China Markets Look For New Easing Measures; Signals Continue- Japan Will Implement Additional Easing MeasuresEconomic Data
(AU) AUSTRALIA Q1 EXPORT PRICE INDEX Q/Q: -7.0% V -3.0%E; IMPORT PRICE INDEX Q/Q: -1.2% V -0.1%E (first decline in 5 quarters).
North America Semi Equipment Industry Mar Sales book to bill ratio: 1.13 v 1.01 prior (2nd consecutive month above parity).
(JP) JAPAN FEB TERTIARY INDUSTRY INDEX M/M: 0.0% V 0.7%E.
(KR) South Korea Feb Conference Board Leading Economic Index: +2.8% v +0.3% prior.
(JP) Bank of Japan loan officers' survey: Corporate loan demand in Jan-Mar rose to +6 from -2 in prior quarter.
Markets Snapshot (as of 04:30GMT)
Nikkei225 -0.4%
S&P/ASX -0.1%
Kospi -1.2%
Taiwan Taiex -1.1%
Singapore Straits Times -0.2%
Shanghai Composite +0.6%
Hang Seng -0.2%
S&P Futures +0.1% at 1,374
June gold +0.2% at $1,645/oz
June Crude +0.4% at $103.08
Overview/Top Headlines
Asian markets were weaker with the exception of China as the G20 meeting expressed concerns that the EU Debt crisis was still not out of the woods. Some weaker economic data out of the US also added to the concern that the US's recovery is faltering. China's strength continues to come from hope that the PBoC will take fresh easing measures; China State Economist Fan Jianping noted that overall economic fundamentals are sound, macro controls have left large room for adjustments.
Property price correction is not compete, will not ease property curbs and GDP to rebound in Q3 and end 2012 at 8.5%.
In today's session China MoF sold 20-yr bonds at 4.03% v 6.0% Oct 11th. The G20 draft communique said that 2012 growth expectations are moderate, tail risks have started to recede. Deleveraging constraints are consumption and investment; "Stress has increased as of late;" significant downside risks still persist. Will add paragraph on IMF resources later, however from individuals attending the meeting, it seems the IMF is close to having commitments to reach its $400B goal.
BOJ Gov Shirakawa reiterated that the BOJ is deploying aggressive policy easing; Not concerned over US Treasury markets. He did admit that Japan may need additional easing measures. MF Deputy Managing Director Shinohara, BoJ should ease policy further due to economic conditions. There is still room for further unconventional steps such as expanding QE and asset buying. Shinohara did note that the lack of a credible fiscal plan for the country could be the reason that the BoJ has not eased further.
Speakers/Geopolitical/In The Press
(EU) EU's Juncker: Does not expect to have an agreement on IMF funding today, but hopeful for a deal to be reached this weekend.
(CN) Canada China Business Council: China's investment in Canada to increase at a record pace in the near term. - China Daily
(JP) Japan Fin Min Azumi: There is a high likelihood that the IMF has commitments of $400B; IMF may release updated funding figures as early as Friday.
Equities
WOW.AU: Reports Q3 Rev A$14.1B v A$13.6B y/y.
Advanced Semiconductor Engineering, 2311.TW: May see Q2 shipments growth of about 15% q/q. - DigiTimes
BLD.AU: CEO: Have a "Massive" domestic order book and backlog; US economy and building sector outlook are improving. - Financial Press
RIO: Rio Tinto, AGL and TRUenergy are warning gas producers about sending too much LNG to Asia as there could be a shortage in the domestic market in 2014/15. - Australian Financial Review
US Equities
ALTR: Reports Q1 $0.35 v $0.36e, R$383.8M v $423Me; -0.3% after hours
AMD: Reports Q1 $0.12 v $0.09e, R$1.59B v $1.6Be; +1.9% after hours
CMG: Reports Q1 $1.97 v $1.93e, R$640.6M v $631Me; +0.4% after hours
COF: Reports Q1 $1.56 (adj) v $1.39e, R$4.94B v $4.4Be; +1.1% after hours
HBI: Reports Q1 -$0.27 v -$0.33e, R$1.00B v $1.0Be; +1.7% after hours
MSFT: Reports Q3 $0.60 (adj) v $0.57e, R$17.4B v $17.2Be; +3.1% after hours
NCR: Reports Q1 $0.47 v $0.57e, R$1.24B v $1.5Be; -0.3% after hours
SNDK: Reports Q1 $0.63 v $0.69e, R$1.21B v $1.2Be; -13.8% after hours