paul: this is daybreak asia. we are counting down to the major market opens. could be a pretty interesting session today as well, a lot of factors to consider here. we just had a big miss for tokyo cpi on the eve of the bank of japan meeting. we heard some more currency talk from the finance minister about supporting the yen. blowout results for some u.s. tech stocks. concerning data out of the u.s. as well. how is the market going to balance out of this? avril: there's a lot to digest. thinking about how the stagflation chatter is coming back to the four in the u.s. and how this yen depreciation will figure into the conversation for boj policymakers? we are waiting with bated breath whether this forces the japanese central bank to come through with hawkish signals. we do have the open in japan now and now the big tech tailwind

for stocks. a little bit of upside on the nikkei at the start of trade. we are still seeing dollar yen hovering at 155.6. of course it's about whether we get any indication about curtailing of bond purchases from the japanese central bank. seems like the bond markets are betting we do coming on the japanese 10 year government bonds. let's take a look at what we are seeing in south korea. yesterday we saw those declines on stocks as the meta-earnings and outlook put a dent in what was otherwise a recovery for asian stock markets. taking stock, we've seen four of the seven banks report and so far it looks quite good, especially after microsoft and alphabet knocked things out of the park, proving their worth and that they are able to make money from aia investments.

we've seen the upside in south korea as well, the korean won moving toward 1370. let's look at what's going on down under. australia was on break yesterday . the big news was how bhp is having a takeover approach for the rival anglo american. this could shakeup the industry at a time when these miners are looking to expand corporate production. we are hearing that anglo american does not believe this proposal is attractive that's because it doesn't quite address how bhp will look to demurrage south african operations. we seen dhp sliding about 3.3% at the open as are the broad-based australian gauge. iron ore's seven-week higher and has been recovering even though we've seen declines in the singapore contract today. this is thanks in large part to the recovery due to the improvement in sentiment.

as i said, it is that stagflation chatter as we have quarterly pce numbers that were hotter than expected. growth caused a selloff in treasuries. we are seeing more of the same on the two year yield nudging toward the 5% level. paul: let's get more analysis on the impending boj rate decision with were chief fx in asia editor, steven chu. we just got the latest tokyo cpi data. how do you see that muddying the waters for the central bank today? >> i don't think it's going to change their mind actually, the number was today but it was sort of a one-off and also pertains to tokyo. it does not mean the nationwide inflation would drop as fast. the drop today for tokyo is due to the education subsidy.

that's not nationwide. the boj dumping the negative interest rate, today they will keep staying hawkish. even though they may not hot -- hike today, but they still implied to the market as long as the inflation trajectory stays above 2%. paul: we might see some adjustment to bond purchasing programs. what is the outlook for jgb's? >> last meeting interestingly if you look at the footnote of the statement, they say they are keeping jgb purchase with ¥6 trillion a month. when we look at the data, even for this month, they were buying slightly below ¥6 trillion in line with what they've said. today we think they will start implying, if not explicitly that they will start to slow qe

because now conditions are met. the boj wants to move away from owning jgb's. right now they own over half of the market. for any asian market, that is probably unhealthy in their eyes. so now it's a good juncture to start this qe purchase. if they don't say explicitly, they will probably do a stealth tapering so you see less purchase in action going forward. paul: of course it's not part of the boj's mandate to talk about currency stability but it is becoming a problem for the broader a kerner -- economy. is there an element of pressure to not do something in terms of tightening? at least say something that is a bit tougher. >> it's coming down to mof instead of boj. they talk about the impact of the weaker yen and inflation hires so they may imply a rate

hike, but it doesn't mean they would admit to fx intervention. they would probably say they are watching the market. they would not tell you today explicitly what they are going to do. paul: bloomberg intelligence chief fx and reit's editor steven chu. let's go to ed gomes at s gmc capital. we've heard plenty of words in defense of the yen and no real action so to speak as yet. do you anticipate anything in terms of tougher rhetoric to defend the yen from the bank of japan today? >> i don't think rhetoric will cut it anymore to the extent that they had to talk. they were talking around 152 about two or three weeks ago. a lot of chatter out of the boj

