Oil prices rise on supply concerns: Japan’s Golden Week holiday on the radar

Asia Market Update: China property index continues to under perform amid higher rates, gov't comments; Oil prices rise on supply concerns: Japan’s Golden Week holiday on the radar, Aussie CPI expected on Wed

 

General Trend:

- Market participation still limited due to holidays

- Various markets are closed on today’s session including HK, Australia, NZ , most of Europe

- Brent Crude rises over 1% as US said to plan to end sanctions waivers related to Iran oil imports

- Canadian dollar tracks rise in oil prices

- Higher oil prices weigh on emerging market currencies (including Philippines Peso and Indian Rupee)

- Chinese financials decline as some see near-term RRR cut as less likely

- Concerns related to competition probe weigh on cement makers in China

- ZTE rises in China after Q1 sales figures from Huawei

- South Korea April 1-20th exports worsen from levels seen earlier in the month; chip exports -24.7% y/y

- China expected to hold its 2nd plenary meeting this week, areas of focus expected to include property rights and the securities law.

- Analysts continue to reassess the likelihood of a Q2 RRR cut in China

- Australia Q1 CPI data is due to release on April 24th (Wed)

- Japan PM Abe reacts to the ruling LDP Party’s by-election losses ahead of upper house elections

- Japan Fin Min Aso is expected to discuss forex issues with US Treasury Sec Mnuchin this week, Aso is expected to travel to the US on April 25th (Thursday)

- Bank of Japan (BOJ) is due to meet April 24-25th

- Japan’s Golden Week holiday is approaching. Japan's exchanges are due to be closed between April 27 (Saturday) to May 6th (Monday)

- There is some press speculation that the US Treasury Department may release its semi-annual currency report in the near-term

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 closed for holiday

- SYD.AU CEO Culbert: Decline in Q1 passengers (first decline in 5-yrs) may be due to changed travel plans because of longer gap between Easter and Lunar New Year – AFR

- (AU) Hail storms in Sydney and flooding in Townsville cost Australia insurers A$2.4B - AFR

Japan

- Nikkei 225 opened -0.1%

- (JP) Japan ruling Liberal Democratic Party (LDP) lost the Lower House by-elections in Okinawa and Osaka - Japanese Press

- (JP) Japan Finance Ministry (MOF) Currency Head Asakawa: Cannot relax during long holiday given FOMC, US jobs data and China PMI data

Korea

- Kospi opened +0.1%

- 005930.KR Delaying Galaxy fold media event in China, reaffirms plans to launch foldable smartphone in the US on April 26th - Yonhap

- (KR) South Korea President Moon may deliver a message from US President Trump to North Korea leader Kim if a new inter-Korean summit takes place – Yonhap

- (KR South Korea Apr 1-20 Exports y/y: -8.7% v -4.9% prior; Imports y/y: -1.2% v -3.4% prior; Chip exports y/y: -24.7% v -25% prior; Exports to China y/y: -12.1% v -12.6% prior

- (KR) Bank of Korea (BOK) sells KRW840B in 1-yr Monetary Stabilization Bonds (MSB) avg yield 1.80% v 1.82% prior

- (KR) South Korea FTC plans to conduct extensive review of consumer regulations related to game companies - local press

China/Hong Kong

- Hang Seng opened closed for holiday; Shanghai Composite opened +0.2%

- (CN) China Politburo: Sees downward economic pressure as structural in nature, external economic environment is 'tightening'; Will stick with principle of houses are for living and not for speculation (released on April 19th)

- (CN) China is considering changes to its Drug Administration Law which may include tighter rules over the production and sale of drugs – Xinhua

- (CN) China State Administration of Press and Publication (SAPP) plans to introduce new approval process for game publishers in April - Chinese press

- (CN) China PBoC Open Market Operation (OMO): Skips v CNY20B injected in 7-day reverse repos prior; Net: CNY0B injection v CNY20B injection prior

- (CN) China PBoC sets yuan reference rate: 6.7035 v 6.7043 prior

- HUAWEI.CN Reports Q1 (CNY) Rev 179.7B, +39% y/y

Other Asia

- (SL) Sri Lanka confirms series of explosions at a church and hotels killing 290, leaving 500 injured; 8 people arrested related to the blasts - press

North America

- (US) INITIAL JOBLESS CLAIMS: 192K V 205KE (lowest since Dec 1969); CONTINUING CLAIMS: 1.65M V 1.72ME (Friday)

- BA Boeing workers raise concerns about shoddy manufacturing practices at 787 plant in South Carolina – NYT

- (US) US expected to announce end of sanctions waivers for Iran oil imports, announcement may come on Monday - US press

- TSLA Sent team to examine report that a parked car in Shanghai exploded - press

- (US) US financial press: Fed officials start to talk about thresholds for rate cuts, cites recent interviews and public comments by Fed officials

Europe

- (IR) Iran Supreme Leader Ayatollah Ali Khamenei has named Brigadier General Hossein Salami as the head of the country's Revolutionary Guards (first change since late 2007) - financial press

- (UR) Comedian Volodymyr Zelenskiy wins Ukraine presidential race with 73% of the vote, beating incumbent Petro Poroshenko (25% of vote) - press

 

Levels as of 01:20ET

- Hang Seng closed; Shanghai Composite -1.3%; Kospi -0.2%; Nikkei225 +0.5%; ASX 200 closed

- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax closed; FTSE100 closed

- EUR 1.1236-1.1248; JPY 111.86-112.00; AUD 0.7135-0.7155; NZD 0.6673-0.6690

- Commodity Futures: Gold +0.4% at $1,281/oz; Crude Oil +2.4% at $65.59/brl; Copper +0.1% at $2.91/lb