Mixed equities in quiet Asian trading amid further BoJ speculation

Asia market update: Mixed equities in quiet Asian trading amid further BOJ speculation; Copper at 7-month high after CN production cuts; CN big bank earnings in focus.

General trend

- Copper breaches $9.00/lb (7 month high) and the Hang Seng Composite Materials Index +5% amid the overnight news of China copper smelters’ production cut agreement.

- Further BOJ speculation with the Nikkei reporting overnight that the BOJ will discuss the impact of negative interest rates at its monetary policy meeting next week due to pay hikes bringing its 2% target into view.

- US equity FUTs slightly up during Asian trading.

Looking ahead (Asian time zone)

- Awaiting CN Feb New Yuan Loans, Aggregate Financing, M2 Money Supply (no set time).

- Fri Mar 16th (Fri night) US PPI and Retail Sales.

Holidays in Asia this week

- No holidays in Asian markets this week.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.2% at 7,741.

- Australia PM Albanese: Govt to provide up to A$550M for rare earth mines and refinery in Northern Australia.

- Arafura Rare Earths ARU.AU Confirms Australia Commonwealth Government conditionally approves US$533M debt finance package to support the Nolans Project in the Northern Territory.

- Chinese buyers said to cancel or postpone up to 1M metric tons of Australian wheat - financial press.

- New Zealand Feb REINZ House Sales Y/Y: 37.9% v 4.9% prior.

- New Zealand Jan Net Migration: 2.9K v 7.3K prior.

- New Zealand sells total NZ$500M vs. NZ$500M indicated in 2028 and 2032 bonds.

- China Foreign Min Wang Yi to visit New Zealand next week - NZ Foreign Affairs Min Peters.

China/Hong Kong

- Hang Seng opens +0.2% at 17,120.

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

- China top copper smelters reportedly agreed on joint production cuts - industry blog [overnight update].

- China reportedly held security policy dialogue with NATO in Beijing - press [overnight update].

- China Pres Xi: High quality development is our top priority - State TV [overnight update].

- China PBOC urges banks to improve bonds OTC business by effectively preventing risks – press [overnight update].

- China Financial Regulator (NFRA): Will accelerate implementation of urban real estate financing [overnight update].

- China PBOC sets Yuan reference rate: 7.0974 v 7.0930 prior.

- China PBOC Open Market Operation (OMO): Sells CNY3B in 7-day reverse repos.

Japan

- Nikkei 225 opens -0.3% at 38,591.

- Japan releases weekly flows data [period ended Mar 8th]: Foreign buying of Japan equities: ¥376.6B v ¥283.9B prior; Japan buying of foreign bonds: ¥1.6T v ¥484.6B prior.

- Japan ¥1.0T VS. ¥1.0T indicated in 20-year JGB bonds; AVG yield: 1.5590% V 1.5100% prior; bid-to-cover: 3.01X V 3.85X prior (Tail: 38bps vs. 4bps prior).

- Japan's largest industrial union (UA Zensen): Avge pay raise offered by 231 firms is biggest on record since 2013 when compared with same period last year - Japanese press.

- Japan's BOJ to go slow in hiking rates after ending negative rates - ex-Central bank executive.

- BOJ to discuss impact of negative interest rate next week due to pay hikes bringing the bank's target of 2% in line with expectations - Nikkei [overnight update].

- X Reportedly Pres Biden plans to voice concerns about Nippon Steel takeover of US Steel - FT.

- Bank of Japan (BOJ) said to consider ending all ETFs purchases if 2% inflation goal in sight; See little need to keep buying ETFs to limit risk premiums in a market that recently hit a record high - press [overnight update].

- BOJ Gov Ueda; Reiterates to consider adjusting policy once price target is in sight; Noting that unions have demanded higher pay [overnight update].

- Japan PM Kishida: Now is critical point to ensure exit from deflation; Lots of firms reported big increases in wage hikes; Confirming transition from cost-cutting economy to next stage [overnight update]South Korea.

- Kospi opens +0.2% at 2,698.

- South Korea Vice Regulatory Chief: Will make efforts to speed up corporate value-up programme - Korean press.

Other Asia

- Taiwan Central Bank (CBC) Gov: Concerned that potential electricity price hikes will result in chain reaction on inflation expectations - financial press.

North America

- (US) Treasury $22B 30-year bond reopening draws 4.331% V 4.229% prior; bid to cover 2.47 V 2.37 prior and 2.41 over last 8 reopenings.

- (US) Treasury Sec Yellen: Expect that the single largest contributor to inflation will be moving down this year - TV interview.

- (US) DOE CRUDE: -1.5M V 0ME; GASOLINE: -5.7M V -1ME; DISTILLATE: +0.9M V -0.5ME.

Europe

- Boeing (BA): EU EASA (air safety) Head says is prepared to pull recognition of Boeing's production certification if necessary - financial press.

- (UK) Feb RICS House Price Balance: -10% v -10%.

- (UK) Daily Baltic Dry Bulk Index +2.4% at 2,370 points.

- (EU) EURO ZONE JAN INDUSTRIAL PRODUCTION M/M: -3.2% V -1.8%E; Y/Y: -6.7% V -3.0%E.

Levels as of 00:20 ET

- Nikkei 225, +0.3%, ASX 200 -0.2%, Hang Seng -0.8%; Shanghai Composite flat ; Kospi +0.9%.

- Equity S&P500 Futures: +0.1%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 flat.

- EUR 1.0939-1.0955; JPY 147.53-147.98; AUD 0.6610-0.6632; NZD 0.6154-0.6176.

- Gold -0.3% at $2,174/oz; Crude Oil +0.1% at $79.77/brl; Copper -0.4% at $4.0418/lb.