Equities Trade Generally Flat, Few Catalysts Seen amid Market Holidays

Asia Market Update: Equities trade generally flat, few catalysts seen amid market holidays; Aussie CPI and US/Japan currency talks seen next week, US Treasury currency report also in focus

General Trend:

• On Friday, there are market holidays in various countries in Asia, Europe and North America
• Shanghai Property index reversed gains, extends recent losses as some focus on PBoC policy outlook
• China Minsheng Investments said it sees ‘uncertainty’ in bond payment due April 21st
• Equity markets in Japan and Korea rise after declines on Thursday
• Nintendo rises over 15%, speculation related to Switch console launch in China cited
• Nissan declines on speculation related to global production cut
• Japanese materials firm Lixil declines over 4%, cut guidance and announced management changes
• Parcel delivery firm Yamato declines over 9% in Japan, cut guidance
• Taiwan Semi rises after recent earnings report and guidance
• Japanese LDP officials continue to debate sales tax increase amid speculation it could again be delayed
• Japan’s CPI remains below BoJ’s 2% target
• BoJ speculated to plan to cut its GDP and inflation forecasts, central bank is due to meet April 24-25th
• BoJ cuts daily bond purchases of 10-25 yr and over 25-yr JGBs, analysts continue to examine whether daily operations have any implications for overall monetary policy
• US appears to be unfazed by North Korea’s recent weapons test
• Aussie Q1 CPI data due on April 24th (Wed)
• Japan Fin Min Aso is expected to discuss forex issues with US Treasury Sec Mnuchin next week, Aso is expected to travel to the US on April 25th (Thursday)
• 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

China/Hong Kong

• Shanghai Composite opened flat, Hang Seng closed
• (CN) China PBoC Open Market Operation (OMO): Injects CNY20B in 7-day reverse repos v CNY80B injected in 7-day reverse repos prior; Net: CNY20B injection v CNY80B injection prior
• (CN) China PBoC sets yuan reference rate:6.7043 v 6.6911 prior
• (CN) U.S. won WTO ruling against China over grain import quotas
• (CN) China Finance Ministry (MOF) sells 30-yr bonds: yield 3.9479% v 3.92%e
• (CN) Near-term China RRR cut is not likely after earlier this week the PBoC resumed liquidity injections – China Securities Journal

Japan

• Nikkei 225 opened +0.7%
• (JP) BOJ could slightly cut its FY19/20 GDP and CPI forecasts at the upcoming meeting – financial press
• (JP) JAPAN MAR NATIONAL CPI Y/Y 0.5% V 0.5%E; CPI EX FRESH FOOD (CORE) Y/Y: 0.8% V 0.7%E
• (JP) Japan Cabinet Office (Govt) Apr Monthly Economic Report: Maintains overall economic assessment
• (JP) Japan Chief Cabinet Sec Suga: US President Trump to visit Japan May 25-28
• (JP) Japan MoF: Senior officials from MoF, BoJ, and FSA to discuss financial markets on Friday 07:00 GMT; Japan Top Currency Official Asakawa to hold briefing after meeting on financial markets

Korea

• Kospi opened +0.4%
• (KR) South Korea Mar PPI M/M: +0.3% v 0.1% prior; Y/Y: 0.1% v -0.2% prior
• (KR) US State Dept said the US is ready to continue nuclear talks with North Korea – South Korean press

North America

• (US) MAR ADVANCE RETAIL SALES M/M: 1.6% V 1.0%E; RETAIL SALES EX-AUTO M/M: 1.2% V 0.7%E
• T-Mobile [TMUS]: Follow Up: T-Mobile CEO said to defend merger with Sprint to the US DoJ following the recent concerns expressed by Justice Dept officials – US financial press

Levels as of 1:20 ET

• Nikkei 225, +0.4%, ASX 200 closed, Hang Seng closed; Shanghai Composite +0.2%; Kospi +0.3%
• EUR 1.1244-1.1228 ; JPY 112.01-111.89 ; AUD 0.7153-0.7141 ;NZD 0.6692-0.6678
• Gold flat at $1,277/oz; Crude Oil +0.4% at $64.00/brl; Copper +0.2% at $2.918/lb

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