Asian Market Update: BoJ Policy Unchanged Ahead Of Semiannual Report

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1% (as expected); vote was unanimous.

(JP) JAPAN APR TOKYO CPI Y/Y: -0.7% V -0.8%E; TOKYO CPI EX-FRESH FOOD: -0.3% V -0.4%E (1-year high)

(JP) JAPAN MAR NATIONAL CPI Y/Y: -0.9% V -0.8%E; NATIONAL CPI EX-FRESH FOOD: -0.5% V -0.4%E (5th straight decline; biggest decline since Nov 2010)

(KR) SOUTH KOREA APR SK CONSUMER CONFIDENCE: 102 V 104 PRIOR

(NZ) NEW ZEALAND MAR TRADE BALANCE (NZ$): 718M V 470ME (biggest surplus since Apr 2011); EXPORTS: 4.42B V 4.28BE; IMPORTS: 3.70B V 3.82BE

(TH) Thailand Mar Manufacturing Production Index: Y/Y: 0.5% v -1.2% prior; Total Capacity Utilization: % v 62.9 prior

Markets Snapshot (as of 04:00 GMT)

Nikkei225 +0.1%

S&P/ASX +0.3%

Kospi -0.2%

Shanghai Composite -0.5%

Hang Seng +0.9%

Jun S&P500 -0.3% at 1,577

Jun gold +0.9% at $1,475/oz

Jun Crude Oil -0.5% at $93.16/brl

Observations/Insights

The BoJ decided to leave the target rate unchanged between 0.0-0.1%. The board voted unanimously to keep the policy unchanged. BoJ also reiterated it will conduct money market operations, so that monetary base increases at annual pace of ¥60-70T. The key variable for Friday's decision remains with the semiannual outlook report, in which the BoJ is speculated to extend to a 2-yr timeframe and potentially raise its core CPI projections.
Japanese March monthly inflation continued to decline for the fifth straight month with the core consumer price index declining 0.5% from a year earlier and worse than the -0.4%expected, suggesting little progress for the BoJachieving its inflation target of 2%.

Currencies/Fixed Income/Commodities

(CN) PBoC sets yuan mid point at 6.2208 v 6.1707 prior close (highest level since 2005 revaluation)

GLD: SPDR Gold Trust ETF daily holdings fall by 2.7 tons to 1,090.3 ton (lowest since 1,086.5 in Sept of 2009)

Speakers/Political/In the Papers

(JP) Three China vessels enter waters near disputed Senkaku Islands - financial press.

(JP) Japan regulators reportedly will penalize asset manager MRI International on suspicion some client assets disappeared - financial press.

(JP) Japan and ASEAN to launch a new financial cooperation framework; Japan proposes using its FX reserves to purchase govt bonds of ASEAN nations - Nikkei News.

(JP) Japan Chief Cabinet Sec Suga: PM Abe plans to compile growth strategy prior to G8 Summit in June - press conference.

(JP) Japan govt will ask that businesses and households conserve energy but will not set numeric targets considering their impact on economy - Nikkei News.

(JP) Japan Transport Min Ohta: Japan govt to approve domestic resumption of 787 Dreamliner as early as tonight - financial press.

(KR) South Korea Unification Ministry Kim: North Korea did not respond to South Korea's Kaesong offer.

(KR) Bank of Korea Gov Kim: Household debt constrains consumption - financial press.

(US) U.S. senate approves bill to end air traffic controller furloughs; House vote likely take place on Friday.

(US) U.S. Fed said to be scrutinizing largest U.S .banks to ensure ability to handle rate increases - financial press

(US) Bipartisan group of Senators said to have reached agreement to end air traffic control furloughs; possible Senate vote may take place later tonight - financial press.

(US) Senate sets May 6th as the date for vote on the online sales tax.

Equities

AMZN: Reports Q1 $0.18 v $0.10e, R$16.07B v $16.3Be; -3.2% afterhours

SBUX: Reports Q2 $0.48 v $0.48e, R$3.56B v $3.59Be; -2.6% afterhours

BIDU: Reports Q1 $0.95 v $1.03e, R$961M v $901Me; -8.1% afterhours

VPRT: Reports Q3 $0.48 v $0.36e, R$287.7M v $289Me; -1.1% afterhours

SYNA: Reports Q3 $0.79 v $0.59e, R$163.3M v $143Me; +17.7% afterhours

UPS: Teamsters Reach Tentative Agreements Covering 250,000 Workers at UPS, UPS Freight

ALTR: Reports Q1 $0.37 v $0.33e, R$410.5M v $427Me; -3.1% afterhours

IM: Reports Q1 $0.41 v $0.43e, R$10.26B v $10.1Be; +0.1% afterhours

VRSN: Reports Q1 $0.58 v $0.54e, R$236M v $232Me; +3.0% afterhours

WYNN: Reports Q1 $2.00 v $1.55e, R$1.38B v $1.38Be; -0.3% afterhours

CSTR: Reports Q1 $0.93 v $0.85e, R$575M v $589Me; +8.2% afterhours

EXPE: Reports Q1 $0.25 v $0.23e, R$1.01B v $961Me; -5.3% afterhours

Shiseido 4911.JP: Reports FY12/13 Net loss ¥14.7B v profit ¥3.5Be, Op Profit ¥26.1B v ¥25Be, Rev ¥677.7B v ¥678Be

Tokuyama 4043.JP: Raises FY12/13 Op guidance by 67% to ¥6.7B, Rev by 1% to ¥1.91T

Fuji Heavy 7270.JP: Raises FY12/13 guidance Net to ¥119.0B from ¥76.0B prior, Lowers Op profit to ¥120.0B from ¥170.0B prior

Denso 6902.JP: Reports FY12/13 Net ¥181.7B v ¥169Be, Op Profit ¥262.4B v ¥250Be, Rev ¥3.6T v ¥3.5Te

Kobe Steel 5406.JP: Reports FY12/13 Net loss ¥26.9B v loss ¥34Be, Op Profit ¥11.2B v ¥11Be, Rev ¥1.69T v ¥1.70Te

Mitsubishi Heavy 7011.JP: Reports FY12/13 Net ¥97.3B v ¥73Be, Op Profit ¥163.5B v ¥151Be, Rev ¥2.82T v ¥2.99Te

Samsung Electronics 005930.KR: Reports Q1 consolidated Net KRW7.2T v KRW6.7Te, Op profit KRW8.8T v KRW8.7Te, Rev KRW52.9T v KRW52.0Te

Hyundai Mobis 012330.KR: Reports Q1 Net KRW119B v KRW93Be, Rev KRW8.11T