Japan and Singapore exports to China rebound

Asia Market Update: Asian equities trade higher amid speculation that Xi/Trump meeting could be delayed until June; Japan and Singapore exports to China rebound, RBA minutes due on Tues.

General Trend:

- Shanghai property and health care indices outperform in early trade

- Securities brokers and Softbank rise in Japan

- China President Xi and President Trump meeting may be delayed until June

- Financials weigh on Australian market, Resources firms rise

- US Fed to hold policy meeting March 19-20 (Tuesday-Wed)

- Reserve Bank of Australia (RBA) to release March meeting minutes on Tuesday

- NZIER cuts its near-term growth and 90-day bank bill rate forecasts for NZ

 

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened +0.1%

- (AU) According to Deloitte Access Economics: Australia Morrison govt could spend up to A$12.0B/yr to deliver bigger personal income tax cuts and help it pass the "fairness" test with low to middle income voters – AFR

- (NZ) New Zealand Feb Performance of Services Index: 53.8 v 56.3 prior

- (NZ) New Zealand Institute of Economic Research (NZIER) Quarterly Outlook: Lowers 2019 GDP outlook

- CIM.AU Thiess unit awarded A$1.7B contract in Botswana

- (AU) Australia sells A$600M v A$600M indicated in 3.25% April 2029 bonds, avg yield 1.9691%, bid to cover 4.12x

Japan

-Nikkei 225 opened +0.6%

- 7201.JP Renault, Nissan and Mitsubishi alliance to re-examine sales target of 14M cars worldwide by 2022 - Nikkei

- (JP) JAPAN FEB TRADE BALANCE: ¥339.0B V ¥305.1BE; ADJ TRADE BALANCE: ¥116.1B V +¥86.0BE; Exports: YoY -1.2% v -0.6%e ; Imports: YoY: -6.7% v -6.4%e

- (RU) Russia Pres Putin: Japan Russia peace treaty talks need a "short rest" if Japan is unwilling to withdraw from security cooperation pact with US over disputed islands – Nikkei

- 7203.JP President Toyoda: To invest $749M in 5 US plants to increase capacity and add hybrid SUV lines; will not leave the US - Speech at Economic Club of Washington

- 7201.JP Considering getting rid of chairman position, will announce its official proposal on March 27th - Japan press

-(JP) Japan Jan Final Industrial Production M/M -3.4% v -3.7% prelim; Y/Y: 0.3% v 0.0% prelim

Korea

-Kospi opened +0.1%

- (KR) South Korea Feb Offshore Investors net bought KRW1.64T in domestic stocks v buying KRW3.74T prior (3rd consecutive month of net buying)

- (KR) According to US monitor there is little to no activity is spotted at North Korea main nuclear facility in Yongbyon and its nuclear testing site in Punggye-ri

- (KR) South Korea coast guard sizes China fishing boat for not complying with stop order and suspected illegal fishing – Yonhap

- (KR) Bank of Korea (BOK) sells KRW250B in 6-month Monetary Stabilization Bonds (MSB), avg yield 1.81% b 1.82% prior

-(KR) South Korea sells KRW1.75T v 1.75T indicated in 10-yr Treasury Bonds; avg yield 1.99% v 1.985% prior; bid to cover 2.94x v 2.76x prior

China/Hong Kong

-Hang Seng opened +0.4%; Shanghai Composite opened +0.2%

- (CN) Meeting between China President Xi and US President Trump now may be delayed to June (Originally through to be this month at Maralargo) - SCMP

- (US) US Border Patrol: Seized 450,000 kg of pork smuggled into US from China; possibly infected with African Swine flu

- (CN) China issued specific rules related to tax exemptions which seek to lower the amount of individual income tax paid on incomes earned overseas – Xinhua

- (CN) China to allow local governments to set their own property tax rates - financial press

- (CN) China PBoC sets yuan reference rate: 6.7088 v 6.7167 prior

- (CN) China PBoC Open Market Operation (OMO): To inject CNY60B in 7-day reverse repos v CNY20B in 7-day prior; Net: CNY60B injection v CNY20B injected prior

- (CN) Feb sales for China major excavator producers totaled 18.8K units, +68.7% y/y - Xinhua

-(KR) China reviewing President Xi's possible visit to North Korea in April - Korean press

Other Asia

- (SG) SINGAPORE FEB NON-OIL DOMESTIC EXPORTS M/M: 16.0% V +4.3%E; Y/Y: 4.9% V -1.6%E; Electronic Exports y/y: -8.0% v -15.9% prior

North America

-BA US Transport Dept. to probe the FAA's approval of the Max 737, will focus on anti-stall system - US financial press

-BA Reportedly Ethiopian Airlines plane that crashed had unusually high speed after takeoff - press Note: Ethiopian transport ministry says black box data shows similarities to Indonesian crash

- GM Trump Tweet: "Because the economy is so good, General Motors must get their Lordstown, Ohio, plant open, maybe in a different form or with a new owner, FAST! Toyota is investing 13.5 $Billion in U.S., others likewise. G.M. MUST ACT QUICKLY. Time is of the essence!"

Europe

- DBK.DE Confirms talks with Commerzbank, also reviewing strategic options

- (UK) Various ministers indicate that PM May could cancel Brexit vote this week if there is not enough support - Telegraph

- (ES) Bank of Spain Gov Hernandez de Cos: there is currently no risk of recession in Europe or Spain - financial press

- (UK) Mar Rightmove House Prices M/M: 0.4% v 0.7% prior; y/y: -0.8% v 0.2% prior

- (UK) British Chambers Of Commerce (BCC): Cuts 2019 and 2020 GDP growth forecasts: Cuts 2019 GDP growth forecast from 1.3% to 1.2%; Cuts 2020 GDP growth forecast from 1.5% to 1.3%

 

Levels as of 01:20ET

- Hang Seng +0.8%; Shanghai Composite +1.3%; Kospi +0.0%; Nikkei225 +0.6%; ASX 200 +0.3%

- Equity Futures: S&P500 +0.0%; Nasdaq100 +0.1%, Dax -0.0%; FTSE100 +0.2%

- EUR 1.1319-1.1339; JPY 111.46-111.64; AUD 0.7078-0.7116; NZD 0.6840-0.6867

- Commodity Futures: Gold -0.3% at $1,299/oz; Crude Oil -0.4% at $58.59/brl; Copper +0.3% at $2.92/lb