and ministry of finance. that is not going to work anymore. keep in mind the forward expectations one year forward for rates about 30 basis points higher for japanese yields in the u.s. has seen a collapse from seven cuts down to maybe one. you still have about a 5% interest rate differential and that is money on the table to be had. any intervention bank of japan might do in the currency markets is going to impact the bond markets as well as equity markets. do they really want that painful decision with the fx markets and others? probably not. overall, we don't really expect them to be able to say anything to talk the currency down. they have to do something and with that comes pain. raking 152 on dollar-yen. ozzie yen is over 100 -- aussie

yen is over 100. paul: as a cio if you've saw intervention and the yen got stronger, would you view it as a more attractive selling position? >> absolutely. the fundamentals don't really support the position of the bank of japan. what they need to do is can they take rates to five? probably not. can they expect and be happy with an equity market that crashes wes moore what happens when they start selling 75% ownership in japanese equities and etf's? domestic growth is not strong. they are doing recent -- reasonably well. a lot of japanese companies have great technology, so there are

willing buyers. but what's happening with the domestic economy, population growth, your demographics are so weak that there is no hope of a strong domestic economy, and you don't have immigration like in the u.s., so you will not get the benefit of that either. they are in a bit of a catch 22. they will manage it the best they can. just down to intervention, i think it will be temporary help for the currency to appreciate. not a longer-term fix. paul: we have a few more interesting ingredients. we have u.s. gdp showing a pretty sharp slowdown in the first quarter. still positive territory but weaker than expected. pci numbers showing there might be a whiff of stagflation in the year as well. does this change your prospects at all for potential fed easing and making life more difficult

for the boj. >> overall we've been expecting out of the u.s. about two or three cuts for 2024 so we were nowhere close to the seven cuts the market has been expecting. the market has moved to just north of one cut for this year so we still expect two or three cuts to come through. the parts of the inflation out of the u.s. which are coming through from insurance prices as well as rentals clearly is an issue and is not budging at all even on the back of high interest rates. there will likely have to be some policy fix in terms of how to address these points. i think oil higher is temporary. the price of oil is volatile. the u.s. has been exporting oil. biden has talked about increased

nuclear energy production. that will be something that offsets the higher price. energy is not as big a deal as is rentals and insurance fees. the fed is not going to have the tools to address specific niche parts of the market. overall, the u.s. economy is doing really well. you have seen the chips act lead to a lot of investments not by the u.s. government alone but by multinationals. you have the japanese firms and american firms setting up production facilities. it's leading to a massive construction and production boom. so you will probably have a u.s. economy fighting the weak gdp numbers. if it does become a problem for the bank of japan when you consider what is happening to the dollar yen.

paul: as we've been talking, we see interesting yields. the u.s. two-year has broken 5%. where do you see u.s. -- yields hitting? >> like i've been saying, growth numbers out of the u.s. don't necessarily dictate a fed which has to be at this point very dovish and we are seeing expectations built up. out of japan, you have the boj meeting and we have to see how they play this. to the extent that they pullback in bond purchases, that will add more fuel to the fire. for the u.s., i would not be surprised. the risk to our expectation of

two cuts probably being felt more towards the end or slightly towards one rate cut or no rate cuts at all. the bank of japan is moving to timidly even as of right now. 30 basis points at the end of the year, even if it's 50 or 60 basis points, really will not be a game changer for them. paul: ed gomes, cio at sgmc capital. thank you for your insights. let's take a look at what's moving in big tech names at the moment. softbank rising with a little softness for rakuten. we saw great growth from alphabet and microsoft earlier. and the first ever dividend as well. take a look at asian chipmakers. a pretty forgettable quarter for intel. we do have sk hynix recovering a

lot of the ground that it lost on thursday after its results. a bit of profit taking play. sk hynix rebounding pretty sharply. it is now off 1.3% from yesterday's open but up about 4% today. i want to talk a little by -- about bhp which is slipping at the moment. i believe bhp it has done the most in seven months, trading volume as well. this is a story we brought to you yesterday during a public holiday here in australia, bhp reportedly making a bid for anglo american, worth $59.6 billion. it is an all stock bid. this suggests the days of big dealmaking might be back on the table for the chief executive mike henry and he is

particularly interested in copper. bhp off about 4.3% after 15 minutes of trade in australia. watching the yen very closely. more from the ministry of finance today but still no action. we will have more on the outlook for the yen ahead of that decision and we will hear why standard chartered bank is expecting upside for the currency. u.s. secretary of state antony blinken wrapping up his china visit as beijing rebuffs his criticism of their trade policies. details of that story, next. this is bloomberg. ♪

