• Asian equity markets traded somewhat mixed with some slight indecision heading into month, quarter and fiscal year-end
• USD remained firm as the USD-index extended advances above 100.00 amid weakness in EUR/USD which languished below 1.0700
• Looking ahead, highlights include German unemployment rate, UK GDP, US PCE, University of Michigan sentiment, ECB's Couere and Fed's Bullard & Kashkari

ASIA

Asia equity markets traded somewhat mixed with some slight indecision heading into month, quarter and fiscal year-end, while the region also digested firm Chinese PMI data and the positive lead from Wall St. where the NASDAQ printed fresh record highs. Nikkei 225 (-0.1%)< /strong>traded modestly lower despite JPY weakness and better than expected Industrial Production, while ASX 200 (-0.3%) was dampened by property names following tighter mortgage lending regulations. Shanghai Comp. (+0.3%) and Hang Seng (-0.5%) were mixed as strong Official Manufacturing and Non-Manufacturing PMI data was counter-balanced by the PBoC’s hiatus from open market operations which resulted to a net weekly drain of CNY 290bln. Furthermore, stocks in Hong Kong were also pressured after PetroChina missed on earnings and the world’s largest lender ICBC posted its weakest profit growth in over a decade. Finally, 10yr JGBs were lower amid heightened risk sentiment in Japan, while the curve flattened with underperformance seen in the short end.

PBoC refrained from open market operations, for a net weekly drain of CNY 290bln vs. last week's net injection of CNY 80bln.

PBoC set CNY mid-point at 6.8993 (Prev. 6.8889).( Newswires)

Chinese Manufacturing PMI (Mar) M/M 51.8 vs. Exp. 51.7 (Prev. 51.6);Highestsince April 2012. (Newswires)

Chinese Non-Manufacturing PMI (Mar) M/M 55.1 (Prev. 54.2);Highestsince May 2014.

Japanese National CPI (Feb) Y/Y 0.3% vs. Exp. 0.2% (Prev. 0.4%).( Newswires)

Japanese National CPI Ex-Fresh Food (Feb) Y/Y 0.2% vs. Exp. 0.2% (Prev. 0.1%)

Tokyo CPI (Mar) Y/Y -0.4% vs. Exp. -0.2% (Prev. -0.3%)

Tokyo CPI Ex-Food (Mar) Y/Y -0.4% vs. Exp. -0.2% (Prev. -0.3%)

EUROPE/UK

Latest IFOP French Election Poll was unchanged for the second round with Macron at 60% vs. Le Pen at 40%. (Newswires)

UK GfK Consumer Confidence (Mar) M/M -6 vs. Exp. -7 (Prev. -6). (Newswires)

UK Lloyds Business Barometer (Mar) 35 (Prev. 40)

Scotland's First Minister Sturgeon sent a letter, formally requesting a second Scottish independence vote. (BBC)

Barclays prelim month-end extensions: Pan Euro Agg 0.07 (Prev. 0.07)

FX

USD remained firm as the USD-index extended advances above 100.00 amid weakness in EUR/USD which languished below 1.0700 and after comments from Fed’s Dudley who stated that rate hikes are appropriate to avoid overheating and that risk to US growth and inflation may be shifting to the upside. USD/JPY also continued to ascend as the pair caught a 2nd wind to reclaim 112.00 to the upside following better than expected Chinese PMI data, while USD/ZAR rocketed after South African President Zuma announced to make a major cabinet reshuffle and then followed tspanough by firing Finance Minister Gordhan.

South Africa South Africa President Zuma removed Finance Minister Gordhan from position and appointed Malusi Gigaba as his replacement. (Newswires)

COMMODITIES

Price action was relatively muted across the commodity complex with WTI crude futures only slightly pulling back from yesterday’s gains to hold above the USD 50/bbl level. Elsewhere, gold was mildly weaker amid a firm greenback, while copper traded flat and failed to benefit from the better than expected PMI data from the its largest consumer China, as an indecisive risk tone in the region kept prices in check.

Venezuelan President Maduro said talks have already started about an extension of OPEC and Non-OPEC cuts for the next 6 months, according to Twitter sources. (Twitter)

US

Treasury markets ground lower tspanoughout the session, taking some pressure as the Q4 final GDP revision came in at 2.1%, higher than expected. Analysts at Informa noted lower than average volume with quarter end flows clear. The 10y T-note future closed the session down 7+ ticks at, 124.11.

Fed's Dudley (Voter, Dove) stated that rate hikes are appropriate to reduce the risk of overheating and added that risks to US growth and inflation may be shifting to the upside.

US President Trump is to sign two executive orders today, with one issuing a large-scale report on abusive trade practices which contribute to US trade deficits, while the other order focuses on ways to enforce and collect full anti-dumping tariffs. (Newswires)

The White House is reported to back away from a letter suggesting that it is softening stance on NAFTA. (Newswires)

Barclays prelim month-end extensions: Treasury 0.07 (Prev. 0.11)