Equities trade mixed after losses on Wall Street

Asia Market Update: Equities trade mixed after losses on Wall St.; UST yields extend rise amid plethora of central bank speak.

General trend

- Commodity currencies extend drop; NZD still weaker after Q1 CPI data.

- CNH remains under pressure.

- Uncertainty remains in terms of when Shanghai will end its lockdown.

- Shanghai Composite pared decline during morning trading.

- China said to encourage large investors to purchase domestic equities.

- Hang Seng opened lower by 2%; later pared decline.

- Zhihu drops over 25% in HK debut.

- US equity FUTs extend drop; FUTs later pared drop.

- Nikkei 225 has declined by over 2%.

- Tokyo Steel to report earnings after the market close.

- S&P ASX 200 declines by over 1.5% [Energy and Resources index lag].

- Companies due to report during the NY morning include Autoliv, American Express, Cleveland-Cliffs, HCA Healthcare, Kimberly-Clark, Newmont Corp, Schlumberger, Verizon.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened -0.6%.

- (AU) Australia Apr preliminary PMI manufacturing: 57.9 V 57.7 prior.

- (NZ) ANZ Bank: New Zealand inflation has likely peaked during Q1 at 6.9%.

- (AU) Westpac expects the Reserve Bank of Australia increasing the Cash Rate by 40bps to 0.50% in June.

Japan

- Nikkei 225 opened -1.3%.

- (JP) Said that Japan Fin Min Suzuki and US Treasury Sec Yellen likely to have discussed coordinated currency intervention during talks; Sounded as if the US side would consider idea positively - Japan Press.

- (JP) Japan Mar national CPI Y/Y: 1.2% V 1.2%E; CPI ex-fresh food (core) Y/Y: 0.8% V 0.8%E [fasted annualized pace in 2 years].

- (JP) Japan Fin Min Suzuki: Confirms meeting with US Treasury Sec Yellen and discussing currencies; Confirmed existing agreements, US and Japan to communicate closely of FX.

- (JP) Japan Trade Min: Started auction for oil release from national reserve; Exiting Russia energy projects would push up prices.

- Toshiba [6502.JP] Retains Nomura Securities as Financial advisor to solicit proposals on privatization; Plans to receive a confidentiality pledge from potential investors and sponsors as our potential partners.

- (JP) Japan Apr preliminary PMI manufacturing 53.4 V 54.1 prior.

- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].

- (JP) Bank of Japan (BOJ) Head of Policy Head Shimizu: Watching impact of FX on economy and prices.

- (JP) Japan Govt Draft: Must be vigilant to impact that Yen decline could have on Households and Importers; Will compile another comprehensive relief package with outline of long term impact; To submit extra budget to parliament to increase reserves and fund spending to offset increasing raw material costs.

Korea

- Kospi opened -0.9%

- Hyundai Mobis [012330.KR] Reports Q1 (KRW) Net 521B v 600B y/y; Op 387B v 490B y/y y/y; Rev 11.3T v 9.82T y/y.

- (KR) South Korea outgoing President Moon: Inter Korea dialogue is now a task for the next Govt (Incoming President Yoon), have asked North Korea Leader Kim's response - Korea press.

- (KR) South Korea Presidential Blue House: Confirms President Moon exchanged 'letters of friendship' with North Korea Kim.

China/Hong Kong

- Hang Seng opened -2.0%; Shanghai Composite opened -0.7%.

- (CN) China PBOC sets Yuan reference rate: 6.4596 v 6.4098 prior.

- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.

- (CN) Shanghai reports 403 [out of 666] key businesses have resumed production; lockdown will be lifted in batches once zero-COVID is reached at the community level.

- (CN) PBoC Gov Yi Gang: China financial markets are not immune to external shocks; Accommodative policy is stepping up support for the real economy - Boao forum.

- (CN) Shanghai reports 403 key businesses have resumed production.

- (CN) Shanghai reports 17,629K coronavirus cases v 18,495 prior; reports 11 new deaths related to COVID.

- (CN) China Sec Journal: China stocks to bottom out as the economy recovers.

- (CN) China arrests former Securities Regulator Official Zeng for bribery.

- (CN) Said that China Securities Regulator has encouraged larger investors in China to purchase more equities in an effort to prop up the market during the sell off; Comments came during a meeting held on Apr 21st - Press.

- (HK) Hong Kong Monetary Authority Yue: Not seeing a sign of taper tantrum repeat during the US Fed rate hike - Boao forum comments.

- (CN) China Ministry of Finance (MOF) Sells 3-month bills and 1-year bonds.

North America

- (US) Fed Chair Powell: 50bps hike will be on the table for May meeting; It is appropriate to be moving quickly - IMF panel comments.

- (CA) Bank of Canada (BOC) Gov Macklem: March inflation shows supply chain disruption; Economy has plenty of momentum; Possible interest rates need to go above neutral to cool demand.

- SNAP Reports Q1 -$0.02 v $0.00e, Rev $1.06B v $1.05Be.

- XM Reports Q1 +$0.01 v -$0.01e, Rev $335.6M v $325Me.

- (US) Nomura expects US Fed to increase rates by 75bps in both June and July, after increasing 50bps in May.

Europe

- (UK) Apr GfK Consumer Confidence: -38 v -33e (lowest since July 2008).

- (EU) EU Commission VP Dombrovskis: US and EU need to continue building cooperation, still working on trade council deliverables.

- (RU) Russia said to potentially order sale of thermal coal on exchanges - Russia Press.

Levels as of 01:20 ET

- Nikkei 225, -1.6%, ASX 200 -1.5% , Hang Seng flat; Shanghai Composite +0.3% ; Kospi -0.9%.

- Equity S&P500 Futures: -0.1%; Nasdaq100 flat, Dax -0.1%; FTSE100 -1.3%.

- EUR 1.0850-1.0830 ; JPY 128.69-127.93 ; AUD 0.7386-0.7331 ;NZD 0.6761-0.6692.

- Gold +0.2% at $1,952/oz; Crude Oil -0.9% at $102.81/brl; Copper -0.2% at $4.6757/lb.