China Mfg PMI Unexpectedly Slowed

General Trend

• Asian markets have remained higher after the positive opens; Modest moves have been seen ahead of holidays on Friday; Tech/chip-related firms trade higher after rise on Nasdaq [Micron rose after results/guidance; Taiwan Semi disclosed large investment plan]
• Hang Seng TECH index has risen by over 3% [SMIC rises after issuing final FY results]; China Evergrande declined after issuing earnings; Numerous HK companies were halted amid delayed annual results.
• The HK market is due to be closed for holiday from April 2nd to April 6th.
• Shanghai Composite rose by 0.3% during the morning session [IT and Consumer indices gained; Financials lagged; Sinochem rose after receiving regulatory approval for merger]
• Nikkei 225 has pared gains [Topix Insurance, Electric Appliances and Information & Communication indices rise; Iron & Steel and Air Transportation indices are among the decliners; Automakers also drop amid lingering supply issues; Dai-ichi Life rises over 7% on stock buyback; Toshiba rises on speculation related to chip unit; Fanuc supported by positive broker comments]
• Gainers in Australia included Resources and Consumer Discretionary indices [Energy and Financial indices lagged; Boral rose on buyback announcement; Australia and NZ markets are closed April 2-5th]
• SK Innovation traded higher on favorable patent ruling.
• Rating agencies comment on Nomura amid recent events related to Archegos Capital.
• US cloud co. delayed IPO on challenging market conditions.
• Taiwan Semi announces large investment related to advanced chip technologies.
• Commodity currencies decline versus the USD led by AUD [China PMI missed ests; Global Times commented on Aussie wool]
• US Soybean and Corn FUTs rise after USDA report.
• China Caixin Mfg PMI missed ests; Caixin noted the data indicated the post-epidemic recovery was continuing to falter.
• Japan Q1 Tankan survey was generally better than expected.
• Companies expected to report during the NY morning include Carmax and Yiren Digital.

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened +0.1%.
• CBA.AU ASIC files lawsuit against CBA for misleading conduct over monthly access fees.
• (AU) Australia Mar AiG Performance of Manufacturing Index: 59.9 v 58.8 prior (6th consecutive improvement, highest since Mar 2018)
• MQG.AU APRA increases liquidity and operational risk capital requirements in response to multiple material breaches of prudential and reporting standards.
• (AU) Australia Mar CoreLogic House Prices M/M: 2.8% v 2.0% prior (Fastest in 32 years)
• (AU) Australia Feb Home Loans Value M/M: -0.4% v 10.5% prior; Investment lending M/M: 4.5% v 9.4% prior.
• (AU) Australia Feb Job Vacancies: 13.7% v 23.3% prior.

Japan

• Nikkei 225 opened +0.9%.
• (JP) Japan said to be preparing to apply coronavirus measures to Hyogo and Miyagi – Press.
• (JP) JAPAN Q1 TANKAN LARGE MANUFACTURING INDEX: +5 V -1E; OUTLOOK SURVEY: 4 V 4E (3RD CONSECTURIVE IMPROVEMENT)
• 6758.JP Issues notice regarding the status and conclusion of repurchase of shares of common stock: did not repurchase its shares during the repurchase period, due to price (yesterday after close)
• (JP) Japan Mar Final PMI Manufacturing: 52.7 v 52.0 prelim (highest since Oct 2018, 2nd consecutive expansion)
• 9434.JP CEO has acquired ¥20B in shares via market purchases, Softbank has provided financing for share purchases.
• (JP) Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.1230% v 0.1310% prior; bid to cover: 3.5x v 3.1x prior.

Korea

• Kospi opened +0.4%.
• (KR) South Korea Mar Trade Balance: $4.2B v $4.3Be; Exports Y/Y: 16.6% v 16.6%e (largest gain since 2018); Semiconductor Exports had its 9th consecutive increase.
• (KR) South Korea Mar PMI Manufacturing: 55.3 v 55.3 prior.

China/Hong Kong

• Hang Seng opened +0.8%; Shanghai Composite opened +0.1%.
• (CN) CHINA MAR CAIXIN PMI MANUFACTURING: 50.6 V 51.4E (11th straight expansion, lowest reading since April 2020)
• (HK) US President Biden administration concluded that Hong Kong should not receive preferential treatment under US law, in light of China continuing to take away its autonomy.
• (CN) China PBoC to require loan products to disclose the annual interest rates.
• (CN) China PBOC sets Yuan reference rate: 6.5584 v 6.5713 prior.
• (AU) China Businesses are considering alternative sources for wool to decrease dependency on Australia – Global times.
• (HK) Macau Mar Casino Rev (MOP): 8.3B v 7.3B prior; Y/Y: 58.0% v +135.6% prior.

Other

• (IN) India is offering more than $1.0B in cash to each semiconductor company that sets up manufacturing units in the country – financial press citing un-named govt official.
• 2330.TW To invest $100B over 3-years to increase chip fabrication capacity – Company Statement.
• 2330.TW Said to be requesting that clients accept higher prices – Nikkei.

North America

• (US) Pres Biden: infrastructure plan is a once in a generation investment; we are not tinkering around the edges.
• JNJ Human error reportedly ruined a lot of 15M doses at J&J vaccine facility run by Emergent BioSolutions and has delayed FDA authorization of production lines – NY Times.
• JNJ Confirms press report, quality control identified 1 batch of drug substance that did not meet quality standards at Emergent BioSolutions, never got to filling stage; information was shared with FDA, expect to deliver added 24M vaccine doses through April.
• TSLA Apple said to be using 85 lithium-ion “megapack” batteries from Tesla at Apple California Solar Farm – Press.

Europe

• (IE) Ireland Central Bank raises 2021 GDP growth forecast from 3.8% to 5.9% – quarterly report.

Levels as of 01:15ET

• Hang Seng +0.9%; Shanghai Composite +0.3%; Kospi +0.8%; Nikkei225 +0.7%; ASX 200 +0.6%.
• Equity Futures: S&P500 +0.0%; Nasdaq100 +0.3%, Dax +0.0%; FTSE100 +0.0%.
• EUR 1.1760-1.1704; JPY 110.97-110.28 ;AUD 0.7637-0.7537; NZD 0.7026-0.6946.
• Commodity Futures: Gold -0.2% at $1,711/oz; Crude Oil +0.6% at $59.52/brl; Copper -0.4% at $3.96/lb.