Economic Data
(CN) CHINA FEB ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: -0.9% V 14.6%E (4th month of decline); YTD Y/Y: -0.6%
(SG) SINGAPORE JAN RETAIL SALES M/M: +1.7 V -1.5%E; Y/Y: +1.7% V
1.3%e; EX-AUTO Y/Y: 2.8% V -5.8%E
(AU) RESERVE BANK OF AUSTRALIA QUARTERLY BULLETIN: FUNDING COSTS HAVE INCREASED FOR BANKS RELATIVE TO CASH RATE
(AU) AUSTRALIA FEB RBA FOREIGN EXCHANGE TRANSACTION (A$): 372M V 383M PRIOR
(NZ) NEW ZEALAND MAR ANZ CONSUMER CONFIDENCE M/M: -2.7% V -2.4% PRIOR
(AU) AUSTRALIA MAR CONSUMER INFLATION EXPECTATION: 2.7% V 2.5% PRIOR
(NZ) NEW ZEALAND FEB BUSINESS PMI: 57.7 V 50.8 PRIOR (22-month high)
(NZ) NEW ZEALAND FEB ANZ NZ JOB ADS M/M: +5.3% V -1.8% PRIOR
(JP) JAPAN FEB TOKYO CONDOMINIUM SALES Y/Y: 13.0% V 32.6% PRIOR
(SG) SINGAPORE Q4 FINAL UNEMPLOYMENT RATE: 2.0% V 2.0% PRELIM
(AU) AUSTRALIA FEB NEW MOTOR VEHICLE SALES M/M: 0.0% V 1.2% PRIOR; Y/Y: 1.7% V 2.5% PRIOR
(US) US FEB FORECLOSURE ACITIVITY M/M: -2% V +3% PRIOR; Y/Y: -8% V -19% PRIOR - REALTYTRAC
(JP) Japan investors bought ¥367B in foreign bonds last week v ¥276B bought in prior week
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.6%
S&P/ASX -0.3%
Kospi -0.1%
Taiwan Taiex -0.2%
Singapore Straits Times -0.2%
Shanghai Composite -0.1%
Hang Seng -0.1%
S&P Futures +0.2% at 1,391
April gold +0.1% at $1,644/oz
May Crude +0.4% at $106.32
Overview/Top Headlines
Markets were mixed to the downside today, Japan continued to rise, especially companies that export on the continued weakening yen against the dollar. USD/JPY tested above ¥84.15 in the session and an 11-month high, while EUR/JPY rose above ¥109.60. Miners, especially Australia's BHP and Newcrest, declined on lower metal prices, copper falling to $3.83, silver down below $32, aluminum fell as well. AUD/USD fell to levels not seen since late January below $1.0425 and NZD/USD extended its declines below $0.8065, also lows since late January. Housing names in China continued to slide on expectations of unchanging property curbs after comments from China Premier Wen yesterday saying and relaxation of curbs could cause "chaos" in the property market (Shanghai Composite also sold off drastically on his comments yesterday). Soho China commented that the Shenzhen residential real estate market is frozen due to govt policy and there is an undersupply of office space in Hong Kong, Beijing and Shanghai. Soho also said a cut in the RRR looks inevitable this year, policy risk is the biggest threat to China's economy. Industrial and Commercial Bank President Jian speaking to a Chinese magazine said that there needs to be more direct investment into Australia, Africa and Latin America from China in order to avoid resource bottlenecks. China should follow the lead of Japan in the 1980s and manufacture overseas to avoid political backlash and potential trade barriers from developed nations. The Korean won gained in the session. Press was reporting that Bank of Korea (BoK) will borrow KRW7T in government bonds from the National Pension. In Nov, it was reported in the Korean press that the central bank could seek to lend some of its bond holdings to banks. Lastly after the US close Fitch revised the UK's sovereign AAA rating outlook to negative, this follows in the footsteps of Moody's. The GBP/USD fell 20 pips on the news below $1.5670 and continued its decline in the Asian session testing $1.5640. A UK Treasury Spokesperson said that the Fitch outlook cut is a warning to anyone who believes there is any leeway in budget.
Speakers/Geopolitical/In the press
(CN) According to unnamed CASS researcher, PBOC may opt to use RRR as a policy easing tool more frequently - Chinese press
(KR) Samsung Economic Research Institute (SERI): Continued slowdown in consumption may pressure South Korea potential GDP by as much as 0.6% - Korean press
(CN) Bo Xilai removed as Chongqing communist party chief; Replaced by Zhang Dejiang - Chinese press
(CN) Midsize lenders in China calling for regulators to lower deposit ratios - SCMP
Equities
OST.AU: Exiting oil and gas pipe business based in Kembla; Effective May 31st; Action will result in a write down of assets in the company's distribution unit by A$13M
CHL: Reports FY11 Net CNY125.9B v CNY125Be; Rev CNY528B v CNY482B y/y
Sumitomo Electric, 5802.JP: President Matsumoto: Expects FY12 Profit to be +50% y/y due to autos and iPads
Cheung Kong Infrastructure, 1038.HK: Looking to raise HK$2.33B through a share placement; Selling 50.9M shares at HK$45.75/shr (4.7% discount to Wednesday close price)
FCG.NZ: Supreme Court has unanimously dismissed Fonterra's appeal against being obliged to supply raw milk to boutique dairy processors Grate Kiwi Cheese Company and Kaimai Cheese - Dominion Post