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paul: beijing has pushed back against u.s. trade criticisms as secretary of state antony blinken continues his visit or the foreign ministry says

china's practices are in line with international rules. blinken has been telling officials u.s. firms need a level playing field in china while also calling for sustained communication. >> we have an obligation for our people and the world to manage the relationship between our countries responsibly. that is the obligation that we have and one that we take seriously. i think the direction from president biden and president xi jinping was to continue to build those lines of communication, to sustain and deal with our differences as we seek to build cooperation. paul: for more on this, let's get to raider china senia executive editor jean-luc who joins us now. one gets the sense the u.s. and china are talking past each other to a degree at the moment. is the best that can be said that at least they are talking? >> i think there's a lot to be said for that. you will remember there was a

long period after the spy balloon incident that there was no talking. so we are in a better place. secretary blinken's visit is to try and build momentum on that meeting. there are lots of hurdles with issues between businesses and market access for american companies, that is a big one. we've not heard it publicly but i'm sure the chinese side is raising questions about what the u.s. government in terms of tiktok. that bill signed yesterday also included additional money for taiwan for military aid which will cause ira in beijing as well. lots of issues on the table but i think talking is the big thing here. paul: that tiktok order got passed just as antony blinken set foot on the ground in china. did he get any blowback on that? >> if there has been any blowback, it has not been in the

public venues. the chinese side has been relatively restrained when it comes to giving their response. the foreign ministry has referred back to something the ministry of commerce said earlier which is that china would do all it could to defend the rights of its companies. we do understand there was an earlier bill in china that any sale of assets involving high and advanced technologies would need beijing's approval before it would be sold so we believe that would mean tiktok needs beijing's approval before divesting from the u.s.. so the situation is complex. we are waiting for him beijing for more but so far, quite restrained. paul: another issue antony blinken was raising was concerns about china's role, real or imagined, in terms of what's going on and ukraine.

how did discussions on that proceed? >> we do know that it was going to be at the top of the list when it came to subject sec. blinken wanted to discuss with the chinese. the chinese side has continued to provide support, maybe not directly military aid, but they have rhetorically and economically continue to be there as a support for the russian economy, the russian diplomatic efforts. the global times, a fairly nationalistic newspaper here in china, did say it seems like every time the u.s. officials visited beijing, it was an ultimatum. so that is sort of the way the chinese government is seeing what's come about with russia and ukraine. paul: we have plenty more to come on daybreak asia. this is bloomberg. ♪

paul: barclays shares jumped the most in more than a year after higher equities trading. the ceo told us exclusively he's expecting more uptick in stocks and deal flow. >> deal flow and the equity markets themselves have been starting to show buoyancy. we are on our equity flow here and our own numbers and equities have shown an uptick for this quarter versus the same last year. i think deal flow is increasing. our own energy business and sustainability business and the transition business, we've seen nine deals in the last quarter and a bit. i do think there's a deal flow happening. i think it is very early, you have to give it a quarter or two

to cement. >> is barclays prepare to capitalize on that when it does come to fruition and sees momentum, is barclays position to capitalize given a bit of an accidents -- exodus in terms of bankers and lower advisories fees compared to american peers? >> it's a very very important area of focus for us. we want to increase what we doing m and a and equities. we have hired a lot of talented bankers. we are focused on the energy transition and across important sectors of technology and health care. we absolutely are positioned to capitalize on it. you should see results in the coming quarters. it's not something in days, weeks and months, but over a longer period of time and we have put sustained investment skills behind it and will continue to do so. >> can i ask about m&a within

the u.k. market? barclays, you yourself require it acquiring tesco's retail. you have consolidation, the building satiety space consolidation as well. is this a sector where we see more and are you going to play more of a role in that? >> at any time you have more of an inflection interest rate cycle, changing capital models and consumer regulation, it stresses business models and drives some out of m and a peer the acquisition of tesco bank is something that is win-win. we were looking to grow unsecured lending. i think you will see other institutions look at that. we have been clear our plan for growth is predicated as an organic one. paul: that is the barclays ceo

speaking exclusively to kriti gupta and anna edwards. let's look at how we are doing in commodities. crude prices creeping up, brent hovering below $90 a barrel and seeing a bit of a recovery in iron ore prices. a little optimism around chinese demand helping to support iron ore prices. copper prices remaining quite elevated, hovering just below $10,000. that's not really helping australian materials producers though. a little bit weaker at the moment. still, standa

paul: let's check in on how the markets are faring on boj decision debuted in april, what are you watching?

