>> this is daybreak asia, counting down to asia's major market opens. the late rally we saw on wall street was a sigh of relief as we see the rebound taking hold. not saying much that was new but reassuring investors about the rate hike ahead. paul: he said we have to see that inflation come back within target and stainable the keyword there. haidi: interesting time for tokyo. we're also coming into this seasonal very interesting spring period for investors, long-term investors potentially setting up for more out performers. paul: we have the markets open in japan. what are we seeing here? haidi: seeing some meet upside

with cash trading. we'll be watching in familiar the growth-related names giving the aleveuation concerns of when these great cuts will start to come. we're looking in particular at medals. and money related gains. on the back of higher oil prices, higher precious medals, gold, silver and the like. the nikkei up by 1 : 25%. not much of a move by the yen. 158 is where we're at. that virtual floor continuing to hold. nadala from the u.s. helping out. we did see the yen sliding as far as 151.95. so close to that level that's seen as intervention level for

now. 1 . 52. still looking like it's going to beat that line in the sand. this is the picture for the kospi. we're seeing outside of 1.2%. watching the likes of s.k. hynix, about to spend $4 billion in its first u.s. plant. paul: let's look at australia. just a little more than an hour into trailed and pretty much every sector in positive territory. the broader index, up .5%. we've seen the gold price top 2300 an ounce for the first time. we've also seen the oil price strengthen. 1 cent of $90 per barrel.

reasons for that also unsurprising. rising tension in the middle east and opec surprising nobody when they said they were going to stick with supply cuts so those supply curbs will be in place until the end of june at least. when j. powell started taking q. and a. following his talk earlier. we've got yields pulling back a little bit. the 10-year at 4 hadn't 4412 in the tokyo session. let's listen to some of what j. powell had to say. >> these recent data do not continue to change the overall picture, which continues to be one of solid growth, a strong but rebounding labor market and inflation moving down to 2% on a

sometimes bumpy path. paul: our next guest believes the fed may hold off on that cut even longer than if the expected. j. fowl holding a line. in terms of asia markets does this -- and by extension is the nikkei still flashing a bye signal. >> good morning. we think that the fed has been pretty consistent. the worst outcome would be if they cut rates too early and there was a reacceleration of inflation so we think they're going to be cautious. so june possibly or july we think is our best case for the first cut. so that's one thing. your question on what does this mean for yen weakness? yeah, obviously the way that the

yen would strengthen, because we don't expect the b.o.j. to be quick to move any higher either is if the differential change ie postponed for a while. the yen will probably stay weak. they're talking about intervention, hoping it stays below 1.52 or so. the new line in the sand. i think it used to be 1.50. four follow -- your follow-up question, what does it mean for japan? one of the big drivers of performance over last year has been the weaker yen, of course. some of the other drivers, the b.o.j. finally giving up on zero interest rates. now the j.p.x. has been plushing their list for -- pub establishing their list for three months in a woe row and they're going to do it every

month. we're kind of at the beginning of the normalization for japan and from here it's going to be a little bit tougher to generate off of. paul: are you getting into stock picking territory in japan now? where are you looking? >> absolutely. if you look over the last year, we've had a narcotic rerating. we've had banks rerate back to pre-negative interest rate policy levels. we've had tech move pretty strongly on global catalysts around a.i., for example. so yeah, we have to broadenout and i think from here it's about stock picking and finding names within those sectors i just mentioned and possibly others, especially domestic names if we do get an improving economy

domestically as well. haidi: valuations are getting out there for many of these countrys. japan, the rally in india, for example. what's the path about finding some opportunities beyond the low-hanging fruit? >> yeah, absolutely. so we think that against a broad backdrop of interest rates have peaked globally and will start to come down. earnings will be surprising over the course of the next year. japan is our preferred non-u.s. narcotic but we also think that things are getting interesting in parts of europe, particularly the u.k. and also switzerland where again the lower rates story is probably going to be a bit of a tail wind there. haidi: if you're looking for cheap, there's obviously china.

