China FDI Falls Again, RBA Waiting On CPI Before Next Easing Steps; Markets cCautious Ahead Of Spain's Bill Auction TodayEconomic Data
(CN) CHINA MAR ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: -6.1% V -13.6%E (fifth straight month of decline); FDI YTD Y/Y:-2.8% V -0.6% PRIOR
(AU) RESERVE BANK OF AUSTRALIA (RBA) APRIL 3RD MEETING MINUTES: WILL WAIT FOR Q1 CPI TO EVALUATE CASE FOR RATE CUT; LOWERS ASSESSMENT OF GROWTH TO "SOMEWHAT BELOW TREND OVER 2011"
(JP) JAPAN FEB FINAL INDUSTRIAL PRODUCTION M/M: -1.6% V -1.2% PRELIM; Y/Y: 1.5% V 1.5% PRELIM; CAPACITY UTILIZATION M/M: -1.7% V 3.4% PRIOR
(SG) SINGAPORE MAR ELECTRONIC EXPORTS Y/Y: 2.8% V 2.7%E; NON-OIL DOMESTIC EXPORTS M/M: -16.8% V -4.3%E; Y/Y: -4.3% V 7.1%E
(JP) JAPAN MAR CONSUMER CONFIDENCE: 40.3 V 40.0E
(JP) JAPAN MAR TOKYO CONDOMINIUM SALES Y/Y: -6.1% V 13.0% PRIOR
(NZ) NEW ZEALAND MAR NON RESIDENT BOND HOLDINGS: 60.9% V 60.3% PRIOR
(AU) AUSTRALIA MAR NEW MOTOR VEHICLE SALES M/M: 4.0% V 0.2% PRIOR; Y/Y: 4.0% V 2.1% PRIOR
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.1%
S&P/ASX -0.1%
Kospi -0.4%
Taiwan Taiex -1.6%
Singapore Straits Times -0.4%
Shanghai Composite -0.2%
Hang Seng -0.6%
S&P Futures -0.1% at 1,363
June gold +0.1% at $1,650/oz
May Crude unchanged at $102.95
Overview/Top Headlines
Asian markets were cautious today ahead of Spain's bill auction later today, EUR/USD fell to $1.3106. AUD/USD fell to a low of $1.0316 as its major trading partner, China, reported its 5th consecutive monthly decline in FDI. China attributed the 31% decline in FDI from Europe on the debt crisis as well as domestic property curbs and a high base effect in China. 10-yr yields stayed below 2% for the third consecutive day.
Copper futures stayed under pressure at $3.60 from China slowdown fears as well as a 6.7 magnitude earthquake in major copper producer Chile. However, all the major miners reported no damage. China Commerce Ministry's (MOFCOM) Shen indicated that China can still reach its 2012 export target, expects Q2 to be better. Reiterated that he does not see any move from the US to loosen its export controls, China would like to import more high tech goods from the US.
RBA meeting minutes were very similar to prior comments, RBA reiterated that they will wait for Q1 inflation data before making a decision on easing steps. The board did lower its assessment of growth to "somewhat below trend over 2011." If slow demand growth equals low CPI then there is a case to cut. Also noted again that AUD remains high despite lower terms of trade. Shares of Taiwan traded Hon Hai were under pressure on suspected weaker demand for the iPad.
Speakers/Geopolitical/In The Press
(KR) Bank of Korea (BoK) Gov Kim: Emerging markets need to shift to more domestic demand driven growth in order to help push the global recovery forward. - Korean Press
(JP) Japan Fin Min Azumi: Confirms to provide $60B in loans to the IMF; Additional European effort is needed to boost firewall to prevent contagion of debt crisis.
(CN) China Premier Wen: The biggest danger facing the Communist Party is corruption; Will use last year in office to attack rampant corruption in the party and curb power of top leaders. - Chinese Press
(US) Fed's Bullard: GDP should continue to grow at 3% through 2012, need to gather more information to see if the economy can sustain itself in 2012.
Equities
RIO: Reports Q1 iron ore output 46M tons v 65M tons q/q, Shipments 54M tons; Guides initial FY12 global iron ore output 250M metric tons.
Cheung Kong Holdings, 1.HK: Reports that YTD has sold 1,300 units worth HK$10B; Does not expect any new govt measures to be announced to curb the property market in the near term, despite recent comments. - HK Press
BCI.AU: JV with Fortescue in on track for a production rate of 5M tons/yr; Guides FY12 shipments 3.5M tons.
Cathay Pacific Airways, 293.HK: Mar cargo tonnage fell 10.7% y/y to 144.1 tons; Passenger volume rose 10.6% to 2.4M. - SCMP
US Equities
VLO: Reports Q1 interim update: Sees Q1 EPS $0.25-0.35 (ex $1.10 of items) v $0.20e; +1.0% after hours.
RIMM: Hires Canadian bank to consider strategic options - financial press; +0.2% after hours.
TLB: Reports Q4 -$0.52 (adj) v -$0.56e; Rev $289.4M v $269Me; -1.5% after hours.
LNCR: Reports Q1 $0.54 v $0.53e, R$500.9M v $501Me; +0.5% after hours.