Asia Market Update: US and China due to hold trade talks next week; JGB Futures track recent gains in US Treasuries

General Trend:

- Asian equity markets trade generally lower

- Japanese markets return from holiday, financials under perform after Fed decision

- Eisai expected to decline in Japan after plan to discontinue Alzheimer’s study

- IT and Property shares decline in Shanghai

- Tencent trades flat in early trade post earnings

- Sportswear company Li Ning rises after earnings

- China Mobile extends post earnings decline in HK

- Nike declines over 4% in afterhours trading post earnings

- Energy and Financial shares rise in Australia

- Japan Manufacturing PMI remained in contraction during March

- Australia 3-year bond yield moved further below RBA’s 1.50% cash rate

- Japan JGB Futures rise amid recent Fed decision

- Thailand is expected to hold general elections on March 24th (Sunday)

- China Commerce Ministry (MOFCOM): Confirms USTR Lighthizer and US Treasury Sec Mnuchin to visit China on March 28-29th (Thurs-Friday), China Vice Premier Liu He to visit the US in early April for trade talks


Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.4%

- (AU) Australia Mar Preliminary PMI Manufacturing 52.0 v 52.9 prior

China/Hong Kong

- Hang Seng opened +0.4%, Shanghai Composite flat

- (CN) Pres Trump reportedly is pushing negotiators to get China to raise its offer to buy US goods - CNBC

- (CN) China Ministry of Commerce (MOFCOM): Exports have good momentum in March

- (CN) China Finance Ministry: VAT cuts to be effective April 1st

- (CN) China Agriculture Ministry: Compensation for pigs culled due to African Swine Fever must be issued in timely manner; to stabilize hog production to control price rise

- (CN) Rating agency DBRS confirms China sovereign rating at 'A' high, trend revised to 'Negative' from 'Stable'

- (CN) China PBoC Open Market Operation (OMO): Skips for 3rd consecutive session

- (CN) China PBoC sets yuan reference rate: 6.6944 v 6.6580 prior


- Nikkei opened +0.5%

- (JP) Japan National CPI Y/Y: 0.2% v 0.3%e; CPI Ex Fresh Food (Core) Y/Y: 0.7% v 0.8%e


- (JP) Japan Investors Weekly Net Buying of Foreign Bonds: -¥571.6B v ¥254.2B prior; Foreign Buying of Japan Stocks: -¥1.59T v -¥1.16T prior

- (JP) Japan Jan Final Leading Index: 96.5 v 95.9 prelim; Coincident Index: 98.1 v 97.9 prelim


- Kospi opened +0.4%

- (CN) Dept of Treasury issues sanctions on China-based companies over North Korea ties

- (KR) South Korea proposed to hold military talks with North Korea - South Korean Press

North America

- (US) US President Trump said to consider Stephen Moore for Federal Reserve Board

- (US) SEMI: Feb North America Billings: $1.86B, -1.7% m/m and -23% y/y


- (EU) EU Tusk: Offers Brexit delay, postponing no-deal risk from March 29th; Confirms if UK lawmakers back deal, UK will leave in 'orderly' way by May 22nd; Confirms if UK lawmakers do not agree to deal, UK will leave EU on April 12th.

- (UK) UK PM May: Welcomes council approval of assurances on backstop, confirms terms of extension; To build support for deal from tomorrow.


Levels as of 1:20 ET

- Nikkei 225, -0.4%, ASX 200 %, Hang Seng -0.3%; Shanghai Composite -0.4%; Kospi -0.2%

- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax -0.3%; FTSE100 -0.4%

- EUR 1.1381-1.1361 ; JPY 110.89-110.65 ; AUD 0.7120-0.7094 ;NZD 0.6895-0.6874

- Gold +0.1% at $1,308/oz; Crude Oil -0.2% at $59.86/brl; Copper -0.2% at $2.905/lb

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