Asian Market Update: Stocks generally trade higher despite losses on Wall St.; BABA announced a huge share buyback; Focus on the Fed’s hawkish comments [Powell]; USD/JPY Climbs Above ¥120; UST rates extend their rise in Asia [led by 2-yr]; FUTS on Crude Oil Continue to Rise; Evergrande extends trading halt.
– The USD is generally trading firmer amid Fed speeches; Tokyo markets are back from vacation; USD/JPY Trades High Since Feb 2016; EUR tests below 1.10.
– No comments Kuroda seen linked to the Yen.
– Japanese officials continue to rule out a stimulus “package” for now.
– Said Japan is looking for >¥10T stimulus [Japanese press].
– Japanese Prime Minister Kishida: Russia’s halt in peace talks (with Ukraine) is unfair and unacceptable.
– Cos of Japan. commentary on the crisis of power.
– NZ Q1 Westpac Consumer Confidence: the lowest since the global financial crisis of 2008.
– IMF Rhee: not approached for BOK Gov work; BOK may face temporary government absence [commented on press speculation].
– CN/HK property developers continue to delay full year results.
– US equity FUTs extended declines in Asia.
– Nike increases in after-hours trading after earnings [related firms also trade higher in Hong Kong].
– Energy and financial companies are generally trading higher in Asia.
– Nikkei 225 outperforms after the holidays; Exporters supported by weak yen; Japanese financials supported by rising US yields.
– Hang Seng saw modest gains [limited volatility seen thus far]; TECH Index Rises Amid Alibaba Share Buyback Announcement; The Mainland Properties index continues to fall; Evergrande will host an investor call later today amid an investigation and financial delays.
– Xiaomi will publish its results after market close.
– Shanghai Composite was generally flat during morning trading.
– S&P ASX 200 has extended gain [Energy, Financial and Resources firms rise].
– New Zealand Prime Minister Ardern will announce changes to coronavirus restrictions on Wednesday, March 23.
–The ASX 200 opened +0.5%.
– (AU) Australia sells A$100m vs. A$100m shown in September 2030 2.50% indexed bond; Average yield: 0.0775%; bid to cover: 2.48x.
– (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 91.2 vs. 95.8 previously.
– (NZ) New Zealand Q1 Westpac Consumer Confidence: 92.1 vs. 99.1 before.
– (AU) Reserve Bank of Australia (RBA) Gov Lowe: Watching the labor market for labor cost signals, how pervasive the change in the psychology of inflation is.
– Attributable contracted sales that have not been recognized ~ HK$8.6 billion.
– (NZ) New Zealand Transport Minister: he will reduce road charges by 36% at the end of April [response to energy crisis].
–Nikkei 225 opened +1.0%.
– (JP) Japanese Prime Minister Kishida: Russia’s halt in the peace talks (with Ukraine) is unjust and unacceptable.
– (JP) Japan Trade Min Hagiuda: Supply shortage in Tokyo will be severe today (March 22).
– USD/JPY is trading above ¥120.
– (JP) Bank of Japan (BOJ) Gov Kuroda: Inflation in Japan is cost inflation; Negative for profits and revenues, cost inflation weighs on the economy in the longer term.
– 9506.JP Japan Grid Coordinator Orders Power Sharing for Tohoku; Hokkaido Electric ordered to supply up to 610K KW.
– (JP) Ministry of Industry of Japan: may require additional efforts to save energy; Demand from Tokyo and surrounding areas is expected to exceed supply in the evening.
– (JP) Said shut down power plants in Japan could take ‘months’ to restore service – Press.
– (JP) Japan crude steel production in February 7.3 Mt vs. 7.76 Mt previously, -5.9% m/m, -2.3% y/y – Industry body, Japan Iron and Steel Federation steel.
-Kospi opened flat.
– (KR) South Korea’s President-elect Yoon: Calls for a quick supplementary budget plan.
–Hang Seng opened +0.5%; Shanghai Composite opened -0.1%.
– (CN) China PBOC Open Market Operation (OMO): sells CNY 20 billion in 7-day reverse repos against CNY 30 billion previously; Net injection CNY10B v Net injection CNY20B before.
– (CN) The Chinese PBOC sets the reference rate for the yuan: 6.3664 against 6.3677 previously.
– (CN) China Securities Journal: China could cut the prime lending rate (LPR) in the second quarter.
– (CN) China will temporarily include rapid antigen tests for insurance.
– (CN) The United States has extended the travel ban linked to Chinese officials; concerns the repression of ethnic and religious minorities – press.
– (HK) Ronshine China [3301.HK]: appoints Elite Partners CPA as new statutory auditor, replacing PwC.
– (CN) Lower installments in China will support housing demand – Financial News backed by PBOC.
– (HK) Zhenro Properties [6158.HK] to issue 1.59 billion yuan in 2023 of bonds after bond swap.
– Evergrande 3333.HK To delay FY21 results; Stop the negotiation to extend, to engage with a legal adviser.
– Monitoring of Evergrande’s real estate services: trading suspended until further notice; Security deposits of 13.4 billion yuan have been applied by the banks concerned.
– IMF Rhee: inflation spike in Asia in H2; higher borrowing costs could slow the economic recovery in Asia.
– (ID) Indonesia Fin Min: Indonesia aims to reduce 2022 bond issuance by at least IDR 100T.
– (United States) President Biden: Ukraine is fighting valiantly and using American equipment; CEOs need to protect companies from cyberattacks; Putin’s back is against the wall, he talks about new false flags such as biological weapons.
– (US) Fed Chair Powell: The Fed can hike more than 25 basis points in a meeting or meetings if needed; The Fed is ready to raise rates above neutral if warranted.
– (US) Fed Chairman Powell: We are NOT expecting near-term progress on inflation; Asked what would prevent a move of 50 basis points in May, answers “Nothing”.
– (United States) IMF Rhee: high inflation in the United States due to higher demand; The United States has the option of raising its rates.
– (US) Goldman Sachs expects US Fed rate hike of 50 basis points in May and June, then 25 basis points over the course of the year ; expects the Fed to announce a reduction in its balance sheet starting in May 2022.
– (RU) Russian coupon for sovereign bond maturing in 2029 reportedly handled by JP Morgan – press.
Levels starting at 1:20 a.m. ET
– Nikkei 225, +1.4%, ASX 200 +1%, Hang Seng +0.9%; Shanghai Composite +0.1%; Kospi +0.6%.
– S&P500 equity futures: -0.2%; Nasdaq100 -0.5%, Dax -0.3%; FTSE100 -0.1%.
– €1.1025-1.0981; JPY 120.46-119.43; AU$0.7409-0.7375; NZ$0.6893-0.6864.
– Gold +0.4% to $1,937/oz; Crude Oil +2.4% to $112.64/bl; Copper -0.2% to $4.6920/lb.