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Asian Market Update: March 12, 2013

Published 03/12/2013, 07:51 AM
Updated 01/01/2017, 02:20 AM
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Yen hits multi-year lows on speculation Kuroda would call an extraordinary meeting and announce new steps as soon as he is confirmed

Economic Data

(AU) AUSTRALIA FEBRUARY NAB BUSINESS CONDITIONS: -3 V -2 PRIOR; NAB BUSINESS CONFIDENCE: 1 V 3 PRIOR (3-month low)

(AU) AUSTRALIA JANUARY RBA CREDIT CARD BALANCES: A$48.7B V A$49.9B PRIOR; RBA CREDIT CARD PURCHASES: A$19.8B V A$22.4B PRIOR

(NZ) NEW ZEALAND REINZ FEBRUARY HOUSE PRICE INDEX: 3,554 V 3,488 PRIOR; HOUSE SALES M/M: +1.6% v -1.0% PRIOR; Y/Y: 8.1% V 21.1% PRIOR

(JP) JAPAN JANUARY TERTIARY INDUSTRY INDEX: -1.1% V -0.2%E (biggest decline since Mar 2011)

(JP) JAPAN Q1 BSI LARGE ALL INDUSTRY Q/Q: 1.0 V -5.5% PRIOR; Y/Y: -4.6% V -10.3% PRIOR (second consecutive decline)

(JP) JAPAN FEBRUARY DOMESTIC CGPI M/M: 0.4% V 0.3%E; Y/Y: -0.1% V -0.1%E (smallest decline in 11 months)

(PH) PHILIPPINES JANUARY TOTAL EXPORTS: -2.7% V 6.1%E; TOTAL MONTHLY EXPORTS: $4.0B V $4.0B PRIOR

(UK) UK FEBRUARY RICS HOUSE PRICE BALANCE: -6% V -1%E (3-month low)

Markets Snapshot (as of 04:30 GMT)

Nikkei225 -0.1%

S&P/ASX -0.4%

Kospi -0.5%

Shanghai Composite -0.8%

Hang Seng -0.1%

June S&P500 -0.1% at 1,549

Apr gold +0.1% at $1,582/oz

Apr Crude Oil flat at $91.94/brl

Observations/Insights

Japanese Yen selling in focus as USD/JPY and AUD/JPY hit multi-year high,s following Nikkei News report that BOJ Gov Nominee Kuroda may call an extraordinary meeting his first day on the job. Pushing forward the start of unlimited asset buying and expanding the asset purchase program to longer-dated JGBs still seen as the most likely policy actions.

BOJ Dep Gov nominees Iwata and Nakaso testifying to Parliament upper house; Iwata is not considering an interim policy yet; Nakasa noting BoJ should emphasize easing not to finance govt debt.

BOJ Feb meeting minutes consider variety of further easing steps, including expansion of risk assets, maintaining ZIRP until 2% CPI in sight (Miyao), and introducing open-ended asset purchases immediately.

Australia NAB confidence at 3-month low, sending AUD lower from its 2-week highs above $1.03

PBoC Dep Gov deflects the weakness in lending data and high CPI, citing impact of Lunar New Year.

Speakers/Political/In the Papers

(JP) Japan Dep Governor Nominee Iwata: Monetary policy is central pillar of 'Abenomics'; need to continue QE - confirmation hearing, parliamentaty upper house.

(JP) Japan Dep Gov Nominee Nakaso: To support BOJ gov if selected as Dep-Gov - confirmation hearing, parliamentaty upper house.

(CN) Former PBoC Advisor Yu Yongding: PBoC has room to widen yuan trading band further this year - SCMP.

(CN) PBoC Advisor Yi Gang: New February yuan loans were in line with normal levels after New Year celebrations; February CPI was higher due to the spring festival.

(CN) China PBoC Dep Gov Yi Gang: Reiterates G20 nations should stick to their commiments to avoid competitive devaluation; need to avoid currency wars - financial press.

(CN) China January-February Passenger/Commercial Car Sales Y/Y: +14.7% to 3.39M vehicles - Shanghai Daily citing CAAM.

(AU) Australia Treasurer Swan: Will not exceed debt cap limits set in 2012/13 budget - financial press.

(AU) NAB revises monetary policy easing expectations for RBA; Now sees 50bps in cuts vs 75bps prior.

(NZ) Follow-up: New Zealand Fin Min English: Widening drought will be clearly a setback to prior projections of a NZ$66M surplus in FY14/15; Govt cannot rule out return to recession - NZ press.

(NZ) Latest polls suggesting economists are split on whether the RBNZ will start to raise rates in Q4 of 2013 or Q1 or 2014 - NZ press.

(KR) Bank of Korea (BOK): Jan household loans fell by biggest margin on record, falling KRW3.6T m/m to KRW656.2T - Korean press.

(KR) Hana Institute of Finance: BOK likely to keep rates unchanged at its upcoming rate decision - Korean press

Fixed Income/Commodities

JGB: (JP) Japan's MoF sells ¥2.48T in 0.1% 5-yr notes; Avg yield: 0.120% v 0.122% prior; Bid to cover: 3.12x v 3.81x prior.

GLD: SPDR Gold Trust ETF daily holdings fall by 3.0 tons to 1,236.7 ton (lowest since 1233.6 in Oct of 2011)

Currencies

USD/JPY: Paring gains below ¥96.55 after BOJ Dep Gov nominee Iwata said no decision made on whether to have unscheduled BOJ meeting.

USD/JPY: Rises above ¥96.60; highest level since Aug 2009.

AUD/JPY: Rises above ¥96.15; highest levels since 2008.

GBP/USD falls back below $1.49; Lowest since June 2010.

Equities

RMS.AU: Announces start of gold mining at Western Queen South project.

WHC.AU: Received govt environmental approval to Tarrawonga coal mine expansion in NSW.

RHC.AU: Affirms FY13 guidance for net profit +13-15% - financial press.

Fanuc 6954.JP: Develops new compact machine tool for use in car production to help reduce dependence in manufacture of smartphones - Nikkei News.

Mitsubishi Heavy 7011.JP: Agrees to union's request for an annual bonus averaging ¥1.74M - Nikkei News.

Yahoo Japan 4689.JP: To raise wages by 5% - Yomiuri News.

TM: Plans to increase new hires for FY13; first increase in two years - Nikkei News.

YUM: Reports Feb China SSS +2%; Q1 SSS -20% v -25% prior target.

PAY: CEO to step down, effective March 12; reiterates FY13 and Q2 guidance.

URBN: Reports Q4 $0.56 v $0.57e, R$856.8M v $845Me.

CAT: Exec: China faced with tough challenges in upgrading its industrial capacity - China Daily.

HMC: Meeting labor union demands for its annual bonus in full; To pay 5.9months of wages vs 5.0 months y/y - Nikkei News.

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