USD index FUTs decline after prior gain, UST FUTS fluctuate, Aussie yields decline
|Asia Market Update: Asia trades broadly higher; USD index FUTs decline after prior gain, UST FUTS fluctuate, Aussie yields decline; JNJ received US FDA emergency use authorization for vaccine.
General Trend
- Asian indices have remained higher after opening in the green; Tech cos. are moving generally higher;
- Gainers in Japan include Information & Communication [Softbank Group rose over 4.5%], Electric Appliances, Real Estate and Financial firms; Australian Financial, Telecom, Consumer Discretionary and Energy firms rise [Resources index lags]
- Shanghai Composite ended the morning session near the opening level [gainers included Consumer Discretionary, IT and Industrial firms; Rare earth stocks rise on comment from China Min; financials lagged]; Hang Seng is off of the session’s best levels [TECH index rises; Property index extended decline; CNOOC drops on NYSE delisting move; SMIC, ZTE and Xiaomi rise as Chinese Min commented on 5G and Chips; Large CN telecoms also rise]
- Results of public consultation for Hang Seng index reconstruction due today
- China PMIs missed ests
- RBA again stepped up bond purchases
- RBA is due to hold monetary policy decision on Tuesday (March 2nd)
- Companies expected to report during the NY morning include NRG Energy, Perrigo Co., Stratasys, DENTSPLY
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- (AU) AUSTRALIA Q4 CORP OP PROFIT Q/Q: -6.6% V 1.5%E; INVENTORIES Q/Q: 0.0% V 0.2%E
- (AU) Australia Jan Home Loans Value M/M: 10.5% v 2.0%e; Investment lending M/M: 9.4% v 3.3%e
- (NZ) New Zealand PM Ardern: Auckland will return to lockdown following detection of infected person in the city
- (AU) Reserve Bank of Australia (RBA) to buy A$4.0B in Govt bonds v A$3.0B prior
Japan
- Nikkei 225 opened +1.6%
- (JP) Japan Feb Final PMI Manufacturing: 51.4 v 50.6 prelim (highest since Dec 2018)
- (JP) Japan Govt and ruling party said to be in talks about possible additional cash payments to low income households to assist with pandemic impact - press
Korea
- Kospi closed
- (KR) South Korea Feb Trade Balance: $2.7B v $1.9Be; Semiconductor Exports y/y: +13.2% v +21.7% prior (6th consecutive month of double digit growth); Exports to China y/y: 26.5% v +22.0% prior
- (KR) South Korea President Moon: South Korea will reach herd immunity (to coronavirus) by Nov
China/Hong Kong
- Hang Seng opened +1.7%; Shanghai Composite opened +0.6%
- (CN) CHINA FEB MANUFACTURING PMI (GOVT OFFICIAL): 50.6 V 51.0E (12TH MONTH OF EXPANSION, 3ND CONSECUTIVE MONTH OF SLOWING EXPANSION); Non-manufacturing PMI: 51.4 v 52.0e; Composite PMI: 51.6 v 52.8 prior; Decline in PMI seen as an effect of holiday
- (CN) CHINA FEB CAIXIN PMI MANUFACTURING: 50.9 V 51.4E (10TH MONTH OF EXPANSION)
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY20B in 7-day reverse repos prior; Net drain CNY10B v Net injects CNY0B prior
- (CN) China PBOC sets Yuan reference rate: 6.4754 v 6.4713 prior
- (CN) China National Development and Reform Commission (NDRC) said to be increasing 2021 minimum purchase price for some rice products in China
- (CN) China Ministry of Industry and Information Technology (MIIT) Xiao: To improve strength of China's supply chain, push for growth in chip, 5G and green energy, want to see global cooperation in chip sector – press
- (HK) Macau Feb Casino Rev (MOP): 7.3B v 8.0B prior; Y/Y: +135.6% v 145%e
Other
- (IR) Iran has rejected offer related to direct talks with the US on nuclear deal, seeking for sanctions to be eased – FT
North America
- JNJ RECEIVES U.S. FDA EMERGENCY USE AUTHORIZATION (EUA) FOR JANSSEN COVID-19 VACCINE (AD26.COV2.S) FOR ACTIVE IMMUNIZATION FOR THE PREVENTION OF COVID-19 CAUSED BY SARS-COV-2 IN INDIVIDUALS 18 YEARS OF AGE AND OLDER
- (US) Senate Democrats confirm removing minimum wage increase from coronavirus bill - Press
Europe
- (UK) Chancellor of the Exchequer Sunak (Fin Min): more covid support to come in budget; if we don't do anything, debt will continue to rise
- (UK) Chancellor of the Exchequer Sunak (Fin Min) expected to announce £5.0B in additional grants to help pandemic impacted businesses as part of budget announcement next week – press
- LOGN.CH Raises FY21 non-GAAP Op ~$1.1B; Rev +63% y/y at cc (prior Op ~$1.05B; Rev +57% to +60% y/y); gives initial FY22 and raises long term targets
Levels as of 12:15ET
- Hang Seng +1.2%; Shanghai Composite +0.7%; Kospi closed; Nikkei225 +2.2%; ASX 200 +1.7%
- Equity Futures: S&P500 +0.8%; Nasdaq100 +1.2%, Dax +0.6%; FTSE100 +0.6%
- EUR 1.2101-1.2071; JPY 106.70-106.36; AUD 0.7772-0.7709; NZD 0.7288-0.7235
- Commodity Futures: Gold +1.2% at $1,749/oz; Crude Oil +1.7% at $62.50/brl; Copper +1.1% at $4.15/lb
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