Global Market Volatility and Tech Stock Decline

• Market concerns over potential US tariffs and overall asset volatility led to losses in the semiconductor sector, contributing to a significant decline in the Nasdaq.
• Japanese tech stocks mirrored the negative sentiment, with Sony, Nintendo, Tokyo Electron, and Fast Retailing experiencing notable declines.
• The Australian ASX index fell to levels not seen since September 2024, while the Nikkei underperformed with a substantial decrease.
• Chinese and Hong Kong markets showed resilience, reversing earlier losses to close in positive territory.
• Japan's Finance Minister Kato cautioned against rapid and one-sided moves in the FX market to curb Yen strength.
• Japanese yields continued to rise, reaching 15-year highs, with 20-year JGB yields hitting the highest level since July 2008.
• Speculation arose regarding a potential BOJ rate hike in the first half of the year due to Japan's inflation risks, possibly occurring in April or May.
• President Trump exempted Canada and Mexico from fentanyl tariffs for USMCA-compliant goods and services but emphasized the start of reciprocal tariffs on April 2nd.
• The ECB cut rates by 25bps as anticipated, but discussions of "restrictive rates" may be overshadowed by a potential large-scale spending package on German defense and infrastructure.
• China's bond yields increased, marking the largest single-day increase this year.
• Anemic import figures from China put increased pressure on authorities to stimulate the economy.
• Bitcoin and other cryptocurrencies declined, influenced by Trump's Executive Order establishing a Strategic Bitcoin Reserve capitalized only with forfeited Bitcoin.

Statements from Chinese Officials

• NPC deputy Liu Hanyuan suggested China could cease crude oil imports within 20 years by expanding renewable energy and storage.
• China's Finance Minister Lan Foan emphasized adjusting policy based on 'real' conditions and strengthening policies.
• PBOC Gov Pan Gongsheng indicated multiple policy adjustments in 2024, a moderately loose monetary policy, and potential rate and RRR cuts.
• China Commerce Minister Wang noted weak demand as the primary issue for goods consumption and committed to stabilizing trade.

Central Bank and Key Company Announcements

• Japan's Finance Minister Kato acknowledged observing rapid FX moves but refrained from commenting on FX levels.
• Malaysia's central bank (BNM) maintained its overnight policy rate at 3.00%, as expected.
• Taiwan Semi's CEO cited rising demand for US expansion and stated capacity is fully booked for 2025.

US Economic Updates

• Trump's AI & Crypto Czar David Sacks announced the Strategic Bitcoin Reserve, capitalized with forfeited Bitcoin.
• Fed's Bostic noted the economy's remarkable flux, making predictions difficult.
• Feb Challenger Job Cuts showed a significant increase, reaching the highest level since July 2020.
• Trump Admin Official clarified that 25% tariffs on goods from Mexico and Canada are not retroactive.
• Redfin reported a decline in pending US home sales, attributed to economic uncertainty, including tariff concerns.
• Commerce Sec Lutnick indicated the 1-month tariff carve-out for Mexico and Canada would likely include all USMCA-compliant goods and services.
• Weekly EIA Natural Gas Inventories showed a decrease of 80 BCF.

Tariff and Trade Updates

• Trump excluded Canada's USMCA-compliant goods and services from tariffs, with a one-month carve-out for potash.
• Trump confirmed extending the tariff exemption on USMCA-compliant goods for Mexico until April 2nd.

Geopolitical Statements

• US Treasury Sec Bessent stated the US will close Iran's access to the global financial system and will not hesitate on Russia sanctions if needed.
• President Trump is reportedly considering a major shift in NATO membership, potentially not defending members not meeting spending thresholds.
• ECB Chief Lagarde reiterated the data-dependent approach given global uncertainty.
• President Zelenskiy hopes for a 'meaningful' meeting with the US next week and seeks a truce for air and sea operations.
• Russia's Spokesperson Peskov agreed with the US on the Ukraine conflict being a proxy conflict that must be ended.

Other Market Observations

• Selling bias in the US Dollar accelerated after weaker-than-expected US job creation in February.
• Gold prices revisited the $2,920 per troy ounce area following the release of the US labor market report.
• Consumer price inflation showed signs of cooling in February after a strong start in 2025.