MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Asian Equities Head Higher, Buffets Yen Bond, TSMC Earnings Shortly

ASIA STOCKS
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Regional Asian equities are higher today, after initially opening lower. Japanese equities have been boosted by Berkshire Hathaway pricing a ¥263.3 billion ($1.71 billion) of bond, the firms largest yen deal its debut sale in the currency in 2019, raising bets it may boost holdings of Japanese equities. Asian chipmakers such as TSMC which reports earnings later. The FX market has been quiet today, although most Asian currencies are a touch lower vs the USD, while global yields are edged lower. On the data front, focus was on Australian employment Report for March, with employment falling 6,585 m/m (estimate +10.0k) in March versus a revised +117.6k in February. The Jobless rate rose to 3.8% (3.9% est) from 3.7% in February.

  • Japanese stocks initially opened lower this morning the focus has remained around the yen with the currency edging higher after a joint statement from Japan, South Korea and the US fueled speculation that the latter would tolerate any Japanese attempt to support its currency. Equities got a boost earlier when it was announced Berkshire Hathaway pricing a ¥263.3 billion ($1.71 billion) of bond, leading to speculation that that money would be put to work in the equity market after recent comments from Warren Buffett around his attraction to Japanese equities, especially Banks and Financials. The Nikkei 225 is now up 0.50%, while the Topix is up 0.90%, the Topix Bank Index is up 1.80%.
  • South Korea’s equities are higher today with the Kospi up 1.80% erasing losses made on Wednesday. Food stocks have been the largest contributors to the move higher today, as food exports from the nation are expected to grow and helped by foreign investors who turn buyers of local equities as the won halts its drop against the dollar. The Kospi tapped the 200-day EMA on Wednesday as the 14-day RSI hit 30 before this mornings bounce.
  • Taiwan equities have opened down 0.40%, although have completely reversed those moves to now trade up 0.40%, TSMC will be releasing earning later with the market eagerly waiting, it should be noted that TSMC has been responsible for about 60% of the Taiex yearly gains.
  • Australian equities are higher today, miners have contributed the most to the moves as commodity prices head higher with Iron ore jumping as much as 6% on Wednesday as optimism that more Chinese steel mills would restart as demand picks up. Employment data was released earlier showing a loss of 6.6k jobs vs estimates of a 10k gain, while the employment rate fell to 3.8% in March from 3.9% in Feb. The ASX200 is up 0.46% today.
  • Elsewhere in SEA, New Zealand Equities are down 0.60% after earlier testing the 100-day EMA at 11,750, Philippines equities are up 1.30%, Indonesian equities are up 0.30%, while India has returned from its break to trade up 0.20%
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Regional Asian equities are higher today, after initially opening lower. Japanese equities have been boosted by Berkshire Hathaway pricing a ¥263.3 billion ($1.71 billion) of bond, the firms largest yen deal its debut sale in the currency in 2019, raising bets it may boost holdings of Japanese equities. Asian chipmakers such as TSMC which reports earnings later. The FX market has been quiet today, although most Asian currencies are a touch lower vs the USD, while global yields are edged lower. On the data front, focus was on Australian employment Report for March, with employment falling 6,585 m/m (estimate +10.0k) in March versus a revised +117.6k in February. The Jobless rate rose to 3.8% (3.9% est) from 3.7% in February.

  • Japanese stocks initially opened lower this morning the focus has remained around the yen with the currency edging higher after a joint statement from Japan, South Korea and the US fueled speculation that the latter would tolerate any Japanese attempt to support its currency. Equities got a boost earlier when it was announced Berkshire Hathaway pricing a ¥263.3 billion ($1.71 billion) of bond, leading to speculation that that money would be put to work in the equity market after recent comments from Warren Buffett around his attraction to Japanese equities, especially Banks and Financials. The Nikkei 225 is now up 0.50%, while the Topix is up 0.90%, the Topix Bank Index is up 1.80%.
  • South Korea’s equities are higher today with the Kospi up 1.80% erasing losses made on Wednesday. Food stocks have been the largest contributors to the move higher today, as food exports from the nation are expected to grow and helped by foreign investors who turn buyers of local equities as the won halts its drop against the dollar. The Kospi tapped the 200-day EMA on Wednesday as the 14-day RSI hit 30 before this mornings bounce.
  • Taiwan equities have opened down 0.40%, although have completely reversed those moves to now trade up 0.40%, TSMC will be releasing earning later with the market eagerly waiting, it should be noted that TSMC has been responsible for about 60% of the Taiex yearly gains.
  • Australian equities are higher today, miners have contributed the most to the moves as commodity prices head higher with Iron ore jumping as much as 6% on Wednesday as optimism that more Chinese steel mills would restart as demand picks up. Employment data was released earlier showing a loss of 6.6k jobs vs estimates of a 10k gain, while the employment rate fell to 3.8% in March from 3.9% in Feb. The ASX200 is up 0.46% today.
  • Elsewhere in SEA, New Zealand Equities are down 0.60% after earlier testing the 100-day EMA at 11,750, Philippines equities are up 1.30%, Indonesian equities are up 0.30%, while India has returned from its break to trade up 0.20%