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Asian Market Update: April 26, 2012

Published 04/26/2012, 07:09 AM
Updated 01/01/2017, 02:20 AM
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RBNZ leaves rates unchanged; Equities get a little boost from Fed meeting

Economic Data

(NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) LEAVES OFFICIAL CASH RATE UNCHANGED AT 2.50% (AS EXPECTED)

(SG) SINGAPORE MAR INDUSTRIAL PRODUCTION M/M: +2.7% V -1.4%E; Y/Y: -3.4% V -5.8%E

(KR) SOUTH KOREA Q1 PRELIMINARY GDP Q/Q: 0.9% V 0.9%E; Y/Y: 2.8% V 3.0%E

(JP) JAPAN FEB ALL INDUSTRY ACTIVITY INDEX M/M: -0.1% V -0.2%E

(AU) AUSTRALIA FEB CONFERENCE BOARD LEADING INDEX M/M: 0.0% V 1.0% PRIOR

(UK) UK MAR NATIONWIDE CONSUMER CONFIDENCE: 53 V 43E (9-month high)

(AU) AUSTRALIA MAR DEWR INTERNET SKILLED VACANCIES M/M: 0.8% V 0.3% PRIOR

(HK) Hong Kong Monetary Authority (HKMA) keeps base rate unchanged at 0.5%, as expected

(JP) Japan investors sold ¥1.2T in foreign bonds last week v ¥116B bought in prior week

Markets Snapshot (as of 04:30GMT)

Nikkei225 +1.0%

S&P/ASX closed

Kospi +0.3%

Taiwan Taiex +0.8%

Singapore Straits Times unchanged

Shanghai Composite +0.3%

Hang Seng +0.1%

Jun S&P Futures +0.4% at 1,375

June gold -0.1% at $1,642/oz

June Crude +0.2% at $103.70

Overview/Top Headlines

Comments from Fed's Bernanke gave a boost to the Asia region, as he indicated the FOMC was prepared to take additional steps to stimulate US growth if needed. Strong earnings out of New York also helped to add some enthusiasm. EUR/USD had little action staying near a 3-week high of $1.3225. Silver rose over 1% to $30.68, copper declined to $3.69. South Korea preliminary Q1 GDP gave a boost to the KRW, USD/KRW tested KRW1,137, the bottom of its range for the last 6-days. Taiwan's Taiex pared back its gains in the session after Taiwan Finance Minister released additional details on the capital gains tax, saying that all retail investors with NT$4.0M in gains will pay a tax of 15-20% v the 20% tax originally planned. He did indicate it will not impact gains in the futures market. Moody's in a report indicated that a multi-notch downgrade on event risk is "not unimaginable", indicating that China needs reforms in order to sustain growth. Sees 2012 and 2013 real GDP in the range of 7.5-8.5%. New Zealand's RBNZ left rates unchanged. Added that a strong currency "without anything else changing" could prompt reassessment of policy and inflation is restrained. Markets will now turn their attention to tomorrow's Bank of Japan rate decision, there has been a lot of chatter that additional easing measures could be announced.

Speakers/Geopolitical/In the press

(EU) EU officials said to be working on a plan which would allow banks to have direct access to ESM loans - German Press

(JP) Japan Chief Cabinet Secretary Fujimura: Govt may push for earlier enactment of consumption tax increase

Asia Development Bank (ADB)'s Azis: EU sovereign debt issues are likely to create fresh market instability; May see intense capital flows to emerging markets this year

(CN) China and South Korea expected to announce free trade agreement (FTA) talks to start in May - Korean press

Equities

Hynix, 000660.KR: Reports Q1 Net loss KRW271B v loss KRW169Be; Op loss KRW260B (3rd consecutive loss) v loss KRW155Be; Rev KRW2.4T v KRW2.3Te

6665.JP: Hynix is still conducting due diligence on Elpida, has not decided if it will participate in next round of bidding

Industrial and Commercial Bank of China, 1398.HK: Chairman: Supports breaking up China bank monopolies, will make the system more efficient - CNBC interview

TSM: Reports Q1 Net NT$33.5B v NT$30Be; Op profit NT$35.4B v NT$39.2B y/y; Rev NT$105.5B v NT$105.4B y/y

Hyundai Motor, 005380.KR: Reports Q1 Net profit KRW2.5T v KRW2.1Te; Op profit KRW2.3T v KRW2.1Te; Rev KRW20.2T v KRW20.1Te

US Equities

CLF: Reports Q1 $2.63(incl items) v $1.10e, R$1.26B v $1.3Be; -2.5% afterhours

CTXS: Reports Q1 $0.59 v $0.51e, R $589.5M v $562Me; +7.5% afterhours

LVS: Reports Q1 $0.70 v $0.60e, R$2.76B v $2.6Be; -0.9% afterhours

OI: Reports Q1 $0.73 v $0.69e, R$1.74B v $1.8Be; -0.6% afterhours

ORLY: Reports Q1 $1.14 v $1.04e, R$1.53B v $1.5Be; +0.5% afterhours

TEX: Reports Q1 $0.29 v $0.22e, R$1.82B v $1.8Be; +3.9% afterhours

TSCO: Reports Q1 $0.55 v $0.53e, R$1.02B v $1.0Be; +0.5% afterhours

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