Economic Data
(AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 3.00%, AS EXPECTED.
(JP) JAPAN FEBRUARY LABOR CASH EARNINGS Y/Y: -0.7% V -0.2%E
(AU) AUSTRALIA MARCH AIG PERFORMANCE OF MANUFACTURING INDEX (PMI): 44.4 V 45.6 PRIOR (13th consecutive months of contraction)
(AU) AUSTRALIA MARCH RPDATA-RISMARK HOUSE PX ACTUAL Y/Y: 1.3% V 0.3% PRIOR
(NZ) NEW ZEALAND Q1 WESTPAC EMPLOYMENT CONFIDENCE INDEX: 100.7 V 99.1 PRIOR
(NZ) NEW ZEALAND MARCH ANZ COMMODITY PRICE: 7.4% V 1.1% PRIOR
(JP) JAPAN MARCH MONETARY BASE Y/Y: 19.8% V 15.0% PRIOR (2-year high)
(UK) UK MAR LLOYD'S BUSINESS BAROMETER: 20 V 13 PRIOR
Markets Snapshot (as of 04:30 GMT)
Nikkei225 -0.9%
S&P/ASX +0.4%
Kospi -0.5%
Shanghai Composite -0.4%
Hang Seng flat
June S&P500 flat at 1,556
Jun gold +0.1% at $1,603/oz
May Crude Oil -0.3% at $96.77/brl
Observations/Insights
The Reserve Bank of Australia (RBA) left its key Cash Target Rate unchanged at 3.00% as widely expected, reiterating that the inflation outlook would afford scope to ease policy further. The central bank forecasted global growth to be a little below average for a time, but also continued to note reduced downside risks. RBA removed the reference to substantial easing of policy as a result of previous decisions in the pipeline.
Asian markets started off mixed with the Nikkei225 underperforming, briefly dropping to below the 12,000 level for the first time in nearly a month. Japanese stocks declined by as much as 2.7% before trimming most of the losses by the mid-trading session. Initial gains are fuelled by JPY strength against the reeling USD, which fell across the board after a soft US ISM figure. The markets are also maintaining their cautious tone ahead of the central bank meetings in Japan and Europe later this week.
Currencies/Fixed Income/Commodities
GLD: SPDR Gold Trust ETF daily holdings fall by 4.2 tons to 1,217.1 ton (lowest since 1,205.4 tons in Jul, 2011)
(CN) PBoC sets yuan mid point at 6.2586 v 6.2080 prior close (highest setting since 2005 revaluation)
(CN) China PBoC to sell CNY30B in 28-day repos (draining liquidity) - financial press
(AU) Australia Newcastle weekly coal exports for week ended Apr 1st: +26.4% w/w
USD/JPY - The USD fell briefly in the ¥92 range for the first time in about a month during early Tokyo session; the JPY strengthened against all major currencies.
EUR/JPY - The EUR was little changed in the upper 119 range ahead of the ECB policy meeting on Thursday.
AUD/USD little changed following the RBA rate decision, initially rising some 15 pips above $1.0470 before falling back toward $1.0450.
Speakers/Political/In the Papers
(AU) Fitch: Australia utility firms to face increased uncertainties in 2013 - financial press.
(AU) Moody's: Australia mortgage arrears deteriorated in Jan - financial press.
(CN) China mortgage rules for second homes may vary between cities - Chinese press.
(CN) China home sales expected to fall -50% after new policy - China press.
(CN) China Academy of Social Sciences (CASS): China March CPI likely grew 2.5% v 3.2% in Feb (10-month high) - Chinese press.
(CN) China Vice Commerce Min Chen Jian: China to actively seek free trade zone with South Korea, Japan - financial press.
(JP) Japan BoJ Gov Kuroda: To mind the two-year time frame to achieve price target - addressing parliament.
(JP) Japan Center for Economic Research (JCER): Japan's Real FEB GDP estimated at -0.1% m/m v +0.2% prior; 1st decline in 3 months - Nikkei News.
(JP) Japan Fin Min Aso: Wants BoJ to act in line with joint BoJ-govt statement - financial press.
(JP) BOJ Deputy Governor Iwata: Need to be accountable if 2% CPI target not met in two years - Parliament address.
(KR) North Korea's Kim: Must continue to develop lighter nuclear weapons - KCNA.
(GR) Greece Central Bank Gov Provopoulos: Believes Cyprus solution is sustainable; reiterates Greece deposits are under no threat of loss; Deposits were not and will not be touched.
(ES) Spain govt reportedly to lower 2013 GDP forecasts to -1.0% vs -0.5% prior - financial press
(CY) Creditors said to be weakening terms for Cyprus to allow it an extra year to come in line with its budget targets - financial press
(US) Centers for Medicare and Medicaid Services (CMS) issued the 2014 rate announcement and final call letter for Medicare Advantage (MA) and prescription drug benefit (Part D) programs
(MX) Mexico Finance Ministry releases budget forecast: Reaffirms 2013 GDP at 3.5%, forecasts 2014 GDP at 4.0% - financial press
Equities
AMSC: Guides Q4 Rev $19-20M v $28Me (previously guided "to exceed $18M" on 2/11)
BGCP: NASDAQ to acquire eSpeed Platform for Trading of U.S. Treasuries from BGC Partners for $750M; +42.6% after hours
URBN: Sees Q1 FY14 comparable retail net sales so far are high single-digit positive - 10k filing; +4.4% after hours
Osaka Securities Exchange - 8697.JP: FY12 derivatives trading volume at 236.0M units (record high) - Kyodo News