haidi: this is "daybreak: asia." we are counting down to asia's major market opens. we finally got to 90 80 94 the nikkei 225. japan is away on holiday so we are focusing on other things. they are missing out on an incredible post-nvidia earnings rally. paul: it is the emperor's birthday, just a coincidence. [laughter] but were they trading today, we would expect to see that japan tech rally continue. we are expecting that in the kospi. but what a rally. all the indexes in the u.s. hitting records. haidi: people say well, is this the peak of the ai frenzy as dominated by just one name, nvidia? and of course so many of these related names will be the ones

to watch as we get into the start of trading here in korea and japan as paul mentioned, off for the emperor's holiday. the kospi popping almost 0.5% as we get to the start of trading. quite a lot of buying from foreign investors. it has driven the kospi to become a outperformer from one of the worst equity performance in asia. seeing quite a lot of interest in the names, the likes of sk hynix, chip-led names that will benefit from the ai rally. we continue to see the s&p 500, nasdaq 100 and that thou all -- and the dow all hitting records on the back of one company. a higher day for asian stocks in the previous session, largely driven by tech. lead with the absence of japan,

perhaps more of a muted session for volumes today. paul: let's look at australia. obviously a higher, about 0.5%. not surprising that it is a priority stocks that are the best performing sector, that sector is up 1.6%. by the rally is feeling broad-based. just a beat of wickedness in utilities -- a bit of weakness in utilities. crude prices have found a floor. trading near $78 a barrel. not a lot of movement. really caught in a bind. there are rising tensions in the middle east and on the other hand, lingering concerns about outlook and demand and consumption from china. so, crude prices reflecting that. the 10-year yield, pretty much a little unchanged, 4.1 62 at the moment. haidi: when it comes to bond futures, we had more fedspeak and a lot of these said officials really bolstered the

case for markets to stay patient when it comes to expectations of rate cuts. vice chair philip jefferson saying too much easing could stop progress. we saw governor lee seth cook saying she wants more evidence of disinflation. the broader picture is optimistic that inflation is still cooling, but really making it clear they want to see more evidence that it is headed back to 2% before lowering borrowing costs. the same vein of communication we have been seeing and certainly reflecting the caution that we saw in the fomc minutes that were out yesterday, with the risk being skewed to what would happen if they cut too early, as opposed to what would happen if they held higher-for-longer. yields a region year-to-date highs. be unexpected drop in new jobless claims really reinforcing the risk appetite based on confidence in the u.s. economy. we saw the impact when it came to huge gains in the equity

market. . also new corporate bond offerings, seeing that impact on yields. traders really further paring those bets on said rate cuts. the amount of sad easing is now at the lowest levels, 80 basis, down from a peak of 150 basis points. our next guest is neutral equities more broadly, but overweight u.s. equities. homin lee. the enthusiasm seemed like i am downplaying it, but what do you make of the nvidia frenzy. homin: the earnings report was quite spectacular and it was really the confirmation of the theme we have been watching since late 2022. we are basically beginning to

see the hint of a melt-up scenario. we are starting to see fairly solid data. retails else that back, but indicators point to begin another year of, a solid year, another year of solid performance for consumers and businesses. so what we're doing right now is, when you see a rally like this, first of all, you have to respect the price action and momentum, so we are incorporating that quinoa portfolios by overweighting u.s. equities at the expense of european equities. for which we think the master and policy backdrop is slightly more challenging. so we are making that pared trade. we still think it's important to manage risk and keep in mind

that the bond-equity correlation has been quite favorable to the diversified portfolios. in a portfolio setting, neutral allocation to global equity, but within that equity allocation, we are still overweighting u.s. equities where the ingredients of the potential equity market melt-up are there. there are also comforting signals from both earnings and economic indicators. haidi: how do you feel about asian markets. we saw the sk hynix jumping after those nvidia gains. nvidia is back that korea is back in favor. they have that double lemming of not just government optimism, but also the heavyweight for chip names. do you like korea and japan at the moment, where do that valuations fall for opportunity for you?

