Markets Rally But New Financial Year & Toyota Weigh On Japan

US equity futures are stronger during today’s APAC session with the S&P e-mini up 0.4% and the Nasdaq +0.6%. The downward revision to the US core PCE deflator on Friday has increased optimism that the Fed will cut rates in the next few months. MSCI APEX 50 is down 0.2% today, but Australia, NZ and HK are still closed,. The USD index is slightly higher.

• China’s CSI 300 is up 1.5% supported by some flows out of Japan at the start of the month and the higher-than-expected China PMIs yesterday.
• Japan’s Nikkei is down 1.0% due to profit taking on the first day of the financial year after the index had its strongest quarter in Q1 for almost 15 years. Unexpected news that Denso will sell its entire stake in Toyota has seen the transport sector perform particularly poorly.
• Korea’s KOSPI is up 0.2% with the KOSDAQ outperforming +0.8%. The March trade surplus was lower than expected but in line with February. Taiwan’s TAIEX is down 0.2%.
• India’s Nifty 50 is 0.8% stronger.
• ASEAN markets are mixed with Singapore’s Straits Times up 0.6%, Malay KLCI +0.5%, SE Thai +0.2% and Philippines PSEi +1.2% but Indonesia’s Jakarta Comp down 1.8%, as inflation printed higher than expected.
• US trading is open later but Europe remains closed. The Fed’s Cook appears and US manufacturing PMI/ISM for March print.