Asian Equity Markets Trade Generally Higher

Apr 05 18, 07:09 GMT

General Trend:

Financial press headline says Asia stocks rise as trade war concerns ease amid comments from US officials
Market participation limited amid holidays in China, Taiwan, Hong Kong
South Korean chipmakers gain as a local press report suggested direct sanction impact could be limited
Samsung Electronics expected to report prelim Q1 figures on Friday
Net Foreign purchases of Japanese equities rise for first time since Feb (weekly data)
Australia Feb Trade Surplus above ests: Little initial impact on bond and currency markets
Australia March services surveys signal further expansion
Australia 3-month bank bill rate fixed lower for the first time since early Feb; Banks rise amid lower funding costs
Malaysia Feb Exports to China decline
Market closures expected on Friday include China, Taiwan and Thailand
Philippines Central Bank chief said will evaluate appropriateness of measured policy response; March CPI data above ests

Headlines/Economic Data

Japan

Nikkei 225 opened +1%: closed +1.5%
TOPIX Real Estate index +2.6%
Japanese mega-banks rise over 1%
(JP) Former Bank of Japan (BOJ) member Hideo Hayakawa: BOJ likely to raise its yield target within a year after gains in consumer prices ex-fresh food and energy reach 1% (currently ~0.5%) – financial press
(JP) Japan Investors Net Buying of Foreign Bonds: -¥774.3B v +¥790.1B prior week; Foreign Net Buying of Japan Stocks: +¥228.8B v -¥2.2T prior week
(JP) Japan said to plan first step towards legalizing initial coin offerings (ICOs) – US financial press

Australia/New Zealand

ASX 200 opened +0.2%; closed +0.5%
ASX 200 Financials index +1.3%, REIT +0.8%, Energy +0.6%; Resources -0.5%
Bluescope Steel [BSL.AU]: S&P raises credit rating 1 notch to BBB- (investment grade) from BB+; Outlook Stable
(AU) AUSTRALIA FEB TRADE BALANCE (A$): 825M V 725ME
(AU) Australia Mar CBA PMI Services: 55.6 v 54.2 prior; Composite: 55.4 v 54.3 prior
(AU) Australia Mar AIG Performance of Services Index: 56.9 v 54.0 prior
Constellation Brands and Champ Private Equity said to sell Accolade Wines to Carlyle Group for ~A$1.0B – US financial press
(NZ) New Zealand sells NZ$100M in 2.5% Sept 2040 Bonds, avg yield: 2.1584%; implied bid to cover: 1.84x

China/Hong Kong

Shanghai Composite and Hang Seng are closed for holidays
(CN) US govt spokesperson: Chinese agricultural tariffs don’t comply with WTO rules
(CN) China govt to begin retaliatory duties on US goods whenever US implements its tariffs – Chinese press
(CN) Financial press article comments on how China has held back from targeting US Treasuries amid trade dispute

Korea

Kospi opened +0.8%
(KR) South Korea chipmakers not immediately or directly impacted by US tariffs on products from China – Yonhap
(KR) There is speculation that North Korea may have shut down a nuclear reactor – Local Media
(KR) South Korea Finance Min Kim: Will stabilize FX markets if needed regardless of whether decides to disclose intervention details; Disclosing intervention does not mean losing FX sovereignty.

Other Asia

(PH) Philippines Mar CPI M/M: 0.6% v 0.8% prior; Y/Y: 4.3% v 4.2%e
(PH) Philippines Central Bank (BSP) chief Espenilla comments on March inflation data: Will carefully evaluate appropriateness of a measured policy response to firmly anchor inflation expectations
(MY) Malaysia is seeking exemptions from the US tariffs on steel and aluminum – US financial press
(TH) Thailand Central Bank Chief Veerathai: Thailand is ‘definitely not a currency manipulator’; focusing more on impact of Baht volatility
Looking Ahead: Reserve Bank of India (RBI) rate decision expected later today (unchanged expected)

North America

US equity markets closed higher: Dow +1%, S&P500 +1.2%, Nasdaq +1.5%, Russell 2000 +1.3%
S&P500 Consumer Discretionary +1.8%, Consumer Staples +1.6%
Boeing and Apple may get ‘hurt by accident in trade war’ – Xinhua
(US) President Trump tweets “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500B a year, with Intellectual Property Theft of another $300B. We cannot let this continue!”
(CN) White House spokesperson: we are going through review period on China tariffs; will be a couple months before they are implemented
(US) White House Econ Adviser Kudlow: ‘It’s possible’ China tariffs are a negotiating tactic but ‘I would take the president seriously’
(US) Fed’s Mester (FOMC voter, hawk): Does not comment on monetary policy in prepared remarks
(US) DOE CRUDE: -4.6M V +1ME
(BZ) Brazil Court rules that Former President Lula can be imprisoned while going through appeal process (making him unable to run again for President this Oct)

Europe

Fidessa Group [FDSA.UK]: SS&C is one of the two unnamed parties that have made approaches to Fidessa at a premium to the standing offer from Temenos – FT

Levels as of 02:00ET

Kospi +1.5%
Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax +0.5%; FTSE100 +0.5%
EUR 1.2274-1.2291 ; JPY 106.70-107.04 ; AUD 0.7685-0.7728 ;NZD 0.7288-0.7323
Jun Gold -0.6% at $1,332/oz; May Crude Oil +0.5% at $63.66/brl; May Copper -0.1% at $3.021/lb