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Asian Market Update: March 19, 2012

Published 03/19/2012, 03:22 AM
Updated 01/01/2017, 02:20 AM
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China home prices dip further in Feb; Apple schedules call for this morning to discuss how they will use their cash

Economic Data

(CN) CHINA FEB HOME PRICES FELL M/M IN 45 OF 70 CITIES V 47 PRIOR; NEW HOME PRICES FELL M/M 27 OF 70 CITIES - update

(UK) UK MAR RIGHTMOVE HOUSE PRICES M/M: 1.6% v 4.1% PRIOR (3rd consecutive m/m increase); Y/Y: 2.2% v 1.4% PRIOR (highest since Oct 2010)

(NZ) NEW ZEALAND FEB PERFORMANCE SERVICES INDEX: 55.5 V 53.8 PRIOR

(NZ) NEW ZEALAND Q1 WESTPAC NZ CONSUMER CONFIDENCE: 102.4 V 101.3 PRIOR

(KR) SOUTH KOREA FEB DEPARTMENT STORE SALES Y/Y: 2.9% V -4.1% PRIOR; DISCOUNT STORE SALES Y/Y: -6.4% V 2.7% PRIOR

Markets Snapshot (as of 04:3ahh]0GMT)

Nikkei225 +0.3%

S&P/ASX +0.5%

Kospi +0.4%

Taiwan Taiex -0.1%

Singapore Straits Times +0.4%

Shanghai Composite -0.3%

Hang Seng +0.3%

S&P Futures +0.2% at 1,402

Spot gold +0.1% at $1,661/oz

May Crude +0.1% at $107.36

Overview/Top Headlines

Markets continued to cautiously ride the wave of global economic recovery. US Treasuries fell for the 9th day, 10-year Aussie govt bonds tipped 4.29%, above the benchmark rate of 4.25%. AUD/USD bounced higher from Friday to $1.0585 level, NZD also shifted higher on stronger consumer confidence data. The majors all continued to see strength against the yen, moves were modest but persistent with the return of the carry trade. China's major property names like Vanke, led the Shanghai Composite lower after China recorded new home prices falling in 27 out of 70 cities, total home prices fell in 45 out of 70 cities. Prices of new and existing homes in Shanghai and Beijing fell moderately, marking several consecutive months of decline. IMF's Zhu's said that Japan has very high debt and it will be unsustainable and they need to come up with a fiscal plan to address debt. Zhu also said that global growth rates slowing and risks are still to the downside despite some improvement. Zhu emphasized that it is very important for China to rebalance it's economy. The Korean Won gained against its cross after an improvement in department store sales. Oil prices continued to gain with Saudi crude production nearing record high levels at 9.87M bps in January.

Speakers/Geopolitical/In the press

(AU) Reserve Bank of Australia (RBA) Gov Stevens: Monetary policy can play a role in stimulating demand if inflation will allow

(CN) PBoC Deputy Gov Du Jinfu: China needs to further cut RRR

(AU) Australia's Jobs Minister Shorten: Rate cut would help jobs; Strong A$ is challenging for policy and hurting employment

(CN) China National Bureau of Statistics Head Ma Jiantang: China must strengthen reforms to ensure economic growth continues - Chinese press

(JP) Ruling DPJ still struggling to win enough support to raise consumption tax; PM Noda may have to dissolve Diet and call snap elections - Nikkei News

(CN) China March new yuan loans may be CNY800B v CNY711B in Feb - Chinese press

(JP) Japan and 12 other Asian nations may double regional currency swap from the current $120B - Nikkei News

IMF's Lagarde: High levels of debt and rising oil prices still present risks to global economy despite signs of stabilization in the eurozone; Possible for Yuan to become reserve currency in the future

Equities

GNS.AU: Has completed the first stage of a sale of the Gunns Green Triangle forest estate, with funds managed by New Forests Pty Ltd taking a controlling interest - The Australian

Rusal, 486.HK: Reports FY11 Net $237M v $1.9Be; Rev $12.3B v $11.0B y/y

DJS.AU: Trading halted pending vote by the board on new "strategic plan" to be unveiled on Wednesday

CHU: Reports Feb subscribers 205.9M v 202.9M prior

TEN.AU: Exec: Currently starting a strategic review of unit, Eye Corp

AAPL: CEO Cook schedules conference call for Mar 19th to discuss company's cash balance at 09:00ET (06:00PT)

FP.FR: CEO: Reached agreement with Sinopec for shale gas exploration rights; Sinopec and China's SAFE said to have taken 2% stake in Total (terms not disclosed) - US financial press

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