>> big day as we wait for the words of not just the decision, it will also be about what he says. those signals to the market. we have the markets in the first 30 minutes of trade in japan and south korea, a bit of a mixed bag as we got a bit of a tailwind from the big tech front after the blowout earnings from alphabet, as well as microsoft, proving their worth. the lofty valuations being justified in a way that they show they can make money from their ai bets. we also have the open coming up in china. something to note is how these cheap chinese tech stocks have been outpacing some of the gains for this month, at least in the mag sevens. it gives you a sense about how they are pulling ahead and a time when the u.s. tech stocks are grappling with those concerns about the fed narrative.

higher for longer. despite what we've seen from the earnings front. mixed picture in the asia-pacific but down under, we are seeing the drag from bhp group. investors not liking what they are hearing from the mining giant about their takeover from anglo american proposal. this is on a day when its peers are moving up. let's take a look at some of the chip movers as well, chipmakers, i should say. samsung, the chip front moving up today. this is along with what we are seeing in the after hours trade of all the big tech shares. let's take a look at what we are seeing on the japanese currency as well. as you say, it was about the boj. we are not seeing much of a move right on the currency. there is speculation we could see the central banks start talking about the start of curtailing its massive bond purchases. we are also hearing about the

tokyo cpi. it was a miss on all fronts but for now, traders seem to be shrugging off the data as a one-off. paul: all right, thanks, avril. let's talk about price growth in tokyo. it did decelerate sharply in april two apace below 2% and it happened as traders waited for the ink of depend rate decision -- bank of japan rate decision. taro, we were awake to the possible under shoot of this number because we did have an elimination of high school tuition fees in tokyo but does that explain away a miss of this magnitude? taro: right, actually, we have to digest several things in today's readings. as you said, the waiver of high school fees in the tokyo district is cutting off 0.5

percentage points from the headline. given that the core reading which is the target of the boj's policy is 1.6% year-over-year on its growth, without the effect, it is likely to be 2.1% which is actually lower than the consensus forecast of 2.2%. i was hoping for a stronger gain. that means probably still in the cost-of-living crunch, hesitating to purchase something the price of which has been risen. overall, the reading was surprisingly weak, barring the effect of the school fees. paul: do you think this is going to be a one-off or is it going to be a trend that is reflected nationwide? taro: obviously, the school fees are a one-off.

it is limited to the tokyo area, which is less than 10% of the total nation's cpi. it is not going to be a huge downward pressure for the national cpi reading, but we have to be careful that barring that affect, underlying inflation is probably not as strong as the bank of japan so the bank of japan wants to show some hawkish tones but weaker results in the cpi will bind their hands, sending their signals. paul: all right, senior japan economist taro kimura there. let's get more on the yen with steven englander at standard chartered bank. we have got a yen little moved after that big miss we had on tokyo cpi but it is still really weak. 155.64. are you expecting to hear anything from the boj this afternoon that might have a floor -- help put a floor under

the currency? steven: i think they will try, but we don't think they will change policy. we don't think that they will make a strong commitment to change policy anytime soon. the impact of verbal intervention seems to be diminishing. i think that the market was reluctant to sell yen, say, when the u.s. data came out this morning for fear that they might pull some type of rabbit out of the hat. if they don't, we could see dollar-yen punch even higher. paul: yeah, to your point, we did hear from the finance minister earlier this morning, saying they are keeping a close watch on the currency. they have been saying that for a very long time now. when is the time to act and stop talking, and would it make a difference? steve: well, i think the time to act probably would have been

when it was capped at 152 before the u.s. cpi came out. i think at that point, intervention could have put a lot into negative territory because most of the yen have been bought north of 149, and even north of 150. i think now that there's quite a buffer of profits in terms of selling yen, it would be hard to really intimidate the market. so, i think in order for it to be effective, what they would have to do is say something very concrete in terms of raising monetary policy. almost a commitment to do it. that might make the market vulnerable to intervention as a bridging type of policy. if they just try intervention with the way rate differentials are going, they probably have to put a lot of money in for not much impact. paul: that was a remark that the

finance ministers suzuki said as well. that weight differential is a factor, and to a large degree of beyond their control. i give you exhibit a out of the u.s., we had sharply growing growth. pushing out the rate cut bids even more. where do you see the dollar going? where do you see the young going in this kind of environment? it seems like it will be more of the same no matter what policymakers say. steve: i think that the slowdown was a bit overstated. gdp is kind of a funny number. we all talk about it, but it is probably not the most reliable indication of where activity is. i would say that the consistent payroll numbers we've been getting probably tell us more about where the economy is. the inflation side, i think, it is a problem. it will come out to 2.8%.

