Latest information on the Asian market: Stock markets once again traded mixedly. USD/JPY had a quiet session. We saw some terrible New Zealand data. Waller said UST yields will rise.
overall trend
– Chinese market rose after the previous decline.
・Australian stocks also rose.
・Japanese banks are lagging behind.
– CN’s major banks fall after announcing financial results [ICBC, China Everbright Bank].
– Prime Minister of Japan Kishida A press conference is scheduled to be held on March 28th at 6:10 p.m. local time.
[Reminder] Australian government recommends minimum wage to keep pace with inflation – Keizai Shimbun [ In its submission to the Fair Work Commission’s 2023-24 Annual Wage Review to be unveiled on Thursday, the Labor government will recommend the increase to ensure “the real wages of the low-paid workers do not go backwards”].
-Tokyo CPI statistics will be released on Friday
-Friday is a public holiday in the United States.
Headline/economic data
Australia/New Zealand
-ASX 200 opens +0.2% at 7,834.
-Australia February retail sales m/m: 0.3% V 0.4%E [Looking past the temporary and one-off impact of the Taylor Swift concerts, underlying growth in retail turnover was up only 0.1 per cent in trend terms. After a period of higher volatility from November through to January, underlying spending has stagnated.]
-Australia February 4th quarter job openings Q/Q: -6.1% vs. previous -0.8%.
-Australia February private sector credit m/m: 0.5% vs. 0.4%e. Year over year: 5.0% vs. 4.9% previously.
-Australian March Consumer Inflation Expectations Survey: 4.3% vs. 4.5% last time.
– beach energy [BPT.AU]: Targeting a 30% reduction in headcount across the business to achieve efficiency and operational cost improvements.
-Governor Orr of the New Zealand RBNZ: We see signs that interest rates will be further normalized soon.
-New Zealand appoints two members to the RBNZ Policy Board [Carl Hansen and Prasanna Gai].
-New Zealand Mar Ants business confidence:22.9V 34.7 or earlier [the GDP data seems to have given things a decent shunt south].
-New Zealand March ANZ consumer confidence: 86.4 vs. 94.5 and earlier [Late-month responses were markedly weaker than those that preceded the GDP data.].
-Prime Minister Peters of the Federal Government of New Zealand: Positive about easing the ban on foreigners buying houses.
– New Zealand sold a total of NZ$500 million compared to the NZ$500 million shown in the 2029 and 2034 bonds.
-(NZ) LGFA to cancel April 3 bond auction.
China/Hong Kong
-Han Seng opens flat at 16,378.
-Shanghai Composite opens -0.2% at 2,988.
– Chinese President Xi Jinping reportedly told Chinese financial executives that “expansion of government bond trading by the People’s Bank of China” needed to be included in an aggressive monetary policy toolkit to inject liquidity into the economy. , this liquidity has not been used for over 20 years (SCMP).
-Chinese smelter group does not set second quarter price guidance for copper TC/RC.suggest Reduce production by 5-10% – Economic newspaper.
-The People’s Bank of China sets the base rate of the renminbi at 7.0948 (previously 7.0946).
-ICBC [1398.HK] Report 2023 (CNY) Net 365.1 billion vs. 355.5 billion, NII 655 billion vs. 675 billion.
-CIFI Holdings [884.HK]:Stopping.
-China’s President Xi Jinping: China aims to create a first-class business environment and plans major moves toward deepening reforms. The domestic economy is healthy and sustainable. Reform doesn’t stop – comments made at a meeting with US executives.
– The Chinese city of Beijing announced that it will remove restrictions related to divorced couples on home purchases adopted in 2021 – Reports.
-People’s Bank of China Open Market Operations (OMO): Sold 250 billion yuan in 7-day reverse repo. Net injects his CNY248B. v Previously injected CNY247B.
Japan
-Nikkei 225 opens -1.1% at 40,324.
– Kanda, Director of the Japanese Currency Bureau: We do not exclude all options regarding foreign exchange. Speculative movements can be seen behind the weak yen.Bank of Japan and Financial Services Agency exchange opinions on financial markets [from Mar 27th].
– Japan’s Chief Cabinet Secretary Hayashi: He reiterated that he is closely monitoring exchange rate movements with a high degree of nervousness, and that he is not ruling out all options to deal with excessive movements.
・Bank of Japan’s March opinion summary: Based on recent data, it can be judged that achieving the price stability target is within sight toward the end of the outlook period in the January 2024 Outlook Report.
-Announcement regarding outright bond purchase operations by the Bank of Japan (BOJ): 3 to 5 years. 5-10 years and 10-25 years. The amount remains unchanged compared to before.
– Bank of Japan Governor Shirakawa said the Bank of Japan’s policy shift is not yet a turning point for the Japanese economy – Nikkei Shimbun.
-Japan releases weekly flow data [period ended Mar 22nd]: Purchase amount of Japanese stocks by foreigners: -891.4 billion yen vs. -1.5 trillion yen previously. Japan’s foreign bond purchases: +762.3 billion yen (previously -803.9 billion yen).Purchase of Japanese government bonds by foreigners [long-term debt securities]: -3.9 trillion yen vs. 2.2 trillion yen previously.
-Tokyo Electric Power Company [9501.JP]: Load fuel expected to be injected into Niigata reactor – Japanese report.
– Japanese government to end subsidies for electricity and gas from June – Report.
– S&P maintains Japan’s sovereign rating at ‘A+’. The outlook is stable.
– Toyota Motor Corporation [7203.JP]: The production volume of parent-only vehicles in February was reported to be -2.6% compared to the previous year.
South Korea
– Kospi opens flat at 2,753.
-South Korea: Confirmed goal of joining WGBI in 2024.
– Hynix: The company said no on-site decisions have been made regarding its U.S. chip packaging plant.
North America
-(US) Federal Reserve waller (Voter, hawk): Recent data justifies fewer cuts or starting cuts later.
-S&P agree with The US sovereign rating is AA+. The outlook is stable.
– Former Federal Reserve officials say bank liquidity regulations should be strengthened – US Financial Report.
-Southern Norfolk [NSC]: CEO: Baltimore is an important port for us – US media interview.
-GEV and SOLV will be added to the S&P 500 index from April 2nd. XRAY is demoted to the S&P400 index.
-SLB [SLB]: Aker Carbon Capture announces agreement with SLB to establish a joint venture. SLB will pay NOK 4.12 billion in cash to ACC for the purchase of an 80% stake in Aker Carbon Capture Holding AS.
Europe
– Vice Chairman of the Swiss National Bank (SNB) Schlegel: Lower inflation pressures have allowed us to lower interest rates.
– (UK) BOE Haskell warns against rushing to cut interest rates as wage growth remains too high. We think a rate cut should be a long way off – FT.
Level as of 01:20 Eastern Time
– Nikkei Stock Average -1.5%, ASX 200 +1%, Hang Seng +1.6%; Shanghai Composite +0.9%; Kospi -0.3%.
– Stocks S&P500 Futures: -0.1%. Nasdaq 100 -0.1%, Dax -0.1%. FTSE100+0.2%.
– 1.0828 – 1.0808 euro; 151.54 – 151.25 yen Australian dollar: 0.6541 – 0.6515 US dollar, New Zealand dollar: 0.6008 – 0.5979 US dollar.
– Gold +0.1% $2,215/oz; Crude +0.6% $81.81/brl.Copper +0.4% $4.0282/lb
