Equities again trade mixed, quiet session for USD/JPY, terrible NZ data seen, Waller spoke

Asia Market Update: Equities again trade mixed; Quiet session for USD/JPY; Terrible NZ data seen; Waller spoke, UST yields rise.

General trend

- Chinese markets rise after prior decline.

- Aussie equities also rose.

- Japanese banks lag.

- Big CN banks decline after issuing earnings [ICBC, China Everbright Bank].

- Japan PM Kishida to give press conference on Mar 28th at 6:10 PM local time
[Reminder] Australian govt to recommend minimum wage in line with inflation – financial press [ In its submission to the Fair Work Commission’s 2023-24 Annual Wage Review to be unveiled on Thursday, the Labor government will recommend the increase to ensure “the real wages of the low-paid workers do not go backwards”].

-Tokyo CPI data due on Fri.

-US holiday on Fri.

Headlines/economic data

Australia/New Zealand

-ASX 200 opens +0.2% at 7,834.

-AUSTRALIA FEB RETAIL SALES M/M: 0.3% V 0.4%E [Looking past the temporary and one-off impact of the Taylor Swift concerts, underlying growth in retail turnover was up only 0.1 per cent in trend terms. After a period of higher volatility from November through to January, underlying spending has stagnated.]

-Australia Feb Q4 Job Vacancies Q/Q: -6.1% v -0.8% prior.

-Australia Feb Private Sector Credit M/M: 0.5% v 0.4%e; Y/Y: 5.0% v 4.9% prior.

-Australia Mar Consumer Inflation Expectation Survey: 4.3% v 4.5% prior.

-Beach Energy [BPT.AU]: To achieve efficiency and operational cost improvements, a targeted headcount reduction of 30% will be delivered across the business.

-New Zealand RBNZ's Gov Orr: Sees signs for more normalized rates on horizon.

-New Zealand names 2 members to the RBNZ policy committee [Carl Hansen and Prasanna Gai].

-NEW ZEALAND MAR ANZ BUSINESS CONFIDENCE: 22.9 V 34.7 PRIOR [the GDP data seems to have given things a decent shunt south].

-New Zealand Mar ANZ Consumer Confidence: 86.4 v 94.5 prior [Late-month responses were markedly weaker than those that preceded the GDP data.].

-New Zealand Dep PM Peters: Open to relaxing foreign home buyer ban.

- New Zealand sells total NZ$500M vs. NZ$500M indicated in 2029 and 2034 bonds

-(NZ) LGFA cancels Apr 3 bond auction.

China/Hong Kong

-Hang Seng opens flat at 16,378.

-Shanghai Composite opens -0.2% at 2,988.

- China Pres Xi said to have told China’s financial cadres that active monetary policy toolkit must include ‘more treasury bonds trade by PBOC’ to inject liquidity into the economy, which has not used in more than two decades - SCMP.

-China smelter group will not set any Q2 price guidance for copper TC/RC; proposes to cut production by 5-10% – financial press.

-China PBOC sets Yuan reference rate: 7.0948 v 7.0946 prior.

-ICBC [1398.HK] Reports FY23 (CNY) Net 365.1B v 355.5Be, NII 655.0B v 675.0Be.

-CIFI Holdings [884.HK]: Halted.

-China Pres Xi: China is planning major moves on deepening reform seeking to build first class business environment; Domestic economy is healthy and sustainable; will not stop reforming - comments from meeting US executives.

-China's Beijing City said to scrap limit related to divorced couples in home purchases adopted in 2021 - press.

-China PBOC Open Market Operation (OMO): Sells CNY250B in 7-day reverse repos; Net injects CNY248B v injects CNY247B prior.

Japan

-Nikkei 225 opens -1.1% at 40,324.

-Japan Currency Chief Kanda: Not ruling out any options regarding FX; Seeing speculative moves behind the weak yen; Exchanged view on financial markets in a meeting with BOJ and FSA [from Mar 27th].

-Japan Chief Cabinet Sec Hayashi: Reiterates watching FX moves with high sense of urgency, will not rule out any options against excessive moves.

-BOJ Summary of Opinions for March: Based on recent data and other sources, it can be judged that it is now within sight that the price stability target will be achieved toward the end of the projection period of the January 2024 Outlook Report.

-Bank of Japan (BOJ) announcement related to outright bond buying operations: For 3-5 Years; 5-10 Years and 10-25 Years; leaves amounts unchanged vs prior.

-Former BOJ Gov Shirakawa said BOJ policy shift not yet a turning point for Japan economy – Nikkei.

-Japan releases weekly flows data [period ended Mar 22nd]: Foreign buying of Japan equities: -¥891.4B v -¥1.5T prior; Japan buying of foreign bonds: +¥762.3B v -¥803.9B prior; Foreign buying of Japan bonds [long-term debt securities]: -¥3.9T v ¥2.2T prior.

-TEPCO [9501.JP]: Expected to apply load fuel into Niigata reactor - Japanese press.

- Japan govt to end electricity and gas subsidies starting in June - press.

- S&P affirms Japan sovereign rating at A+; Outlook Stable.

- Toyota Motor [7203.JP]: Reports Feb Parent-only Vehicle Production -2.6% y/y.

Korea

-Kospi opens flat at 2,753.

-South Korea: Affirms targets WGBI inclusion in 2024.

-Hynix: Says no decision made on site for US chip-packaging plant.

North America

-(US) Fed's Waller (voter, hawk): Recent data warrant fewer cuts or a later start to cutting.

-S&P affirms United States sovereign rating at AA+; Outlook Stable.

-Former Fed officials said bank liquidity rules should be tightened – US financial press.

-Norfolk Southern [NSC]: CEO: Baltimore is important port for us - US media interview.

-GEV and SOLV to be added to the S&P 500 Index, effective Apr 2nd; XRAY demoted to S&P400 Index.

-SLB [SLB]: Aker Carbon Capture Announces Agreement to form Joint Venture with SLB; SLB will pay NOK 4.12 billion in cash to ACC for the purchase of 80% of the shares in Aker Carbon Capture Holding AS.

Europe

-Swiss National Bank (SNB) Vice Chairman Schlegel: Lower inflation pressure allowed us to lower interest rates.

- (UK) BOE Haskel warns against rushing to cut rates as wage growth remains too high; Believe rate cuts should be a long way off - FT.

Levels as of 01:20 ET

- Nikkei 225, -1.5%, ASX 200 +1% , Hang Seng +1.6%; Shanghai Composite +0.9% ; Kospi -0.3%.

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

- EUR 1.0828-1.0808 ; JPY 151.54-151.25 ; AUD 0.6541-0.6515 ;NZD 0.6008-0.5979.

- Gold +0.1% at $2,215/oz; Crude Oil +0.6% at $81.81/brl; Copper +0.4% at $4.0282/lb.