North Korea concerns weigh on Korean Won (KRW)
|Asia Market Update: Chinese equity markets gain as Premier Li issued effective dates for tax cuts; North Korea concerns weigh on Korean Won (KRW)
General Trend:
- Shanghai Property index outperforms amid release of Feb new home price figures
- Macau to extend gaming concessions for SJM and MGM China, gaming sector rises
- Resources and financial companies decline in Australia
- Real Estate, Machinery, Auto and Financial companies rise in Japan
- Little initial reaction seen from BoJ decision, Kuroda press conference awaited (6:30 GMT)
- China passed foreign investment law
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) Reserve Bank of Australia (RBA) extends bilateral swap agreement with Bank of Japan (BOJ): permits the exchange of local currencies between the two central banks of up to A$20B or ¥1.6T
China/Hong Kong
- Hang Seng opened flat, Shanghai opened +0.3%
- (CN) China Premier Li: China economy faces new downward pressure; won't let growth slide out of reasonable range; 6.6% growth [in 2018] was hard-won; To cut VAT April 1st
- (US) China-US trade meeting between Trump and Xi to sign an potential agreement to end their trade war not likely until April at the earliest - financial press
- (US) US President Trump: We'll have 'news' on China trade deal in the next 3-4 weeks
- (CN) China Vice Premier Liu He: On Thursday spoke by phone with US Trade Representative (USTR) Lighthizer and US Treasury Secretary Mnuchin, says China and the US 'get substantial progress on document wording' -Xinhua
- (CN) CHINA FEB NEW HOME PRICES M/M: 0.5% V 0.6% PRIOR (slowest growth since April 2018); Y/Y: 10.4% V 10.0% PRIOR
- (CN) China Feb FDI Y/Y: +6.6%
- (CN) China National People's Congress (NPC) approves foreign investment law; to take effect Jan 1 2020
- (CN) China PBoC Open Market Operation (OMO): To inject CNY20B in 7-day reverse repos (First reverse repo operation in 12 sessions) : Net: CNY20B injection v nil prior
- (CN) China PBoC sets yuan reference rate: 6.7167 v 6.7009 prior
- (CN) China Securities Regulatory Commission (CSRC's) Yi says bearish reports on firms are normal - Financial Press
- (CN) China may establish Deposit Insurance Agency in the near term - Chinese Press
Japan
- Nikkei opened +0.4%
- (JP) BOJ LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED
- (JP) Japan Financial Services Agency to conduct stress tests of banks future profitability and stage interventions to address weak finances of regional banks - Japanese Press
- (JP) Japan Fin Min Aso: No citizen is angry because have not hit 2% target, No need to be too focused on 2% [price target] in that sense; If we insist too much on achieving 2% inflation target, things could 'go wrong'
- (JP) Brokerage firms in Japan are preparing for the 10-day holiday for Japan exchanges during the late spring - Japanese Press
Korea
- Kospi opened -0.1%
- (NK) North Korea Dep Foreign Min: No intention to yield to US demands; North Korea said to mull suspending denuclearization talks with US, according to Russia Media
- (KR) South Korea President Moon approval rating declines to 44% (record low) v 46% prior - Gallup Poll
- (KR) South Korea and US Defense Chiefs are expected to meet later in March - South Korea press
- (KR) South Korea Feb Export Price Index M/M: 0.2% v -1.0% prior; Y/Y: -2.4% v -1.4% prior
- (KR) South Korea sells KRW405B v KRW400B indicated in 50-year bonds: avg yield 1.98% v 1.970% prior
Other
- (ID) Indonesia Feb Exports Y/Y: -11.3% v -4.4%e
North America
- (CN) Treasury Sec Mnuchin: working with China on an 'extensive' document; confirms Pres Trump and Pres Xi will not be meeting this m
- (US) Treasury Sec Mnuchin: reiterates supports clean debt ceiling increase; urges Congress to raise debt limit soon
Europe
- (UK) Parliament passes govt motion to extend Article 50, delaying the Brexit date from March 29th; Vote 412-202
Levels as of 1:20 ET
- Nikkei 225, +0.9%, ASX 200 -0.1%, Hang Seng +0.7%; Shanghai Composite +0.9%; Kospi +0.6%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.4%%, Dax +0.2%;
- EUR 1.1328-1.1299 ; JPY 111.90-111.48 ; AUD 0.7093-0.7061 ;NZD 0.6853-0.6821
- Gold +0.2% at $1,298/oz; Crude Oil flat at $58.62/brl; Copper +0.5% at $2.905/lb
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