Equities Weaker, Yen Strengthens; China Posts A Surprise Trade Surplus: April 10, 2012

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0% TO 0.10%, AS EXPECTED

(CN) CHINA MAR TRADE BALANCE: +$5.4B V -$3.2BE; Q1 $670M v -$1.0B y/y

(AU) AUSTRALIA MAR NAB BUSINESS CONFIDENCE: 3 V 1 PRIOR; BUSINESS CONDITIONS: 4 V 3 PRIOR

(AU) AUSTRALIA MAR ANZ JOB ADVERTISEMENTS M/M: 1.0% V 3.3% PRIOR (3-month low; 3rd consecutive m/m increase)

(AU) AUSTRALIA AIG PERFORMANCE OF CONSTRUCTION INDEX: 36.2 V 35.6 PRIOR (first rise in 3 months; 22nd month of contraction)

(ID) INDONESIA FEB MONEY SUPPLY M2 Y/Y: 17.7% V 17.2% PRIOR

(MA) MALAYSIA FEB INDUSTRIAL PRODUCTION Y/Y: 7.5% V 5.0%E; MANUFACTURING SALES VALUE Y/Y: 10.5% V 4.1% PRIOR

(MA) MALAYSIA FEB TRADE BALANCE (MYR): 10.6 B V 10.2BE

(UK) UK MAR LLOYDS EMPLOYMENT CONFIDENCE INDEX: -58 V -69 PRIOR - (UK) UK MAR RICS HOUSE PRICE BALANCE: -10% V -13%E

(CO) Colombia Mar Producer Price Index M/M: -0.2% v 0.1% prior; Y/Y: 1.6% v 2.7% prior

(CO) Colombia Feb Exports: $4.8B v $4.7B prior

Markets Snapshot (as of 04:30GMT)

Nikkei225 +0.2%

S&P/ASX -0.7%

Kospi -0.4%

Taiwan Taiex +0.1%

Singapore Straits Times +0.2%

Shanghai Composite -1.0%

Hang Seng -1.1%

S&P Futures +0.1% at 1,376

June gold +0.6% at $1,653/oz

May Crude -0.1% at $102.33

Overview/Top Headlines

Asian markets were mixed with currencies little changed in the session. Most notable was USD/JPY down 0.3% or about 30 pips to ¥81.28 after the Bank of Japan in a unanimous vote left rates unchanged and agreed to not announce any new monetary easing measures. The BoJ also kept their economic assessment unchanged. BoJ reiterated that the y/y rate of change in CPI is unchanged and that they will pursue powerful monetary easing to combat deflation.

EUR/JPY dipped to ¥106.56. China recorded a surprise trade surplus in March of $5.35B against a forecast for a deficit of $3.2B. Exports came in above expectations while imports were much lower than the 9.0% expected at 5.3%. While positive overall the lower imports indicate that demand may be weaker than initially thought, though the surplus should ease some fears of a hard landing.

China Customs Bureau head Zheng said that the March trade data shows that the global situation remains "grim" and that the 2012 trade surplus likely to shrink vs 2011. The AUD/USD jumped higher on the news to session highs of $1.0358 before falling back to $1.03. Markets will now look to Friday's release of China Q1 GDP data. Fed Chairman Bernanke said that financial stability mission is as important as monetary policy. The Fed no longer has the same tools to counter money fund problems. Economy is still far from recovering from the financial crisis. Fed's emergency lending power has not been seriously weakened.

Speakers/Geopolitical/In the press

(CN) China State Administration of Foreign Exchange (SAFE): Reiterates China will "steadily" promote convertibility of the yuan. - Chinese Press

(BR) Brazil Central Bank Tombini: Expects stronger growth in H2 v H1; SELIC target rate likely to drop to slightly above record low.

(JP) Japan Fin Min Azumi: Welcomes opposition LDP's policy goal to double sales tax; LDP's plan shows 10% hike in sales tax is unavoidable.

(AU) Australia is close to breaching its A$250B debt ceiling less than a year after raising it to the new cap due to a larger than expected deficit.- The Australian

(CN) According to China Securities Journal March new yuan loans may be CNY900B v CNY798Be with Q1 loans totaling CNY2.35T v CNY2.4T target.

Equities

PDN.AU: Has received offers for JV on non-producing uranium assets.

WPL.AU: Will delay final Browse decision; Was given approval to amendments to Browse Basin retention leases.

SMI, 981.HK: Raises Q1 guidance Rev +14-15% q/q (implies $330.1-333.0M) from +7-9% y/y prior.

AUN.AU: ACCC approves deal with Foxtel; Deal unlikely to substantially lessen competition.

US Equities

VVUS: Receives Notification of Qnexa(R) PDUFA Date Extension, delaying new drug application (NDA) review by three months; -8.5% after hours.

HLIT: Reports prelim Q1 $0.02-0.03 v $0.09e, $125-128M v $137Me ($132-142M prior guidance); -4.0% after hours.