with the data recently looking a little bit better, at least close to bottoming out, do you see opportunities? >> we're still negative on china. we're structurally negative on china. we think, of course, there are probably opportunities for short-term trades on the back of some decent data like we had recently but ultimately we think that until they're able to draw a line under the property sector issues which will probably include bailin from the banking sector and possibly others then it's hard to have long-term confidence in the backdrop in china. so for us it's an underweight and we would be selling into any sort of strength until we get a final resolution of the property market. aheady: k haidi: great to chat

with you as always. hear why the outlook for oil prices remains limited in the short term. first, the latest on taiwan's earthquake recovery efforts. this is bloomberg. ♪ so, what are you ? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana

...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

haidi: you're looking at images from buildings that have been damaged by taiwan's strongest earthquake in a quarter century. wednesday's quake was centered off the coast of the rural county. some buildings were left leaning at 40-degree angles with their ground floors crushed. we'll be looking at some of those images as, of course, recovery and rescue efforts continue. and rescuers in taiwan are still searching for people who may be trapped after the island's

strongest earthquake in a quash century. at least nine people were killed, hundreds jury injured. production at some of the world's biggest chip makers also were damaged. eric -- derek, what's this latest? >> as you mentioned, the images out of taiwan are heartbreaking. nearly 1,000 people known injured. nine fatalities, as you mentioned. there's still work ongoing trying to make sure that people are out of rubble and buildings that are in danger. you see some of these images of the buildings tilting. it's clearly a major incident. an earthquake of magnitude more than seven. quite a serious situation. on economic front, i think the immediate question was regarding chips. several chip makers paused

production. we're hearing that one may be able to restart quite soon. several other companies with operations on taiwan are assessing their own situations. pauses may resume either today or later this week so in terms of the effects on that, it's been reasonably muted in terms of some of those individual corporate effects and i think that is something a fair few people in the markets are breathing a sigh of relief about. paul: tsmc wasn't the only chip maker, of course, to suspend operations. what's at stake here in an event like this and do we amendment any supply disruption as a result? >> i think that, you know, taiwan is an epicenter for the world's chip making. it is an incredibly important part of economy, both locally

and globally. not only tsmc which i think is the first name you think of there but as you rightly mention, so many producers around the world have offices in their supply chain in taiwan. so it is a large affect. taiwan does have a location near a major fault so you see in addition to that as far as the gio concerns around taiwan and china. you're seeing the u.s. pushing for companies to diversify over the last years. that is happening but some of those operations globally may take quite some time into the manner of years before those are really sort of ramped up. so right now taiwan is the center of this sort of thing. as i say, a bit of a muted reaction. you are seeing positive signs

from companies being able to restart. when i look at other indicators, the tcm stock was sort of this line with market. you are seeing market indications that this is going to be viewed as a temporary setback but something that they'll be able to swiftly recover from. paul: all right, managing editor for breaking news in south asia. u.s. treasure secretary janet yellen is visiting china for the first time in nine months. during a stop in alaska she emphasized the need for continued cooperation. >> it's important to both of us that we don't want to decouple or economies. we want to continue. we think we can both benefit from trade and investment but

that it needs to be a level playing field. paul: for more, let's bring in our asia got and -- government and economy correspondent rebecca. we don't have many details on the agenda for yellen but what are some of the issues she's expected to raise? >> i think overcapacity is expected to one of the big ticket if not the big ticket item. kicking off that visit visiting the southern chinese province and it's that province which is such an important hub when it comes to many of these new energy industries that are in question. the u.s. is concerned that china is relying on exports of these sectors to try and boost its economy as an alternative source of growth and that these sectors and industries have been heavily supported by state subsidies and also of this comes against a backdrop that the biden