homin: if we have to choose between the two markets, and east asia, between japan and south korea, police think japan offers a slightly more interesting medium-term outlook even though the market is definitely more expensive than south korea. we really think there is a fundamental change in the inflation outlook for businesses thanks to the decades of reflationary efforts by the bank of japan of the government. that we will begin to see that in the survey indicators we are definitely seeing that in the earnings numbers. so in terms of timing the markets, it might be slightly tricky at this moment because the rally has been rather furious, but for the medium to long-term, the equity market definitely deserves a strategic allocation. now for south korea, we are in the midst of a corporate governance reform push by the

government. that is an interesting development to watch. the market is definitely cheaper than the others and it has a duty to the ai theme -- has a sensitivity to the ai team. we are watching the announcement from the government of a program basically replicating the name and shame campaigns for companies that are not using capital well. if it is well-received by investors ahead of the shareholder meetings reason, we could potentially upgrade our view for the market. for the time being, we are more neutral and we still think the momentum in japan or the taiwan markets are worth reflecting in your equity portfolios. paul: you described the rally in japan as furious. i am just wondering, to what degree you think it can maintain the rage, what is your price target for the nikkei, and you could see -- could you see a scenario where boj tightening

helps people that rally? homin: -- helps fuel that rally? homin: it is possible to see high single-digit return from here, just based on our assumptions about growth and inflation in the economy. you will see the earnings growth slowing down a bit this year, actually, compared to last year, but there is a lot of retail investor activity, for sure after the launch of the more generous program. the picture is changing for our investors, too. in this context, if you get a that of relatively encouraging data, you could still see a bit of upside from here. obviously, the rally has been quite significant and not just this year, but in the past two years really. so there is a bit of a timing issue. right now, are allocations to

japanese equity is neutral. whether or not the equities can withstand potential rate hikes by the bank of japan in april is a question. we think they can withstand the hike the, especially if the boj guidance after the hike is not drew: aggressive. -- not to drew: aggressive. but we are looking for opportunities to may change that assessment in the next few months. paul: can we get your view also on the inflation forecast for china, may a deflationary forecast had a bit of a description. and in terms of policy measures in china, these the them as needlessly timid perhaps? homin: first of all, we lowered our inflation forecast for china recently in the aftermath of the january, very disappointing january report which showed headline inflation that -0.8% year on year.

the rebound scenario, we have to be more realistic. we are looking for one point 3% average cpi this year. we know there is still quite a bit of downside to that risk. now for the policy action by beijing, we are seeing some steps in the right direction. but our overall assessment is that the approach is still quite piecemeal and reactive, for instance, the 25 basis when cut in 5-year loan prime rates, you could question why didn't they do this in january? why limit the move to just the 5-year loan prime rate? there are concerns about the renminbi stability, for the net interest margin for the commercial banks that are constraining this action, so we understand the reasons why they are approaching the target this way. and it is some positive growth in the economy. but it is important to, with a

credible the reflation package permit is not about justin: and this year, you can assure investors that there will be inflation in 2025 and beyond, and with that regard rethink the policy announced the far might not be enough. this idea of a perfect technical tweak to stabilize market sentiment is somewhat dangerous, in our view, given the challenges that the economy faces. so we will see what kind of policy they announce in the upcoming national people's congress. that might change the tone. but for the time being, we are a bit cautious regarding the economy. paul: all right, homin lee, senior macrostrategist at lombard odier. thank you so much for joining us. a quick look at how the sk hynix is doing, 4.3% gain from the house not surprising considering what we saw with nvidia -- 5.3%

gain. u.s. tech rally in hartford so the sk hynix right now performing the broader cost. . and i am sure that japan chip stocks will be doing the same today as well, with the nikkei closed for the emperor's birthday. the sk hynix having a strong pain in korea, still to come, a u.s.-made-related craft in over 50 years has made it to the moon through it will bring you the pictures as we get them. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner. it's what you keep that really matters. why not give your wealth a second look? book your free meeting today at creativeplanning.com. creative planning -- a richer way to wealth. paul: saturday marks two years since russia launched its full-scale invasion of ukraine, and after months of stalemate,

