Asian markets started the day lower, Nikkei225 opened at a 2.5-year low, below the post earthquake low of 8,189. Yesterday's weak German bond auction yesterday added to the markets' concern over the EU debt crisis.
Most of the equities markets saw a reversal about half way through the session as chatter that filtered through that China may ease monetary policy in the wake of the poor auction. However, Xinhua News Agency said the move, lowering reserve requirements for six rural banks in eastern Zhejiang, was administrative rather a policy shift. The banks' reserve requirements had been raised a year earlier after they failed to lend enough to farming businesses. Emerging market currencies all fell, with the won at a 6-week low earlier in the session, euro, pound and the yen all gained about 0.2%. The dollar was also down against the Swissie, A$ and NZ$.
The IMF commented on Japan saying, rise in JGB yields could put upward pressures on sovereign yields abroad, and quickly place public debt on unsustainable path. Also, the spike in JGB yields could create immediate liquidity withdrawal from the global markets. Japan Chief Cabinet Sec Fujimura commented later that he will continue to keep a close watch on the EU debt crisis; Germany's bond auction shows that investors are cautious. Econ Min Furukawa noted that the EU debt crisis could impact japan through trade flows equities and forex moves.
(CH) Labor unrest in China getting more tense because of factories cutting wages amid fewer orders from overseas - FT
(SI) Singapore economic development chairman Yip: 2011 GDP growth to be around 5% - CNBC interview
(KS) Bank of Korea (BOK) approves measures to supply liquidity into financial system through supply of intraday funds to brokers; To expand the scope of open market operations - Korean press
(JP) Bank of Japan (BoJ) Gov Shirakawa: It is important to ensure stable dollar funding - financial press
(TT) Taiwan regulators planning to allow China investment sooner rather than later - Taiwan press
(NZ) According to ASB chief economist Tuffley, New Zealand house prices to grow 3% in 2012 - NZ Herald
Suzuki Motor, 7269.JP: Started process for arbitration with Volkswagen in the UK; Looking for unilateral termination of partnership - financial press
Cheung Kong Holdings, 1.HK: Exec: The housing market is on an uptrend, Hong Kong dollar is depreciating along with the US dollar; In a low interest rate environment, people would prefer to invest in something concrete, like property - HK Press
MMX.AU: Reaches deal to sell Crosslands and Oakajee interests for A$325M; Shares were up nearly 50% on the news
GNC.AU: Reports FY11 Net profit A$171.6M v A$160Me; Rev A$2.78B, +39.5% y/y
YHOO: Microsoft said to have signed a non-disclosure agreement with Yahoo; Yahoo advisers said to request bids next week for a minority stake in Yahoo - financial press
DEXB.BE: S&P lowers Dexia Bank subordinated debt rating three notches to BB+ from BBB+ (now junk status); Outlook developing
Most of the equities markets saw a reversal about half way through the session as chatter that filtered through that China may ease monetary policy in the wake of the poor auction. However, Xinhua News Agency said the move, lowering reserve requirements for six rural banks in eastern Zhejiang, was administrative rather a policy shift. The banks' reserve requirements had been raised a year earlier after they failed to lend enough to farming businesses. Emerging market currencies all fell, with the won at a 6-week low earlier in the session, euro, pound and the yen all gained about 0.2%. The dollar was also down against the Swissie, A$ and NZ$.
The IMF commented on Japan saying, rise in JGB yields could put upward pressures on sovereign yields abroad, and quickly place public debt on unsustainable path. Also, the spike in JGB yields could create immediate liquidity withdrawal from the global markets. Japan Chief Cabinet Sec Fujimura commented later that he will continue to keep a close watch on the EU debt crisis; Germany's bond auction shows that investors are cautious. Econ Min Furukawa noted that the EU debt crisis could impact japan through trade flows equities and forex moves.
(CH) Labor unrest in China getting more tense because of factories cutting wages amid fewer orders from overseas - FT
(SI) Singapore economic development chairman Yip: 2011 GDP growth to be around 5% - CNBC interview
(KS) Bank of Korea (BOK) approves measures to supply liquidity into financial system through supply of intraday funds to brokers; To expand the scope of open market operations - Korean press
(JP) Bank of Japan (BoJ) Gov Shirakawa: It is important to ensure stable dollar funding - financial press
(TT) Taiwan regulators planning to allow China investment sooner rather than later - Taiwan press
(NZ) According to ASB chief economist Tuffley, New Zealand house prices to grow 3% in 2012 - NZ Herald
Suzuki Motor, 7269.JP: Started process for arbitration with Volkswagen in the UK; Looking for unilateral termination of partnership - financial press
Cheung Kong Holdings, 1.HK: Exec: The housing market is on an uptrend, Hong Kong dollar is depreciating along with the US dollar; In a low interest rate environment, people would prefer to invest in something concrete, like property - HK Press
MMX.AU: Reaches deal to sell Crosslands and Oakajee interests for A$325M; Shares were up nearly 50% on the news
GNC.AU: Reports FY11 Net profit A$171.6M v A$160Me; Rev A$2.78B, +39.5% y/y
YHOO: Microsoft said to have signed a non-disclosure agreement with Yahoo; Yahoo advisers said to request bids next week for a minority stake in Yahoo - financial press
DEXB.BE: S&P lowers Dexia Bank subordinated debt rating three notches to BB+ from BBB+ (now junk status); Outlook developing