China Banks Barely Making Loans In MayEconomic Data
(AU) AUSTRALIA Q1 WAGE COST INDEX Q/Q: 0.9% V 0.8%E; Y/Y: 3.6% V 3.5%E
(AU) AUSTRALIA MAY WESTPAC CONSUMER CONFIDENCE: 95.3 V 94.5 PRIOR
(JP) JAPAN MAR TERTIARY INDUSTRY INDEX M/M: -0.6% V -0.4%E
(JP) JAPAN MAR MACHINE ORDERS M/M: -2.8% V -3.5%E (1st decline in 3-months); Y/Y: -1.1% V 4.4%E
(KR) SOUTH KOREA APR UNEMPLOYMENT RATE: 3.4% V 3.4%E
(US) US AIA reports April Architecture Billings Index at 48.4 v 50.4 prior month
Markets Snapshot (as of 04:30GMT)
Nikkei225 -1.4%
S&P/ASX -2.0%
Kospi -2.2%
Taiwan Taiex -1.3%
Singapore Straits Times Index -1.3%
Shanghai Composite -0.4%
Hang Seng -2.7%
Jun S&P Futures -0.2% at 1,326
June gold -1.4% at $1,535/oz
June Crude -1.3% at $92.74
Overview/Top Headlines
Asian equities continued their slide for the 6th consecutive day as the global economic outlook becomes more clouded. Greece failed again for another day to form a new government and there is chatter that fresh elections will be held on June 17th. Germany and France both reiterated their desire for their Southern neighbor to remain in the EU and Asian leaders voice their concerns about the impact of EU uncertainty on their own countries.
EUR/USD expanded its range in Asia trade to a 40 pip range from $1.2737-1/2699. Spot gold fell over 0.5% to $1,532, Japan 10-yr bond yield fell to its lowest level since October 2010 to 0.83% a further drop would have taken it to 2003 lows. Bank of Japan (BoJ) purchases under its asset buying scheme failed to reach targets with only about ¥481B in purchases against the ¥600B target.
After weaker economic data out of China in April the markets have renewed some concerns about how China will end this year and fears that China will be unable to glide into a soft landing. Chinese press reported that China's "Big Four" state-run banks have issued almost no new yuan loans in H1 of May. China CBRC Deputy Chairman said that China has no plans to change the loan-to-deposit ratio for banks, thus freeing up capital to lend.
In Australia BHP said it would not stick to its ambitious 5-year $80B capital expenditure plan. BHP did note that the tailwind of higher commodity prices is moderating. Platinum, silver and copper all fell in the session as funds continued for safe haven trades. Shares of Rio Tinto and BHP fell over 3.5% for both companies. AUD/USD continued to unwind to $0.9906.
Speakers/Geopolitical/In the press
(ID) Indonesia Fin Min sees 2013 budget deficit 1.3-1.9% of GDP, import growth at 13.5-13.9%.
(TH) Thailand Central Bank Minutes: Rise in inflation pressure furthers the need to renormalize police rate when appropriate.
(KR) South Korea Fin Min Bahk: Will closely watch markets for volatility; won and local equities are excessive compared to the country's fundamentals.
Equities
TSM: Taiwan Semi and UMC said to be operating at full capacity. - Digitimes
TOL.AU: Exec: Seeing extremely difficult market conditions in Japan; Will cut carrying value of footwork express business; Sees one-off items of AUD 148-168M.
PDN.AU: Reports Q3 Net loss $17.5M v loss $13.5M y/y; Rev $67.8M v $92.5M y/y.
SINA: Reports Q1 -$0.21 v -$0.23e, R$106.2M v $103Me; +6.9% after hours.
OSUR: FDA panel votes 17-0 that benefit of HIV drug outweighs risks; +37.4% after hours.