the war is turning in vladimir putin's favor, as political infighting in the has delayed aid. michael heath is with us now. mike, what is the status of the battle fronts in ukraine at the moment? michael: left week, we saw the fall of avdiivka, which is in the eastern ukraine, and there had been a an intense battle there. it is really slugging it out. almost world war i style fighting. there was a lot of concern that losing troops to captivity was not worth it for a town but wasn't strategically critical. the kremlin obviously made a lot of propaganda value out of that. but ukraine is under pressure, having to ration my new mission and having to choose where they

fired because of delays in u.s. aid furtively getting through to it. russia has the advantage of having these huge soviet stockpiles and a lot more people obviously,'s as well. russia has been able to get ammunition from north korea, drones from iran, potentially surface to surface missiles being spoken about as well. so at the moment it's not looking great for ukraine. they are sort of related in the way countries, both tough operators. i suspect it is good to drag on for a while. haidi: i have been wondering for a while, what happens if there is a trump presidency, for both these two conflicts. michael: it would be really, really concerning for ukraine. i mean, and his first term, trump sort of made it fairly clear that he didn't have interest in ukraine and its status. he sort of likes to see himself as an old-style operator.

national interests are everything. ukraine was not on his radar. he was more interested in a good relationship with putin than with ukraine. what it would require is for europe to massively set up with europe has signaled it is prepared. the problem is the scale of ammunition and the scale of weaponry that ukraine requires, europe would struggle to meet that, whereas the u.s. is capable of doing that. in terms of israel, what would be i guess worrying there is whether trump allows a complete freehand there. he is not too worried about the two-state solution and things like that. that is what we would likely see. so the u.s.'s engagement in these areas would certainly step back, and it would require the rest of the world probably to step up more. whether they can do that, we have to see that. paul: president biden met the widow and daughter of alexei

navalny. more sanctions incoming, but in terms of sanctions, are we reaching the point of symbolism now? michael: iesco, there is an interesting podcast on the bloomberg terminal that discusses this issue. they talk to a chap who was a former official at a russia investment bank. he had been surprised at how resilient russia's economy had been. the first chief economist at the treasury department that handles sanctions. it was worth a read. she was saying that russia's economy has reoriented into a war economy, so growth looks ok in china. but people's living standards are deteriorating. the guy from the central bank was more upbeat, he was surprised how little the sanctions had done and he said they had run their course. looks like now they will go after the military industrial complex, which is what they need to be doing. haidi: bloomberg editor michael heath there. a look at some of the geopolitical headlines we are tracking. israel is determined to push ahead with moving about one

million civilians from rafah ahead of an attack. israel prime minister netanyahu says upped the ante is underway. but privately, officials have acknowledged they don't have a precise strategy on how the evacuation plans can be carried out or where people go. leaked documents from a shanghai-based cybersecurity vendor appear to outline the broad scope of china's state-sponsored cyberattacks on foreign governments. the file, seen as authentic by experts, appears to show successful attacks in 2021 and 2022 with targets including the u.k. foreign office, and nato secretary-general ian stoltenberg. china will renew its diplomacy efforts with the u.s. and other nations, after spending recent years bringing the panda bears it owns. informative news back home. it recently reached an. agreement with the san diego zoo and the madrid zoo, mark the latest effort by beijing to improve elections with the last.

china has called on the u.s. to stop official contact with taiwan, after a delegation of lawmakers arrived on the island. the group led by the house committee chair, delivered a strong message of support on their first day of the visit. they met with the president and the vice president electss in taipe. you can get a roundup of the stories you need to know to get your day going on this edition of "daybreak." terminal subscribers, go to dayb . it is also available on mobile, in the bloomberg anywhere app. you can also customize the settings as well so you just get the news on the industries and assets that you care about. ♪ all these years you've worked hard, you've fixed it, you've looked after it, maybe it's time for your home to start taking care of you. - we've invested in our home, we've worked on it. - we had a whole lot of equity just sitting there.

