China said to be cracking down on lending amounts

Asia Market Update: Quiet session with most markets closed for holiday; China said to be cracking down on lending amounts, FX trades in tight ranges.

General Trend

- Markets traded mixed with most markets closed for holiday and US closed Friday, there was little catalyst for a fresh direction.

- Japan Senior LDP member suggested there could be a need for additional extra budget, however PM Suga [for now] seems to have dismissed it, noting there is enough in current budget to support economy through COVID.

- Europe continues to struggle with a plan to come out of lockdown as COVID cases continue to soar. While Japan said to be mulling new lockdown around Tokyo.

- BOJ moves forward on proof of concept for central bank digital currency.

- In China the PBOC said to have asked banks to rein in their lending and is also in consultation with the CBIRC considering a surcharge on capital adequacy ratios. Reminder China PBOC typically makes adjustments to the RRR this time of year.

- IMAX reports a record domestic opening weekend showing “Godzilla v Kong”.

- Softbank making investment into a genetic testing company, Invitae (NVTA), official announcement expected later today.

- Looking ahead to tomorrow, RBA expected to leave cash target, yield target and bond buying unchanged.

- Also on Tuesday, the IMF is expected to raises its global GDP outlook.

Headlines/Economic Data

Australia/New Zealand

-ASX 200 closed for holiday.

- QAN.AU Australia airline ticket sales at pre-pandemic levels over Easter weekend - UK press.

- (AU) Australia Mar Melbourne Institute Inflation M/M: 0.4% v 0.1% prior; Y/Y: 1.8% v 1.6% prior.

Japan

-Nikkei 225 opened +0.8%.

- 3298.JP Trading halted: Will offer opinion on Starwood bid after studying tender offer of ¥20,000/unit.

- (JP) Bank of Japan (BOJ): Has begun digital currency experiments, to last 1-year; Q4 Output gap -2.01% (negative for 3rd straight quarter)

- (JP) Japan Feb Final PMI Services: 48.3 v 46.5 prelim (confirms 14th straight contraction)

- (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: raises amounts on 1-yr, 1-3 year and 3-5 year buying (in line with guidance)

- (JP) Japan PM Suga said to be considering new lockdown in Tokyo area due to COVID variant spreading - local press.

- (JP) Japan Chief Cabinet Sec Kato: Watching movement of China carrier near Okinawa.

- (JP) Japan PM Suga: We can respond flexibly to any necessary spending under the previous fiscal year's third extra budget and this fiscal year's state budget [to help respond to variant]- speaking to Parliament.

Korea

-Kospi opened +0.3%.

- (KR) South Korea Chamber of Commerce and Industry (KCCI) Q2 Manufacturers' Business Sentiment: 99 v 75 prior (6-year high)

- (KR) According to a poll of more than 35 publicly traded South Korea companies, hiring plans are 40% lower y/y - Yonhap.

- (KR) South Korea Jan Foreign Reserves: $446.1B v $447.6B prior, lower on strong USD.

- 066570.KR Confirms ending production and sales of smartphones due to continued losses, to end operations by July 31st.

- (KR) South Korea sells KRW3.35T v KRW3.3T indicated in 30-year treasury bonds: Avg yield 2.235%.

China/Hong Kong

-Hang Seng closed; Shanghai Composite closed.

- (CN) China PBOC said to have asked lenders to keep credit supply under control and not allow it to go beyond last year levels; PBOC and CBIRC also considering additional surcharge on top of mandatory capital adequacy ratios of 0.25-1.50% in order to help prevent system risks - press.

- (CN) Market watchers note that in March 76 companies set to IPO on China Shanghai Star Board have cancelled/paused their plans - Chinese press.

- (CN) China Govt announces 5 year grain production target of not less than 650M metric tons/year.

North America

- JNJ Biden Administration has placed JNJ in charge of the contracted plant in Maryland that ruined 15M COVID vaccine doses, also has requested the plant only make JNJ vaccine and not AstraZeneca as well - press.

- TPCO Rival group, led by Choice Hotels, said to have made a fully financed ~$680M bid, may declare the bid superior to Alden bid, but would have the opportunity to match it - press.

- (US) MAR CHANGE IN NONFARM PAYROLLS: +916K V +660KE; UNEMPLOYMENT RATE: 6.0% V 6.0%E (Friday)

Europe

- (DK) Greenland to hold legislative elections April 6th, which is largely seen as a decision on controversial rare earth and uranium mining project south of the island in Kuannersuit, which would help to diversify away from only fishing income.

- AF.FR France and EU reach agreement in principal on aide package – press.

- (UK) PM Johnson calling on everyone in UK to take COVID tests 2x a week under a new system of COVID passports being looked at for widespread use - press citing plans for re-opening after lockdown.

Levels as of 01:15ET

- Hang Seng closed; Shanghai Composite closed; Kospi +0.0%; Nikkei225 +0.8%; ASX 200 closed.

- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.1%, Dax +1.1%; FTSE100 +0.9%.

- EUR 1.1772-1.1755-; JPY 110.75-110.53; AUD 0.7625-0.7603; NZD 0.7036-0.7018.

- Commodity Futures: Gold -0.2% at $1,724/oz; Crude Oil -0.9% at $60.92/brl; Copper +0.9% at $4.05/lb.