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Asian Market Update

Published 03/26/2013, 08:04 AM
Updated 01/01/2017, 02:20 AM
USD/JPY
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JP225
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HK50
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DELL
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PRU
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BHP
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DGE
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PH
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KR
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GC
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CL
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FTNMX651010
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BMAm
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MAR
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NWSA
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CY_old
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IMOB
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UNSP
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CN
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KS11
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  • Eurogroup Chief Dijsselbloem backtracks from Cyprus "template" remark
  • Japan shares pared losses on BoJ Gov Kuroda comments on bold easing
  • Economic Data
    • (NZ) NEW ZEALAND FEB TRADE BALANCE (NZ$): +414M V -12ME; EXPORTS: 3.91B V 3.55E PRIOR; IMPORTS: 3.49B V 3.58BE
    • (KR) SOUTH KOREA Q4 FINAL GDP Q/Q: 0.3% V 0.4% PRELIM; Y/Y: 1.5% V 1.5% PRELIM; 2012 GDP 2.0% vs 2.0% prelim (3-year low)
    • (JP) JAPAN FEB CORP SERVICE PRICE INDEX Y/Y: 0.1% V 0.0%E (first rise in 9-months)
    • (PH) PHILIPPINES JAN TRADE BALANCE: -$714M V -$1.28B PRIOR
    • (SG) SINGAPORE FEB INDUSTRIAL PRODUCTION M/M: -0.7% V -0.3%E; Y/Y: -16.6% V -7.9%E
    • (JP) Japan Mar Small Business Confidence: 49.7 v 46.0 prior
    Markets Snapshot (as of 03:30 GMT)
    • Nikkei225 -0.2%
    • S&P/ASX -0.8%
    • Kospi +0.4%
    • Shanghai Composite -1.5%
    • Hang Seng -0.5%
    • June S&P500 -0.3% at 1,552
    • Apr gold -0.2% at $1,603/oz
    • May Crude Oil -0.1% at $94.73/brl
    Observations/Insights

    Asian shares eased following comments made by the Eurogroup Chief Dijsselbloem who initially stated that the bank restructuring program in Cyprus could be used as a template for the rest of the EMU, forcing large uninsured depositors, bondholders to bear heavy losses. The Eurogroup office subsequently backtrack those comments denying that Dijsselbloem described the Cyprus bailout as a "template" for future bank restructuring.

    Asia stocks recovered somewhat from their lows as the BoJ Governor Kuroda signaled bold monetary easing. In his testimony to parliament, he said that the BoJ will do whatever it takes to defeat deflation in particular targeting longer dated JGBs to push down the yields across the curve.

    Currencies/Fixed Income/Commodities

    • (NZ) RBNZ Chief Economist McDermott: Monetary policy cannot influence the real exchange rate
    • (NZ) Declining fuel inflation attributed in large part to rising NZD - Dominion Post
    • USD/JPY traded around traded around the lower 94 range on safe haven purchases
    • UDS, EUR sold against the JPY due to concerns about the eurozone banking sector following the Cyprus deal.
    Speakers/Political/In the Papers
    • (CY) Cyprus Central Bank: All banks to remain closed until Thurs, Mar 28th
    • (JP) Japan LDP may consider farm subsidies over TPP - Japanese press
    • (JP) Japan Fin Min Aso: Hopes BoJ will act in line with joint statement; PM Abe's policies have done better than expected
    • (CN) China Banking Regulatory Commission (CBRC): China banks domestic liability reaches CNY124.5T end-Feb - China press
    • (CN) China Jan-Feb fiscal Rev CNY2.24T +7.2%; fiscal spending CNY1.61T, +15.7% - Chinese press
    • (CN) China PBoC advisor Song Guoqing: Reiterates estimate for Mar CPI at 2% y/y - Chinese press
    • (CN) China International Capital Corp (CICC): Real estate expected to ease in the latter part of 2013 after a strong start in Jan-Feb - Shanghai Daily
    • (CN) Shanghai new home sales (ex-govt subsizied) fell 23.8% w/w last week to 300.9K sqm; new home prices +3.9% w/w to CNY23.4K/sqm - Uwin
    • (VN) China vessels said to have fired on Vietnam fishing boats - financial press
    • (KR) South Korea Construction Minister Suh: Does not expect the govt to artificially raise the price of homes - Korean press
    • (NZ) Drought conditions on the North Island in New Zealand continue to impact the local farming sector; Conditions said to be worse than in 2008 - NZ Herald
    • (NZ) RBNZ said to be proposing increased down payments for higher LVR (loan-value ratio) mortgage loans ahead of its updated macro-prudential regime - financial press
    • (VN) Vietnam Central Bank cuts repurchase rate by 50bps to 6.5%
    Equities
    • United Spirits UNSP.IN: Diageo said to be considering increasing offer price for United Spirits - financial press
    • Mazda 7261.JP: Targeting FY13/14 domestic production at 900K vehicles - Nikkei News
    • Hon Hai 2317.TW: Report FY12 Net profit NT$94.8B v NT$97.8Be; Rev NT$3.91T, +13% y/y - update
    • FUN.AU: Reports H1 Net A$9.3M v A$5.5M y/y, EBITDA A$14.7M v A$10.6M y/y, Rev A$87.0M v A$88.1M y/y (update)
    DELL:

    Discloses more details of Blackstone and Icahn offers; Blackstone offer valued at over $14.25/shr; CEO Dell said to be concerned Blackstone offer would dismantle company; sees plans inconsistent with strategy to reinvest in company - financial press

    PRTS: Reports Q4 -$0.99 v -$0.23 y/y, R$62.8M v $65.6Me (only 2 est); Announces $6 Million Financing

    COP: Announces Second Oil Discovery in Deepwater Gulf of Mexico

    INTU: Reports season to date TurbTax unit results; reiterates guidance

    RMKR: Reports Q4 -$0.17 v -$0.07 y/y, R$5.2M v $8.0Me

    SONC: Reports Q2 $0.05 adj v $0.04e, R$111.1M v $113Me

    XEL: Updates 2013 Rate Case, Reduces Request for electricity rate increase

    BHP: To launch approval process for A$10B floating LNG project offshore Scarborough in Mar - Australian press

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