is expected to contract for the 4 straight month, according to analysts.
Japan’s Q1 Tankan survey is due to be released on April 1st (Monday)
Bank of Japan (BOJ) is expected to release its April bond purchase schedule after today’s close
S&P delegation to visit South Korea April 1-3 as part of its annual review (current rating AA, outlook Stable)
Reserve Bank of Australia (RBA) cash rate decision expected on April 2nd (Tuesday)
China yuan denominated government bonds and policy bank bonds will be phased into the Barclays Global Aggregate Bond Index in April

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(AU) Australia Feb Private Sector Credit M/M: 0.3% v 0.2%e; Y/Y: 4.2% v 4.2%e
(NZ) RBNZ Gov Orr: On reaction to policy review, pleased markets have shown they understand what we are focused on; Easing bias is the starting point for the MPC

China/Hong Kong

Shanghai Composite opened +0.2%, Hang Seng +0.1%
Huawei: Reports FY18 (CNY) Net 59.3B, +25% y/y; Rev 721.2B, +19.5% y/y; Business Groups had double digit growth in first two months of 2019
(US) White House economic advisor Kudlow: China trade talks are policy driven, not driven by any timetable; some but not all China tariffs may stay in place – ExIm Bank
(US) US Treas Sec Mnuchin: We had very productive working dinner last night, look forward to today
(CN) China Deputy Head of FX: China has room to maneuver on debt but will be very serious about tackling deb risks
(CN) China NDRC: To cut electricity tariffs for industrial and commercial use from April 1st; cites VAT rate cut
(CN) China NDRC: To adjust trans-provincial natural gas pipeline tariffs, effective from April 1st; cites VAT rate changes
(CN) China NDRC: To lower gasoline and diesel prices, effective from April 1st; cites VAT cuts
(CN) China NDRC urges price cuts at state-owned scenic areas

Japan

Nikkei 225 opened +0.9%
(JP) JAPAN FEB JOBLESS RATE 2.3% V 2.5%E (lowest since Sept 2018)
(JP) Japan Feb Preliminary Industrial Production M/M: 1.4% v +1.4%e; Y/Y: -1.0% v -1.1%e
(JP) JAPAN FEB PRELIMINARY RETAIL SALES M/M 0.2% V +1.0%E; RETAIL TRADE Y/Y: 0.4% V 1.0%E
(JP) Japan Mar Tokyo CPI Y/Y 0.9% v 0.9%e; CPI Ex-Fresh Food Y/Y: 1.1% v 1.1%e
(JP) Japan Fin Min Aso: No change in view global economy is recovering ‘moderately; not considering extra economic measures at this time

Korea

Kospi opened +0.5%
(KR) South Korea Feb Industrial Production M/M: -2.6% v -0.7%e; Y/Y: -2.7% v -0.5%e
(KR) South Korea Feb Retail Sales M/M: -0.5% v +0.2% prior
(KR) South Korea Pres Moon to visit the US April 10-11th; US President Trump to meet with Moon at April summit
(KR) South Korea Pres Moon falls to 43% v 45% prior (record low)- Gallup Poll

Other

North America

(US) Fed’s Williams (moderate, voter): US economy is in a very good place; Not worried about the chance of recession as some in the private sector are – comments in Puerto Rico
(US) Fed’s Clarida (moderate, voter): Fed can be patient amid global risks and muted inflation; Fed must pay ever closer attention to global growth risks
(US) US Fed’s Bullard (Dove, voter): premature to contemplate rate cut here

Europe

(UK) UK govt source: votes on Friday will not be meaningful vote number three
(UK) UK BBC Political Editor Kuenssberg: Gov source confirms they are laying motion now to give MPs vote tomorrow on only the withdrawal agreement – tweet
(UK) Parliamentary Speaker Bercow accepts new Brexit deal vote; govt’s motion will cover only withdrawal agreement
(UK) Mar GfK Consumer Confidence: -13 v -14e
(UK) Mar Lloyds Business Barometer: 10 v 4 prior

Levels as of 1:20 ET

Nikkei 225, +0.8%, ASX 200 +0.1%, Hang Seng +0.9%; Shanghai Composite 2.5%; Kospi +0.5%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.3%
EUR 1.1236-1.1220 ; JPY 110.93-110.53 ; AUD 0.7091-0.7072 ;NZD 0.6789-0.6774
Gold -0.1% at $1,294/oz; Crude Oil +0.6% at $59.63/brl; Copper +0.7% at $2.897/lb