China official manufacturing PMI 49.0 vs 49.1 expectedJapan finance minister steps in with some added verbal intervention on the yenAustralian Q4 GDP +0.8% vs +0.6% expectedNew Zealand Q4 terms of trade +3.7% q/q vs -0.7% expected
Markets:
Korean Kospi down 9.1%Nikkei 225 down 3.9%Gold up $76 to $5163US 10-year yields up 0.4 bps to 4.06%WTI crude oil up 89-cents to $75.45JPY leads, AUD lags
Asian equities were battered today in a second day of heavy selling. The Kospi decline was breathtaking, falling by as much as 11% before recovering to -9%. Incredibly, that only wipes out the February gain and the index is still up more than 20% year to date.
Japanese stocks were hit to a lesser extent and now the Nikkei 225 has largely wiped out the post-election surge.
Over in the US, there was late-day bounce in stock markets to limit the damage to a 1% loss but S&P 500 futures are down 0.5%.
For all the pain in Asia, the moves aren’t really validated by cross markets. Global fixed income is calm so far today with JGB yields down fractionally. In FX, there is some risk aversion but AUD/JPY is down 100 pips to 110.04 and that’s the biggest move. NZD is slightly higher on the day against the US dollar, which isn’t what you would expect on a day like this.
The euro selling hasn’t stopped entirely but it’s down only 19 pips so far on the day as we carefully watch oil and LNG prices.
Action on the warfront was limited with no US headlines to report on. Air raid sirens went off in Bahrain but there were no reports of damage.
Gold and silver have found some nice bids after the European/US washout yesterday. There continues to be buying interest in Asia even as it’s sold for liquidity elsewhere.
This article was written by Adam Button at investinglive.com.