Equities generally worsened during the session

 Asia market update: Equities generally worsened during the session; Recent US inflation data in focus amid light Asian calendar.

General trend

- On Wed, NASDAQ led modest rebound after Feb CPI allays some inflation fears.

- US equity FUTS decline in Asia.

- 20-year JGB yields extend drop after yesterday’s bond auction.

- Japan 10-year JGB FUTs decline to the lowest level since Nov 2009.

- South Korea Constitutional Court in focus [Reminder Feb 25th 2025: (KR) South Korea Constitutional Court to hold final hearing of Yoon impeachment trial on Tues [Feb 25th]; the hearing is due to open at 2 pm local time; some expect the court to deliver a verdict within 2 weeks after today’s hearing – Press].

Headlines/economic data

Australia/New Zealand

- ASX 200 opens -0.1% at 7,785.

- Hearing Morgan Stanley cut Australia stocks to Underweight - US financial press.

- Australia Mar Consumer Inflation Expectation Survey: 3.6% v 4.6% prior [lowest since 2021].

- Australia sells A$150M v A$150M indicated in 2032 indexed bonds: Avg Yield: 2.1017%; bid-to-cover: 3.87x.

- Australia corporate watchdog (ASIC) said to warn payday lenders might be breaching consumer laws - US financial press.

- New Zealand Jan Net Migration: 2.38K v 3.8K prior.

- New Zealand sells total NZ$500M vs. NZ$500M indicated in 2030, 2034 and 2054 bonds.

China/Hong Kong

- Hang Seng opens flat 23,616.

- Shanghai Composite opens flat at 3,371.

- China Securities Daily: Yuan has 'room' to appreciate as China assets demand rises; notes declines in the USD index and US equities.

- China PBOC Open Market Operation (OMO): Injects CNY35.9B in 7-day reverse repos; Net drains CNY68.6B.

- China PBOC sets Yuan reference rate: 7.1728 v 7.1696 prior.

- China said to have told govt departments to be more proactive in economic work and adopt new polices when needed.

- SCMP China stock 'rerating' leads to widening premiums in ADRs for Alibaba and Li Auto.

- SCMP: China develops new high-protein corn to replace foreign soybeans.

- China Securities Journal: 'Tight' supply fuels 'rally' in 'niche' metals including antimony and bismuth; notes the Chinese government's export controls on niche metals in addition to the temporary embargo on cobalt in the Congo.

- Alibaba [9988.HK]: Unveils AI super assistant application Quark - Press.

- China Finance Ministry (MOF) releases guidelines for managing special funds for clean energy development; special funds to be extended and implemented 2025-2029.

Japan

- Nikkei 225 opens +0.7% at 37,081.

- BOJ Gov Ueda: Food prices are currently helping to push up inflation; Reiterates price trend is still 'somewhat' below 2.0% target; Size of Japan's monetary base, balance sheet somewhat too big now, which is why we are slowing bond buying.

- BOJ said to have good reasons to oppose JGB bond market action [from Mar 12th].

- Japan releases weekly flows data [period ended Mar 7th]: Foreign buying of Japan equities: -¥220.5B v -¥708.3B prior; Japan buying of foreign bonds: -¥355.9B v +¥1.51T prior; Foreign buying of Japan bonds [long-term debt securities]: +¥686.4B v ¥776.5B prior.

- Japan Fin Min Kato: Domestic economy is in state of experiencing supply shortage, rather than lack of demand.

- Japan Labor Union: UA Zensen: Members received avg 5.37% increase in monthly wages for full-time workers [Reminder Mar 4th: Japan Industrial Union [UA Zensen]: Member unions' average wage demand request in this year's wage negotiations stands at 6.11% - US financial press].

Korea

- Kospi opens +0.9% at 2,598.

- South Korea to close 11 schools located near the Constitutional Court on the day of sentencing in the Yoon impeachment case; Transport Ministry set areas near the court as 'no-fly' zones from Mar 13th [Thurs] - Press.

- Follow Up: South Korea said to barricade Constitutional Court building - Press.

- South Korea 'to prepare measures' on US steel tariffs in Mar - US financial press.

- South Korea Trade Min Cheong plans to visit the US Mar 13-14th in order to discuss tariffs and cooperation.

- South Korea Opposition Party: Confirms parliament to vote on the Commercial Act today.

- Bank of Korea (BOK) continues to warn about household debt growth, calls for additional regulations - Yonhap.

Other Asia

- (TW) Taiwan Central Bank (CBC) Gov Yang Chin-long: Current inflation is stable.

North America

- (US) FEB CPI M/M: 0.2% V 0.3%E; Y/Y: 2.8% V 2.9%E (Core YoY is lowest since Apr 2021).

- (US) JPMorgan Strategists say the 'worst' of US equity correction may be 'over' ; credit markets are not pricing in recession risks; US equity ETFs have continued to have inflows - US financial press.

- US Pres Trump: Today's inflation numbers are very good news; Will respond to EU counter-tariffs.

- US Senator Schumer: GOP doesn't have enough votes for cloture on stopgap; Hopes GOP will allow a vote on 30-day stopgap; A 30-day stopgap would avoid a govt shutdown.

- Super Micro [SMCI]: Singapore Prosecutors: Dell and Super Micro fraud case involves transactions worth $390M - Press [**Reminder Mar 3rd: Reportedly Singapore is investigating whether Dell Technologies Inc. and Super Micro Computer Inc. servers shipped to Malaysia housed Nvidia chips barred from China - financial press].

Europe

- (US) US Pres Trump: Not happy with the EU; We'll absolutely put tariffs on cars; Reiterates his respect for China's XI.

- Poland President Duda said to have urged the US to move nuclear warheads to 'Polish territory' - FT.

Levels as of 01:20 ET

- Nikkei 225, +0.2%, ASX 200 -0.5% , Hang Seng -1.1%; Shanghai Composite -0.6% ; Kospi -0.3%.

- Equity S&P500 Futures: -0.5%; Nasdaq100 -0.8%, Dax -0.3%; FTSE100 +0.6%.

- EUR 1.0897-1.0881 ; JPY 148.37-147.82 ; AUD 0.6333-0.6306 ;NZD 0.5743-0.5720.

- Gold +0.2% at $2,951/oz; Crude Oil -0.2% at $67.54/brl; Copper -0.2% at $4.8335/lb.