administration is considering a remove of the tariffs for broadly and has hinted potentially that we might see more tariffs coming in. so what a different context from the visit that she made back in july. haidi: what's at stake for beijing here for this visit? >> i think for beijing, yellen's visit is really one of the last opportunities for policymakers to both gauge and also influence american economic policy before all of that excitement kicks off ahead of the u.s. election in november. blinken is expected to follow with another visit in a few weeks and likewise, there will be in opportunity to talk and understand u.s. foreign policy then. i think the concern for beijing is when yellen was last there, the etches was very much on suggesting that u.s. policy was not about takenning china but

about trying to protect u.s. national interests. now the discussion has changed and there has been much more momentum when it comes to introducing more trade curbs, more tariffs and as expected, the rhetoric around that on both sides from the democrats and republicans has very much moved to a more hawkish position. beijing is eyeing that very carefully. worth reviewing that readout that mentioned u.s. attempts to try and curb and contain china came only in second to the issue of taiwan as a red line so it is really a priority for beijing heading into these meetings with yellen. haidi: i do wonder given that we've seen decreased transparency of economic goings on and policy in china. how difficult is it going to be

to gauge what's going on the ground for her? >> i think we can expect in to be a key priority. we've seen green chutes when it comes to -- shoots when it comes to industrial levels but there are issues over the chinese economy and really trying to understand what the weak parts are. i think the u.s. has been cautious about not being perceived as trying to take advantage of china this moment of weakened economy but at the same time trying to -- with this gerund of ensuring the u.s. isn't incidentally supporting -- technologies in china. certainly this idea of trying to grasp precisely where the challenges are, precisely where the chinese economy is going to be is going to be pretty critical. haidi: rebeck air there.

other stories we're following when it comes to trade and washington's response to nippon's proposed merger with u.s. steel. china daily says the u.s. is drifting away of its long held policy of foreign trailed. despite the risks of upsetting a key alley, president biden has said u.s. steel must remain domestically owned. artificial intelligence is expected to be used in so-called forever materials. the pledge is out of a joint meeting this week in belgium. paul: our shares performing from korea. the short answer is pretty well. s.k. hynix up by 35% so far this

year. it was this week it surged and the company now saying that it's planning to spend nearly $4 billion to build its first u.s. chip plant. let's bring in our senior report. tell us about the significance open this investment? >> sure. hi, paul. this is a big win for the biden administration, which has been trying to attract many chip companies to come to american soil to build a supply chain of semiconductors. for s.c. hynix, it really underscores its effort to secure its leadership in the h.b.m. market. h.b.m. stands for hype band width memory chips, which has emerged as one of the most promising areas of memory chip market. it really works with anyone tend

over with video accelerators so it's becoming a heated industry right now with samsung electronics, a big rival trying to catch up in the industry to become the number one again in the industry. so it really underscores its effort to become -- hynix' effort to become the number one in the u.s. haidi: are we expecting additional investment? >> yes, we think so. the s.k. hynix yesterday told us that it is part of the bigger plan to invest more money in 2022. the s.k. hynix executives told reporters that it plans to invest $15 billion in the u.s. in the advance package industry

so it really underscores their effort to start making big investments in the u.s. and we expect hynix to be receiving subsidies and grant from the u.s. government. haidi: our asia air technology correspond in seoul. more to come on asia. this is bloomberg. ♪

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in aussie dollars, that's around 3.5 thousand per ounce. korea's ink up by 2%. nickel and silver catching bit as well. let's look at some of the tech names out of asia also. we brought you the story a moment ago of s.c. hynix investing $4 billion to build itsers in ever plant in the u.s. samsung electronics also in positive territory, haidi. haidi: take a look at european futures opening up at moment. looking like they'll follow on that positive lead from asia. we did see a bit of an edging higher in the previous session as well. divesting some of the latest u.s. data, somewhat concerned

about concerns of rates being higher for longer. but we're seeing potentially an extension of that rally we saw in the european sector. overshadowed the report about how tight that ha u.s. labor market is but some of that commentary from fed chair powell has some investors hopeful they're still on track for rate cuts later this year. coming up next, a senior commodity manager joining us. this is bloomberg. ♪

