Equity markets track losses on Wall Street
|Asia market update: Taiwan earthquake impact in focus, tsunami warnings lifted; Equity markets track losses on Wall St; JGB yields pared rise amid BOJ bond announcement; CN markets decline ahead of holiday.
General trend
- Taiwan Semi: Says it has evacuated certain staff from production lines [follows earthquake]; currently confirming details of the earthquake's impact; co. said to halt some chipmaking machines in Hsinchu; The company's safety systems are operating 'normally'.
- Taiwan Semi: Follow Up: Says workers evacuated are beginning to return to their workplaces.
- Foxconn: Exec: At present, no impact from the earthquake.
- Micron: Says evaluating operations in Taiwan.
- UMC [2303.TW]: Says all factories are operating ‘normally’; some machines were shut down but we are working to restart them; staff at Hsinchu and Southern Taiwan science parks were evacuated.
- ASE Technology [2311.TW]: Says operations are 'normal'.
-Taiwan government]: At least 4 dead from the earthquake.
- Tokyo Electron [8035.JP]: All Taiwan employees are safe; Have 4 locations in Taiwan; confirmed 'some' damage to buildings in Taiwan.
- Japan Chief Cabinet Sec: No reports of casualties or damage from the Taiwan quake.
- Yet another quiet session for USD/JPY.
- Gold continues to push higher.
- Fast Retailing declines on monthly sales figures, weighs on Nikkei.
- Rate-sensitive REITs decline in Australia.
- US equity FUTS trade slightly lower.
- US ISM Services and ADP data due later today.
- Upcoming Shanghai holiday in focus [April 4 (Thursday) - April 6 (Saturday), plus April 7 (Sunday)]; Hong Kong markets are also closed on Apr 4th.
Headlines/economic data
Australia/New Zealand
-ASX 200 opens +0.1% at 7,895.
- Australia sells A$300M v A$300M indicated in 2.75% May 2041 Bonds; Avg Yield: 4.3903%; bid-to-cover: 3.30x.
-New Zealand sells NZ$4.5B in May 2035 bonds through syndication: Yield: 4.7775%; Total book size, at final price guidance, exceeded NZ$17.0B.
-New Zealand Feb Filled Jobs M/M: +0.3%.
China/Hong Kong
-Hang Seng opens flat at 16,926.
- Shanghai Composite opens flat at 3,074.
- China Mar CAIXIN PMI services: 52.7 V 52.5E.
- China PBOC sets Yuan reference rate: 7.0949 v 7.0957 prior.
- China confirms Yellen to visit China [**Reminder Apr 2nd (US) Treasury Official: US Sec of Treasury Yellen to seek healthy relationship with China; Confirms Yellen's trip to China on Apr 5th].
-US Treasury Sec Yellen: No longer agrees with standard economic teaching on exports; China will not overwhelm US industry again – WSJ.
- China Pres Xi and US Pres Biden held phone talks on Tues evening - Chinese press.
- Country Garden [2007.HK]: Reports Mar Contracted Property Sales CNY4.30B v CNY3.72B m/m.
- Xiaomi [1810.HK]: EV SU7 said to have >40K in orders - Press.
- Bank of China [3988.HK]: Exec: Will defuse risks in key areas including real estate and local govt debt.
- China Financial Watchdog calls for tighter regulation, needs to enhance risk control and ensure financial security.
- China said to be looking to set up a national financing credit platform - press.
- China plans to develop 'smart cities' via digitalization; Seeks to develop smart infrastructure and cars jointly - press.
Japan
- Nikkei 225 opens -0.8% at 39,503.
-Tsunami warning issued for Okinawa [the tsunami warning was later downgraded to a tsunami advisory]; JMA says the earthquake has a magnitude of 7.5; GFZ reports 7.4 magnitude quake that impacted Taiwan [magnitude later revised up to 7.7] - Japan media.
- Japan Chief Cabinet Sec: No reports of casualties or damage from the Taiwan quake.
- Bank of Japan (BOJ) announcement related to outright bond buying operations: For 1-3 Years; 3-5 Years and 10-25 Years; leaves bond buying amount unchanged vs prior offer.
- Japan bond market shows low rate hike concern – Nikkei [**Reminder Apr 2nd (JP) Japan sold ¥2.6T VS. ¥2.6T indicated in 10-year JGB bonds; AVG yield: 0.7530% V 0.718% prior; bid-to-cover: 3.80X V 3.24X prior; Tail of 2bps v 4bps prior].
- Japan sells ¥5.8T v ¥5.8T indicated in 3-Month Bills; Avg Yield: +0.0046% v -0.0145% prior; bid-to-cover: 3.41x v 3.99x prior.
- US and Japan said to agree on subsidy rules on chips and batteries - Nikkei.
- Honda [7267.JP]: Reports Q1 China Vehicle Sales -6.1% y/y.
Korea
- Kospi opens -0.8% at 2,730.
- South Korea Mar Foreign Reserves: $419.3B v $415.7B prior.
- Samsung Electronics: Expected to unveil 3D DRAM in 2025; the co. unveiled its 3D DRAM roadmap in Mar - South Korea press.
Other Asia
- Tsunami warning issued for Okinawa [the tsunami warning was later downgraded to a tsunami advisory]; JMA says the earthquake has a magnitude of 7.5; GFZ reports 7.4 magnitude quake that impacted Taiwan [magnitude later revised up to 7.7] - Japan media.
- (TW) Follow Up: PTWC: Tsunami threat from Taiwan earthquake has now passed; all Tsunami advisories lifted for Okinawa.
- Taiwan sells NT$140B vs. NT$140B indicated in 12-month Certificates of Deposit; Avg Yield: 1.352% v 1.182% prior; Bid to cover: 1.13x v 1.35x prior.
North America
- Tesla [TSLA]: Reports Q1 deliveries 386.8K v 484.5K q/q, (422.9K y/y), production 433.4K vehicles v 450Ke.
- Intel [INTC]: Sets targets for foundry and products business separately; Foundry losses expected to peak in 2024, to reach break-even by end of 2030.
- US cancels plan to buy 3M barrels for oil reserve – press.
-*(US) Feb JOLTS Job opening: 8.756M V 8.730ME.
Europe
- OPEC ministerial panel reportedly unlikely to recommend any oil output policy changes at a meeting on Wed, Apr 3rd - press.
-ThyssenKrupp [TKA.DE]: Reportedly supervisory board will meet April 11th to discuss plans for a significant overhaul, which could lead to substantial capacity cuts and thousands of job cuts - press.
Levels as of 01:20 ET
- Nikkei 225, -0.7%, ASX 200 -1.3% , Hang Seng -1%; Shanghai Composite -0.3% ; Kospi -1.3%.
- Equity S&P500 Futures: -0.1%; Nasdaq100 -0.2%, Dax -0.3%; FTSE100 -0.5%.
- EUR 1.0779-1.0765 ; JPY 151.64-151.44 ; AUD 0.6525-0.6504 ;NZD 0.5978-0.5952.
- Gold +1% at $2,305/oz; Crude Oil flat at $85.14/brl; Copper +0.6% at $4.1040/lb.
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