- Japan stocks rebound in weak Asian markets
- Investors wait BoJ, ECB decisions Economic Data
- (CN) CHINA MAR NON-MANUFACTURING PMI: 55.6 V 54.5 PRIOR
- (CN) CHINA MAR HSBC SERVICES PMI: 54.3 V 52.1 PRIOR
- (AU) AUSTRALIA FEB TRADE BALANCE (A$): -178M V -1.00BE (14th consecutive month of deficit)
- (AU) AUSTRALIA FEB HIA NEW HOME SALES M/M: -5.3% V +4.2% PRIOR (first decline since Sept)
- (IN) INDIA MAR HSBC MARKIT SERVICES PMI: 51.4 V 54.2 PRIOR; slowest since October 2011
- (HK) HONG KONG MAR PURCHASING MANAGERS INDEX (PMI): 50.5 V 51.2 PRIOR
- (KR) SOUTH KOREA MAR FOREIGN EXCHANGE RESERVES: $327.4B V $327.4B PRIOR
- (PH) PHILIPPINES FEB BUDGET BALANCE (PHP): -11.7B V -19.5B PRIOR
- (UK) UK MAR BRC SHOP PRICE INDEX Y/Y: 1.4% V 1.1% PRIOR
- (RU) RUSSIA MAR SERVICES PMI: 54.6 V 55.0E; 31st straight month of expansion but slowest pace since September
- Nikkei225 +1.7%
- S&P/ASX -0.9%
- Kospi -0.5%
- Shanghai Composite +0.2%
- Hang Seng flat
- June S&P500 flat at 1,564
- Jun gold -0.5% at $1,568/oz
- May Crude Oil -0.6% at $96.65/brl
- (AU) Australia MoF (AOFM) sells A$600M 2.75% 2024 Bonds; average yield: 3.5405%; bid-to-cover: 2.26x
- (AU) Australia Feb coal exports falls to 24.9M tons, -11.5% m/m - financial press
- GLD: SPDR Gold Trust ETF daily holdings fall by 8.2 tons to 1,208.9 ton (lowest since 1,205.4 tons in Jul, 2011)
- (US) API PETROLEUM INVENTORIES CRUDE: +4.71M V +2ME (largest build since Mar 5th); GASOLINE: -5.03M V -0.5ME; DISTILLATE: -1.85M V -0.5ME; UTILIZATION: 85.6% V 84.7% W/W
- (CN) China MoF sells 2-yr Bonds; avg yield: 2.29%
- (CN) Beijing govt unveiled more details related to 20% capital gains tax on property sellers - Shanghai Daily
- (CN) China State Administration of Foreign Exchange (SAFE): China outstanding foreign debt $737.0B in 2012
- (CN) China's Land Ministry has made property land controls a key task - US financial press
- (CN) Fitch: China's fuel price reform to benefit oil refiners
- (KR) South Korea Finance Ministry to maintain fx reserves at appropriate level
- (KR) South Korea Finance Ministry official: Sees extra budget in the KRW15-20T range; Details for spending yet to be finalized - financial press
- (JP) BoJ said to be leaning toward pushing forward the start of open-ended asset purchases immediately vs Jan 2014 - financial press
- (JP) Japan reportedly will join TPP free-trade talks in July - Japanese press
- (JP) Japan to establish task force to strengthen farm sector - Kyodo News
- (JP) Nikkei News speculating the BOJ will consider expanding purchases of longer-term govt bonds as part of a more aggressive policy easing announcement tomorrow
- (JP) Japan Chief Cabinet Sec Suga: Said it is up to the BOJ to decide details of policy steps due to its independence
- (US) Fed's Lacker (hawk, non-voter): Sees ambiguities in any goal setting for employment; Fed's stimulative policies increase risk of excessive inflation once the Fed starts to tighten
- (US) Fed's Evans (dove, FOMC voter): Fed has made policy much more explicit; Fed can maintain accommodative policy while long-term inflation outlook remains well-contained
- (AU) Australia Treasurer Swan: To reappoint RBA Gov Stevens for a 3-year term (vs standard 7-year term)
- (TW) Taiwan raised minimum monthly wage by NT$267 to NT$19,047 - Taiwanese press
- GIII: Reports Q4 $0.41 v $0.41e, R$375.3M v $360Me; +1.7% after hours
- NWSA: Said to have hired advisor to find buyer for Dow Jones Local Media unit - financial press
- VOD.UK: Verizon reported to have said it has no plans to make offer for or merge with Vodafone alone or with other parties; +2.9% after hours
- TSLA: Announced new finance product combining aspects of car leasing and ownership; out of pocket cost to be about $500/month to lease; +2.8% after hours
(as of 03:30 GMT)
Asian markets were relatively weak while the Japanese stocks rebounded tracking the gains in the US, as both the Dow and S&P 500 hit new fresh record highs. Investors continue to anxiously await the results of the Bank of Japan (BOJ) two-day policy meeting under the new leadership of Governor Kuroda. There were reports that the BoJ was leaning towards pushing forward the start of open-ended asset purchases immediately from January 2014.
The services sector in China showed strong gains as the HSBC's Mar Services PMI data rose to a six-month high of 54.3, and the official services PMI gained against the prior month to 55.6. China stocks were slightly positive though struggled to extend gains. There have been continued concerns in the property sector with regards to tighter regulation. The Beijing govt unveiled further details related to 20% capital gains tax on property sellers, while the Land Ministry stated that it would make property land controls a key task.
Although Australia reported a deficit for the 14th consecutive month, the February trade deficit narrowed sharply to A$178M beating forecasts for a shortfall of more than A$1B. Exports climbed 3.3% to just over A$25.6B, with imports declined by 1% to A$25B.
Currencies/Fixed Income/Commodities
USD majors were confined to fairly narrow ranges, as traders await the all-important BoJ decision tomorrow. Some caution that the BOJ may overpromise and underdeliver had sent USD/JPY back toward 92.50, down nearly four big figures from last month's high, before today's bounce to 93.70, helped speculation of a push forward in unlimited easing. AUD/USD was the most notable mover, rising about 20 pips toward $1.0470 following a much stronger than expected Australia trade balance data. Sterling remained under pressure in the wake of disappointing UK data overnight, falling to 2-week lows below 1.5080 against the dollar. Front-month gold was off by about $10/oz, extending its losses after a negative SocGen report.
Speakers/Political/In the Papers