Economic Data
(JP) JAPAN APR NATIONAL CPI Y/Y: 0.4% V 0.4%E; NATIONAL CORE CPI Y/Y: 0.2% V 0.1%E; TOKYO MAY CPI Y/Y: -0.5% V -0.3%E; TOKYO CORE CPI Y/Y: -0.8% V -0.5%E (20-month low)
(KR) SOUTH KOREA MAY CONSUMER CONFIDENCE: 105 V 104 PRIOR (15-month high)
(SG) SINGAPORE APR INDUSTRIAL PRODUCTION M/M: -3.5% V +0.6%E; Y/Y: -0.3% V +4.1%E
(TH) THAILAND APR CUSTOMS TRADE BALANCE: -$2.9B V -$2.9BE
(PH) PHILIPPINES MAR TRADE BALANCE: -$1.05B V -$562M PRIOR; TOTAL IMPORTS: $5.4B V $4.99B PRIOR
Markets Snapshot (as of 05:00GMT)
Nikkei225 +0.1%
S&P/ASX -0.4%
Kospi +0.6%
Singapore Straits Times Index -0.3%
Shanghai Composite -0.4%
Hang Seng -0.3%
June S&P Futures -0.2% at 1,320
June gold -0.3% $1,553/oz
July Crude -0.2% at $90.43
Overview/Top Headlines
China, Hong Kong and Australian markets were lower today with China lending back in focus. Chinese press citing bank officials said that China's major lenders would most likely miss loan targets in May due to curbs on the property market. AUD/USD tested $0.9730. Major banks ABC, ICBC fell 2%. Some short covering was seen after Italy's Monti indicated that majority European leaders support a euro zone bond to help fight the debt crisis and that it was most likely that Greece would stay in the euro zone. EUR/USD rose to $1.2550 EUR/JPY broke above ¥100. USD/CHF rose to a 15-month high above CHF0.96.
In PBoC's annual report China indicated it will stick with its prudent monetary stance and will continue to fine tune policy. The PBoC said it prefers to adjust monetary credit supply, reiterated that the domestic economy remains under downward pressure. China press has increasingly been reporting that China will take action to ease policy and stimulate the economy. In a PBoC backed paper: There is a possibility of a cut to lending rates in the near term, but scope is limited.
Japan Finance Minister Azumi reiterated that the yen was acting as a safe haven, as European uncertainties rose so did the yen. Tokyo May core CPI came in at a 20-month low and lower than expected at -0.8%, April National CPI was in line at 0.4%. USD/JPY stayed in a 30 pip range from ¥79.82-79.55. With a slight appetite for risk back copper fell slight to $3.42, silver fell to $27.89 down nearly 1%. Spot gold declined 0.3% to $1,553.
Speakers/Geopolitical/In The Press
(CN) Asia Development Bank (ADB) Chief Economist Zhuang: A further cut to China RRR is possible; Affirms 2012 GDP forecast of 8.5%
(KR) South Korea Pres Lee: Economy needs to be restructured for a more balanced growth - Korean press
(CN) China Ministry of Commerce (MOFCOM): China trade figures have been worse than expected; Exports for first 10 days of May +27.3% y/y, imports +28% - Chinese press
(JP) Japan Econ Min Furukawa: Japan remains in modest deflation, price trend is becoming more favorable
(CN) China May new yuan loans may be about CNY550B (would mark 8 month low) - Chinese press
(CN) China State Researcher Zhang Liqun: The sharp slowdown in the economy has aroused attention from policy makers however the general direction of the macroeconomic control is unchanged - Xinhua
Equities
Nippon Life Insurance, 0001.JP: Reports FY11/12 Premium income ¥5.37T v ¥4.90T y/y
CBA.AU: Cutting fixed rate home loan rates by up to 0.4%
HST.AU: Discovered accounting irregularities in services group; Sees FY impact of about A$20M
Foxconn, 2038.HK: Chairman Terry Gou: Will double the monthly wage of mainland China workers to CNY4.4K from CNY2.2K; It would be on the same level as workers in Hong Kong - HK press
GNC.AU: CEO Watkins: Targeting to raise profits by A$40M over the next 2-years - Australian Financial Review
U.S. Equities
RUE: Reports Q1 $0.46 v $0.43e, R$205.6M v $204Me; -0.9% after hours
PAY: Reports Q2 $0.64 v $0.61e, R$479M v $471Me; -9.4% after hours