Equity markets trade mixed, modest moves seen

Asia market update: Equity markets trade mixed, modest moves seen; CN markets extend declines; Corporate earnings remain in focus.

General trend

- Commodity currencies extend declines; There has been some focus on the recent data weakness in the US; Aussie CPI data due on Wed [Apr 26th].

- Quiet session for gold after prior decline.

- US equity FUTs begin the week lower.

- Australian production updates in focus.

- Fortescue declines after issuing production update [Q3 Iron Ore Shipments 46.3M Wmt, -6% q/q and flat y/y]. CN ore prices extend drop.

- Companies react to recent lithium news out of Chile [Chile President Boric plans to nationalize the country’s lithium industry, to create state-owned lithium production company].

- Nidec expected to report earnings later today.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opens -0.2% at 7,314.

-(AU) Australia releases Defense Strategic Review.

-Bluescope Steel [BSL.A]: Raises H2 EBIT guidance to A$700-770M (prior A$480-550M); The main contributor to the improved outlook for 2H FY2023 underlying EBIT is North Star.

-Fortescue [FMG.AU]: Reports Q3 Iron Ore Shipments 46.3M Wmt, -6% q/q and flat y/y; Guidance for FY23 shipments, C1 cost and capital expenditure remains unchanged.

-South32 [S32.AU] Group production was below plan in the March 2023 quarter due to adverse weather and other temporary impacts.

China/Hong Kong

- Hang Seng opens flat at 20,354.

- Shanghai Composite opens flat at 3,300.

-Evergrande [3333.HK] Said to be seeking to have Yuan-denominated bondholders join offshore debt plan – US financial press.

-ICBC]1398.HK] Being sued by ING in relation to losses on copper agreements - FT.

-(CN) China PBOC Open Market Operation (OMO): Sells CNY115B in 7-day reverse repo: Net injects CNY95B.

-(CN) China PBOC sets Yuan reference rate: 6.8835 v 6.8752 prior.

- (CN) Wuxi-traded Lithium Carbonate Jul Contract Price +14.8%.

Japan

-Nikkei 225 opens +0.2% at 28,631.

-(JP) Bank of Japan (BOJ) Gov Ueda: Reiterates not at stage to talk about how to normalize YCC; hard to say how much wage growth needed for price goal.

-(JP) Japan FSA Official Amaya: FSA is following up on how brokerage firms sold AT1 bonds.

- (JP) Japan PM Kishida: Not thinking now about possibility of snap election; will take by-election results as encouragement from public to conduct important policy tasks [follows ruling bloc's key victories in gubernatorial elections].

South Korea

- Kospi opens -0.2% at 2,538.

Other Asia

- (SG) Singapore Mar CPI M/M: 0.5% v 0.6% prior; Y/Y: 5.5% v 5.5%e; CPI Core Y/Y: 5.0% v 5.1%e.

-Adani Ports [ADSEZ.IN] To repurchase up to $130M of its USD denominated 2024 notes.

North America

-(US) US deposits -$76.2b in the week ended April 12TH (V ROSE BY $8B prior); US commercial bank loans and leases -$9.3B [unadjusted basis] - update from Apr 21st.

-(US) House of Rep Speaker Kevin McCarthy (R-CA): On Sunday said the House would vote on his spending and debt bill this week, and invited President Joe Biden to discuss the debt ceiling with him.

-Tesla [TSLA]: Said to be preparing to export Model Y from Shanghai to Canada (first time China-made vehicles would ship to NA) - financial press.

Europe

- Credit Suisse [CSGN.CH] Reports Q1 (CHF) Adj Pretax -1.32B v -1.01B y/y, Rev 18.5B v 4.41B; Includes write-down of 15.0B in AT1 capital notes.

- (EU) ECB's Wunsch (Netherlands): ECB to keep raising rates unless wage growth slows; would not be surprised if deposit rate goes to 4.0% [currently 3.00%] - FT.

Levels as of 01:20 ET

- Nikkei 225, +0.1%, ASX 200 flat , Hang Seng -1.1%; Shanghai Composite -0.2% ; Kospi -0.8%.

- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.4%, Dax -0.3%; FTSE100 -0.2%.

- EUR 1.0996-1.0976 ; JPY 134.47-133.89 ; AUD 0.6698-0.6671 ;NZD 0.6148-0.6129.

- Gold -0.1% at $1,988/oz; Crude Oil -1.1% at $76.94/brl; Copper -0.2% at $3.9837/lb.