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Asian Market Update: April 12, 2013

Published 04/12/2013, 06:02 AM
Updated 01/01/2017, 02:20 AM
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Asian markets mixed; investors await US banks' earnings, China economic data

Economic Data

(SG) SINGAPORE Q1 ADVANCED GDP Q/Q: -1.4% V +1.7%E; Y/Y: -0.6% V 0.0%E

(IN) INDIA FEB INDUSTRIAL PRODUCTION Y/Y: +0.6% V -1.3%E

(IN) INDIA MAR CPI Y/Y: 10.4% V 10.7%E

(AU) AUSTRALIA FEB RBA CREDIT CARD BALANCES: A$50.0B V A$48.7B PRIOR; RBA CREDIT CARD PURCHASES: A$20.2B V A$19.8B PRIOR

(JP) JAPAN FEB CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 1.0% V 0.8% PRIOR

(NZ) NEW ZEALAND MAR FOOD PRICES M/M: -1.3% V -0.3% PRIOR

(PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.25%; AS EXPECTED

(CL) CHILE CENTRAL BANK LEAVES NOMINAL OVERNIGHT RATE TARGET UNCHANGED AT 5.00%, AS EXPECTED

(US) Weekly Fed Balance Sheet Assets Week ending Apr 10th: $3.21T v $3.198T prior; M1: +$53B v +$36.2B v prior; M2: +$67.8B v +$20.7B prior

(JP) JAPAN FEB TERTIARY INDUSTRY INDEX: 1.1% V 0.7%E

(NZ) NEW ZEALAND MAR NON RESIDENT BOND HOLDINGS: 68.3% V 66.7% PRIOR

(AU) April quarterly Westpac Bank/Melbourne Institute house-price expectations index: +53.9 v +26.7 in Jan (highest level since mid 2010) - US financial press

(UK) Acadametrics: UK Mar Housing Prices M/M: +0.2%; Y/Y: +3.0%

Markets Snapshot (as of 03:30 GMT)

Nikkei225 -0.9%

S&P/ASX +0.1%

Kospi -0.5%

Shanghai Composite flat

Hang Seng +0.2%

June S&P500 -0.2% 1,585

Jun gold -0.3% at $1,561/oz

May Crude Oil -0.2% at $93.30/brl

Observations/Insights/Currencies

Asian bourses were mixed despite another record performance in the U.S., with the S&P advancing by almost 0.4% to fresh record highs on positive jobless claims data and an encouraging retail outlook. The Nikkei225 is set to end the week up by nearly 5%. The U.S.D continued to trade right below the ¥100 level.

China stocks were relatively unchanged, as investors were cautious ahead of Chinese economic data due out on Monday. Concern over the property market, and overall worries about recovery have weighed on investor sentiment for the week. South Korea's Kospi was down over 0.4%, mainly on account of the continued tensions with North Korea. The strong Korean won has also hurt, harming sentiment.

Fixed Income/Commodities

(CN) PBoC sets yuan mid point at 6.2506 v 6.1963 prior close (highest level since 2005 revaluation)

(JP) Japan BoJ to purchase ¥1.5T in Treasury Bills outright on Tuesday April 16t - financial press

(AU) Australia MoF (AOFM) sells A$600M in 2015 Bonds; Avg yield 2.8012%; Bid-to-cover 4.12x

(CN) China Finance Ministry sells 9-month bills at 98.0156

(MY) Malaysia sells 2033 Bonds; avg yield: 3.844%; bid-to-cover: 2.9x

Speakers/Political/In the Papers

(KR) South Korea Pres Park will attempt to resume dialogue with North Korea - Korean press

(KR) China Defense Min: have not seen a buildup of troops along North Korea boarder - financial press

(KR) US Pentagon spokesperson: It is not correct to state North Korea has nuclear missile ability - financial press

(JP) Japan may relax rules regarding the halting of JGB futures trading - Japanese press

(JP) According to Nikkei News, 80% of big retailers forecast higher FY13 sales, profits

(JP) Japan BOJ Gov Kuroda: Reiterates will do whatever is necessary to defeat deflation - press conference

(JP) U.S. to maintain automobile tariffs under prelim TPP deal with Japan - Nikkei News

(JP) U.S. Govt approves Japan participation in Trans-Pacific Partnership (TPP) free-trade discussions, as expected - Japanese press

(JP) BoJ purchased ¥2.51T in JGBs across the curve in today's bond buying operation (as indicated) - U.S. financial press

(AU) Australia Debt Agency (AOFM) sees no rush of Japanese inflows as yet - financial press

(AU) Australia PM Gillard: AUD strength new normal; Budget to move to surplus over time; Budget allows scope for rate cut - financial press

(HK) Hong Kong will not withdraw property curbs over the next six months - financial press

(HK) Hong Kong forecasts 13.6k private homes to be completed in 2013, 2014 at 15.8k - financial press

(HK) Hong Kong new apartment supply expected to increase 16.8% y/y in 2014 - HK press

(CN) Beijing Mar Existing Home Sales m/m: +332%; y/y: +294% - Centaline

(CN) China Q1 rail investment +28% y/y - Chinese press

(SG) Singapore Central Bank (MAS): To maintain policy unchanged, allow for gains in SGD

(NZ) Economists at ASB Bank said the strength in the Kiwi could cause the RBNZ to not raise rates until 2014 - financial press

(NZ) RBNZ creates new macro financial department, reflects emphasis on macro financial stability

(US) IMF Draft report: Lowers forecast for US 2013 GDP to 1.7% from 2.0% prior

(EU) S&P Capital Goods Industry Report Card: Chance of European recession to last into 2014, lowered to 33% from 40% prior

Equities

Evergrande Real Estate Group 3333.HK: To raise home prices by 2-10% - Chinese press

Mitsui Mining 5706.JP: May report FY13 Pretax ¥17B, Rev ¥410B - Nikkei News

Marubeni 8002.JP: To begin shipping US shale gas to South Korea - Japanese press

Nissan NSANY: Planning to delay transfer of production of some vehicles from the Japan to the U.S. due to recent Yen decline - Japan press

XOM: To remove Pegagsus pipeline segment this week; +0.1% afterhours

WLT: Provides prelim Q1 Op Results: expects to report metallurgical coal sales volume at 2.8M tons, +9% q/q, prices expected to improve slightly; +6.3% afterhours

C: Brazil banks such as Itau, Bradesco and Santander said to be bidding for credit cards and financing segments of Citi's Brazilian units - financial press

LLY: Said to be conducting layoffs of 30% of sales workforce (1K positions); will add about 300 sales positions for diabetes drugs - financial press; +0.4% afterhours

WY: Increases quarterly dividend 18% to $0.20 from $0.17/shr

HRS: Reports prelim Q3 $1.12 v $1.26e, R$1.20B v $1.33Be, Cuts FY13 forecast; -7.4% afterhours

JBHT: Reports Q1 $0.61 v $0.64e, R$1.29B v $1.28Be; -2.8% afterhours

GPS: Reports Mar SSS -1% v -1.8%e

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