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machines, has touched down on the moon, the first time a u.s.-made-related craft has made it there in one piece since 1962. this day will go down in history for space exploration. give us a sense of it. bruce: this is the first time a private company has landed on the moon, there have been several attempts, most recently, another u.s. company sent a spacecraft there last month but never made it to the moon because of equipment failure. a japanese company tried last year, it got to the moon, but didn't land successfully. so the mission now by intuitive machines is a real breakthrough. this is something that is supported by nasa, part of a nasa program to work with private companies, most notably spacex, which nasa uses for a lot of its lunches.

in the future, the goal is for nasa to be able to use these private companies to send missions to the moon, and eventually the goal is that the u.s. wants to have asked about back on the moon and eventually have a longer-term president there. the u.s. is not the only countries trying to send people back to the moon. china most notably is aiming to send chinese estimates there sometime by the end of the decade. so there is a bit of a moan race going on and private companies are part of it. haidi: is an interesting opportunity for investors, too, as we get increasing players. take a look at this chart that shows the incredible move we have seen in intuitive machines. about a 300% gain year to date, 121% rally over the past three

sessions alone. and here you can see just a number of objects have been launched into space. so this is clearly of commercial interest in addition to the national interest you have talked about. where do investors think the opportunities lie here? bruce: you are right, there is a lot of interest in some companies in intuitive machines, the stock price is up sharply in after-hours trading, not surprisingly. that chart showing the big increase in objects in orbit, a lot of that is due to spacex because of its starlink constellation of communication satellites in low-earth orbit. earlier generations of satellites were much higher in space and they only needed one or two that are lights. in low-earth orbit, much closer to the planet, you need many more satellites in order to get that are covered. so there are thousands of spacex started lights as part of that

constellation and there will be a lot more -- spacex satellites. amazon has a plan to create a constellation of its own. others are working on plans, including the chinese. as far as investor interest, it's a bit spotty, though, because a bunch of space companies in the u.s. that did go public through the spac process, a lot of them are not doing that well. so there hasn't been -- there has been some concern that maybe this is not going to be as lucrative a business as some might feel. but now we see with intuitive machines landing, that there is potential there. the big thing that we should caution about is, we don't know the status of the spacecraft on the moon. we know that it has landed and the company has said it is in contact with it. the position of it, is it right side up, sideways, in the place

where they intended it to land, we are still waiting to hear on that. so there could be some big bumps coming up that might sort of decrease the enthusiasm level. but for now are what we know is that they have landed and that they are in contact with it, so it is a successful soft landing. paul: global business reporter bruce einhorn there. that landing zone near the south pole of the moon, with deep craters in near permanent shadow that are believed to hold water or ice that might have numerous uses in terms of exploration and beyond. we are anticipating pictures of that moon landing and we will bring them to you as soon as we get them. many more to come on "daybreak:

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>> i do believe that we may be

in a position to see rates decrease this year but i would caution anyone from looking for it right now and right away. we have time to get it right as we must. >> we always need to keep in mind the dangers of easing too much in response to improvements in the inflation picture. excessive easing can lead to a stalling or reversal in progress in restoring price stability. take haidi: a look at how we are tracking when it comes to the final friday session. quite a bit of upside support. asian shares climbing as we saw u.s. equities heading record highs. all of this down to the performance of one stock when it comes to the chipmakers. it is still nvidia. that story leading the chip

