Markets Stronger As World Leaders Start To Plan For Re-Opening After Virus Lockdown

Apr 14 20, 07:06 GMT

General Trend:

Asia enjoys its first trading day with all markets open after Easter break, markets traded higher, seemingly buoyed on the world starting to make plans on re-opening their economies
Commodity currencies across Asia and Europe stronger as gold and oil rise
According to Johns Hopkins worldwide coronavirus cases now 1.9M, Total deaths now at 119.5K, doubling in 9 days
China March trade balance showed better than expected export data, giving markets a further boost. Trade with the US especially in the area of agriculture saw large jumps y/y. Customs commented that trade is facing great difficulties noting that domestic demand was helping to support imports
China approves 2 coronavirus vaccines for clinical trials
Australia’s Westpac increases provisions and writedowns expected in H1, while Softbank in Japan reported a prelim FY loss yesterday after the close and said to have frozen the Vision 2 fund

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.0%
WBC.AU Guides H1 cash earnings lower y/y due to items and provisions; to record A$1.43B in asset writedowns
(AU) Australia Treasurer Frydenberg: Jobless rate could be at 15% without support
(NZ) New Zealand Treasury releases economic scenarios for lockdown: sees GDP decline of 13-33% in the year to March 2021; forecast shows that unemployment can be kept below 10% and return to 5% in 2021 without additional Govt support
(AU) Australia National Cabinet to meet Apr 16th to discuss time line and plan for relaxing virus restrictions, though they are expected to be many weeks away from starting to re-open
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$86.8B v A$89.0B prior
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$561M in Govt bonds v NZ$600M sought as part of QE operations
(AU) Reserve Bank of Australia (RBA) adds A$1.56B to banking system through repos v A$743M prior
(NZ) New Zealand Fin Min Robertson: Seeking to define safe economic activity, in talks with industry to allow work to resume
(AU) Reserve Bank of Australia (RBA) offers to buy total of A$1.5B in bonds v A$1.5B prior
(AU) Australia Mar NAB Business Confidence: -66 v -2 prior (record low); Conditions: -21 v 0 prior (over 10-yr low)

Japan

Nikkei 225 opened +0.6%
9984.JP Said to have frozen Vision Fund 2, will not make any new investments for now; have not been able to raise enough external funds and has been using its own funds, but will pause that for now – Nikkei
9984.JP Reports prelim FY19 Net -¥750B v +¥1.41T y/y (1st loss in 15-yrs), Op -¥1.35T v ¥2.35T y/y, Rev ¥6.15T v ¥9.60T y/y
(JP) Japan Econ Min Nishimura: Japan aiming to make cash payouts to people in need to due coronavirus by May; Wants to make utmost effort to help small, midsized companies stay in business

Korea

Kospi opened +1.1%
(KR) South Korea Mar Export Price Index m/m: -1.1% v 0.9% prior; y/y: -3.3% v -2.0% prior; Import Price Index m/m: -5.2% v -1.4% prior; y/y: -7.7% v -1.0% prior
(KR) North Korea leader Kim’s younger sister, Kim yo Jong, returns to top decision making body, seen as a shift away from diplomacy with the US and more emphasis on arms and relations with Russia and China – press
(KR) Bank of Korea (BOK) provides KRW3.17T via weekly repo operations v KRW3.46T prior
(KR) South Korea reports 27 additional coronavirus cases v 25 prior (2nd consecutive day below 30)
(KR) Bank of Korea (BOK) loan offer of $4.0B to banks draws $2.025B in demand; Provides $2.015B in 83-day loans at avg 0.3567%
(KR) North Korea fired several anti-ship missiles, thought to be air to surface from a jet fighter – Yonhap

China/Hong Kong

Hang Seng opened +0.2%; Shanghai Composite opened +0.4%
(CN) CHINA MAR TRADE BALANCE (CNY): 139.4B V 158.5BE; Exports y/y: -3.5% v -14.0%e; Imports y/y: +2.4% v -6.8%e; Q1 Trade with US -18.3% y/y
(CN) CHINA MAR TRADE BALANCE: $19.9B V $20.0BE; Exports y/y: -6.6% v -13.9%e; Imports y/y: -9.8% v -9.8%e
(CN) China Ministry of Housing and Urban-Rural Development: Planning to establish a housing market monitoring system based on property transaction data nationwide
(CN) China approves 2 new experimental coronavirus vaccines from Sinopharm and Sinovac to enter clinical trial – China Press
(CN) China National Health Commission Coronavirus Update for April 13th: 89 additional cases (86 imported) v108 prior; Additional deaths: 0 v 2 prior; Additional Asymptomatic cases 54 v 61 prior
(CN) China PBOC sets Yuan reference rate: 7.0406 v 7.0300 prior
(CN) China PBoC Open Market Operation (OMO): Skips Reserve Repo Operations for the 9th consecutive session; Net CNY0B v CNY0B prior
(CN) China Mar Bond Connect program trading volume CNY478.2B; Avg daily turnover CNY21.7B – CFETS
SAIC, 600104.CN Reports FY19 (CNY) Net 25.6B v 25.6B prelim, Rev 826.5B v 902.2B y/y
489.HK Dongfeng intends to restructure Donfeng Renault alliance, JV to cease activities related to Renault band; no material impact on financials or operations

Other

North America

(US) Texas Oil and Gas regulators will meet Apr 14th in the morning to consider production limits
(US) President Trump: New infections remain flat throughout the country; Will do everything he can to help those affect by recent storms; close to having an opening up plan – Daily coronavirus briefing
(US) Treasury Sec Mnuchin: Will market sure mortgage market functions – daily brief

Europe

(UK) UK govt plans to extend coronavirus lockdown until May 7th – UK press
(DE) Germany reportedly looking at how it will start to re-open into its “new normal” – US press

Levels as of 1:15ET

Hang Seng +0.7%; Shanghai Composite +0.7%; Kospi +1.8%; Nikkei225 +2.5%; ASX 200 +1.0%
Equity Futures: S&P500 +1.6%; Nasdaq100 +1.8%, Dax +0.5%; FTSE100 +0.8%
EUR 1.0967-1.0893; JPY 107.81-107.53; AUD 0.6432-0.6377; NZD 0.6131-0.6084
Commodity Futures: Gold +0.8% at $1,775/oz; Crude Oil +0.8% at $22.60/brl; Copper +0.3% at $2.33/lb