AUD traded slightly lower after monthly CPI

Asia market update: AUD traded slightly lower after monthly CPI; CNY fix continues to drive CNH volatility.

General trend

- Equity markets trade mixed.

- Japanese financials outperform; Shipping firms also rise [**NOTE: (US) Reportedly Singapore-flagged, Maersk chartered ship collided with 1.6-miles Francis Scott Key Bridge in Baltimore, Maryland, causing it to collapse; 3-4 civilian vehicles may have been on the bridge when it collapsed – press].

- Chinese bourses lag.

- ICBC results in focus.

- USD/JPY: Trades at the highest level since 1990.

- Japan Fin Min Suzuki: Reiterates closely watching FX moves with a ‘high sense of urgency’, will not rule out any steps [including decisive steps] to respond to disorderly FX moves.

- South Korea firms announce investment plans.

- BOJ Mar Summary of Opinions due on Thurs.

- RBNZ: Gov Orr Radio NZ interview to be broadcast on Mar 28th (Thurs).

Headlines/economic data

Australia/New Zealand

- ASX 200 opens flat at 7,781.

- Australia Feb CPI Y/Y: 3.4% V 3.5%E.

- Australia sells A$800M v A$800M indicated in 4.50% Apr 2033 bonds; Avg Yield: 4.01%; bid-to-cover: 3.11x.

- Australia Feb Westpac Leading Index M/M: +0.1% v -0.1% prior.

- China Commerce Min: Believes WTO panel’s ruling is ‘clear and unambiguous’ [comments on WTO ruling related to trade dispute with Australia].

- New Zealand Treasury 2024 Budget Policy Statement: Sees weaker economic and tax outlook over the next 5 years; cuts FY24 CPI forecast to 3.3% (prior: 4.1%) [**Note: RBNZ has a 1-3% inflation band].

China/Hong Kong

- Hang Seng opens -0.5% at 16,530.

-Shanghai Composite opens -0.2% at 3,026.

- China brings US rules on EVs to WTO dispute system; China says US's discriminatory rules hurt global EV supply chain - press.

- China PBOC sets Yuan reference rate: 7.0946 v 7.0943 prior.

- China PBOC Open Market Operation (OMO): Sells CNY250B in 7-day reverse repos; Net injects CNY247B v injects CNY145B prior.

- China Jan-Feb Industrial Profits YTD Y/Y: +10.2% v -2.3% prior.

- China appoints Tao Ling as PBOC Dep Gov [currently a PBOC official] – Press.

- China PBOC Gov Pan: Asian countries should push forward IMF reforms.

- Some US CEOs extend China stay after last-minute invite to meet with Pres Xi on Wed, Mar 27th; Would follow his November APEC dinner with CEOs - press.

- China Commerce Ministry (MOFCOM): Studying a detailed consumption goods trade-in policy.

- Baidu [9888.HK]: Reportedly Apple has not reached any agreement with Baidu on AI cooperation so far - Chinese press.

- Alibaba [9988.HK]: Withdraws Cainiao IPO application; Plans to offer to minority shareholders of Cainiao to sell all of the outstanding shares of Cainiao held by them to Alibaba Group for up to $3.75B.

- CAICT: China Feb Smartphone Shipments -31.3% y/y.

Japan

-Nikkei 225 opens +0.3% at 40,517.

- Mitsubishi UFJ [8306.JP]: Says cross-shareholding unwinding may make more headway; Banks in Japan are expected to step up cuts to $65B in equity holdings – US financial press.

- Bank of Japan (BOJ) board member Tamura: Reiterates likely to maintain accommodative monetary conditions for the time being.

- BOJ Gov Ueda: Reiterates nominal wages to pick up.

- Japan BOJ Exec Dir Shimizu: Asian economy is resilient due to large FX reserves.

- Japan Fin Min Suzuki: Reiterates closely watching FX moves with a ‘high sense of urgency’, will not rule out any steps to respond to disorderly FX moves.

- Japan sells ¥700B VS. ¥700B indicated in 40-year JGB bonds; yield at lowest accepted price: 1.905% V 1.9250% prior; bid-to-cover: 2.49x v 2.15x prior.

Korea

- Kospi opens -0.4% at 2,745.

- South Korea Apr Business Manufacturing Survey: 73 v 75 prior.

- Hynix [000660.KR]: Said to invest ~$4B in West Lafayette, Indiana for high-bandwidth memory (HBM) chips with production could begin in 2028 - US financial press.

Other Asia

-Taiwan Central Bank (CBC) Gov: CPI >2.0% not necessarily a ‘red line’; rate hike to have limited impact on economy.

Europe

- (UK) Mar Lloyds Business Barometer: 42 v 40e.

North America

- (US) S&P: Revises Outlooks On Five U.S. Regional Banks To Negative; revised its rating outlooks on five U.S. regional banks to negative from stable: -- First Commonwealth Financial Corp., -- M&T Bank Corp., -- Synovus Financial Corp., -- Trustmark Corp., and -- Valley National Bancorp.; Stress in commercial real estate (CRE) markets, such as reduced property prices and higher vacancies particularly for investor-owned office properties, has created a rising challenge for banks with sizable loan exposures to CRE.

-*(US) Treasury $67B 5-year note auction drawS 4.235% V 4.320% prior, BTC 2.41 V 2.41 prior and 2.49 over the last 12.

- US agency [Commerce Dept] calls for independent audits of AI Models - Press.

Levels as of 01:20 ET

- Nikkei 225, +1.3%, ASX 200 +0.5% , Hang Seng -1%; Shanghai Composite -0.7% ; Kospi -0.1%.

- Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.2%.

- EUR 1.0833-1.0820 ; JPY 151.97-151.44 ; AUD 0.6538-0.6511 ;NZD 0.6009-0.5987.

- Gold -0.1% at $2,176/oz; Crude Oil -0.8% at $80.98/brl; Copper -0.4% at $3.9912/lb.