Equity markets rise, trade talk details start to trickle out

Asia Market Update: Equity markets rise; Trade talk details start to trickle out; CN said to consider certain tariff exemptions like during the prior trade war; US Tech earnings also in focus.

General trend

- Japanese companies due to report earnings include Advantest, Nomura Holdings, Keyence, Tokyo Steel, Hitachi Construction.

Headlines/economic data

Australia/New Zealand

- ASX 200 closed for holiday.

China/Hong Kong

-Hang Seng opens +0.8% at 22,080.

-Shanghai Composite opens +0.1% at 3,300.

-China said to consider exempting some US goods from tariffs, relates to the 125% tariffs - US financial press; China is considering removing the additional levies related to medical equipment and certain industrial chemicals [such as ethane]; China also said to have exempted certain semiconductors from 125% tariffs; China may subject these chips to the 13% value-added tax.
--Some China firms said to note US chips exempted from 'new tariff' - Caijing.

- China PBOC Gov Pan: Affirms monetary policy to be 'moderately loose' - comments at G20 meeting.

- China PBoC to conduct CNY600B in 1-year MLF on Fri, Apr 25th.

-US Pres Trump: Had meeting with China this morning; We've been meeting with China.

-(US) Pres Trump: Boeing should default China for not taking the beautifully finished planes that China committed to purchase - Truth Social post.

-China Finance Minister Lan Foan: Reiterates trade and tariff war impact global economic stability - comments at G20 meeting in Washington.

- China Foreign Min Wang Yi: Welcomes more Swiss firms to invest and do business in China.

- TP-Link said to face US criminal antitrust investigation related to national security risk and pricing strategies - US financial press.

-Baidu: Launches Ernie 4.5 Turbo and reasoning model Ernie X1 Turbo; cuts pricing further for 2 new AI models.

-China is helping exporters find domestic consumers; cites interviews with e-commerce firms - China Securities Journal.

-China PBOC Open Market Operation (OMO): Injects CNY218B in 7-day reverse repos; Net drains CNY28B v injects CNY3.5B prior.

-China PBOC sets Yuan reference rate:7.2066 v 7.2098 prior.

-China banks’ wealth products said to have fund inflows in Apr – Chinese press.

-China's top legislature National People's Congress Standing Committee (NPCSC) said to hold meeting on April 27-30th - press.

Japan

-Nikkei 225 opens +1% at 35,387.

-JAPAN APR TOKYO CPI Y/Y: 3.5% V 3.3%E [highest since Apr 2023]; CPI (EX-FRESH FOOD) Y/Y: 3.4% v 3.2%E [highest since Apr 2023]; CPI (ex-fresh food/energy) Y/Y: 3.1% v 2.8%e.

-Japan Fin Min Kato met with US Treasury Sec Bessent today; Agreed with Bessent to keep talking closely on currencies.

-Japan Chief Cabinet Sec Hayashi: Japan and US to continue close and constructive talks on FX.

- BOJ Gov Ueda: Will raise rates if the expected outlook materializes; Uncertainty regarding global economy heightening; Must scrutinize the impact on business confidence; Tariffs may impact consumer sentiment and market prices.

- Bank of Japan (BOJ) announcement related to outright bond buying operations: Leaves bond buying amounts unchanged.

-Japan sells ¥4.5T vs. ¥4.5T indicated in 3-Month Bills; Avg Yield: 0.3793% v 0.3716% prior; bid-to-cover: 3.21x v 2.31x prior.

-Japan said to buy an additional 2.5M tons of corn from US this year compared typical annual imports of ~10M tons- Japan Press.

-Japan said to consider boosting US corn imports amid trade talks - press.

- Rice importers in Japan plan to increase purchases by 'twentyfold' led by US grain - Nikkei; Japan said to also consider buying more US soybeans as part of deal.

- Japan said to table automaker investment plans in US tariff talks; Will decide on tariff response package later on Friday - press.

- Japan PM Ishiba: Decided on package of measures to deal with US tariffs.

-Japan Economic Revitalization Min Akazawa: Reiterates not fact that government is mulling extra budget currently, won't say specifics about plans for US trade talks

- SEAJ: Japan Mar Chip-Making Equipment Billings Y/Y: +18.2%.

- USD/JPY: Note: Japan Gotobi day in focus, refers to the 5th day of the month and dates that are multiples of 5; accounts are generally settled on Gotobi days.

-Goldman Sachs said to see USD/JPY declining to ¥135 over the next 12 months - US financial press.

Korea

- Kospi opens +0.9% 2,544.

- South Korea Fin Min Choi: US and South Korea financial authorities hold separate talks on currency exchange policy; Will try our best to produce meaningful results by July 8th; Technical level talks with US will be held in Seoul on May 15-16th.

-South Korea Trade Min Cheong: South Korea and US agree in principle to trade talks;

-US Navy Sec to visit South Korea shipyard next week - Local press.

-Donald Trump Jr to meet with South Korea business leaders on Apr 30th - Yonhap.

Other Asia

-China said to restrict supply of rare earth magnets to India - Press.

-Indonesia Exchange said to delay the implementation of short-selling until Sept.

-Philippines Trade Sec Roque: To meet USTR and US Commerce Sec on Apr 28th-May 2nd.

Levels as of 01:20 ET

- Nikkei 225, +1.9%, ASX 200 closed , Hang Seng +1.4%; Shanghai Composite +0.2% ; Kospi +1%.

- Equity S&P500 Futures: +0.5%; Nasdaq100 +0.5%, Dax +0.3%; FTSE100 -0.1%.

- EUR 1.1393-1.1315 ; JPY 143.80-142.58 ; AUD 0.6420-0.6392 ;NZD 0.6002-0.5975.

- Gold -0.6% at $3,329/oz; Crude Oil +0.8% at $63.28/brl; Copper -0.7% at $4.8462/lb.