Alibaba restructuring leads the way for the Hang Seng, Asia ex-Hong Kong overall flat
|General trend
- Asian markets were mostly flat, with the exception of the Nikkei up 0.7% and in particular the Hang Seng up over 3.0% at one point in morning trading on the Alibaba news.
- Alibaba restructuring news after the Hang Seng closed yesterday helped Alibaba ADRs go higher 14% overnight.
- [Alibaba: Confirms new organizational and governance structure into 6 units; Each to have the flexibility to raise outside capital and potentially to seek its own IPO] Will Ant Financial be allowed to revive IPO?
- Quarter end balancing of fund managers is currently in focus.
- US equity FUTs up nearly 0.5% over the US closing.
- AUD slightly lower after softer monthly CPI came in softer than expected at 6.8%,
- Aussie bond yields erase gain; RBA expected to leave rates unchanged next week.
Headlines/economic data
Australia/New Zealand
- (AU) ASX 200 opens -0.1% at 7,030.
- (AU) AUSTRALIA FEB CPI Y/Y: 6.8% V 7.2%E.
- (AU) Australia sells A$800M v A$800M indicated in 3.75% May 2034 bonds; Avg Yield: 3.3864%; bid-to-cover: 3.78x.
China/Hong Kong
- (HK) Hang Seng opens +2.9% at 20,348; Alibaba indicated higher by >14%.
- (CN) Shanghai Composite opens +0.3% at 3,253.
- (HK) Hong Kong sells total HK$79.57B in 1-month, 3-month and 6-month.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY200B v CNY278B prior in 7-day reverse repos: Net injects CNY133B v injects CNY96B prior.
- (CN) China PBOC sets Yuan reference rate: 6.8771 v 6.8749 prior.
- (CN) China to extend zero tariff on coal imports - financial press.
- (CN) China reportedly to make greater effort to attract foreign investments – press.
- (CN) China NDRC Dep Dir General: China's potential growth rate is the potential growth rate of the entire world.
- Alibaba confirms new organizational and governance structure into 6 units; Each to have the flexibility to raise outside capital and potentially to seek its own IPO.
Japan
- (JP) Nikkei 225 opens +0.1% at 27,549.
- (JP) Japan's Parliament passes record ¥114T budget for FY23.
South Korea
- (KR) Kospi opens flat at 2,432.
- (KR) South Korea Mar Consumer Confidence: 92.0 v 90.2 prior.
- (KR) South Korea Financial Supervisory Service's (FSS) Lee Bokhyun: South Korea Bank's hybrid bonds are safer than those in Europe.
- (KR) North Korea said to restart diplomatic activity for the first time in 3 years of COVID isolation; Expected to rotate its foreign envoys in the coming months - FT.
- (KR) South Korea Finance Minister: Government will take steps to increase domestic consumption.
Other Asia
- (VN) Vietnam Mar Trade Balance: $0.7B v $4.1Be.
- (VN) Vietnam Q1 GDP Y/Y: 3.3% v 4.8%e.
- (VN) Vietnam Mar CPI Y/Y: 3.4% v 3.9%e.
- (MY) Malaysia Central Bank: Sees 2023 GDP growth between 4.0-5.0% range; both headline and core CPI seen between 2.8-3.8% range.
- (TH) Thailand foreign tourist arrivals to be at least 30M in 2023: Private industry group.
North America
- (US) FDIC Chair Gruenberg: Regional bank liquidity has remained stable, US has a strong set of regional banks.
- (US) Fed’s Bullard (Non-Voter): Financial stress can be contained by macro prudential tools; monetary policy can put downward pressure on inflation.
- Micron guided Q3 FY23 results below estimates.
- (US) US Energy Secretary: Strategic Petroleum Reserve (SPR) buy-backs could begin late this year [2023].
Europe
- (UK) PM Spokesperson Davies: UK Energy Sec to announce plans to secure UK's energy security and reach net zero by 2050.
- (EU) EU's Dombrovskis (Trade Chief): EU banking situation is stable and banks are prepared to withstand shocks.
Levels as of 01:20 ET
- Nikkei 225, +0.8%, ASX 200 +0.2% , Hang Seng +2.0%; Shanghai Composite -0.1% ; Kospi -0.3%.
- Equity S&P500 Futures: +0.5%; Nasdaq100 0.4%, Dax +0.4%; FTSE100 +0.2%.
- EUR 1.0834-1.0850 ; JPY 130.76-131.79 ; AUD 0.6688-0.6713 ; NZD 0.6238-0.6271.
- Gold -0.3% at $1984/oz; Crude Oil +0.7% at $73.69/brl; Copper -0.5% at $4.0568/lb.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.