makers in the asian markets trading. the likes of sk hynix in the fray. we have japan off of the uppers birthday holiday. a breather after the nikkei two secured the december 1989 hi. gains of 4/10 of 1%. kiwi stocks a little bit of an underperformer. it was an videos results as well as the ensuing rally that sparked the broad-based rally we saw across u.s. rallies that we continue to see play out in this part of the world. geo politics continues to be the overlay. bloomberg has learned the u.s. and china are discussing new measures to prevent a wave of emerging-market sovereign defaults. these talks mark one of the most significant attempts in years at economic corporation -- economic operation. let's bring in our economics reporter. this is a fascinating story in

terms of some of the conversations that are going on between the superpowers. what measures are being discussed and what sparks this? we know ems in this part of the cycle would despite the linkages to a slowing china have been fairly resilient. >> what we know is these discussions have taken place over recent months. we know undersecretary of treasury jay shambaugh was in beijing at the beginning of february. these discussions are looking at moving forward beyond a mechanism that has not been working the last several years called the common framework. what we have seen is several countries in africa that have applied for the common framework but it has taken a long time to try to work through their restructuring, negotiate with their bilateral creditors. negotiate with bondholders and come out the other side. what we have seen is u.s. and china have been talking about

ways that they could delay the repayment of some of these debts of countries that a lot of debt to china and a lot of money to china. they would be looking at profiles the debt and paying it back later over a longer timeframe hopefully before they would get to the stage of needing a restructuring where you need write-downs and haircuts and all kinds of things beijing rejects as an answer to this because china is averse to taking losses on these loans. the loans are spread to a number of chinese state owned banks. and one was to be left holding the bag and saying they made the investment they made went south. paul: as we count down to the g20, there has been a lot of discussion about how the israel gaza conflict is causing a wedge between members. is this an opportunity for the g20 to get back to its basics

and explore an area of agreement and cooperation? >> certainly a promising sign. what we are hearing from sources is mood music to these kind of global conversations is better now certainly than it had been in the past couple of years. if we compare to where we are today in february 2024 to where we were in 23 where the story dominating the headlines was a spy balloon and everyone was captivated by that story to where we are now with the u.s. and china having more regular exchanges. having the possibility of treasury secretary yellen going back to china this year and able to talk to each other in a way they have not been able to in a number of years. this provides a glimmer of hope in tech. some of these big problems have to be agreed by the two superpowers and socialized potentially with the g seven and the g20 and to get everybody on

board. . the first step is for the two became its to be talking to each other and having productive conversations. haidi: is the framework being criticized? there has been concerns it has not been working. if so, how could we see a more bilateral approach be more effective? >> part of the problem with the common framework is at the end of the day, people need to accept losses. it is something the private creditors, the bondholders who make up a lot more of the bond holding and the debt and lending than they did 10 or 20 years ago when it was the paris club at a group of western creditors as well as china being of the official creditor. these are processes that take a lot of coordination. a lot of tough negotiating and even with a country legs mbo we thought sounded like things were

moving forward and you found a pickup and -- a pickup and an unexpected obstacle. if you can get the u.s. and china to agree, it is important to highlight preemptively. before some of these countries get to the stage of zambia or ghana where they are in debt distress should looking down the road and trying to get out proactively in front of the problem before it becomes so large. paul: international economics reporter eric martin joining us from d.c. want to get you across and alert on the bloomberg terminal. we are hearing from the fed's christopher waller. . he is making a few slightly hawkish remarks. he says delaying cuts for a few months should not have an impact. he says he sees a predominantly upside risk on inflation. he still expects to see fed easing this year but there is no great urgency.

he wants to wait a couple more months to get more inflation data. saying the january surprise cpi number could be either a bump or a warning on inflation. we heard from a couple fed speakers today. the vice chair richard jefferson saying the on guard against cutting too far in response to falling inflation and the philadelphia fed president saying it is appropriate to cut this year but he sees risk to easing too soon. those remarks being echoed by chris weller. predominantly upside risks on inflation. delaying cuts a few months. that should not have a big impact. tsmc will officially open its fabrication facility in japan on saturday. mass production due to start later this year. it is an early victory. in an exclusive interview, the

i.t. industry director tells us what prompted japan's move. >> very significant for japan. it is to fill a gap between supply and demand in japan. without investment from tsmc, -- the demand for less than 40 nano is getting traction in japan. by the japanese car industry or other robotics industry etc. that is why the capacity from 28 to 12 is essential to the japanese industry activities.

