Global Markets:
- Asian stock markets: Nikkei up 0.47%, Shanghai Composite up 0.56%, Hang Seng up 1.07%, ASX up 0.34%
- Commodities: Gold at $1319.30 (-0.19%), Silver at $16.445 (-0.30%), WTI Oil at $60.20 (+0.13%), Brent Oil at $63.74 (+0.20%)
- Rates: US 10-year yield at 2.872, UK 10-year yield at 1.474, German 10-year yield at 0.632
News & Data:
- (JPY) BOJ Policy Rate -0.10% vs -0.10% expected
- (CNY) PPI y/y 3.70% vs 3.80% expected
- (CNY) CPI y/y 2.90% vs 2.50% expected
- (USD) Unemployment Claims 231K vs 220K expected
- (CAD) NHPI m/m 0.00% vs 0.10% expected
- (CAD) Building Permits m/m 5.60% vs -0.30% expected
- (EUR) Minimum Bid Rate 0.00% vs 0.00% expected
- BOJ's Kuroda: Japan's economy has improved a lot in the past 5 years
- Japanese Yen Looks Past BOJ as N. Korea Nuclear Deal Holds Sway
Markets Update:
Asian markets traded in the green today, although they pared some of the sharp early gains, in anticipation of US payroll data. Risk sentiment boosted by reports Trump will meet North Korean leader Kim Jong-un by May to discuss denuclearization.
This development follows recent thaw in tensions that culminated in a historic meeting between Kim and South Korean envoys this week. As expected, Korean equities outperforming with won also higher vs dollar
Nikkei off highs following a mid-session spike lower. Nothing specifically cited for the drop, which occurred ahead of BoJ. Few surprises from decision to leave policy unchanged. Yen holding near lows vs dollar, and JGB rates lower at the long-end of the curve. Central bank maintained views on the Japanese economy and implications were limited from its more upbeat assessment of overseas economies.
Hang Seng leading China market gains with M&A a highlight amid reports China Resources Beer is in talks to buy Heineken’s China business. Latest data revealed an in-line drop in February new loans, and CPI inflation surprising higher on a food price spike.
Limited implications given likely distortion from Lunar New Year. Remarks PBoC officials, including outgoing Governor Zhou, touched on similar themes around need for capital market reform and regulatory coordination.
Upcoming Events:
- 09:30 AM GMT – (GBP) Manufacturing Production m/m
- 09:30 AM GMT – (GBP) Goods Trade Balance
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Unemployment Rate
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate
- &more…
