General Trend:
- Toyota Motor guides FY21 Op profit below ests, maintained dividend
- Declining sectors in Japan include Marine Transportation, Real Estate, Iron/Steel and Banks
- Shanghai Composite declines 0.6% during morning session, Telecom Services and IT firms are among the losers
- Property, Gaming and Energy firms trade generally lower in Hong Kong
- Sectors moving lower in Australia include Resources, Energy and Financials
- CSR (building products) rises over 9% in Australia on better earnings
- Australia Trade Min: Do not think suspension of [meat] exports [to China] is related to virus inquiry
- South Korean Press: South Korea struggles to contain club-linked coronavirus cases
- BoJ Gov commented on the local real estate market, second wave of coronavirus and regional gov’t bonds
- NY Fed: To start previously announced purchases of corporate bond ETFs on Tuesday (May 12th)
- RBNZ to hold monetary policy meeting on Wed (May 13th), there has been some press focus on the possibility for negative interest rates and expanded QE in the future
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- (AU) Australia Treasurer Frydenberg: Unemployment will reach 10% in Q2; Australia GDP will decline 10% in H2 of 2020
- (NZ) New Zealand Apr Heavy Truckometer M/M: -45.0% v -8.6% prior
- CSR.AU Reports FY20 (A$) adj Net 134.8M v 181.7M y/y; Rev 2.21B v 2.32B y/y
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$66.2B v A$62.9B prior
- (AU) Reserve Bank of Australia (RBA) adds A$405M to banking system through repos v A$785M prior
- (AU) Australia Apr NAB Business Confidence: -46.0 v -65 prior; Business Conditions: -34 v -22 prior
- (AU) China imposes import ban on four of Australia Abattoirs [slaughterhouses]; 4 plants have not been officially delisted or lost their licenses in China yet – ABC
Japan
- Nikkei 225 opened +0.1%
- (JP) Japan Apr Official Reserve Assets: $1.369T v $1.366T prior
- Toyota Motors, 7203.JP Reports FY19/20 Net ¥2.08T v ¥1.88T y/y; Op ¥2.44T v ¥2.47T y/y; Rev ¥29.93T v ¥30.23T y/y; Guides initial FY20/21 Op ¥500B; Rev ¥24.0T (does not give net due to virus
- (JP) Japan Ministry of Finance (MOF) Jan-March Foreign Exchange Intervention Operations: Total amount of foreign exchange intervention operations for the period from January through March 2020 at ¥0
- (JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates Japan Economy likely to remain in a severe state, inflation likely to weaken; Global economy is rapidly worsening due to coronavirus; won’t hesitate to add easing if needed; do not think BOJ needs to buy regional bonds now
- (JP) Bank of Japan (BOJ) Senior Official Uchida: No preset idea on how long the BOJ will continue buying ETFs at ¥12T/yr pace, will continue as long as needed
- (JP) Japan MoF sells ¥2.1T v ¥2.1T indicated in 0.1% 10-year JGBs: avg yield: -0.001% v -0.042% prior, bid to cover 4.09x v 3.28x prior
Korea
- Kospi opened +0.2%
- (KR) Reports 4.0 magnitude earthquake in North Korea appears to be a natural occurrence – South Korean press
- (KR) South Korea President Moon: Urging South Korea Cabinet to put together 3rd extra budget soon
- (KR) South Korea President Moon: Remain committed to pushing for another inter-Korea summit with North Korea leader Kim within the year – Cheong Wa Dae
- (KR) North Korea official newspaper, Rodong Sinmun, stressed the importance of self-reliance, claiming hostile forces are bent on trying to “economically suffocate” the country
- (KR) Bank of Korea (BOK) provides KRW260B in liquidity via weekly repo operations v KRW180B prior
China/Hong Kong
- Hang Seng opened -1.0%; Shanghai Composite opened 0.0%
- (CN) CHINA APR CPI M/M: -0.9% V -1.2% PRIOR; Y/Y: 3.3% V 3.7%E (slowest annual CPI since 2019); Food CPI y/y: 14.8% v 18.3% prior; PPI Y/Y: -3.1% v -2.6%e
- (CN) Reports of hawkish voices within China have emerged on the phase one trade deal with Washington: sources – Global Times
- (CN) China National Health Commission Coronavirus Update for May 11th: 1 additional cases (1 imported v 7 prior) v 17 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 15 v 12 prior
- (CN) China PBOC sets Yuan reference rate: 7.0919 v 7.0769 prior
- (CN) China PBoC Open Market Operation (OMO): Skips Reserve Repo Operations for the 26th consecutive session; Net CNY0B v CNY0B prior
- (HK) Hong Kong Chief Exec Lam: Expands scope of job security program; subsidy to be given out as early as late June
- (CN) CHINA APR AGGREGATE FINANCING (CNY): 3.09T V 2.278TE
- (CN) CHINA APR NEW YUAN LOANS (CNY): 1.70T V 1.300TE
- (CN) CHINA APR M2 MONEY SUPPLY Y/Y: 11.1% V 10.3%E
- (CN) China Premier Li: Reiterates view that development facing unprecedented difficulties and challenges
Other
- (TW) Taiwan March Avg salary declines m/m (1st decline in 39 years) – Taiwan Press
North America
- (US) NY Fed: Announces Start of Certain Secondary Market Corporate Credit Facility Purchases on May 12
- (US) White House Trade adviser Navarro: Fact China hid virus for 2-months; flights could not go from Wuhan to other parts of China but they could go overseas during that time- CNBC
- (US) Pres Trump: not in favor of reopening the China trade deal
- BA CEO: Likely that a US airline will shutdown by Sept, sees US air traffic levels at less than 25% by Sept
- (US) Speaker Pelosi (D-CA): Next aid package must focus on re-opening the economy
- (US) US Health Advisor Fauci: Reported to tell Senate there are risks to reopening too early, It can lead to ‘needless suffering and death’ – US Press
Levels as of 1:15ET
- Hang Seng -1.7%; Shanghai Composite -0.6%; Kospi -0.4%; Nikkei225 +0.1%; ASX 200 -1.1%
- Equity Futures: S&P500 -0.5%; Nasdaq100 -0.1%, Dax -0.5%; FTSE100 +0.0%
- EUR 1.0812-1.0784; JPY 107.70-107.34; AUD 0.6494-0.6432; NZD 0.6083-0.6041
- Commodity Futures: Gold +0.4% at $1,705/oz; Crude Oil +1.0% at $24.39/brl; Copper -0.2% at $2.38/lb