>> we have reported the numbers could be 20 to $30 billion. it could go as high as $67 billion in terms of financial support for the chip industry. what would you say to the taxpayers of japan who are going to help build this industry? why is it worth it? >> japanese people realize the importance of support for semi industry. what we are doing is tell the importance of each project to the people. that kind of economic security perspective. one of the element. the other is a repo effect perspective. tsmc project is expected to have the large scale of the economic spillover effect. we already have watched semi related companies.

moving into the prefecture where tsmc is -- investment spillover effect as well as job creation as well. also concerns the payment from tsmc. it is higher than the standard of living for japanese companies. which can make a positive impact. >> it seems japan has jumped out to an early lead in this effort to build the domestic chip industry. the united states is trying to do similar things. europe is trying to do similar things. what are the reasons japan was able to do this so quickly? >> concerning the past, everybody thought japan moves to

slow in terms of financial support. we sincerely regret that misdemeanor hit we realize the importance of speed. i have served a couple of ministers. everybody told me speed is very important to attractively investment. -- attract the investment. haidi: that was the i.t. industry division director of japan's ministry of economy, trade and industry speaking exclusively with bloomberg in tokyo. coming up next, we will be speaking with a new zealand finance minister on the outlook of what is expected to be a tough budget in may. this is bloomberg. ♪

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paul: new zealand's finance minister is in australia as both countries aim to strengthen their single economic market. the two nations looking to lower business costs and increase the ease with which companies can operate. with us is the minister of finance. . thank you for joining us. the relationship economically

and culturally between new zealand and new zealand are probably the closest between two nations of the world but what more can be done? >> it has been a fantastic opportunity to visit australia. we have a close economic relationship. the opportunity is to address the challenges we share together. things like and making sure we have aligned rigell tory frameworks. challenges with pacific banking and ensuring we are supporting the provision of those financial services. from new new zealand's perspectives, we want australian businesses to invest in new zealand. we went to make that is seamless as possible. paul: new zealand is a small open very trade-dependent economy but also vulnerable to having a hard debt burden. what is the status of new zealand's debt and was being done to bring under control? >> about the same level as those

jelly i to gdp but we would -- as australia relative to gdp. we have been elected with a mandate to get government spending down as a proportion of the economy. we are working to drive more value from the investment that we do. reducing the size of the back office public service and prioritizing government programs so we can both offer tax reduction and improve going forward. haidi: is the intent still to return the budget to surplus by 2027? the balance of considered cuts but also -- does that square? >> the tax package we have proposed is fiscally neutral which is to say it is being funded by a combination of re-prioritization together with revenue initiatives including cost recovery for immigration

levees, greater tax audits. that means we think our tax reduction plan is prudent and sensible. it will be the first tax adjustment on a personal level in 14 years in new zealand. in terms of the surplus position, there is a forecast surplus in 26-27. there was forecast before christmas. we have had downgrades under the growth outlook since then. that is a goal we are still pursuing. it may be a more challenging picture as the surplus picture. haidi: the global picture is challenging when it comes to key trading partners like china and the slowdown. before christmas it was flagged things were looking a little concerning. if we see a deterioration in fiscal and monetary conditions, you could see further declines in revenue.

does that mean there is a risk to the upside deeper than expected spending cuts? >> that is a fair representation of the downside risk to the growth outlook. in terms of the spending reprioritization, we are not seeing a need to deepen that program. what we have is in initial program to reduce cost. over the longer-term, we are optimistic about driving more value for the investment. we anticipate continuing to invest more in front-line services, health and education which face growing demand with a growing population should anticipate increased investment in our police force. we have a great growth trajectory possible for new zealand. it is important we unlock that. when i spoke with investors in sydney, they talked about how challenging it can be to get permits, conceit to do development in new zealand. our government has been elected to cut through the red tape, make it easier to invest.

