Inflation data weighs on Kiwi, Aussie jobs figures due on Thursday

Asia Market Update: Markets have tepid response to better Chinese Q1 GDP and March data; Inflation data weighs on Kiwi, Aussie jobs figures due on Thursday

General Trend:

- Higher rates weigh on property sector in China

- BHP declines after cutting iron ore production forecast, iron ore prices decline on expected production resumption by Vale

- Australian paint company Duluxgroup rises over 26%, received takeover offer from Nippon Paint

- Softbank declines over 1%, press speculation that Sprint/T-Mobile deal could face regulatory hurdles

- Netflix declines less than 1% in afterhours trading post earnings/guidance

- China government bond futures decline after better data; analysts debate whether China has stabilized and the potential implications for monetary policy

- China money market rates rise despite MLF operation amid better data

- New Zealand Dollar and bond yields decline after Q1 CPI miss, rate cut bets

- Japan and Singapore report declines in March exports to China

- US and Japan plan to continue trade talks

- Australia monthly jobs data due on Thursday amid focus on RBA policy outlook

- Bank of Korea (BOK) expected to leave policy unchanged on Thursday, some focus is expected on central bank’s outlook comments

- US companies expected to report earnings on Wed include Bank of New York, Morgan Stanley and Pepsico

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.1%

- (NZ) NEW ZEALAND Q1 CPI Q/Q: 0.1% V 0.3%E; Y/Y: 1.5% V 1.7%E

- BHP.AU Reports Q3 Iron Ore production (100% basis, Waio) 64Mt v 67.0Mt y/y; Attributable Iron ore production 56.1Mt v 58.0Me; Cuts Iron ore production (100% basis, Waio) 265-270Mt (prior 273-283Mt); Attributable Iron ore production 235-239Mt (prior 241-250MT)

- DLX.AU To be acquired by Nippon Paint at A$9.80/shr

- STO.AU Reports Q1 (A$) Rev 1.02B v 794M y/y; Production 18.4 MMBOE v 13.8 y/y

- (NZ) New Zealand PM Ardern: Will not go ahead with capital gains tax, unable to gain consensus

- (NZ) New Zealand RBNZ Q1 Sectoral Factor Model Inflation Y/Y: 1.7% v 1.7% prior; Sectoral Factor Model Non-Tradeable (core) Y/Y: 2.8% v 2.7% prior

Japan

- Nikkei 225 opened +0.1%

-(JP) Bank of Japan (BOJ) Financial Systems Report: Real estate loans to GDP ratio has turned negative (1st time since 1990); financial system maintaining stability as a whole

- (JP) JAPAN MAR TRADE BALANCE: ¥528.5B V ¥363.2BE; ADJ TRADE BALANCE: -¥177.8B V -¥242.5BE

- 6645.JP Omron Automotive Electronics to be acquired by Nidec for ¥100B (after the close yesterday)

- (JP) Japan Trade Min Motegi: Trade talks focused on goods including autos and agricultural, good start to talks, No agreement reached yet; FX is an issue to be discussed by Fin Mins

- (JP) Nikkei report notes that at current pace of asset purchases BOJ will overtake the state-run pension fund (GPIF) as the top shareholder of Japanese stocks as early as 2020

-(JP)) Bank of Japan (BOJ) Deputy Gov Amamiya: Reiterates BoJ will scrutinize potential risks to economy and prices (including financial imbalances) in guiding monetary policy

-(JP) Japan Feb Final Industrial Production m/m: 0.7% v 1.4% prelim; y/y: -1.1% v -1.0% prelim; Capacity Utilization m/m: +1.0% v -4.7% prior

Korea

- Kospi opened flat

- (KR) Russia confirms making preparations for summit between Putin and North Korea leader Kim; US envoy to North Korea will also visit Russia this week – Yonhap

- 020560.KR According to main lender to Kumho Asiana Group, the group intends to sell Asiana Airlines within 6-months - Nikkei

China/Hong Kong

- Hang Seng opened +0.1%; Shanghai Composite opened -0.1%

- (CN) CHINA Q1 GDP Q/Q: 1.4% V 1.4%E; Y/Y: 6.4% V 6.3%E; GDP YTD: 6.5% v 6.3%e

- (CN) CHINA MAR INDUSTRIAL PRODUCTION Y/Y: 8.5% V 5.9%E (fastest growth since July 2014); YTD Y/Y: 6.5% V 5.6%E

- (CN) CHINA PBOC CONDUCTS CNY200B IN 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) V CNY286B PRIOR AT 3.30% V 3.30% PRIOR (first operation since Dec 2018)

- (CN) China National Bureau of Statistics (NBS) Spokesman Mao Shengyong: Positive factors increased in Q1

- (CN) IMF's Kang: See no more RRR cuts for banks in China - financial press

- (CN) China former PBOC official: China is at risk for a housing price increase - China press

- (CN) China PBoC sets yuan reference rate: 6.7110 v 6.7097 prior

- (CN) China PBoC Open Market (OMO): Injects CNY160B in 7-day reverse repos v CNY40B injected in 7-day prior; Net: CNY160B injection v CNY40B prior

- (CN) China overnight repo rate +10bps to 2.99% (highest level since 2015)

- (CN) CHINA MAR YTD PROPERTY INVESTMENT Y/Y: 11.8% V 11.6% PRIOR

- (CN) CHINA MAR RETAIL SALES Y/Y: 8.7% V 8.4%E; RETAIL SALES YTD Y/Y: 8.3% V 8.3%E

- (CN) CHINA MAR JOBLESS RATE: 5.2% V 5.3% PRIOR

- (CN) CHINA MAR YTD FIXED URBAN ASSETS Y/Y: 6.3% V 6.3%E

- (CN) China Agriculture Ministry Official: Pork prices to rise 70% y/y in H2

-(CN) OECD: Sees China 2019 stimulus equal to 2% of GDP, policy stimulus may worsen economic distortions

Other Asia

- (MY) FTSE Russell has placed Malaysia on its fixed income watch list for at least 6 months, FTSE Russell is considering whether to downgrade Malaysia's status - Local press

- (SG) SINGAPORE MAR NON-OIL DOMESTIC EXPORTS M/M: -14.3% V -4.8%E; Y/Y: -11.7% V -1.5%E; Electronic Exports Y/Y: -26.7% v -8.0% prior

North America

- (US) Weekly API Oil Inventories: Crude: -3.1M v +4.1M prior

- AAPL Confirms Qualcomm and Apple agree to drop all litigation; settlement includes payment to Qualcomm from Apple

- INTC To exit 5G smartphone modem business, will focus on 5G network infrastructure, will give more details with Q1 results

Europe

- (EU) Eurogroup chief Centeno: Euro Area budget won't start as a 'bazooka'; Euro is our best and only shot to shape the world financial order

- (UK) Labour Party Spokesperson: Not true that Brexit talks have stalled with the UK Govt (denies Guardian report that had cited Corbyn)

-(CH) Switzerland expected to sign China belt and road deal during Switzerland President Maurer's visit to China - SCMP

 

Levels as of 1:20 ET

- Nikkei 225, +0.3%, ASX 200 -0.2%, Hang Seng -0.2%; Shanghai Composite +0.1%; Kospi -0.1%

- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 -0.1%

- EUR 1.1306-1.1278 ; JPY 112.16-111.92 ; AUD 0.7206-0.7153 ;NZD 0.6776-0.6667

- Gold +0.2% at $1,279/oz; Crude Oil +0.7% at $64.46/brl; Copper +0.4% at $2.945/lb