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Asian Market Update: Disappointing BoJ Projection, JPY Bid Further

Published 04/29/2013, 07:44 AM
Updated 01/01/2017, 02:20 AM
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Italy succeeds in forming new govt; China industrial profit growth slows

Economic Data

(CN) CHINA MAR INDUSTRIAL PROFITS YTD Y/Y: 12.1% V 17.2% PRIOR - update

(UK) UK MAR HOMETRACK HOUSING SURVEY M/M: 0.3% V 0.3% PRIOR; Y/Y: 0.2% V 0.0% PRIOR

(UK) UK APR LLOYD'S BUSINESS BAROMETER: 27 V 20 PRIOR

(KR) SOUTH KOREA MAR CURRENT ACCOUNT: $4.98B V $2.71B PRIOR (14th consecutive surplus); GOODS BALANCE: $4.21B V $2.56B PRIOR

Markets Snapshot (as of 03:30 GMT)

Nikkei225 closed

S&P/ASX +0.5%

Kospi -0.3%

Shanghai Composite closed

Hang Seng -0.1%

Jun S&P500 flat at 1,576

Jun gold +1.1% at $1,470/oz

Jun Crude Oil -0.3% at $92.68/brl

Observations/Insights

Asian bourses were relatively quiet on thin trading due to market close in Japan, China. With the shortened Asian market week, traders will be focused on key data including US non-farm pay rolls due out at the end of the week, and the ECB policy meeting on Thursday. In two most notable developments over the weekend, China YTD industrial profits as of Q1 slowed markedly relative to Jan-Feb, and Italy forged a new coalition government between new PM Letta and Berlusconi's center-right party gaining high-profile cabinet seats. After confirmation today and expected address by Letta tomorrow, Parliament is expected to hold a vote of confidence. Neither of those is proving to have much of an impact, as the USD remains across the board following Friday's disappointing US GDP data. JPY was bid further as traders continue to express their disappointment over the BOJ's modest inflation projections over the 2-year period. The USD/JPY fell to a 1-week low below ¥97.50.

Currencies/Fixed Income/Commodities

SPDR Gold Trust ETF daily holdings fall by 7.2 tons to 1,083.1 ton (lowest since 1,078.9 in Sept of 2009) - update as of Apr 26.

SLV: iShares Silver Trust ETF daily holdings rise to 10,392 from 10,318 tons (first rise since Mar 27th) - update as of Apr 26.

(CN) China Iron and Steel Agency (CISA) chairman Zhu Jimin: Difficult to see any 'relatively big rises in steel consumption, and the expectations of steel firms should not be too high'

Speakers/Political/In the Papers

(AU) Australia PM Gillard: Australia to deliver budget surpluses mid-term; confirms revenue shortfall may be up to A$12B by FY-end.

(JP) Three Chinese maritime surveillance vessels reported just outside Japan's territorial waters on Sunday near the disputed Senkaku islands.

(JP) Japan land minister Ota postponing his trip to China this week because of continued friction over Senkaku islands - Nikkei News.

(JP) Japan LDP successful in House of Councilors (upper house) by-elections; ruling coalition, opposition tied in upper house - Japanese press.

(CN) China Ministry of Commerce (MOFCOM) expects faster growth of exports and imports in 2013- China's Foreign Trade Situation Report (Spring 2013)

(CN) China Pres Xi: Trade unions need to be innovative amid social changes - Shanghai Daily.

(KR) South Korea government, labor unions and corporate managers to launch a task force in May to determine ways to boost employment - Korean press.

(KR) South Korea Ministry of Land, Transport and Maritime Affairs: Q1 cargo handling at local seaports fell 2.6% y/y to 324M tons - Korean press.

(KR) North Korea said to be planning a large-scale military exercise that includes air and land forces along the Yellow Sea coast - Korean press.

Asia Development Bank (ADB) Pres-elect Nakao: Not likely to see a currency union in Asia.

Equities

DLS.AU: Reports Q3 Rev A$22.3M, +37% q/q; Q3 production 192K BOE, +80% q/q (record high)

TAH.AU: Reports Q3 Rev A$480.3M, +2.6% y/y

ROC.AU: Reports Q1 Rev $57.3M,+24% q/q; production 6.3Kboe/d,+4% q/q

ABC.AU: Sees FY13 Net to be similar or less than prior year

VOD: Six major investors have indicated that $100B Verizon bid for Vodafone's stake in Verizon Communications is not enough; Said to call for a bid of at least $120B - financial press.

1972.HK: Chairman: Guangzhou and Beijing projects had good sales growth - SCMP

Kansai Electric 9503.JP: To ask Japan's Nuclear Regulation Authority to resume operations at two reactors in Takahama facility in July - Nikkei News.

Mitsui OSK 9104.JP: Awarded 20-yr China LNG shipping deal with Sinopec; financial details not disclosed - Nikkei News.

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