year on year, march pce. if it is not 2.8%, 2.9% is more likely than 2.7%. we could see some more pressure here. ultimately, we think there will be some convergence. i think the market is waiting for that convergence to be more visible on the radar screen rather than kind of hoping and praying. paul: yes, so you see two rate cuts. that is increasingly becoming a bit of an outlier position but i will tell you one position that is not so much of an outlier if we look at europe. the ecb, there seems to be consensus gathering around june of the month of easing. is that your view? what is your outlook for the euro? steve: well, we think they are going to cut in june. we think they will continue to

cut through the year and that we will probably see differentials with the u.s. widen. we expect the euro to go down to 103, 104 by the end of the year. that would be where it troughs out. i think ultimately, the u.s. will catch up in terms of cutting but i think the path will be slower and more delayed. through this year, we see more downside risk to the dollar that upside risk. paul: i want to talk about some the closer to home where i am. the aussie dollar has popped above $.65 this week because we had a higher inflation print. the rba -- do you see a bit of aussie dollar strength in the future? steve: look, aussie dollar, and most currencies have traded on the back of central bank

reaction functions. i think the cpi tells the market that rba is going to cut again and the next move -- they will not cut any time soon. the next move could be a hike. if you chart it out against cnh, the relationship is not as tight as it used to be. we actually like aussie dollar. maybe not against the usd, but against things like the swiss franc, we think it will do well. paul: steven englander, global head of g10 fx research at standard chartered bank, thank you for joining us. still to come, china's largest autoshow is underway. the industry's biggest names showing off their hottest new designs. we will be live at the beijing autoshow up next. this is bloomberg. ♪

paul: china's largest autoshow is back in beijing. some of the biggest names in the industry showcasing their extravagant new models.

our chief north asia correspondent stephen engle spoke to byd's chief designer about the inspiration behind their cars. >> technology and design, they need to be one firm unit. we are also very, as designers and as byd, and our customers are very happy because the latest technology, they are thought from the very beginning to offer the opportunity to realize the proportions. it depends on technology. you want to do it and you cannot sometimes because the pace is not adapted. in our case, we are so lucky that we have wonderful platforms. stephen: this is wolfgang egger's latest offering from the joint venture byd has with him m mercedes. the car is the g9-gt.

you can really see that european influences on the line of this car. a shooting break style luxury ev, really emphasizes technology as well as speed. this car will go 02 100 collimator -- 0 to 100 kilometers an hour. wolfgang: the company chairman, my boss, they give a complete free space for design because they know about the importance of design. i never enjoyed so much freedom as i am doing here now. the new thing is to really search and bring back the emotion to these cars with the beauty. these lines a very elegant. we are really looking to get

close to this challenge and a beautiful piece that people can love all over the world. stephen: you can see the lamborghini experience shaped in this super sports car, also from a byd affiliate. speed obviously is a big theme here, including speed to market. one thing egger told us is unlike the legacy automakers in europe, byd and the chinese automakers can take from design phase to market pretty quick, in as little as about two years. wolfgang: this speed is higher. we are running much more and working hard, also our team is working day and night very hard. creative competition, but they are all one team. now, we've reached the 24 months target for developing a car.

from the creative moment to the production. yes, it is amazing. stephen: what would have beijing autoshow be without a concept car? this is the supercar from designer wolfgang egger. perhaps his vanity project. it is a concept, but it could come to market. it is the super 9. i can kind of see where the inspiration came from. if the batmobile or the mach 5 from speed racer were an ev, this would be it. limited windshields, no roof, fast as lightning. stephen engle, bloomberg news, at the beijing autoshow. paul: stephen engle joins us live now from the beijing autoshow. that car looked very practical. what are you looking out today? -- at today? stephen: i always wanted a machj

