NZD and NZ yields rise on hawkish RBNZ surprise, RBA Gov clarifies recent policy statement
|Asia Market Update: NZD and NZ yields rise on hawkish RBNZ surprise; RBA Gov clarifies recent policy statement; Mixed equity session amid Chinese holiday.
General trend
- Nikkei 225 lags, exporters trade generally lower; USD/JPY declined overnight; Fast Retailing [largest Nikkei component] drops after monthly sales figures.
- Weak US data overnight with fewer JOLT job openings and softer durable goods and factory orders (see North America below) helped keep Asia in check at the open.
- Quiet equity session seen in Australia.
- What will the RBNZ do next?.
- RBA to release Financial Stability Review on Thurs. [Apr 6th].
- US ADP data due later on Wed.
Headlines/economic data
Australia/New Zealand
- (AU) ASX 200 opens -0.2% at 7,218.
- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Pause in tightening cycle does not imply the process is complete - Reiterates further rate hikes may be needed.
- (AU) Australia Mar AIG Construction Index: -5.8 v -5.0 prior – update.
- (AU) Australia Mar Final PMI Services: 48.6 v 48.2 prelim (confirms move back into contraction).
- (AU) Australia sells A$800M v A$800M indicated in 2.75% Jun 2035 bonds; Avg Yield: 3.3432%; bid-to-cover: 2.27x.
- (NZ) New Zealand Mar Corelogic House Prices Y/Y: -10.5% v -8.9% prior.
- (NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) RAISES OFFICIAL CASH RATE (OCR) BY 50BPS TO 5.25%; MORE-THAN- EXPECTED.
- (NZ) Analysts update RBNZ rate calls after surprise decision: ASB Bank analyst now expects the RBNZ to raise rates by 25bps in May to 5.50%.
China/Hong Kong
- (HK) Hang Seng closed for holiday.
- (CN) Shanghai Composite closed for holiday.
- (HK) - Late trading yesterday: Hong Kong intervenes in FX market for first time since Feb; buys HK$ as local currency hits bottom of trading band.
- (CN) China Commerce Ministry: China will take decisive action to safeguard its interests if Japan insists on obstructing China-Japan chip industry cooperation.
- (CN) Reportedly Chinese regulators have slowed their merger reviews for several proposed acquisitions by US companies – WSJ.
- (CN) Reportedly China's regulators urge futures companies not to exaggerate iron ore prices rise - press.
- (CN) China PBOC Gov Yi Gang: Reiterates to keep CNY currency (Yuan) and financial system stable while boosting employment and economic growth.
Japan
- (JP) Nikkei 225 opens -0.6% 28,111.
- (JP) Japan Chief Cabinet Secretary Matsuno: Sets up new "OSA" system for security cooperation grants.
- (JP) Japan Mar Final PMI Services: 55.0 v 54.2 prelim (confirms 6th month of expansion, quickest rate of expansion since October 2013).
- (JP) Japan will not raise taxes for childcare policies - Japanese media.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 50bps; Opens window to buy unlimited amount of 10-year JGBs at 0.50% [as expected].
- (JP) Japan Chief Cabinet Secretary Matsuno: Sets up new "OSA" system for security cooperation grants.
South Korea
- (KR) Kospi opens +0.1% at 2,482.
- (KR) Bank of Korea: Core inflation will fall by slower pace than headline inflation.
- (KR) South Korea Mar Foreign Reserves: $426.1B v $425.3B prior (update).
- (KR) US Envoy for North Korea to travel to Seoul (South Korea) April 6-7; To meet with Japan, South Korea counterparts.
- (KR) South Korea Fin Min: Will diversity trade partnerships, portfolio amid uncertainties.
- (KR) Bank of Korea (BOK) sells 2-year Monetary Stabilization Bonds (MSBs): Yield: 3.280%.
- (KR) Bank of Korea (BOK) announces two Board member nominees: Seoul National University Professor Chang and Former South Korea Fin Min Official Park.
Other Asia
- (TW) Taiwan Pres Tsai met with US Senators in NY ahead of Kevin McCarthy meeting – WSJ.
- (TW) Follow Up: Taiwan President Tsai to meet US House Speaker McCarthy on Wed at 13:00 ET (17:00 GMT).
- (TH) Thailand Mar CPI M/M: -0.3% v 0.1%e; Y/Y: 2.8% v 3.3%e [annualized pace is within the central bank's target, first time since Dec 2021].
- (TH) Thailand Commerce Ministry: Cuts 2023 CPI forecast from 2.0-3.0% to 1.7-2.7%.
- (SG) Singapore Mar PMI (Whole economy): 52.6 v 49.6 prior [moves back into expansion].
- (PH) Philippines Mar CPI Y/Y: 7.6% v 8.0%e (11th month above target with annual pace being the slowest in 6 months).
- (PH) Philippines Fin Min Diokno: Mar CPI supports the view central bank (BSP) has done enough.
North America
- (US) FEB JOLTS JOB OPENINGS: 9.93M V 10.50ME (lowest since Apr 2021).
- (US) FEB FINAL DURABLE GOODS ORDERS: -1.0% V -1.0%E; DURABLES (EX-TRANSPORTATION): -0.1% V 0.0% PRELIM.
- (US) FEB FACTORY ORDERS: -0.7% V -0.5%E.
- (US) Fed's Mester (FOMC voter): Inflation remains too high; Reiterates will need to hike rates above 5% and hold them.
Europe
- (FI) Finland formally joins NATO as 31st member [**Note: implies NATO's border length with Russia now roughly doubles from pre-Ukraine war period].
- (DE) GERMANY FEB TRADE BALANCE: €16.0B V €17.0BE.
Levels as of 01:20 ET
- Nikkei 225 -1.7%; ASX 200 flat ; Hang Seng closed; Shanghai Composite closed ; Kospi +0.6%.
- Equity S&P500 Futures flat ; Nasdaq100 flat ; Dax -0.1%; FTSE100 -0.5%.
- EUR 1.0950 - 1.0970 ; JPY 131.32 - 131.85 ; AUD 0.6743 - 0.6779 ; NZD 0.6303 - 0.6375.
- Gold +0.1% at $2,040/oz; Crude Oil +0.5% at $81.12/brl; Copper -0.3% at $3.9560/lb.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.