Economic Data
(NZ) NEW ZEALAND FEB TRADE BALANCE (NZD): 161M V 153ME
(SG) SINGAPORE FEB INDUSTRIAL PRODUCTION M/M: -1.1% V +4.1%E; Y/Y: 12.1% V 18.4%E
(VN) Vietnam Q1 GDP y/y: 4.0% v 6.1% prior
(VN) Vietnam Mar CPI y/y: 14.2% v 16.4% prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.3%
S&P/ASX unchanged
Kospi -0.6%
Taiwan Taiex -1.2%
Singapore Straits Times -0.3%
Shanghai Composite +0.1%
Hang Seng unchanged
S&P Futures +0.1% at 1,396
April gold -0.1% at $1,660/oz
May Crude -0.3% at $106.60
Overview/Top Headlines
Markets were mixed and cautious today, copper gained to a high of $3.83, while oil fell. USD/JPY tested above ¥82.75, euro and pound weakened heading into the European session. AUS and NZ were also weaker testing below $1.0440 and $0.8155 respectively. New Zealand's trade balance was higher than expected, exports and imports both were lower than expected and down from January levels.
The NZ and markets failed to react on the news. New Zealand PM Key said he was cautiously optimistic to reach a free trade agreement with South Korea following talks with President Lee. Share of Australia's Leighton were higher on a new AUS 400M set of contracts, while shares of Qantas and Hong Kong traded China Eastern Air gained on the announcement of a new budget airline based in Hong Kong.
PBoC for the second consecutive day set the yuan at a fresh high since the July 2005 revaluation. China National People's Congress leader Wu expressed his thought that inflation may not ease in China.
Several elections took place over the weekend, German Chancellor Merkel's conservative Christian Democratic Union (CDU) retained the majority in Saarland election with 34.5% of the vote (has been held for 12-yrs). Australia's ruling Labor party was defeated by Liberal Nationals in regional Queensland elections.
Former Hong Kong government adviser Leung Chun-ying defeats former Chief Secretary Henry Tang in elections for Hong Kong Chief Executive. Hundreds of protesters in Hong Kong attempted to break into the Convention Center opposing the decision. In Spain, the ruling Popular Party (PP) does not win full control in regional elections in Andalusia. PP's legislature wins 50 vs. 47 for socialists and 12 for communist-led United Left.
Italy PM Monti said he was concerned that rising Spain bond yields could create a contagion that spreads to Italy. An informal meeting of Eurozone officials in Finland this weekend suggested governments remain divided over boosting the ESM "firewall" ahead of finance ministers meeting on Mar 30-31. The FT reported that German Chancellor Merkel will allow a temporary increase in EMU firewall at the above mentioned meeting. EUR/JPY rose over 0.2% to ¥109.50.
Speakers/Geopolitical/In the press
(CN) Shanghai new home sales w/w: +8.7%; new home prices +18% - UWIN
(EU) ECB's Asmussen: No reason for not cutting policy rate below 1.00% level; expects the upcoming Finance Minister (EcoFin) meeting to agree on the rescue fund size - Finland Press
(KR) Korea Chamber of Commerce and Industry (KCCI): Q2 business sentiment showing some improvement following 7 consecutive quarters of negative outlooks - Korean Press
(JP) Former BOJ member Hirano: February 14 easing and inflation target setting was a desperate measure - Financial Press
Equities
SNP: Reports FY11 Net CNY71.7B v CNY70.1B y/y; Rev CNY2.5T v CNY1.9T y/y
BYD, 1211.HK: Reports Q4 Net CNY1.4B v CNY2.5B y/y; Rev CNY46.3B v CNY46.7B y/y; Guides Q1 Net down 65 to 95% y/y (implies CNY13.2-93.4B)
DCM, 9437.JP: Files to offer up to ¥1.0T in bonds (16.2% of market cap)
GNS.AU: Remains in trading halt; To conduct share placement of A$400M - Financial Press (2.94x market cap)
BOQ.AU: Guides H1 Net loss A$91M v profit A$50.4M y/y; Loan impairment charges will be A$328M v A$134M y/y; BOQ.AU: Trading halted ahead of statement on A$450M capital raising before March 28; to offer shares A$6.05/shr (a 17% discount to Friday close)
NEC, 6701.JP: Planning to move some of its wireless development operations to India - Nikkei News