it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. paul: getting some data out of australia. for the month of february, big

miss here. detracting by 1.9%. the expectation was we'd see an expansion in february by 3% but that certainly hasn't happened. indeed, it has worsened from what we saw in january. and in case you missed it, houses in australia are very expensive and there's a supply problem. contraction there of 1.9% in building for the month of february. haidi? haidi: tracking those gains as we see that stock rebound for the a.s.a. that rebound confidence from chair powell. much of that out performance had been in the gold names, precious metal miners. some of those leaders in the

session today. at japan, this is seasonally a quite interesting time for japanese equities that could push this next leg of the rally with even more exuberance, if you will. spring typically sees long-term and foreign investors in flash and some strong out performance is expected from japan stocks to carry on from the strong alley we've seen. very strong session today, up almost 2%. and look at what has been driving a lot of the gains across the board. we've seen gold crossing that $2,300 threshold. gold futures are up by about .1%. iron ore seeing a bit of a downside. some of the more recent data points out of china suggesting that perhaps some of the slowdown there has bottomed.

crude prices just under $90 a barrel. machine on the energy outlook. daniel hynes is the senior strategy director. it's down given what we've seen from much of the rebound past but is this a supply story, a feeling better about china story? >> i think the macro issues we've seen bubbling away from the background have changed sentiment. the expectation around rate cuts this year by the fed. the potential for an economic soft landing in the u.s. in particular i think is reassuring and also, as you alluded to the better than expected economic data coming out of china as well. it's just reframed the outlook for commodity markets and i think coming into this year with

long positions relatively lean. i think we're starting to see "money flow" into the sector. that's probably taken that push out of that tight range we were looking at early this year but fundamentals are clearly supported as well at the moment and i expect that to be i suppose enable this rally to really sustain for a lot longer. haidi: sustain but how much does it extend? daniel: i think for the oil market, we have some relative upside limited. the spare capacity within opec itself does create a bit of a constraint on prices and i think for us going over $100 a barrel for any length of time is probably unlikely but in saying that, they came out of the joint ministerial monitoring committee

in week talking about adhering to those quoteas a lot closer and asked for several members to provide plans around that. so for the next two or three months, i expect to see opec production fall even further. the market is looking a lot tighter this quarter than i think a lot of people were expecting so in the shorter term we could certainly see prices higher. paul: how about shale? down about 18% on year. as oil prices recover, do you see an opportunity for revival for u.s. shale drillers? daniel: yeah, it's pretty critical for the market becausepeck supply is so-con trained at the market. most of the oil was coming from opec suppliers last year. that recount does suggest that the output growth is going to be

significantly smaller this year. they're very opportunistic and we know how quick they are to respond to prices but in saying that, they are a lot more cautious this time around. i think the volatility is probably going to cause for them to hold back a little bit further so we're a little bit more on the lower side in terms of u.s. output this year and i think that in itself will probably add to us nose other supply issues we've been talking about. paul: the bloomberg commodities index has been rising. copper and even nickel are having moments right now. where do you see the strongest gains coming? daniel: i think copper, even though we've seen a really strong rally the last few weeks has plenty left in it. it has really strong growth

sectors, particularly the clean technology markets that we've seen offset, i suppose, some of the traditional markets that generally drive consumption, that reevaluation of chinese growth as well is playing a part in that. so i expect to see that benefit after what's been a pretty challenging 12 months for the metal, considering the issues in china. haidi: what do you make of the gold rally? daniel: it's caught me by surprise. i think most have in the narcotic. what i've been looking for and certainly up to this point -- there were plenty of tailwinds supporting the rally but for me it's been more around the gold-backed a.t.f.'s or the lack of support coming from that market and that's probably due to the really strong equity markets in the u.s. in particular. so we haven't seen flip into

