China Hints At EasingEconomic Data
(JP) JAPAN MAR ALL INDUSTRY ACTIVITY INDEX M/M: -0.3% V -0.1%E (3rd consecutive decline)
(NZ) NEW ZEALAND APR NET MIGRATION: -850 V 230 PRIOR
(NZ) NEW ZEALAND APR CREDIT CARD SPENDING M/M: 0.2% V 0.4% PRIOR; Y/Y: 3.7% V 5.3% PRIOR
(TH) THAILAND Q1 GDP Q/Q: 11.0% V 10.0%E; Y/Y: +0.3% V -0.5%E
(UK) UK MAY RIGHTMOVE HOUSE PRICE M/M: 0.0% V 2.9% PRIOR (4-month low); Y/Y: 2.0% V 3.4% PRIOR
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.7%
S&P/ASX +0.3%
Kospi +0.9%
Shanghai Composite +0.2%
Hang Seng -0.1%
Jun S&P Futures +0.5% at 1,297
June gold +0.4% at $1,599/oz
June Crude +0.5% at $91.90
Overview/Top Headlines
Asian equity markets, commodities, and risk-on FX opened the new week on a stronger note, boosted by G8 sentiment bent on keeping the euro-zone together as well as some veiled signals of further accommodation out of China. In its statement, the G8 indicated it was "maintaining a firm commitment to implement fiscal consolidation" in Europe, but also noted of continued "interest in Greece remaining in the euro-zone while respecting its commitments." G8 also said it would "commit to take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses, recognizing that the right measures are not the same for each of us."
Outside the formal declaration, struggling periphery states found a new ally in the incoming French President Hollande, who said he is not alone in support of creation of euro-zone bonds. A more formal proposal for underwriting state debt would be unveiled at the upcoming informal EU summit this Wednesday, even as German officials continued to express their opposition to such an instrument. Finance Minister Schaeuble said the Greek vote is one of whether the nation wants to remain in EMU, even though Chancellor Merkel on Friday tip-toed around calling the June second vote a referendum. Bundesbank President Weidmann also called for European central banks not to increase exposure to Greek debt, while the youthful far-left Greek Syriza party leader reiterated his call for more growth measures as part of renegotiated bailout terms.
China premier Wen reiterated the State Council is keeping its "proactive" fiscal and "prudent" monetary policy, but also suggested more focus is needed on the growth side. Analysts took that sentiment as indication of an impending more aggressive easing by the central bank, especially in light of a fairly muted response to PBoC's 3rd RRR rate cut last week. Meanwhile, more evidence emerged of cooling China demand for hard commodities, as FT noted local buyers were deferring on delivery or defaulting altogether on shipments of coal and iron. Likewise, Rio Tinto management noted the miner could pare back on further expansion in Australian iron ore development.
Speakers/Geopolitical/In The Press
(KR) According to South Korea Customs, exports to US rose 11.3% in the first two months since implementing a free trade agreement. - Korean press
(KR) South Korea think tank KDI cuts South Korea 2012 GDP target to 3.6% from 3.8%; Cuts 2012 CPI target to 2.6% from 3.4%.
(DE) Germany's largest industrial union IG Metall reached agreement on wage increase, securing 4.3% pay hike - financial press.
European Crisis
(IE) Leader of Ireland opposition party Fianna Fail Michael Martin: Latest crisis in Europe creates "very strong likelihood" that Ireland will need fresh bailout by the end of 2012 - financial press
(FR) France may nationalize or find a buyer for one of its biggest mortgage lenders Caisse Centrale Credit Immobilier de France - UK press
(UK) BOE's Cohrs: UK banks have prepared for any potential contagion effects from euro zone crisis - UK press
(ES) Spain PM Rajoy: To select bank audit firms on Monday (as previously reported); Results of audit to be released in a month. - financial press
(EU) EU's Barroso: Greece should not expect big concessions from international lenders on austerity. - financial press
Equities
YHOO: Reaches agreement on comprehensive plan for Alibaba stake; Increases buyback authorization by $5B (about 26% of market cap).
NOC: Signs $1.7B Contract with Northrop Grumman to Lead Trans-Atlantic Team Delivering New ISR Capability to Alliance Forces.
Samsung Electronics (005930.KR): Exec: Demand for technology goods from China is slowing. - FT
HTC (2498.TW): Some smartphone shipments are being cleared by US customs and allowed to continue to carrier customers; All shipments still being reviewed. - financial press
Sharp (6753.JP): To suspend LCD TV production for Philips. - Japan press
Konica Minolta (4902.JP) Develops X-Ray system that can image soft tissue in the body. - Nikkei News
CHL: Reports Apr subscribers 672.5M, +5.3M m/m.
ANZ.NZ: Cut 2-year fixed mortgage interest rate to 5.49% and 18-month rate to 5.55%. - NZ press
JHX.AU: Reports FY Net profit A$604M v $33M y/y, Rev A$1.24B v A$1.17B y/y; To buy back 5% of issued capital.