BHP And Vale Give Production Reports; Markets Positive After IMF GDP Forecasts And España Bill AuctionEconomic Data
(CN) CHINA MAR NEW HOME PRICES FELL M/M IN 46 OF 70 CITIES V 45 PRIOR; Y/Y: FELL IN 37 OF 70 CITIES V 27 PRIOR
(NZ) NEW ZEALAND APR ANZ CONSUMER CONFIDENCE INDEX: 114.0 V 110.2 PRIOR; M/M: +3.4% V -2.7% PRIOR
(CL) CHILE CENTRAL BANK LEAVES OVERNIGHT RATE TARGET AT 5.00%, AS EXPECTED
(AU) AUSTRALIA FEB WESTPAC LEADING INDEX M/M: 0.2% V 0.7% PRIOR (3-month low)
(NZ) New Zealand Mar Skilled Job Vacancies +1.1% m/m; Total online vacancies advertised -0.8%
(JP) Japan Feb Conference Board Leading Economic Index: 96.1 v 95.0 prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.8%
S&P/ASX +1.4%
Kospi +1.2%
Taiwan Taiex +0.5%
Singapore Straits Times +0.5%
Shanghai Composite +1.3%
Hang Seng +1.2%
S&P Futures +0.1% at 1,385
June gold +0.1% at $1,653/oz
May Crude +0.2% at $104.38
Overview/Top Headlines
Asian markets rallied today after a successful Spanish debt auction which sold more than targeted and the IMF raised GDP global forecasts for the world for both 2012 and 2013. Japanese exporters were higher as the yen weakened 0.5% to the USD testing above ¥81.40, EUR/JPY rose to ¥106.90. Japanese press speculated that the Bank of Japan would raise its inflation forecast for FY12/13 and FY13/14 due to rising oil prices and post-earthquake demand. This could mean additional easing will be needed to reach CPI targets.
Japan Deputy Gov indicated that the BoJ would take additional easing steps if needed. Australia miner BHP reported Q3 iron ore production +14% y/y to 37.9M tons, this was -8% q/q. Nickel and metallurgical coal output were noticeably higher. BHP noted that Queensland coal production remained constrained as a result of industrial action and heavy rainfall. Silver and copper futures were stronger in the session both gaining about 0.3% to $31.80 and $3.66 respectively.
USD was slightly stronger against emerging market currencies. China March new home prices fell in 46 of 70 cities m/m and in 37 of 70 cities y/y. Beijing saw new home prices fall more than Shanghai m/m, while existing home prices in Shanghai fell 0.5%. Equities in China and Hong Kong continued higher today after China Gov't Economist Wang Songqi said there is no risk of hard landing, but PBoC should cut RRR to increase lending.
Speakers/Geopolitical/In the press
(AU) Australia Treasurer Swan: China's growth rate is still substantial; Budget surplus plans will give RBA plenty of room to cut rates if needed.
(KR) South Korea Fin Min Bahk: Reiterates high energy prices are weighing on domestic economy; Will soon announce new measures to control rising prices.
(NZ) New Zealand PM Key: Asia is critical to the success of recovery; Return to surplus in FY14/15.
(CN) China State Information Center economist Zhu: China is still facing downward pressures; Inflation will be around 3.5% in 2012. - Chinese Press
Equities
BHP: Reports Q3 Iron Ore Production 37.9M tons, -8% q/q, +14% y/y
BOQ.AU: Reports H1 Net loss A$90.6M v profit A$50.4M y/y; Rev A$396.6M v A$391M y/y.
WDC.AU: Announces divestment of 8 non-core shopping centers in the US, deal worth $1.15B; Affirms FY distribution forecast of A$0.495/shr
VALE: Reports Q1 Iron ore production 70.0M tons v 71.5M tons y/y, -15.6% q/q.
Hang Lung Properties, 101.HK: Chairman Chan: Expects the local residential market will remain stable after new HK CEO Leung takes office on July 1st. - HK Standard
WOW.AU: Announced increase of prices for non-staple foods to try and offset high deflation in fruit and vegetables. - Australian Financial Review
US Equities
BRK.A: Founder Warren Buffett states he has stage 1 prostate cancer; -1.8% after hours
IBM: Reports Q1 $2.78 (adj) v $2.65e, R$24.7B v $24.8Be; -2.3% after hours
YHOO: Reports Q1 $0.23 v $0.17e, ex-TAC R$1.08B v $1.1Be; +2.9% after hours
CSX: Reports Q1 $0.43 (adj) v $0.38e, R$2.97B v $2.9Be; +3.0% after hours
STX: Reports Q3 $2.64 v $2.11e, R$4.45B v $4.4Be; +3.9% after hours
INTC: Reports Q1 $0.56 (adj) v $0.50e, R$12.9B v $12.8Be; -3.1% after hours
CREE: Reports Q3 $0.20 v $0.21e, R$284.8M v $301Me; -7.5% after hours