we are confident by giving the regulatory settings right, we can unlock more growth to put our economy in a stronger position. paul: the first half treasury forecast is 1%. some economists see less than that. what are your projections? >> you are right. there are a number of predictions out there. none of them are as great as we would like them to be. we face an economy that has had interest rates rise quickly in response to inflation and the effect of an official cash rate at 5.5% is being felt across our economy as are geo stability concerns. we will see the latest forecasts when we receive our budget on the 30th of may this year. we are prepared to make sure our plans are resilient to forecast which may decline. paul: would lower rates be

helpful and to what degree are rates informing your budget choices? >> i am careful not to comment on where the official cash rate should lie. we have a proudly independent reserve bank. what we are seeing is inflation has been coming down. it is still too high at 4.7%. a combination of factors tell us high interest rates are kicking in shouldn't we have high employment taking up. businesses are telling me they are seeing redundancies. they are seeing retrenchment. all the signs are high interest rates are having the effect the reserve bank once and we should see inflation starting to track down. paul: i want to ask you about the foreign buyer ba isn. send the wrong message about how open new zealand is? >> the rules of new zealand prevent foreign buyers from purchasing residential property. there is a significant exemption for australia.

we as a political party campaigned on overturning that ban. we are in coalition. our partners have not supported the position. we want to make clear we want to welcome investment around the world for our productive industries, for businesses. there are significant growth opportunities. we are on a huge drive to deliver more infrastructure. public transport projects. renewable energy. our government is open to doing that in partnership with the private sector. we are looking at financing arrangements. we anticipate some of that capital will be overseas capital. what i am hearing from investors as they see new zealand is a great prospect for those kind of investments should paul: you also have a plan to deliver a tax package relief of 14.6 new zealand dollars. can you still do that particularly after one of your coalition partners is basically

as a condition of the coalition force you to drop that to tax foreign buyers? >> we can do that and we have already made a down payment on the plan with our budget before christmas where we rely $7.5 billion worth of savings. we think tax reduction is important to new zealand on the context of significant bracket and fiscal drag. to give you a sense, a median wage earner in new zealand used to be taxed at 17.5 cents on their margin or dollar. that is $.30 due to bracket creeps. we have to adjust that to make sure we are encouraging and rewarding work. we would be able to fund the balance of our tax package with the program of reprioritization. we are connecting a baseline exercise. with a number of revenue measures should we are confident we can deliver that responsibly. our coalition partners are supportive. haidi: we appreciate your time on your visit.

the new zealand finance minister. you can catch us live and catch up on the past interviews and conversations on our interactive tv function. that is tv . you can di into an -- you can dive into any of the securities. this is for subscribers only. it is at people go. -- at tv . this is bloomberg. ♪

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haidi: a pretty bullish way to end out the treating people with japan on holiday. it secured the record high. closed on account of the emperor's birthday holiday. seeing green shoots across the region particularly when it comes to trading. in korea so much of the focus when it comes to the global rally in equities ignited by nvidia. sk hynix advancing as much as 6.7% to the highest since november of 2000. riding on the back of nvidia finishing 16% higher. p are seeing this -- we are seeing this sprinkle of glitter across equity markets. paul: there does seem to be a halo around markets today and yesterday after the end nvidia results should it is spreading to australia.

the asx better by a third of 1%. the best performing sector right now is information technology stocks that are by 1.6%. most of the room market rallying pretty well. materials, utilities and industrials are weaker. energy as well. the oil price drifting sideways. across the sea, a little bit of weakness. we did just hear from new zealand's finance minister saying the 14.5 billion new zealand dollars tax cut package can still be delivered. that is it from daybreak: asia. markets coverage continues as we look ahead to the start of trade in hong kong, shanghai and shenzhen. standby for bloomberg markets china open. this is bloomberg. ♪