Another mixed equity session for Asia, Toyota affirmed outlook

General trend

- NZ bond auction was undersubscribed.

- USD trades generally weaker.

-- Japanese companies expected to report earnings include Tokyo Electron, Tokai Carbon, Nikon, Renesas, Nissan Motor, Sumco, Isuzu, Mitsubishi Estate, Inpex, Kansai Paint, Nippon Steel, Kobe Steel, Mitsubishi Gas.

- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.

- Taiwan Semi might issue monthly sales this week.

- China might also release monthly lending data.

Headlines/economic data

Australia/New Zealand

-ASX 200 opens -0.2% at 7,515.

-Fortescue [FMG.AU]: Said to consider cutting up to 1,000 jobs - Australia press.

-(AU) Australia to remove cameras made in China from its Defense Dept – US financial press.

-(NZ) New Zealand sells total NZ$388M v NZ$400M indicated in 2027, 2034 and 2051 bonds.

-(NZ) New Zealand Jan Heavy Truckometer M/M: +0.8% v -1.5 prior.

-(NZ) RBNZ: Liquidity policy review is requesting feedback on significant policy issues.

China/Hong Kong

-Hang Seng opens -0.6% at 21,154.

-Shanghai Composite opens -0.1% at 3,227.

-(CN) China Securities Times: Investors should not blindly participate in the ChatGPT related stock speculation – Front Page Commentary.

-(US) President Biden: China's economy is not functioning very well.

-Reportedly G7 considering sanctioning Chinese firms for aiding Russia military - press.

-(HK) Unnamed China bank lowered mortgage rate in Hong Kong – HK Press.

-(CN) Beijing asks students of primary and middle schools to wear masks - press.

-(CN) China PBOC Open Market Operation (OMO): Sells CNY453B in 7-day reverse repos v CNY641B prior; Net injects CNY387B v CNY486B injects prior.

-(CN) China PBOC sets Yuan reference rate: 6.7905 v 6.7967 prior.

Japan

-Nikkei 225 opens -0.6% at 27,453.

-Mizuho Financial [8411.JP]:Raises long-term prime rate to 1.50% (prior 1.40%).

-(JP) Japan sells ¥250B v ¥250B indicated in 0.005% 10-Year inflation-linked JGB Bonds; bid-to-cover: 3.1x.

-(JP) Japan Jan M2 Money Supply Y/Y: 2.7% v 2.9% prior [multi-year low]; M3 Money Supply Y/Y: 2.3% v 2.5% prior.

-(JP) Japan Jan Tokyo Avg Office Vacancies: 6.3% v 6.5% prior.

-(JP) Japan reportedly may opt for milder restrictions on chip production machinery sales in China than those implemented by US – press.

-(JP) Reportedly Japan govt to raise inbound spending target to 200K per person - Japanese press.

Korea

-Kospi opens -0.5% at 2,470.

-(KR) South Korea Jan Total Bank Lending to Households (KRW): 1,053.4T v 1058.1T prior [largest decline since data started in Jan 2004].

-(KR) South Korea Jan Foreign Net Investment in Local Bonds: -$5.3B v -$2.7B prior [largest monthly outflow since data started in 2000].

-(KR) KDI [state think tank]: Raises South Korea 2023 inflation forecast to 3.5% (prior 3.2%) - financial press.

-(KR) North Korea held Military Parade in Pyongyang - media reports.

North America

-(US) Fed’s Williams (voter): Labor market is very strong, still have work to do on rates; Will need to maintain restrictive rates for a few years.

-(US) Fed's Cook (voter): Strongly committed to both price stability and employment mandates of the FED.

-(US) Fed's Kashkari (voter): No evidence rate hikes are affecting labor market, need to do more to get labor market under control.

-(US) Fed's Waller (voter): Need to see continued moderation in inflation before his outlook changes.

-*(US) TREASURY'S $35B 10-YEAR NOTE AUCTION DRAWS 3.61% V 4.14% PRIOR; BID-TO-COVER RATIO: 2.66 V 2.23 PRIOR AND 2.48 OVER THE LAST 4 AUCTIONS.

Europe

-(NL) ECB's Knot (Netherlands): ECB still has quite some ground to cover on rates, may need 50bps in May if underlying prices do not slow.

-(UK) Jan RICS Housing Balance: -47% v -45%e [lowest since Apr 2009].

Levels as of 00:20 ET

- Nikkei 225, -0.1%, ASX 200 -0.5% , Hang Seng +1%; Shanghai Composite +1% ; Kospi flat.

- Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.6%; FTSE100 +0.3%.

- EUR 1.0734-1.0709 ; JPY 131.82-131.23 ; AUD 0.6959-0.6921 ;NZD 0.6348-0.6302.

- Gold flat at $1,890/oz; Crude Oil flat at $78.50/brl; Copper +0.6% at $4.0732/lb.