Key News
Asian equities were mixed on light pre-holiday volumes, as Hong Kong and India posted small gains, Japan and Korea were down more than 1%, and the Philippines and Thailand were closed.
Yesterday US-China ADRs were off significantly intra-day due to the light holiday volumes this week, which tends to exacerbate volatility. McCarthy’s meeting with Taiwan’s President Tsai was likely a factor in yesterday’s trading. As I mentioned on Twitter (ahern_brendan) yesterday, what did CNH, China’s currency trading during US trading hours, and our risk monitor tell us about yesterday’s move? CNH was unchanged; we should have ignored the move in China ADRs. What was the reaction despite all of the media attention? A yawn! The more significant news was March’s Caixin Services PMI was 57.8 versus expectations of 55 and February’s 55, which is a two-year high. The Caixin survey, which S&P Global owns, focuses on small companies that employ most workers in China.
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