5 from speed racer as a kid. that car was special. it is a concept from wolfgang egger. he was the former head designer at alfa romeo, audi, and lamborghini. you can see those european lines and whose designs and there is no doubt why byd, now the biggest ev maker in china by far, 33% of the market, hired someone like him to up the game on the design front. they have the scale, they have that technology with battery and on the platform, as he described. but design was always -- if i could speak frankly -- it was always sort of lacking. he has come into refurbish the lineup. believe me, six of the top 10 cars sold in china, ev cars in the first quarter were byd cars. a lot of that was due to price because they are able to bring the cost down, some below

$10,000. upping the game on the higher end with those more european lines and a timeless classic that is what byd is trying to do so they can compete against the legacy players globally, not just in china. again, it is a major theme. china's domination of the ev space as the legacy automakers like toyota, like mercedes, all come here to see what they can do with their ev's in an already crowded market domestically in china. paul: one of the things that gets talked about with ev's is full autonomous driving. we had elon musk doubling down on that commitment earlier this week. you will be talking to james. what are their plans around autonomy? stephen: they have a lot of plans. they just got approval from the chinese government to list in the united states.

we haven't had sizable ipo's from chinese tech companies in years. we haven't had one since over $100 million chinese listing since 2022. that also was another company that does sensors for autonomous driving. we will be talking to james peng, the cofounder and ceo. that's another reason why we are in front of the toyota booth this morning because they have a big partnership and basically have a big backing from toyota, as the future is, many carmakers say, autonomous driving or at least more assisted driving. they do the technology and the ai for that. it will be a very interesting conversation. paul: chief north asia correspondent stephen engle in beijing. and on the topic of toyota, the company is moving ahead with plans to make and sell more ev's in the u.s. it is investing $1.4 billion in a plant in indiana.

the japanese carmaker says the factory will add an all electric, three row suv to the lineup. in february, they revealed plans to spend $1.3 billion on effector in kentucky to make fully electric suv's. be sure to tune into bloomberg radio to hear more from the date's big newsmakers. you can get in-depth analysis from the daybreak team, broadcasting live in our studio in hong kong. you can listen via the app, bloomberg plus, or bloombergradio.com. this is bloomberg. ♪ ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com

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good game. thanks for coming to our clinic, first one's free. paul: let's take a look at the latest corporate stories. the information is reporting elon musk's ai startup is close to raising $6 million from investors as the company looks to compete with openai. sources say the funds would value the company at $18 billion excluding the investment. so collier capital is said to be -- sequoia capital is said to be one of the investors. micron is set to receive $13.6 billion in grants and loans from washington to help build new american factories. the firm has pledged to invest about $125 billion to build plants in two u.s. states. president biden has hailed the micron ceo for the chip

company's investments. shares fell in extended trading for atlassian after news came out that the founder was stepping down as co-ceo. mike adam brooks will become the sole ceo. farquar will spend more time with his family and will remain on the board. they reported third-quarter results that largely top expectations and forecast for the adjusted operating margin did fall short. bytedance would prefer to shut tiktok rather than sell it to a potential u.s. buyer. saying the algorithms tiktok uses are considered core to its operations. bytedance denied an earlier report from the information saying it was exploring a tiktok sale without its algorithms. let's take a look at how we are doing for futures. it was a very good day for some

of the big u.s. tech names. microsoft and google both performing pretty strongly. we've got s&p futures better to the tune of .75%. we saw nasdaq triple q etf that tracks the big tech names in positive territory. the yuan there against the greenback at the moment. we've got other futures looking to be in somewhat mixed territory. let's take a look at how some of these japanese assets are trading at the moment as well. also off the back of those impressive tech earnings from the u.s. the broader nikkei looking kind of flat at the moment. the yen very much in focus. not a lot of change. 155.61. but to give you some context on what we saw today, we got a real shocker. tokyo cpi for the month of april, that came in at 1.8% for

the month. that was a big under shoot on the 2.5% we were expecting. that could potentially have implications for what we see with inflation nationwide in japan and the boj is holding its meeting today, or wrapping up its meeting today. the press conference from the governor will be really closely watched. we are not expecting any policy change, but we might see a rhetoric change and possibly a change to the bond buying program. that is it for daybreak: asia. markets coverage continues as we look ahead to the start of trade in hong kong, shanghai and shenzhen. ♪

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>> good morning and happy friday. half an hour away from the opening bell in shanghai and hong kong. i am david ingles. >> our top stories, asian investors digesting blowout earnings from alphabet