those gold-backed a.t.f.'s to date. but there are signs that is starting to emerge now. we're seeing some-flows on a daily basis into those markets so the critical flow is tightening up. so it looks pretty strong but in saying that, in my experience, these type of rallies tend to end quite unexpectedly so i would be looking for a bit of a pullback at some point over the next month or two but the extent of that, i think should be relatively limited. haidi: is there a lot going for iron ore? has it sort of found a floor? i have to say the rally took me by surprise. i didn't see the factors out of china were pushing it. the downside factors, have they played out fully? daniel: certainly there was a lot of hope built into that rally we saw last year and early

this year and that's clearly been deflated how now. on a fundamental basis there's plenty of things to indicate that we're probably at the bottom of that range although my experience tends to indicate these selloffs can be overdone a little bit. we could get down to the low 90's, i suspect, which may create some concern but ultimately when we look. demand outside of the real estate market in china, it looks relatively ok so for us that provides a little bit of a backstop to any further sort of declines in the price. paul: i want to get your call on nickel. it's been horribly beaten up and we've seen a lot of consolidation in that space. are you feeling more upboo et? daniel: probably because of the declines we've seen so far. there comes a point where enough is enough and the market will

react. we're seeing signs of that. there's enough for me on the indonesian supply side to suggest that that wave of output we're expecting may not take place. if that's the case the market may not be what the price is indicating at the moment. yeah, we're a bit more positive yet for a lot of structural issues within that market to deal with but i think we could see a bit of a bounce in the shorter term. paul: that is daniel hynes -- commodity strategist at a.m.z. coming up, even why an historic b.o.j. rate hike has failed to save the yen. that's up next. this is bloomberg. ♪

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j.p. morgan wealth management. haidi: a look at the yen. weaker even after the b.o.j. delivered its first rate hike in 17 years.

recommending a yen spread trade far looming risk of intervention. 151.95 i think is where we eventually kind of dragged back towards that level. is 152 still seen as the threshold here? david: yeah, i think 152 is still the key level. what was interesting last night it was trading at 151 . 93 before the u.s. information came out. i think we would have gone through that 152 level and that's key because it would have triggered what's called reverse knockout areas. it would have left short yen. which would increase the risk of intervention so i think if you're the b.o.j. you're very

relieved at how the data came out. you still have the u.s. payout data lurking tomorrow. if that comes back strong, the test of 152 is back in play. paul: we did see the bloomberg dollar spot index sinking to it lowest since november following today's remarks from j. powell. is this is aberration or the start of a trend? david: i think it was a built of powell and the data. the data had come from strong. i think we saw initial yields of u.s. move lower on the tata and then j. powell came out and was basically not overly hawkish. again, the market was worried that he may be more hawkish

given the manufacturing data came in stronger than expected. so there was a bit of a relief in that. having said that, the dollar move does seem a bit exacerbated. the narcotic has overreacted quite a lot, particularly with dollar weakness and let's focus on payroll data tomorrow. if it comes in stronger than expected then you'd have to think quickly it's back to -- how many rate cuts this year, is it two or three? this rhetoric is switching continually in the market from overhawkish to no, we can invest again. it's going nowhere for this tug of war that's going on. paul: the c.e.o. at t. rowe price says the fed risks losing credibility if it cuts rates too soon. eric field told us that early

easing could mean a repeat of the early 1970's when the central bank took it foot off the brake before inflation was fully tanked. >> if you go back to what powell said early on -- he was a student of what happened in the 1970's. the mistake made then was cutting too early. if you map the c.p.i. it's following a similar curve and if they go ahead and start cutting now, i think they're in danger of making the same mistake. >> what would that mean for bull markets if they cut too soon? >> you would see what would happen with the spike up and react in a way that would put them on their back foot and they would lose credibility and you would have a big issue for them. and is, is powell really a student of the 1970's? right now he sounds like he really wants to cut rates and a lot of people are looking at that as the reason to buy

