Economic Data
(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1%; TOTAL NEW MONTHLY SIZE OF ASSET PURCHASES ¥7.0T V ¥3.8T CURRENT; BRINGS FORWARD OPEN ENDED PURCHASES (cancels APP); EXTEND DURATION OF JGBS IT PURCHASES TO 40 YEARS
(AU) AUSTRALIA FEBRUARY BUILDING APPROVALS M/M: 3.1% V 2.5%E; Y/Y: 12.8% V 14.3%E
(AU) AUSTRALIA FEBRUARY RETAIL SALES M/M: 1.3% V 0.3%E (biggest increase since Nov 2009)
(AU) AUSTRALIA MARCH AIG PERFORMANCE OF SERVICE INDEX: 49.6 V 48.5 PRIOR (14th consecutive month of contraction)
(TH) THAILAND MARCH CONSUMER CONFIDENCE ECONOMIC: 75.0 V 74.3 PRIOR
Market Snapshots (as of 05:00 GMT)
Nikkei225 %
S&P/ASX %
Kospi -1.4%
Shanghai Composite closed
Hang Seng closed
June S&P500 at
Jun gold -0.5% at $1,546/oz
May Crude Oil flat at $94.46/brl
Observations/Insights
Lower than expected U.S. economic data oset the tone for the opening of the Asian bourses. The Nikkei225 lost much of yesterday's gain in the morning session, as investors anxiously awaited the results of the BoJ policy meeting. North Korea continued its aggressive tone, continuing to block the industrial complex for the 2nd day running.
Markets were satisfied as the BoJ decided to launch a much more aggressive than feared easing program, promising new qualitative and quantitative measures. The total new monthly size of asset purchases was increased to ¥7T from ¥3.8T. The board adopted "monetary base control" by unanimous vote - intending to conduct money market operations, so the monetary base will rise at annual pace of ¥60-70. The BoJ also underscored its committment to a 2-year time horizon to achieve 2% CPI target. As speculated, the BoJ also terminated the Asset Purchase Program, with the purchase of JGBs for money market operations to be absorbed into new program. Lastly, the BoJ voted to temporarily suspend bank note rule, potentially sparking scrutiny into its intent of monetizing government debt. The USD/JPY is up sharply - rising about 150 pips toward ¥94.50 in the hour after the statement. The EUR/JPY is up nearly 200pips above ¥121.20. The AUD/JPY is up 140pips above ¥98.60.
Currencies/Fixed Income/Commodities
(JP) Japan investors sold net ¥117.4B in Foreign Bonds last week vs sold net ¥490.5B the week prior; Foreign Investors bought net ¥228.1B in Japan stocks last week vs sold net ¥267.6B the week prior.
Credit Suisse analysts: 2013 iron ore at $124/MT, 2014 at $100/MT - Financial press
GLD: SPDR Gold Trust ETF daily holdings fall by 2.7 tons to 1,206.2 ton (lowest since 1,205.4 tons in Jul, 2011)
(AU) Australia Mar Port Hedland iron ore exports: 24.9M v 19.9M tons m/m
Speakers/Political/In the Papers
(CN) According to a survey by Nikkei Inc/Nikkei QUICK, c50% of analysts expect PBoC to start raising its base lending rate within the next 12 months
(CN) China may postpone Japan, South Korea meeting regarding island row - financial press.
(KR) North Korea informs companies in Gaesong industrial zone to leave by April 10 -Yonhap.
(KR) South Korea government official: North Korea continues to block industrial complex for 2nd straight day - financial press
(KR) South Korea Defense Ministry official: Sees no unusual North Korea troop movement since earlier threat - financial press
(US) U.S. Fed's Bullard (hawkish, FOMC voter): Prefers to see more data before considering tapering bond purchases.
(US) Fed's Williams (dove, FOMC non-voter): Fed could begin reducing bond buying by the summer, end bond buying in 2013.
(NZ) New Zealand real estate agency Barfoot & Thompson: Auckland Mar House Sales 1,430; Avg House Prices +6.9% (record high) - financial press
(NZ) RBNZ reviews non-bank deposit takers regime - financial press
Equities
CPWR: Reports prelim Q4 $0.05-0.06 v $0.16e, R$237-241M v $281Me, FY12 $0.26-0.28 v $0.39e, R$942-946M v $983Me
LULU: Provides production update; Reaffirms Q1, FY13 guidance as revised on March 21; Chief Product Officer Sheree Waterson to resign, effective April 15th
BOQ.AU: Australia regulator ASIC orders BOQ to refund customers about A$12M after system errors.
Hyundai 005380.KR, Kia 000270.KR: NHTSA says Hyundai recalls 1M vehicles and Kia Motors recalls 624K vehicles due to a faulty brake light switch.
Mitsubishi Heavy 7011.JP: Awarded major nuclear facility construction deal in Turkey - Nikkei News
ABC-Mart 2670.JP: May report FY12/13 Op profit ¥30B, in line with latest guidance; Rev seen at ¥159B v ¥152B prior guidance - Nikkei News
Sumitomo Mitsui 8316.JP: May report FY12/13 Net ¥700B v ¥540B prior guidance - Nikkei News
Mizuho 8411.JP: May report FY12/13 Net ¥500B v ¥500B prior guidance - Nikkei News
Mitsubishi UFJ 8306.JP: May report FY12/13 Net ¥800B v ¥981B y/y - Nikkei News