JGB yields rise amid ongoing BoJ speculation

Asia market update: JGB yields rise amid ongoing BOJ speculation; Japan avoids technical recession, but growth below ests; Nikkei drops over 2.8%.

General trend

- USD/JPY pared decline.

- Japanese equities lag, Tech firms underperform.

- Lower ore prices weigh on Aussie miners.

- ZTE declines on earnings miss.

Reminder: China's NPC (National People's Congress) will run for a week, through Monday, Mar 11th.

- New Zealand RBNZ's Gov Orr to speak at events in London on Mar 12 & 13.

- US CPI data is due on Tues [Mar 12th].

Headlines/economic data

Australia/New Zealand

- ASX 200 opens -0.2% at 7,828.

- Australia Treasurer Chalmers: Sees ‘big pressures’ coming on budget in medium-term; cannot ignore economic slowdown.

China/Hong Kong

-Hang Seng opens +0.4% at 16,416.

-Shanghai Composite opens -0.1% at 3,042.

-(CN) China Feb CPI Y/Y: 0.7% V 0.3%E; PPI Y/Y: -2.7% v -2.5%e.

-Follow up: US said to consider blacklisting CXMT – Press.

-China Housing Min: Commercial banks have approved over CNY200B of loans for housing projects as of Feb, under the coordinated mechanism; Will improve home sales in an orderly and forceful way.

-Top market regulator in Hong Kong calls for expansion of Stock Connect; seeking to lower the asset threshold for mainland China investors to CNY100K – Chinese press.

- China Vanke [2202.HK]: China regulators asked private debt holders to discuss debt maturity extension - financial press.

Japan

-Nikkei FUTs in Singapore open -740 points at 38,730.

-Growing number of Bank of Japan (BoJ) members reportedly leaning to end negative interest rate policy (NIRP) at March 18-19th meeting; key determinant will be outcome of March 13th's wage talks - Press [from Mar 8th].

-Bank of Japan (BOJ) reportedly mulls new quantitative monetary policy framework including review of YCC - press; New quantitative monetary policy shows outlook of JGB buying amount; BOJ mulls buying ~¥6T JGBs/month under new framework [from Mar 8th].

-Follow Up: BOJ considers ending YCC program – Japanese press [update from Mar 8th].

-Japan Q4 final GDP Q/Q: 0.1% V 0.3%E; annualized GDP Q/Q: 0.4% V 1.1%E [avoids technical recession]; Business Spending Q/Q: 2.0% v 2.4%e; Private Consumption Q/Q: -0.3% v -0.2%e.

-Nikkei 225 opens -1.2% at 39,232.

Korea

-Kospi opens -0.6% at 2,665.

- South Korea Mar 1-10th Exports Y/Y: -13.4%; Imports Y/Y: -28.6%; Chip exports +21.7% y/y.

-South Korea FSS [financial regulator]: Retail outlets missold China-linked notes; banks missold risky China-linked notes to customers; to consider banning retail banks from high-risk products.

Other Asia

-Taiwan Semi: Taiwan said to consider up to 30% power rate increase for the co. – Taiwan press.

North America

-(US) Feb unemployment rate: 3.9% V 3.7%E (highest since early 2022) [from Mar 8th].

-(US) Feb change IN Nonfarm Payrolls: +275K V +200KE (higher end of all estimates); Prior month job gains revised much lower [from Mar 8th].

-NVIDIA [NVDA]: Has been sued by 3 authors who said the co. used their books without permission to train NeMo AI platform - financial press.

-Delta [DAL]: CEO expects Boeing 737 Max 10 might be delayed until 2027 - Press.

- Alaska Air [ALK]: DOJ opens probe of mid-air accident on Boeing 737 MAX earlier this year - press.

Europe

-Ireland Feb Construction PMI: 47.4 v 45.9 prior.

-Portugal Socialist Leader Santos concedes defeat in election; Centre-right Democratic Alliance claims victory – Press.

Levels as of 01:20 ET

- Nikkei 225, -2.8%, ASX 200 -1.8% , Hang Seng +1.3%; Shanghai Composite +0.2% ; Kospi -0.6%.

- Equity S&P500 Futures: -0.2%; Nasdaq100 -0.3%, Dax -0.6%; FTSE100 -0.4%.

- EUR 1.0946-1.0935 ; JPY 147.17-146.53 ; AUD 0.6628-0.6606 ;NZD 0.6185-0.6167.

- Gold +0.1% at $2,187/oz; Crude Oil -0.7% at $77.45/brl; Copper +0.1% at $3.8945/lb.