Asian equity markets trade mixed

Asia Market Update: Asian equity markets trade mixed, in line with US session; Next week’s Fed meeting and forecasts in focus

Headlines/Economic Data

General Trend:

-In weekly period, US-based Japan equity funds had $500M in outflows (largest outflow since July), says Lipper; Uncertainty related to government’s Moritomo scandal lingers

-AUD/JPY tracks declines in Japanese equities

-BoJ Gov Kuroda may become longest serving Governor in history of BoJ, according to Japanese press

-PBoC conducts second 1-year medium-term lending facility in March as quarter end approaches; skips daily open market operation (OMO)

-Singapore Feb Non-oil exports sees largest y/y decline in almost 1.5 years; Exports to China -23.6% y/y

-Next week’s US Fed meeting and rate projections in focus (Tuesday March 20 to Wednesday 21st)

- G20 Meeting due to be held In Argentina on Monday-Tuesday (March 19-20th)

Australia/New Zealand

-ASX 200 opened +0.4%; closed: +0.5%

- ASX 200 Telecom Index +1%, Utilities +0.9%, REIT +0.9%, Resources +0.8%, Consumer Discretionary +0.7%; Financials -0.5%

-Wesfarmers [WES.AU]: Gains over 5% after announcing planned spin-off of supermarket chain

-(AU) RBA Assist Gov Debelle: Expects to see repricing of assets if rates continue to rise'; No initial comments on monetary policy

-(AU) Australia sells A$500M v A$500M indicated in 2.75% Nov 2028 bonds, avg yield 2.7124% v 2.9052% prior, bid to cover: 4.50x v 4.50x prior

-(NZ) New Zealand Feb Non-Resident Bond Holdings: 59.7% v 60.0% prior

-(NZ) New Zealand Feb Business Manufacturing PMI: 53.4 v 54.4 prior

China/Hong Kong

-Hang Seng opened -0.6%, Shanghai flat

-Hang Seng Materials Index -1.2%, Energy -1.1%, Financials -0.3%; Utilities +0.7%

-China Unicom [0762.HK] rises over 1% after reporting FY17 results

-(CN) PBOC CONDUCTS 1-YEAR CNY327B MEDIUM TERM LENDING FACILITY (MLF) AT UNCHANGED INTEREST RATE OF 3.25%

-(CN) China PBoC Open Market Operation (OMO): Skips OMO v CNY40B injected prior in 7 and 28-day reverse repos: Net injection: v CNY40B injection prior; For the week, the PBoC injected a net of CNY377.5B

-(CN) PBOC sets yuan reference rate at 6.3340 v 6.3141 prior

-(CN) China sells 30-year bonds: avg yield 4.22% v 4.26%e; bid to cover 2.56x

-(HK) Hong Fin Sec Chan: Considering tax on vacant homes

-(CN) China PBoC Q1 Survey: Entrepreneurs Confidence Index: 74.3% v 71.8% q/q

-(CN) US Chamber of Commerce spokesperson: urges Trump administration to not impose tariffs against China; will hurt Americans and could lead to trade war

-Alibaba [BABA]: Reportedly said to explore plan to list shares in China - press

Japan

-Nikkei 225 opened +0.3%; closed -0.6%

-TOPIX Electric Appliances Index -0.9%; Securities +0.3%

-(JP) Japan Lower and Upper Houses of Diet approve BoJ Gov Kuroda to additional 5-year term; also approve Amamiya and Wakatabe as Dep Governors

-(JP) Japan Jan Final Industrial Production M/M: -6.8% v -6.6% prelim; Y/Y: 2.5% v 2.7% prelim

Korea

- Kospi opened +0.1%

-(CN) China President Xi could send delegation to North Korea in late March - South Korean Press [**Reminder: North and South Korea are expected to hold their 3rd summit in late April at the border]

-(KR) South Korea and US said to plan to announce military drill plans next week - South Korea Press

North America

-US equity markets ended mixed, S&P 500 declined for 4th straight session (longest losing streak of 2018): Dow +0.5%, S&P500 -0.1%, Nasdaq -0.2%, Russell 2000 -0.5%

-S&P500 Materials -1.3%

-(US) Special Counsel Mueller subpoenas Trump Organization demanding documents about Russia - NYT

-(US) JAN TOTAL NET TIC FLOWS: +$119.7B V -$122.5B PRIOR; NET LONG-TERM TIC FLOWS: $62.1B V $23.3B PRIOR; China Total holding of US Treasuries: $1.17T v $1.18T prior (six month low)

-Monsanto [MON]: Bayer reportedly hits US regulatory hurdles on Monsanto antitrust approval; US regulators reportedly still have concerns that the merger would harm competition and are not satisfied with the proposed asset sales - press

-Qualcomm [QCOM]: Rises over 4% in the afterhours. Former Qualcomm Chairman Jacobs said to seek funding for buyout of the company, says the FT

Europe

-(UK) UK and EU officials agree to take part in 'intensive talks' to resolve Irish border issue - press

-(EU) EU said to see 'little chances' for WTO suit versus steel tariffs announced by the US - German Press

-NEX Group [NXG.UK]: Confirms deal talks with CME are at an early stage and there can be no certainty that an offer for NEX will be made

Levels as of 01:00ET

- Hang Seng flat; Shanghai Composite flat; Kospi -0.2%

- Equity Futures: S&P500 flat; Nasdaq100 flat, Dax -0.1%; FTSE100 flat

- EUR 1.2295-1.2314 ; JPY 105.83-106.39; AUD 0.7770-0.7804 ;NZD 0.7241-0.7282

- Feb Gold -0.1% at $1,316/oz; Feb Crude Oil flat at $61.17/brl; Mar Copper -0.1% at $3.122/lb