Asian equities trade generally lower, in line with US session

Asia Market Update: Asian equities trade generally lower, in line with US session; Aussie employment change above ests

 

General Trend:

- Shanghai Property index extends declines seen in prior session

- Press speculation Japan sales tax increase could again be delayed

- Little reaction seen to better Aussie employment change, certain forward looking indicators show caution; markets still expect RBA rate cut

- Bank of Korea cuts growth and inflation forecasts, implies less likelihood of rate hike

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.3%

- (AU) AUSTRALIA MAR EMPLOYMENT CHANGE: 25.7K V +15.0KE; UNEMPLOYMENT RATE: 5.0% V 5.0%E

- (AU) Australia Q1 NAB Business Confidence: -1 v 1 prior

China/Hong Kong

- Shanghai Composite opened -0.1%, Hang Seng -0.1%

- (CN) US and China reportedly have set a tentative timeline for next round of face-to-face trade discussions; seek to sign deal as soon as late May – press

- (CN) Pres Trump: China trade talks are moving along nicely; "you'll be hearing about" a China deal shortly

- (CN) China Human Resources Ministry: Yu Jianhua appointed as Vice Commerce Minister & Deputy International Trade Negotiation Representative

- (CN) China State Planner NDRC said to be drafting a series of stimulus measures of autos and electronics - financial press

- (CN) China NDRC: Looking into speculation about car stimulus - Chinese media

- (CN) China Cabinet reiterates stance to continue implementing prudent monetary policy

- (CN) China said to encourage brokers to issue credit default swaps (CDS) related to private sector bonds - Chinese Press

- (CN) China PBoC sets yuan reference rate: 6.6911 v 6.7110 prior (strongest CNY fix since March 21st)

- (CN) China PBoC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repo v CNY160B injected in 7-day reverse repos prior: Net: CNY80B injection v CNY160B injection prior

Japan

- Nikkei 225 opened flat

- (JP) Japan Oct 2019 increase of sales tax might be delayed, cites LDP lawmaker Hagiuda - Local Press

- (JP) Japan Finance Min Aso may discuss forex issues with US Treasury Sec Mnuchin next week; Aso is expected to travel to the US on April 25th (Thursday) - Japanese press

- (JP) Japan Finance Min Aso: Deflationary mindset of company executives is changing; trade issues such as Brexit and China still present risks

- (JP) JAPAN APR PRELIMINARY PMI MANUFACTURING 49.5 V 49.2 PRIOR

Korea

- Kospi opened +0.1%

- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 1.75%; AS EXPECTED; sees GDP growth and inflation below Jan projection; Omission of some references seen in prior statement does not mean easing of policy is now under discussion

- (KR) North Korea leader Kim has overseen a test of a new tactical guided weapon – KCNA

- (KR) South Korea Fin Min Hong: South Korea is not considering currency re-denomination - Yonhap

Other Asia

- Indonesia Rupiah rises amid focus on election results

North America

- (US) NY Fed's Logan: Might need to respond to unanticipated changes in reserves by conducting repo operations; any discussion of a standing repo facility is in its early stages

 

Levels as of 1:20 ET

- Nikkei 225, -0.8%, ASX 200 -0.1%, Hang Seng -0.6%; Shanghai Composite -0.2%; Kospi -1.2%

- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.3%; FTSE100 -0.2%

- EUR 1.1301-1.1289 ; JPY 112.08-111.87 ; AUD 0.7199-0.7165 ;NZD 0.6732-0.6711

- Gold -0.2% at $1,273/oz; Crude Oil -0.1% at $63.73/brl; Copper -0.2% at $2.954/lb