HK tech stocks rip – Focus on BoJ, FOMC tomorrow

General trend

- Hong Kong tech stocks ripped, led by BYD +8% after announcing 1,000-volt charging architecture enabling cars to travel 400km on just a five-minute charge. Also Baidu +9%, Alibaba +8%, with the Hang Seng Index outperforming Asia, +1.9%.

- Nikkei hit 38K for first time since late Feb, as Japanese trading houses Marubeni, Mitsui, Mitsubishi, Itochu and Sumitomo +4-6% as Berkshire raised holdings yet again.

- Some analysts put down the continued good mood for Hong Kong stocks on hopes that Trump-Xi talks could ease trade tensions on the back of Pres Trump commenting overnight that Xi “will be coming in the not too distant future”. However, it should be noted that the Shanghai Composite was much more muted.

- A different story in Indonesia, with stocks -6%, with trading halted at one point, amid economic concerns and weaker spending ahead of Eid holiday.

- With BOJ rate decision tomorrow Japan Fin Min Kato reiterated will leave monetary policy to the BOJ.

- Spot Gold traded at fresh record high of $3,005/oz.

- Further energy policy by Exec Order from Pres Trump, ordering his Admin to immediately begin producing Energy with “beautiful, clean coal”.

- China said to scruitnize Li Ka-Shing's Panama ports deal with US' co Blackrock for 'breaches'.

- US equity FUTs -0.3% to -0.5% to again struggle during Asian trading.

Looking ahead (Asian time zone)

- Tue Mar 18th (Tue night US Feb Housing Starts).

- Wed Mar 19th NZ Q4 Current Account, JP Feb Trade Balance, ID Rate Decision, JP BOJ Rate Decision, (Wed night US FOMC Rate Decision).

- Thu Mar 20th NZ Q4 GDP, AU Feb Jobs, CN LPR, (Thu eve UK BOE Rate Decision, Thu night US Feb Home Sales).

- Fri Mar 21st JP Feb CPI, TW CBC Rate Decision,

Holidays in Asia this week

- Thu Mar 20th Japan.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.1% at 7,861.

- Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 83.8 v 86.9 prior.

- Reserve Bank of Australia (RBA) Asst Gov (Econ) Hunter: Reiterates board remains more cautious than the market about the prospects for further policy easing- speech at the AFR Banking Summit, Sydney.

- New Zealand Feb Non Resident Bond Holdings: 61.8% v 61.9% prior.

China/Hong Kong

- Hang Seng opens +2.2% at 24,679; Shanghai Composite opens +0.3% at 3,434.

- US President Trump: China's Xi will be coming in the not too distant future.

- CK Hutchison Ports 1.HK China said to scruitnize Li Ka-Shing's Panama ports deal for 'breaches' - financial press.

- China sees more M&A, buyback loans in technology sector - Chinese media.

- China dollar bond sales increase up to 3 year high - Chinese media.

- Hong Kong Chief Executive Lee: Hong Kong to hold legislative elections on Dec 7th, 2025 - financial press.

- China PBOC vows to promote applications of AI large language models; the central bank held a meeting to reinforce its technological work in 2025; cites comments made on Mon – Global Times [update].

- China Ministry of Commerce (MOFCOM): Will support export companies in expanding domestic channels – CCTV [overnight update].

- China Vice Premier in meeting with UK Energy Sec: China willing to work with UK in financial services, trade, investment and low-carbon development [overnight update].

- CAICT: Jan shipments of phones within China at 27.243M, -14.3% y/y [overnight update].

- China conference on 'special action plan for stimulating consumption' [overnight update].

- China PBOC sets Yuan reference rate: 7.1733 v 7.1688 prior.

- China PBOC Open Market Operation (OMO): Injects CNY273B in 7-day reverse repos; Net injects CNY236B v injects CNY385B prior.

Japan

- Nikkei 225 opens +1.3% at 37,868.

- Japan Jan Tertiary Industry Index M/M: -0.3% v -0.1%e.

- Japan Fin Min Kato: Reiterates will leave monetary policy to the BOJ - financial press.

- Japan Fin Min Kato: Told the G7 Fin Mins that stability should be promoted in financial markets, including Forex [overnight update].

