Chinese tech names rise amid focus on trade talks

Asia Market Update: Chinese tech names rise amid focus on trade talks; RBA official sees no current need for QE, various Australian officials address the issue of coal exports to China

General Trend:

- Property sector in Shanghai lags, Jan new home price growth slowed on m/m basis

- Consumer Discretionary and Financial shares rise in Australia

- South Korea utility KEPCO rises over 2% after earnings

- Recent round of US/China trade talks due to conclude today

- US President Trump expected to meet China Vice Premier Liu He on Friday (Feb 22) at 2:30 PM EST

- New Zealand Dollar (NZD) declines amid RBNZ comments

- Little impact on bond market seen from RBA Gov Lowe’s comments

- Thai Baht (THB) declines on weaker trade data

- Alibaba says it will not cut jobs

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.1%

- (AU) Reserve Bank of Australia (RBA) Gov Lowe: Reiterates there's no strong case for a near-term change in cash rate, rate outlook is more evenly balanced than six months ago

- (AU) Reserve Bank of Australia (RBA) Dep Gov Debelle: Need for quantitative easing (QE) is highly unlikely in Australia

- (AU) Australia PM Morrison: Should not leap to conclusions on report of China coal ban, nothing to suggest the move on coal was out of the normal

- (AU) Australia Treasurer Frydenberg: Australia-China trade ties are strong; China has not banned any Australian imports - radio interview

- (AU) Australia Trade Minister Birmingham: No basis to believe China banned coal imports, China processing of coal imports may have slowed

- (NZ) Reserve Bank of New Zealand (RBNZ) Deputy Gov Bascand: Bank capital increase could lead to eventual rate cut, plan may result in marginal tightening in conditions

China/Hong Kong

- Shanghai Composite opened -0.1%, Hang Seng -0.5%

- (US) US/China trade talks said to be 'positive' - CNBC

- (US) US President Trump expected to meet China Vice Premier Liu He on Friday (Feb 22) at 2:30 PM EST; meeting to occur at the White House

- (CN) CHINA JAN NEW HOME PRICES M/M: 0.6% V 0.8% PRIOR (slowest growth since April 2018); Y/Y: 10.0% V 9.7% PRIOR

- (CN) China PBoC sets Yuan Reference Rate: 6.7151 v 6.7220 prior

- (CN) China PBoC Open Market Operation (OMO): Injects CNY40B in 7-day reverse repos v skipped prior; Net: CNY40B injection v CNY0B prior

- (CN) China Finance Ministry (MOF) sells 30-year bonds: yield 3.6902%; bid to cover 2.2x

Japan

- Nikkei 225 opened -0.4%

- (JP) Bank of Japan (BOJ) Gov Kuroda comments after meeting with PM Abe: Did not discuss monetary policy with Abe, Meeting with Abe is a 'regular' event

- (JP) Japan Cabinet Office (Govt) Feb Monthly Economic Report: Downgrades assessment in industrial production, downgrades assessment in corporate profits

- (JP) Allies of PM Abe reportedly floating possibility of fourth term for Prime Min Abe in order to retain influence to pass his agenda – Nikkei

- (JP) Japan Fin Min Aso: Know of US/China talks but can't comment on currency; Trump has not mentioned currencies when discussing trade issues with Japan

- (JP) JAPAN JAN NATIONAL CPI Y/Y: 0.2% 0.2%E; EX-FRESH FOOD (CORE) Y/Y: 0.8% V 0.8%E

Korea

- Kospi opened -0.3%

- (KR) South Korea Vice Fin Min said to be concerned about Feb exports - Local Press

- (KR) South Korea President Moon approval rating declines to 45% v 47% prior - Gallup Poll

Other

- (MY) Malaysia Jan CPI Y/Y: -0.7% v -0.4%e (first drop since 2009)

- (SL) Sri Lanka Central Bank (CBSL) leaves rates unchanged (as expected); Cuts Statutory Reserve Ratio by 100bps to 5.00%

- (TH) Thailand Jan Customs Trade Balance: -$4.0B v -$326Me

North America

- (US) US President Trump: US economy stronger than it's ever been before

- (US) SEMI: Jan North America Billings $1.9B v $2.11B prior, -10.5% m/m and -20.8% y/y

- Newmont Mining [NEM]: Barrick Gold said to have studied offer for the company, said to have studied joint bid with company such as Australia's Newcrest - US financial press

Europe

- (UK) Govt spokesperson: EU's Barnier and UK Brexit Sec Barclay agreed to focus on what we can do to conclude a successful deal as soon as possible

- (UK) Japan Trade Min Seko: Japan/EU trade deal won't apply to the UK if 'No-deal' Brexit

Levels as of 12:45 ET

- Nikkei 225, -0.1%, ASX 200 +0.5%, Hang Seng -0.1%; Shanghai Composite +0.6%; Kospi -0.1%

- Equity Futures: S&P500 flat; Nasdaq100 flat, Dax +0.1%; FTSE100 +0.2%

- EUR 1.1343-1.1343 ; JPY 110.81-110.61 ; AUD 0.7114-0.7073 ;NZD 0.6818-0.6757

- Gold flat at $1,327/oz; Crude Oil -0.1% at $56.88/brl; Copper flat at $2.899 /lb