Global Market Quick Take: Asia – March 15, 2024 Global Market Quick Take: Asia – March 15, 2024 Global Market Quick Take: Asia – March 15, 2024

Global Market Quick Take: Asia – March 15, 2024

Macro 6 minutes to read
Redmond Wong

Chief China Strategist

Summary:  US PPI surged beyond expectations, rising 0.6% M/M or 1.6% Y/Y in February. Core PPI, increased by 0.3% M/M and 2.0% Y/Y, exceeding forecasts of 0.2% and 1.9%, respectively. This prompted investors to reconsider the Fed's rate cut pace, leading to a 10bps jump in the 10-year Treasury yield to 4.29%. The S&P 500 and Nasdaq 100 both retreated by 0.3%, with Tesla and Nvidia dropping by 4.1% and 3.2%, respectively. Meanwhile, the BOJ is reportedly preparing to end its zero interest rate policy next week, pending confirmation based on spring wage negotiation results.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: A surge in bond yields, driven by a PPI report that exceeded expectations, caused stocks to face downward pressure, leading to both the S&P 500 and Nasdaq 100 declining by 0.3%. Within the Magnificent Seven, performance varied: Alphabet and Microsoft saw gains of approximately 2.4%, while Apple and Amazon experienced increases of over 1%. Conversely, Tesla and Nvidia dropped by 4.1% and 3.2%, respectively.

Microsoft announced the global availability of its AI chatbot Copilot for Security, starting April 1, applying a consumption-based pricing model. In extended-hours trading, Adobe dropped by 11%, despite reporting slightly better-than-expected quarterly revenue of $5.18 billion and EPS of $4.48. The sell-off was triggered by downbeat guidance for the current quarter, which disappointed investors.

Hong Kong/China Equities: The Hang Seng Index retreated from recent highs, declining by 0.7% to 16,962. This drop was particularly pronounced for WuXi-AppTec, WuXi Biologics, and WuXi XDC, which plummeted by 12.1%, 13.1%, and 18.02% respectively. The decline followed the announcement by the Biotechnology Innovation Organization (BIO) in the U.S., stating its intention to take “steps to reaffirm the organization’s position with regards to national security and the role that the industry plays as a vital strategic asset.” The steps include the removal of WuXi-AppTec’s BIO membership. This, together with the passage of the TikTok bill by the House, reminds investors that the U.S. has extended its scope of restrictions against Chinese companies for national security reasons beyond semiconductors to many more areas. On the mainland, the CSI300 slid 0.3%, with media, electronics, and defence sectors dropping, while non-ferrous metal and energy stocks gained ground.

Fixed income: Hot PPI data caused investors to rethink the pace of the Fed rate cuts this year and the potential adjustments to the FOMC’s rates and inflation estimates in its quarterly summary of economic projections or dot plot. The probability implied in interest rate futures for a rate cut by June fell to 54.5% from 58.2% a day ago. The 10-year Treasury yield jumped 10bps to 4.29% while the 2-year yield added 6bps to 4.69%.

FX:  The US dollar rallied as Treasury yields surged. EURUSD dropped to 1.0880 and USDJPY climbed to 148.50. Despite the anticipation of a BOJ pivot that ends the zero interest rate in Japan, yen strength remains uncertain without a more hawkish BOJ stance and is largely dominated by the strength of the dollar which has recently picked up amid investors expecting a slower pace of rate cuts by the Fed. For further insights, refer to Charu Chanana's article.

Commodities:  WTI crude and Brent crude oil front-month futures rose 1.9% and 1.7% respectively on Thursday, reaching $81.26 and $85.42. This surge followed the International Energy Agency (IEA) revising its global oil demand forecast upwards to 1.7 million barrels a day (mbd) for Q1 and 1.3 mbd for the entire year of 2024, up from its earlier projection of 1.2 mbd.


  • According to Jiji, a prominent Japanese news agency, the BOJ is preparing to terminate its zero interest rate policy during its meeting scheduled for March 18-19. This decision is pending final confirmation based on the aggregated results of the spring wage negotiations (Shunto), which are set to be released later today by the Japanese Trade Union Confederation (Rengo).
  • US PPI surged beyond expectations, rising by 0.6% M/M or 1.6% Y/Y in February, surpassing consensus forecasts of 0.3% M/M and 1.2% Y/Y. January's figure was revised upward to 1.0% Y/Y from 0.9% Y/Y. Excluding food and energy, the core PPI increased by 0.3% M/M and 2.0% Y/Y, also exceeding median forecasts of 0.2% and 1.9%, respectively. Notably, domestic scheduled air passenger transportation services saw a 3.5% M/M price hike. The upward revisions to PPI’s hospital and physician service costs for January could lead to a significant upward revision in January's core PCE inflation, the preferred gauge of the Fed, reducing market expectations regarding the pace of rate cuts this year.
  • US retail sales expanded at a slower pace than anticipated, increasing by 0.6% M/M in February, while the January decline was revised downwards to -1.1% M/M from the previously reported -0.8%. Excluding auto sales, retail figures in February rose by 0.3% M/M, falling short of the expected 0.5%, and the January data was revised downward to -0.8% from -0.6%.
  • US initial jobless claims declined to 209k, below the 218k projected by economists and the prior week’s 210k (revised down from the previously reported 217k).
  • In Singapore, visitor arrivals rebounded to 95.8% of pre-pandemic levels in February, up from January's 88.4%. This increase was primarily driven by a surge in arrivals from China, reaching 96.3% of pre-pandemic levels, compared to 65.9% previously. This surge could be attributed to a combination of factors, including the Lunar New Year effect and the visa exemption for Chinese visitors implemented since February 9.

Macro events: US Empire State Survey (Mar), Industrial Production (Feb), U of Michigan Consumer Sentiment (Mar), Japan spring wage negotiations (Shunto) aggregate results from the Japanese Trade Union Confederation (Rengo).

Earnings: Contemporary Amperex Technology, Vonovia, Jabil

In the news:

  • BOJ preparing to end negative interest rate policy at March meeting, Jiji reports (Reuters)
  • Fed Gets More Reasons to Delay Interest-Rate Cuts (Bloomberg)
  • Adobe Drops on Weak Forecast Fueled by AI Competition Fears (Bloomberg)
  • Mnuchin Now Wants to Buy TikTok, Days After Leading NYCB Rescue (Bloomberg)
  • China issues draft rules to allow companies to tap foreign debt markets (Reuters)

For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration




Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.