- Japan sells ¥3.2T vs. ¥3.2T indicated in 12-Month Bills; Avg Yield: 0.6184% v 0.6107% prior; bid-to-cover: 3.71x v 3.48x prior.

Korea

- Kospi opens +0.6% at 2,627.

- South Korea: Acting President Choi: Asks ministers to work on stabilizing property prices; Orders thorough measures to keep real estate prices in check - financial press.

Other Asia

- (ID) Indonesia stocks decline 6%, triggering automatic halt to trading at 5% before resuming; Lowest since Sep 2021; Fall attributed to economic concerns and weaker spending ahead of Eid holiday.

- (VN) Vietnam's Sun Group proposes plan to revive SCB Bank as Vietnam Central Bank (SBV) has injected nearly nearly $26B into the troubled Saigon Joint Stock Commercial Bank (SCB) since 2022; Equiv to 5% of Vietnam's 2024 economic output - financial press.

- Thailand PM Shinawatra: Wish to penalize firms that violate free float rules; Ordering measures to improve stock market sentiment [overnight update].

North America

- (US) Trump Admin said to have considered a "simplified" plan for three tiers of reciprocal tariffs - WSJ.

- (US) DOGE member Stanley said to be tapped for board position at Fannie Mae amid 'shakeup' - financial press.

- Brazil said to propose 10% tax on corporate profits sent abroad to offset tax exemption boost - financial press.

- (US) Pres Trump: I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL - Truth Social post.

- Peru govt declares 30-day State of Emergency in Lima (capital) amid increase in violence - financial press.

- (US) US Energy Sec Wright: We expect to see a lot of pipelines getting built - Fox Business interview.

- (CA) Canada Feb Annualized Housing Starts: 229.0K v 246.0Ke.

- (US) MAR EMPIRE MANUFACTURING: -20.0 V -2.0E (below all analysts' estimates; lowest since Jan 2024); New Orders: -14.9 v +11.4 prior.

- (US) Feb advance Retail Sales M/M: 0.2% V 0.6%E; RETAIL SALES (EX AUTO) M/M: 0.3% v 0.3%E.

- (CA) Canada Jan Int’l Securities Transactions (CAD): 7.9B v 14.4B prior.

- (CA) PM Carney: In current times it's more important for Canada to strengthen ties with reliable allies.

- (BR) Brazil Jan Economic Activity Index (Monthly GDP) M/M: 0.9% v 0.3%e;Y/Y: 3.6% v 2.4%e.

- (CA) Canada Feb Existing Home Sales M/M: -9.8% v -3.3% prior.

- (US) Mar NAHB housing market index: 39 V 42E.

- (US) Jan business inventories: 0.3% V 0.3%E.

- (US) Trump: Iran will be held responsible for Houthi attacks; Any further attack or retaliation by the “Houthis” will be met with great force.

- (CN) US firms said to purchase cobalt from China's Lygend Resources in Indonesia - press.

- (US) USTR Greer said to impose policy process on reciprocal tariff plan - press.

Europe

- (EU) OECD updates its economic outlook; Cuts 2025 and 2026 global GDP oulook.

- (UK) Chancellor (Fin Min) Reeves: Determined to make it easier for UK companies to do business - press interview.

- (EU) EU draft plan: Planning to propose amendment to carbon border tariff (CBAM) in Q4 2025; Will propose export restrictions and duties on European scrap steel and metals in Q3 2025 - press.

- (DE) Germany's next defense budget said to favor European suppliers - press.

Levels as of 00:20 ET

- Nikkei 225 +1.3%, ASX 200 +0.1%, Hang Seng +1.9%; Shanghai Composite flat; Kospi -0.2%.

- Equity S&P500 Futures -0.3%; Nasdaq100 -0.5%; Dax -0.2%; FTSE100 +0.8%.

- EUR 1.0907-1.0925; JPY 149.13-149.73; AUD 0.6367-0.6389; NZD 0.5812-0.5831.

- Gold +0.5% at $3,021/oz; Crude Oil +0.3% at $67.55/brl; Copper flat at $4.9768/lb.