Another Mixed Equity Session For Asia

Mar 31 21, 05:46 GMT

General trend

Asian markets have remained mixed.
Australian equities have outperformed, S&P ASX 200 extended gains during session [Resources, REIT, and Consumer indices were among the gainers].
Nikkei is currently closer to the session lows, modest moves have been seen coming into fiscal year end [Topix Banking and Securities indices decline amid recent news related to MUFJ and Nomura; Hitachi declines on acquisition speculation].
Shanghai and HK markets decline amid earnings [Kweichow Moutai and WH Group drop].
Hang Seng and TECH indices reversed the opening gains.
Hon Hai drops over 3% following earnings report.
Archegos Capital has remained in the headlines.
Japan Feb prelim Industrial Production missed ests amid supply issues.
NZ March Business Confidence revised downwards.
Yunnan Province moves to address new virus cases.
MYR declines on Malaysia Central Bank’s export conversion announcement.
Bank of Japan (BOJ) announces bond purchases for the month of April after the market close.
BoJ Q1 Tankan survey due on Thursday (April 1st).
New Zealand is due to sell bonds on Thursday (2025, 2031, 2033).
Companies expected to report during the NY morning include Conn’s, Capital Senior Living, Walgreens Boots Alliance.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened +0.1%.
SGF.AU Confirms to acquire Leaseplan for A$273M cash and 13% equity stake in combined entity; announces A$86M 1-for-7.44 accelerated pro-rata non-renounceable entitlement offer at A$2.45/shr.
(NZ) Reserve Bank of New Zealand (RBNZ): easing 100% dividend restriction on banks; a 50% dividend restriction will stay in place until July 1st, 2022.
FCG.NZ Reports Feb Milk collection: Total NZ 136.5M kgMS, +2.3% y/y; Australia 7.2M, -5.8% y/y.
RSG.AU Affirms FY21 gold production 350-375K oz at AISC $1,200-1,275/oz.
(NZ) New Zealand Mar Final ANZ Business Confidence: -4.1 v 0 prelim; Activity Outlook: 16.6 v 17.4 prelim.

Japan

Nikkei 225 opened -0.5%
(JP) JAPAN FEB PRELIMINARY INDUSTRIAL PRODUCTION M/M: -2.1% V -1.2%E; Y/Y: -2.6% V -1.8%E.
(JP) JAPAN FEB ANNUALIZED HOUSING STARTS: 808K V 804KE; Y/Y: -3.7% V -4.9%E.
6723.JP Damaged Chip plant is likely to restart ‘on schedule’ (within 1-month), ~75% of work in process was undamaged by fire (yesterday).
6723.JP Exec: Impact of plant fire large in the short term, but limited in mid term.
Hitachi [6501.JP]: Said to be acquiring GlobalLogic for ¥1.0T – Nikkei.

Korea

Kospi opened +0.1%
(KR) South Korea Apr Business Manufacturing Survey: 91 v 85 prior (highest since Aug 2011).
(KR) South Korea Feb Industrial Production M/M: 4.3% v +1.1%e (Fastest since June 2020); Y/Y: 0.9% v 1.0%e.
(KR) South Korea Feb Retail Sales M/M: -0.8% v 1.6% prior; Y/Y: 8.4% v 0.0% prior.
(KR) South Korea President Moon: Mar Exports likely to show double digit growth; Time has come for Economy to rebound.

China/Hong Kong

Hang Seng opened +0.8%; Shanghai Composite opened -0.1%.
(CN) China Securities Journal: China PBoC very likely to conduct reverse repo and medium term lending facility (MLF) operations to ease market liquidity constraints in April when there’ll be more tax payment and local government bonds sale.
(CN) CHINA MAR MANUFACTURING PMI (GOVT OFFICIAL): 51.9 V 51.2E (13th month of expansion).
(CN) China PBOC sets Yuan reference rate: 6.5713 v 6.5641 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v CNY0B prior.
(CN) China National Energy Administration (NEA) official: China is not facing a shortage in energy supply in 2021 despite the ongoing ban related to coal from Australia – SCMP (update).
(CN) China said to be considering certain tax changes for Steel sector.

Other

2317.TW Foxconn: chip shortage will cut shipments by 10% – Japanese press.
(IN) India said to be announcing Apr-Sept govt borrowing program on Mar 31st (Wednesday) – Press.

North America

(US) Pres Biden’s announcement tomorrow on first part of infrastructure spending will amount to $2.25T – Washington Post.
(US) Fed’s Barkin (voter, hawk): hopeful that we are on the brink of completing the recovery.
(CN) US State Dept Spokesperson: US strongly condemns China moves to further reduce political participation in Hong Kong.
(US) New York Senate approves legalizing Marijuana, Assembly also passes, heads to Gov to be signed.

Europe

(DE) German Chancellor Merkel: vaccination success depends on trust; new Astrazeneca guidance will have implications for the vaccination program (to be used on age 60 years or older).
OPEC+ delegates say they are revising down oil demand estimates – press.
UBS [UBSG.CH] Said may face lower 3 digit million loss on Archegos Capital – Financial press.

Levels as of 01:20 ET

Nikkei 225, -0.7%, ASX 200 +0.8% , Hang Seng -0.5%; Shanghai Composite -0.6% ; Kospi flat.
Equity S&P500 Futures: -0.1%; Nasdaq100 flat, Dax -0.1%; FTSE100 -0.3%.
EUR 1.1725-1.1704 ; JPY 110.96-110.27 ; AUD 0.7618-0.7589 ;NZD 0.6996-0.6971.
Gold -0.4% at $1,679/oz; Crude Oil +0.5% at $60.83/brl; Copper -0.1% at $3.9752/lb.