stocks. are you saying they have it wrong? >> no, i do think he is a student of history and what he has to do is keep that group -- find the middle ground between that group and present it in a way that presents consensus broadly within that committee and balance out the other speakers so i think he's very much trying to do that right now but, again, i think as you look at the next several mention, the idea of cutting when we're where we are doesn't make a ton of sense right now. >> if you do any that this inflation is stickier and the risk of a 1970's type of scenario is greater than the risk of an unforeseen downturn, do you avoid bonds at all costs? because it's not clear that this f.1c. has the conviction to go

the right way and not make a policy error? >> i without go that far. right now we're dramatically neutral, between stocks and bonds. i do think commodities are interesting. with our equity portfolios, we're you're weighting energy in the vast majority of those and in different ways. haidi: let's look at our u.s. features trading at the moment. really a late-stage rally after some reassuring comments from fed chair powell about maintaining really the current positioning what it comes to expectations of rate cuts going into the rest of this year. futures looking more optimistic. .2% higher. nasdaq 100 features doing a little bit better than that. muted optimism across

expectations for small caps as well as positioning the futures session for the dow as well. you can get a round-up of the stories you need to know to get your day going on daybreak. it's also available on the web. you can customize those settings for the news and industries and assets that you care about. this is bloomberg. ♪

paul: you're watching daybreak asia. the latest corporate stories we're following. walt disney share heeledders -- holders are handed c.e.o. bob iger a big vote of confidence, denouncing nelson peltz's bid for the board. sources say peltz won just 31% of votes cast. the stock fell the most in six months following the vote. still up 32% so far this year. amazon is cutting hundreds of jobs in its cloud commuting sector. it will affect employees and technology for brick and mortar stores. a spokesperson says amazon will

try and find new roles for those affected. a year after a.w.s. held it largest round of job eliminations. shery red stone is said to be in agreement to accept the estate to i.m.f. and tv giant sky daniels. they've been weighing the sell of the holding company national amusements to him for months. sources say spot if i plans to raise the price of its ooh service -- audio service in it service for the second time in three years. markets including u.k., australia and pakistan. spotify plans to raise prices in the u.s. later on this year and the hikes will help cover the cost of audio books. haidi: china is on a golden week, if you will.

a lot of the concerns have been around -- even as we see a pickup in the economic indicators that we do follow. the center on chinese households and they're willingness to spend is something we'll look at. but certainly a quiet end of the week. the china and hong kong markets as well closed on holiday and on friday a holiday for taiwan as well. paul: do the right thing, get out there and buy some stuff. but i think authorities would prefer it if consumers spent bigger than plowers. we've seen get easier. for a car loan, example. china's market has been sluggish. and icbc, one of the big banks in china offering $41 billion to

support the tourism sector to stimulate investment and spending because it's still kind of sluggish. haidi: which is interesting. luxury companies will be doing more when it comes to this market because a lot of the consumers, especially younger ones are choosing the post pandemic to spend on experiences rather than tangible things if you will. it will be interesting to see in that continues to play through when it comes to the holiday, the trip numbers. the numbers we had for leash, for -- here your, for tourism out of the chinese new year were a mixed bag as well. paul: domestic tourism i think was up 93% from 2022.

sounds amazing but per captaina spending is still lagging from the years before the pandemic. so a long way to go for china's tourism just yet. trading, as usual, in japan, south korea, and australia. the nikkei better than 1.8% at the moment. good news out of taiwan, that devastating earthquake leaving nine dead but tsmc announced it's getting back to normal operations. disruption expected to be at a minimum there. s.c. hynix having amount excellent day in korea. also announcing $4 billion to invest in itself u.s. plant. gold miners here are among the best performers.

haidi: we're seeing that continuing to come through for gold. take a look at prices, really just holding on to -- in fact, extending the record high beyond 2,300 after fed chair powell reit -- reiterated its rate cut path this year. precious metals and gold and silver higher. we're also watching copper. we're seeing that commodity hitting a 14-month high. coming up, new age wealth tells us why they any that chinese stocks are undervalued compared to japan and the u.s. this is bloomberg. ♪

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