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Asian Market Update: Nikkei225 Still Trading Higher On Weak Yen

Published 04/08/2013, 07:10 AM
Updated 01/01/2017, 02:20 AM
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Nikkei225 continues to trade higher on weak yen, trade surplus; China, Asian markets lower on bird flu, property curb concerns

Economic Data

(AU) AUSTRALIA MAR ANZ JOB ADS M/M: -1.5% V +3.0% PRIOR

(JP) JAPAN FEB TOTAL CURRENT ACCOUNT: ¥637.4B V ¥457.5BE (first surplus in four months); ADJUSTED TOTAL CURRENT ACCOUNT: -¥100M V -¥62.0BE

(JP) JAPAN FEB TRADE BALANCE - BOP BASIS: -¥677.0B V -¥660.1BE

(AU) AUSTRALIA MAR AIG PERFORMANCE OF CONSTRUCTION INDEX: 39.0 V 45.6 PRIOR

(UK) UK FEB LLOYDS EMPLOYMENT CONFIDENCE: -45 V -44 PRIOR

(JP) JAPAN MAR BANKRUPTCIES Y/Y: -20.0% V -11.8% PRIOR

(TW) TAIWAN MAR CPI: 1.4% V 1.8%E; WPI Y/Y: -3.0% V -2.4%E

(ID) Indonesia Mar Foreign Reserves: $104.8B v $105.2B prior

(IS) Israel Mar Foreign Currency Reserves: $77.0B v $77.3B prior

Markets Snapshot (as of 03:30 GMT)

Nikkei225 +2.0%

S&P/ASX +0.2%

Kospi -0.1%

Shanghai Composite -0.1%

Hang Seng -0.2%

June S&P500 -0.5% at 1,553

Jun gold +0.2% at $1,579/oz

May Crude Oil +0.1% at $92.78/brl

Observations/Insights/Currencies

The Nikkei225 surged at the opening, rising by as much as 3% in the early minutes of trading. Japanese stocks rose to the highest level since August 2008. The yen fell against the major currencies. The JPY continued to weaken against the USD, and extended its losses in early Asian trading to ¥98.85, the lowest since June 2009. The EUR fell against the JPY to a more than three year low at ¥128.43. The BoJ's announcement that it will make a substantial purchase of ¥1.2T in govt bonds with maturities of over five years, continued to drive the yen weaker. Japan's February current account registered a surplus of ¥637.4B, the first surplus in four months exceeding the estimated ¥457B.

The rest of the Asian bourses traded mostly lower, led by China, as the Shanghai declined to fresh 2013 lows after reopening from a four-day weekend. Investors in the region remained cautious amid new cases of bird flu and reports of property market curbs. Property owners in the Chinese capital city of Beijing will encounter more severe restrictions on borrowing, as the minimum down payment on a second home will be raised to 70% from 60%. Continued tension in the Korean peninsula weighed on investor sentiment. The South Korea Defense Ministry stated their northern counterparts were prepared for a fourth nuclear test since Feb.

Fixed Income/Commodities

(AU) Australia Newcastle weekly coal exports for week ended Apr 8th: -16% w/w

(CN) China may maintain fuel prices unchanged on Apr 10th - financial press

(KR) South Korea sells KRW1.55T in 5-year government bonds, avg yield 2.55% vs 2.79% on March 10th

BHP.AU: Exec: small global copper oversupply possible in 2013; Escondia on track to boost 2013 fiscal year copper output by 20% v 2012 - financial press

(ID) Indonesia plans to sell 10-yr and 30-yr Bonds

Speakers/Political/In the Papers

(CN) Beijing may increase down payment for non-fund loans; Must impose tax on existing homes; may begin CNY/AUD trading soon - Chinese press

(CN) PBoC: Beijing increases down payment for second home purchase and commercial bank mortgages - financial press

(CN) China President Xi: Does not believe China can sustain ultra-high growth - financial press

(CN) Three more cases in China bring H7N9 cases to 21, with 6 dead - China press

(CN) China PBoC to maintain prudent monetary policy; to strengthen policy fine-tuning - financial press

(CN) Shanghai new home sales -59.7% w/w - Uwin

(JP) BOJ will begin its new monetary easing effort with the purchase of ¥1.2T in JGB with maturities over 5 years in the next few days - Nikkei News

(JP) Fitch: Japan monetary easing will buy time to resolve the nation's long-term structural imbalances but is no panacea

(JP) Japan LDP policy Chief Takaichi said TPP discussions could be delayed beyond 2013 - Japanese press

(JP) Japan top 100 firms' internal reserves at ¥99T - Kyodo News

(KR) South Korea Defense Ministry spokesman Kim: North Korea is ready for 4th nuclear test since Feb - financial press

(KR) Moody: South Korea economic fundamentals are strong; North Korea raises chance of a serious military clash - financial press

(KR) South Korea Fin Min Hyun: to use all available fiscal and monetary measures to boost economy - financial press

(AU) Australia PM Gillard: Australia has some of the world's strongest banks; A$/yuan direct trade from tomorrow - financial press

(NZ) New Zealand Mar Card Spending Value +3.1% y/y, Volume +3.8% y/y - Paymark

(NZ) New Zealand Treasury: Drought conditions to curb economic growth; may reduce 2013 GDP by 0.7% - financial press

(NZ) RBNZ official Spencer: Sees escalating pressure in Auckland housing; NZ must avoid another housing boom - financial press

(GR) Greece Fin Min official: Reaffirms 2013 GDP forecast at -4.5% - financial press

Equities

TEPCO 9501.JP: Confirms 2nd leak at Fukushima facility reported over the weekend - Japanese press

Mitsubishi UFJ 8306.JP: To acquire US real estate loan business from Deutsche Bank for around ¥360B - Nikkei News

Bank of China 2388.HK: Enters into agreement on strategic cooperation with Airbus - financial press

TSCO.UK: Reported to have set to confirm exit from US next week, £1B write-down possible from exit - financial press

UPS: Files appeal to EU decision regarding failed TNT acquisition; Move not related to new bid for TNT - financial press

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