Nikkei and Nasdaq FUTs weighed down by earnings
|Asia Market Update: Nikkei and Nasdaq FUTs weighed down by earnings [META, IBM, Hynix, Fanuc, Canon, Panasonic, UMC]; BOJ decision due on Fri, Apr Tokyo CPI also due.
General trend
-Yen weakness remains in focus.
-Asian equity markets trade mixed.
Headlines/economic data
Australia/New Zealand
-ASX 200 closed for holiday.
China/Hong Kong
- Hang Seng opens -0.3% at 17,144.
-Shanghai Composite opens -0.2% at 3,037.
-US Sec of State Blinken: Obliged to manage US and China relationship responsibly; raised concerns about China trade policies in meeting; Also raised concerns about China's non-market economic practices.[**Reminder Apr 23rd (CN) US SAID TO BE DRAFTING SANCTIONS THAT THREATEN TO 'CUT SOME CHINA BANKS OFF FROM THE GLOBAL FINANCIAL SYSTEM' FOR HELPING RUSSIA'S WAR EFFORT – WSJ [**Reminder Apr 22nd (CN) China Foreign Ministry: Confirms US Sec of State Blinken to visit China on Apr 24-26th].
-Follow Up: China PBOC ‘drops hint’ at future bond trades, raising odds of direct action – SCMP.
-China bond market may see ‘correction’ in near term; cites China Business News – US financial press.
-China to accelerate local government special bond offer, expected to speed up special bond issuance in Q2 and Q3 – PBOC-backed Financial News.
-China reportedly tells brokers to limit exposure to 'snowball' derivatives - press [**Note: Snowball products are similar to the index-linked products sold in the 2008 financial crisis].
-China Central Financial Commission: Reiterates to prevent financial risks; affirms to implement prudent monetary policy.
-China PBOC sets Yuan reference rate: 7.1058 v 7.1048 prior.
- Apple: IDC: Apple Q1 China shipments -6.6% y/y.
Japan
-Nikkei 225 opens -1% at 38,065.
-USD/JPY Trades at another 34-year high of 155.40.
-Japan Fin Min Suzuki: Reiterates watching FX moves closely, will handle appropriately; cannot say much on FX at this point.
- Japan Chief Cabinet Sec Hayashi: Will be ready to take full response; reiterates closely watching FX moves.
-BOJ Dep Gov Himino has COVID, will participate in Friday’s monetary policy decision by using the phone – US financial press.
-Japan releases weekly flows data [period ended Apr 19th]: Foreign buying of Japan equities: -¥492.4B v +¥1.74T prior; Japan buying of foreign bonds: +¥648.1B v -¥1.0T prior; Foreign buying of Japan bonds [long-term debt securities]: -¥1.44T v ¥50.7B prior.
- Toyota Motor: Said to delay US EV production launch to Spring 2026 from 2025 - Press.
Korea
-Kospi opens -1.2% at 2,644.
-Hynix: Guides 2024 overall CAPEX to be larger than initially planned, planning 'sizeable' investments [prior: Affirmed FY24 Capex to increase y/y, albeit at a 'minimum level']; Guides Q2 DRAM shipments up in the 'mid-teen pct' q/q; Guides Q2 NAND shipments flat q/q.
-SOUTH KOREA Q1 ADVANCE GDP Q/Q: 1.3% V 0.6%E; Y/Y: 3.4% V 2.5%E [fastest GDP growth since Q4 2021].
-South Korea FSS [market watchdog]: Unveils details of short-selling monitoring platform; Difficult to say at the moment when to lift stock short-selling ban.
Other Asia
-INDONESIA CENTRAL BANK (BI) RAISES BI RATE BY 25BPS TO 6.25%; NOT EXPECTED [from Apr 24th].
North America
-*(US) TREASURY $70B 5-YEAR NOTE AUCTION DRAWS 4.659% V 4.235% PRIOR, BTC 2.39 V 2.41 PRIOR AND 2.48 OVER THE LAST 12.
Europe
-Anglo American [AAL.UK]: Notes press speculation, confirms received unsolicited bid from BHP related to all-stock offer; the board is currently reviewing the proposal; BHP must announce its intentions by May 22nd close.
- STM [STM.FR]: Reports Q1 $0.54 v $1.10 y/y, Rev $3.47B v $3.63Be; Cuts FY24 outlook citing Automotive semiconductor demand slowed down compared to its expectations, entering a deceleration phase, while the ongoing Industrial correction accelerated.
Levels as of 01:20 ET
- Nikkei 225, -2.1%, ASX 200 closed , Hang Seng +0.4%; Shanghai Composite +0.1% ; Kospi -1.4%.
- Equity S&P500 Futures: -0.7%; Nasdaq100 -1.3%, Dax +0.2%; FTSE100 +0.3%.
- EUR 1.0694-1.0708 ; JPY 155.19-155.51 ; AUD 0.6491-0.6510 ;NZD 0.5931-0.5953.
- Gold -0.6% at $2,325/oz; Crude Oil +0.1% at $82.92/brl; Copper -0.1% at $4.4510/lb.
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