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

Japan

- 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 MAR PRELIMINARY PMI MANUFACTURING 48.9 V 48.9 PRIOR

- (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

Korea

- 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

Europe

- (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

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD falls below 1.1250 as US retail sales beat expectations

EUR/USD is trading below 1.1250, extending its slide. US retail sales beat expectations with the control group rising by 0.5% in May on top of upward revisions. US-Sino trade tensions are in play.

EUR/USD News

GBP/USD falls towards 1.2600 after US retail sales

GBP/USD is trading closer to 1.2600, around the weekly lows. US retail sales beat expectations and trade tensions also boost the USD. The UK is bracing for Boris Johnson to become PM. US consumer confidence is next.

GBP/USD News

USD/JPY climbs to mid-108s as 10-year US T-bond yield erases losses

Today's upbeat macroeconomic data releases from the United States provided a boost to the greenback and allowed the USD/JPY pair to advance to a session top of 108.50.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more

Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Majors

Cryptocurrencies

Signatures