Revised Japanese Q4 GDP was published during the session. The preliminary reading on this data a few weeks ago was disappointing at +0.2% q/q vs. the
Revised
Japanese Q4 GDP was published during the session. The preliminary
reading on this data a few weeks ago was disappointing at +0.2% q/q
vs. the +0.5% expected. Today’s revision deepened that
disappointment, coming in at flat, 0% q/q. In the GDP is the
‘deflator’, a measure of inflation. It rose from 1.1% y/y in the
preliminary data to 1.2% in the revision. This is well under the CPI
data released monthly from Japan and also below the 2% Bank of Japan
target. No economic growth in the quarter and an under target
inflation rate does not argue for any near term urgency for the Bank
of Japan to tighten policy.
USD/JPY
fell a little on the session, in a small range.
Also
on data we had February inflation figures from China. The CPI and PPI
both came in under expectations. The CPI was at its slowest in a
year.
News
crossed of US President Biden’s budget proposals to be sent to
Congress on Thursday. These included massive tax hikes. Biden’s
submission is aimed at winning approval from his party. Such tax
hikes have zero chance of being passed in Congress. When the news crossed US equity index futures dropped on Globex, but soon recovered. Only to dribble back lower and then flatten out.
On
the geopolitical front Russia launched a massive missile attack into
Ukraine.
Major
FX traded in very limited ranges only. Regional equities are mixed.
Asian
equity markets:
-
Japan’s
Nikkei 225 +0.6% -
China’s
Shanghai Composite -0.3% -
Hong
Kong’s Hang Seng +0.3% -
South
Korea’s KOSPI +0.1% -
Australia’s
S&P/ASX 200 +0.1%
There was a little crypto news during the session (see bullets above for more on these):
- Its unclear if JP Morgan has cut ties with crypto exchange Gemini
- Crypto-friendly bank Silvergate is shutting down operations, liquidating bank
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