Asian Markets Steady; U.S Treasury Yields Climb, Dollar Holds Gains

30/03/2021 Asian equities markets traded sideways on Tuesday with China and Hong Kong steady, while Australia and Tokyo’s Nikkei fell, led by banks. U.S. futures fluctuated as traders assessed broader Wall Street exposures; demanding higher rates to hedge potential losses on the debt of banks caught up in the Archegos situation, including Nomura and Credit Suisse Group AG. Oil prices fell as shipping traffic resumed through the Suez Canal and attention switched to an OPEC+ meeting this week. Extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns. Brent crude was down 0.10% at $64.04, while U.S WTI light sweet is also on the backfoot 0.08% at $61.23. Gold dropping to its lowest levels in tow weeks as the quickening vaccine rollout and the prospect of more stimulus measures in the U.S. saw the dollar strengthen and Treasury yields climb. Gold futures down 0.30% at $1707.33.

The JSE closed firm 0.38% to 67,089 points led by banks as local players welcomed positive economic data from China. Top 40 also notched up 0.33%. Banks rose to gain 3.18% at the end of trading, financials 2.43%, retailers 1.86% and industrials 0.6%. Stocks going Ex-Div on Tuesday: FSR SJ, MFL SJ, RBP SJ, TRL SJ, PPR SJ, SOH SJ.

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• 8am: Feb. Money Supply M3 YoY, est. 9.00%, prior 9.15%
• 8am: Feb. Private Sector Credit YoY, est. 3.30%, prior 3.26%
• 11:30am: 4Q Non-Farm Payrolls YoY, est. -5.0%, prior -6.0%
• 11:30am: 4Q Non-Farm Payrolls QoQ, est. 1.2%, prior 0.8%
• 2pm: Feb. Monthly Budget Balance, est. -17.1b, prior -76.2b
• National Coronavirus Command Council meets to finalize discussions on stricter lockdown rules ahead of religious holiday period in April

European got off the blocks on the front foot for the week despite Credit Suisse and Nomura warning of significant losses after a US hedge fund client defaulted on margin calls.
The pan-European Stoxx 600 index edged up 0.06%, alongside a 0.47% advance for the German Dax to, with the CAC-40 also gaining 0.45%, while FTSE100 slipped 0.07% at the end of the session as the stronger pound put brakes on the top flight index.

The S&P 500 fell as investors assessed knock-on effects of the Archegos block trade saga. The Dow was up 0.30%, while the S&P 500 was 0.09% weaker and the Nasdaq saw out the session 0.60% softer. Wall Street traders were also holding out until Wednesday for an update from Joe Biden on his infrastructure plan, said to cost more than $3.0trn. U.S futures positive as they shake off Archegos contagion jitters.

Stocks rise in Hong Kong and Shanghai, Nomura shares keep falling in Tokyo. Hang Seng Index jumped 1.03%, as the city prepares to relax some of its strict restrictive measures even further from Apr. 1. China’s Shanghai Composite was up 0.60%. Markets look to the PMIs data to be released on Wednesday, for further clues about the Chinese economic recovery. Tokyo’s Nikkei is flat 0.06%, while Australia’s ASX200 is 0.90% down.