Lower-Than-Expected Unemployment In Australia Boosted The AUD; Fed's Yellen Comments On Operation TwistEconomic Data
(AU) AUSTRALIA MAR UNEMPLOYMENT RATE: 5.2% V 5.3%E; EMPLOYMENT CHANGE:44.0K V 6.5KE; PARTICIPATION RATE: 65.4% V 65.3%E
(AU) AUSTRALIA APR CONSUMER INFLATION EXPECTATION: 3.3% V 2.7% PRIOR (9-month high)
(JP) JAPAN APRIL MONTHLY CABINET REPORT: KEEPS ECONOMIC ASSESSMENT UNCHANGED
(KR) SOUTH KOREA FEB MONEY SUPPLY L Y/Y: 0.3% V 1.1% PRIOR; M2 Y/Y: 0.7% V 0.2% PRIOR
(KR) SOUTH KOREA MAR BANK LENDING TO HOUSEHOLDS (KRW): 452.3T V 452.7T PRIOR
(JP) JAPAN MAR DOMESTIC CGPI M/M: 0.6% V 0.4%E; Y/Y: 0.6% V 0.4%E
(KR) SOUTH KOREA MAR UNEMPLOYMENT RATE Y/Y: 3.4% V 3.6%E (first decline since Oct 2011)
(NZ) NEW ZEALAND MAR NZ CARD SPENDING RETAIL M/M: 0.3% V 0.4%E; TOTAL M/M: -0.2% V 0.5%E
(NZ) NEW ZEALAND MAR QV HOUSE PRICES Y/Y: 3.0% V 2.9% PRIOR (18-month high)
(NZ) NEW ZEALAND MAR BUSINESS NZ PMI: 54.5 V 57.7 PRIOR
(PH) PHILIPPINES FEB TOTAL EXPORTS Y/Y: 14.6% V 1.7%E; TOTAL MONTHLY EXPORTS: $4.4B V $4.1B PRIOR
(JP) JAPAN MAR MONEY STOCK M2 Y/Y: 3.3% V 2.8%E; M3 Y/Y: 2.6% V 2.5%E
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.2%
S&P/ASX +0.6%
Kospi -1.1%
Taiwan Taiex +0.1%
Singapore Straits Times +0.6%
Shanghai Composite +0.4%
Hang Seng +0.4%
S&P Futures +0.3% at 1,367
June gold -0.1% at $1,659/oz
May Crude +0.1% at $102.74
Overview/Top Headlines
Asian markets were noticeably stronger on Thursday with the exception of Korea who is coming back from a day off for Parliamentary elections and the concerns over North Korea launching its rocket weigh on the market. Mining names across the region were stronger; Rio Tinto up over 1% in the session, copper gained over 0.5% to $3.66.
Japan Cabinet left its economic assessment unchanged while the BoJ raised its economic view in 2 out of 9 regions.
The World Bank followed China's lead and cuts the 2012 GDP target for the country to 8,2% from 8.4%, though feels that a prospect of a soft landing is high for China. The World Bank did raise its 2013 GDP estimate from 8.3% to 8.6%. Commenting on policy, the World Bank said that China should only use a rate cut as a last resort.
AUD/USD got its initial boost with a 50 pip jump above $1.0360 after significantly stronger March unemployment figures from Australia. Headline came in at 5.2%, less than expected, employment change jumped 44,000, much higher than the 6.5K expected. Full-time employment rose 15.8K and part time gained 28.2K. AUD/USD continued to extend its gains, testing above $1.0385 later in the session.
Ahead of the region's opening prints, US Fed's Yellen spoke in NYC saying that further monetary easing could be needed if economic recovery is slower than expected. Keeping policy rate close to zero until late 2015 would result in faster reduction of unemployment. She also said not extending Operation Twist at the end of June would not be tightening. EUR/USD gained 0.2% to $1.3138 heading into the European open. Tomorrow will be the highly anticipated China Q1 GDP figures.
Speakers/Geopolitical/In The Press
NZD/USD: (NZ) New Zealand Finance Min English: NZD "relatively high", domestic growth prospects are "reasonable."
(JP) Bank of Japan (BoJ) Gov Shirakawa: Reiterates consumer inflation likely to be around 0% for now; will pursue powerful monetary easing and help boost growth.
(CN) Nomura analyst: PBoC may cut interest rates in the immediate future; inflation is not too high to prevent easing. - Chinese Press
(JP) Japan Fin Min Azumi: Government can be flexible on the sales tax bill. - Japan Press
(US) Fed's Bullard: Recent jobs report was "mediocre" but doesnt change the outlook, may be revised upward; gas prices are not a huge drag on the economy but should be watched.
Equities
FCG.NZ: CEO: Planning $88.3M China investment. - US Financial Press
Baoshan Iron & Steel, 600019.CN: Holds main steel product prices unchanged for May due to slower growth in steel demand.
TEN.AU: Reports H1 Net A$14.8M (include A$7.1M restructuring charge) v A$49.5M y/y; Rev A$432.7M v A$485.8M y/y.
US Equities
CAT: To Sell Part of Bucyrus Distribution Business to Cat Dealer WesTrac; Transaction valued at about $400M; +0.3% after hours.
AVID: Reports prelim Q1 R$152M v $161Me; cites weaker demand; -15.4% after hours.