Asian Market Update
Trade The News | Mar 08, 2013 06:04AM ET
- AUD pressured on weak imports component of an otherwise surprising China trade surplus
- Japan out of recession in Q4 Economic Data
- (CN) CHINA FEB TRADE BALANCE: +$15.25B V -$6.9BE
- (JP) JAPAN Q4 FINAL GDP: 0.0% V 0.1%E; GDP ANNUALIZED: 0.2% V 0.2%E; GDP DEFLATOR Y/Y: -0.7% V -0.6%E; NOMINAL GDP Q/Q: -0.3% V -0.3%E
- (JP) JAPAN JAN CURRENT ACCOUNT TOTAL: -¥364.8B V -¥611.5BE (3rd consecutive deficit); ADJUSTED CURRENT ACCOUNT TOTAL: ¥364.6B V ¥122.2BE (3-month high)
- (JP) JAPAN JAN TRADE BALANCE - BOP BASIS: -¥1.48T V -¥1.51TE
- (JP) JAPAN FEB CORPORATE BANKRUPTCIES Y/Y: -12.1% V -5.2% PRIOR
- (JP) JAPAN FEB ECO WATCHERS CURRENT SURVEY: 53.2 V 49.5 PRIOR (highest level since April 2006); OUTLOOK SURVEY: 57.7 V 56.5 PRIOR
- (JP) JAPAN BOJ MAR MONTHLY REPORT: UPGRADES ECONOMIC ASSESSMENT FOR 3RD CONSECUTIVE MONTH (as expected)
- (JP) JAPAN FEB BANK LENDING EX-TRUSTS: 1.9% V 1.6% PRIOR; BANK LENDING INCL TRUSTS: 1.5% V 1.3% PRIOR (highest since Aug of 2009)
- (NZ) NEW ZEALAND FEB QV HOUSE PRICES Y/Y: 6.3% V 6.2% PRIOR (multi-month high)
- (NZ) NEW ZEALAND Q4 MANUFACTURING ACTIVITY VOLUME Q/Q: 1.5% V 2.6% PRIOR; MANUFACTURING ACTIVITY Q/Q: FLAT V 1.6% PRIOR
- (SL) SRI LANKA LEAVES REVERSE REPO RATE UNCHANGED AT 9.50% (EXPECTED); LEAVES REPURCHASE RATE UNCHANGED AT 7.50% (EXPECTED)
- (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.25%; AS EXPECTED
- Nikkei225 +2.2%
- S&P/ASX +0.3%
- Kospi -0.2%
- Shanghai Composite -0.3%
- Hang Seng +1.3%
- Mar S&P500 flat at 1,543
- Apr gold -0.2% at $1,576/oz
- Apr Crude Oil -0.2% at $91.31/brl
- Fed releases stress results; 17 of 18 pass stress scenarios; Ally Financial does not pass
- Japan Q4 final GDP below consensus but marks an end to 6-month recession with a flat print; consumption and public investment the biggest gainers from preliminary report.
- China February trade data a surprise surplus, driven by much higher then expected exports; Imports dive 15.2% amid falling commodity prices, send AUD/USD to session lows below $1.0250.
- China Commerce Ministry enthused over 2013 trade conditions but also underwhelmed by JPY weakness.
- (CN) China Commerce Ministry (MOFCOM): Sees reasons for optimism for 2013 foreign trade; Will maintain current level of FDI, to be at $100B level this year - Chinese press
- (CN) PBoC Gov Zhou: High ratio of M2 to GDP shows risks in banking system - China press
- (CN) China Banking Regulatory Commission (CBRC) Chairman Shang: Local Govt Financing Vehicles (LGFVs) rose +2.2% y/y to CNY9.3T - China press
- (CN) Shanghai Daily citing analysts suggesting PBoC may have to suspend easy policies or even tighten later this month if CPI in Jan-Feb period expected this weekend rises above expectations
- (CN) China Passenger Car Association: Jan-Feb vehicle shipments rose 21.6% y/y; On a wholesale level, sales rose 19.8% y/y - Shanghai Daily
- (JP) Japan Fin Min Aso: Will extend beyond March corporate support measures to assist with strong yen; No comment on new multi-month high in USDJPY above ¥95 level - press
- (JP) Japan Econ Min Amari: Economic sentiment is moving in positive direction - press
- (JP) Japan's Business Lobby Group (Keidanren) looking to propose legislation that will help support industrial competitiveness - Nikkei News (update)
- (KR) Bank of Korea (BOK) to hold emergency meeting on UN sanctions against North Korea - financial press
- (KR) According to Woori Finance, South Korea's effective jobless rate (counting underemployed workers) hit 5.8% - Korean press
- (AT) Moody's: Austria Banks outlook remains negative
- JGB: (JP) Japan MoF sells ¥642B in 1.8% 30-yr JGBs; Avg yield: 1.820% v 1.990% prior, bid to cover: 3.33x v 3.52x prior
- GLD: SPDR Gold Trust ETF daily holdings fall by 1.8 tons to 1,243.1 ton (lowest since Nov 2011)
- Mitsubishi Motors 7211.JP: Looking to expand SUV exports from its US factory with 70K vehicle capacity - Nikkei News (update)
- Sharp 6753.JP: Targeting FY15/16 revenue of ¥3T - Japan press
- VAH.AU: Australia Competition and Consumer Commission (ACCC) suspends timeline of deal to merge with Tiger Airways - press
- Samsung SDI 006400.KR: To sell electric vehicle batteries to Volkswagen - Korean press
- HLF: Icahn increases stake to 15.55% from 13.6% prior - filing; +1.8% afterhours
- P: Reports Q4 -$0.04 (adj) v -$0.05e, R$125M v $122Me; +20.7% afterhours
- TXN: Guides Q1 $0.28-0.32 v $0.32e; Rev $2.80-2.91B v $2.83Be (guided Q1 $0.24-0.32, $2.69-2.91B prior) - mid quarter update; -0.3% afterhours
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Asian currencies pared their recent advance and USD was broadly stronger in Asian trading, AUDUSD started the Asian session on the back foot despite rising toward 1.0290 high during U.S. session, and was rangebound around $1.0270 before the release of China trade data. Better than expected China Exports propelled the AUDUSD 10pips through 1.0265, but much worse than expected imports quickly reversed AUDUSD gains and the pair tumbled some 30 pips to session low below 1.0240.
After piercing the ¥95.00 level during U.S. session, the USDJPY ran out of momentum at the start of Asian trade hovering around ¥94.90. Fin Min Aso endorsed further yen weakness, refusing to comment on the 95 level, and is also preparing to hold talks with US Treasurer Lew. Remarks on eliminating the ¥10T limit on the JBIC facility and making the USD-lending facility permanent also supported more yen selling. The USDJPY achieved fresh multi month highs about ¥94.40 on the back of the announcement. JPY weakness also drove EURJPY and AUDJPY to 124.98 and 97.75 highs -- a multi-month high for the latter.
Onshore currencies were mixed as USDKRW retook the 1090 handle on nervousness following recent belligerent statement from North Korea, causing the BoK to call an emergency session and establishing a 24-hour monitoring session. The USDCNY mid point was stronger for the second straight session at 6.2719 v 6.2785 prior, lower by almost a handle in the past 2 sessions.
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