Get 40% Off
🎁 Free Gift Friday: Copy Legendary Investors' Portfolios in One ClickCopy for Free

Asian Market Update

Published 04/22/2013, 07:55 AM
Updated 01/01/2017, 02:20 AM
Nikkei225 soars on weak yen, positive reaction out G20

Economic Data
  • (TW) TAIWAN MAR UNEMPLOYMENT RATE: 4.2% V 4.2%E
  • (NZ) NEW ZEALAND MAR CREDIT CARD SPENDING M/M: -0.3% V +3.3% PRIOR; Y/Y: 3.6% V 4.7% PRIOR
  • (NZ) NEW ZEALAND MAR NET MIGRATION: 1,220 V 720 PRIOR; Added 2.5K permanent migrants in FY12/13
  • (HU) HUNGARY APR GKI BUSINESS CONFIDENCE: -15.6 v -11.9 PRIOR; CONSUMER CONFIDENCE: -38.9 V -37.3 PRIOR; ECONOMIC SENTIMENT: -21.7 V -18.5 PRIOR
  • (ID) Indonesia Q1 Foreign Direct Investment (FDI) y/y: 27.2%

Markets Snapshot

(as of 03:30 GMT)

  • Nikkei225 +1.9%
  • S&P/ASX +0.3%
  • Kospi +0.5%
  • Shanghai Composite -0.5%
  • Hang Seng -0.1%
  • June S&P500 +0.5% at 1,554
  • Jun gold +1.8% at $1,421/oz
  • May Crude Oil +0.5% at $88.44/brl
Observations/Insights

The Nikkei225 soared at the open, extending receing gains following overall positive comments out of the G20 meeting in Washington over the weekend. The finance ministers agreed that Japan's easing measures were intended to tackle deflation, but also added that the government must define a credible mid-term fiscal plan. As hinted in the draft communique, the G20 document accepted Japan's policy was not aimed at weakening the yen, pushing USD/JPY within an earshot of the ¥100 handle.

Chinese markets were slightly lower with the Shanghai Composite down 0.4% at the open. Relative weakness was attributed to the devastation of a magnitude 7 earthquake in the Sichuan province over the weekend that left 200 dead, over 10K injured and local infrastructure in shambles, even though local officials said there would be minimal long-term economic impact.

In the euro zone, political deadlock in Italy remained in focus after an abrupt resignation of center-left party leader Bersani on Friday. Despite the growing uncertaintly, local commentators noted that the decision by Pres Napolitano to remain in his post beyond the end of his term in May was a positive development that would help usher a stronger govt. Euro opened the week slightly higher against its counterparts, rising about 30 pips against USD and 20 pips vs GBP to 1.3080 and 0.8590 respectively.

Currencies/Fixed Income/Commodities

  • GLD: SPDR Gold Trust ETF daily holdings fall by 9.9 tons to 1,123.1 ton (lowest since 1,120.1 in Mar of 2010) - update as of Apr 19th
  • (KR) South Korea sells 20-yr govt Bonds; avg yield 3.06%
  • (AU) Australia Newcastle weekly coal exports for week ended Apr 22nd: -20.9% v +20.9% w/w
  • (CN) China may cut fuel price by more than CNY400/ton - Chinese press
Speakers/Political/In the Papers
  • (CN) Chinese banks' non-performing loans (NPLs) rise by 20.7% y/y in March - Chinese press
  • (CN) PBoC Gov Zhou: Slower GDP in Q1 was "normal" - financial press
  • (CN) NDRC's Xiao Jincheng: Sichuan earthquake not likely to have a large impact on economic development of the province in the long term; Latest death toll from China earthquake in Sichuan province seen at 186; 11.3K people injured and 21 still missing - Chinese press
  • (CN) Shanghai monthly auction for vehicle license plates saw prices fall for the first time in 10 months - Shanghai Daily
  • (CN) Death toll from the outbreak of H7N9 virus in China reached 20; 69-year old man among the 3 dead as of this weekend - press
  • (KR) USS Nimintz being moved to western Pacific region due to North Korea concerns - Japanese press
  • (KR) North Korea placed nine total missile launchers, seven of which are capable of reaching US military bases in Japan, Guam; US, South Korea observing North Korea moves for the possibility of test-fires on April 25 (anniversary of North Korea military).
  • (KR) Bank of Korea (BOK) Gov Kim: recent gold purchase has 10-yr outlook in mind
  • (KR) South Korea Customs Agency: April 1-20 exports -3.1% y/y; Imports -6.1% y/y; Deficit seen at $441M - financial press
  • (JP) Two China govt ships spotted in the waters around the disputed Senkaku islands on Saturday - financial press
  • (JP) Japan BoJ Gov Kuroda: Explained to G20 members recent easing measures not aimed at weakening yen - financial press
  • (JP) Japan Abe Cabinet approval rating falls to 66% - Mainichi press
  • (JP) Japan Abe Cabinet Apr approval rating rises to 76%, +7% m/m (fifth consecutive monthly high, record high) - Nikkei News
  • (AU) Follow-up: Australia Treasurer Swan: Australia lost about A$7.5B since Oct budget review due to high AUD and lower terms of trade - press
  • (AU) S&P: Australia mining investment is peaking
  • (AU) Australia faces decade of budget deficits - financial press citing Grattan Institute
  • (NZ) RBNZ expected to leave rates unchanged at 2.5% on Tuesday (Wednesday local time) amid continued housing inflation overshadowing strength in NZD - NZ press
  • (CA) BOC's Carney: Timing of interest rate hikes hinges on GDP returning above 2%, inflation picking up, and households deleveraging - Canadian media
  • (US) Rebels in Russia's North Caucasus region deny any ties to the Boston Marathon bombers
  • (US) Fed Chairman Bernanke to skip this year's Jackson Hole conference due to a scheduling conflict
  • (DE) German Econ Min Roesler: German 2014 economy to grow much higher than 1% - German press
  • (EU) ECB's Asmussen: ECB may cut interest rates further if data justifies an easing, but the effectiveness of lower rates is limited because the impact is not distributed evenly across the euro zone - financial press
  • (ES) Spain Fin Min De Guindos: Sees 2013 GDP in a range of -1.5% to -1.0% before returning to "slight" growth in 2014 - financial press
  • (IT) Political commentators in Italy indicating that the re-election of Pres Napolitano raises hope of a resolution to a political stalemate - financial press
Equities
  • SXY.AU: Reports Mar quarter oil output at 299.5K v 322.8K bbls y/y; Rev $32.2M v $34.3M y/y
  • SLR.AU: Reports Mar quarter gold output at 43.8K oz v 26.0K q/q
  • OZL.AU: Reports Q1 copper output at 20.5K tons v 23.3K q/q; gold output at 30.8K oz v 32.3K q/q; Lowers FY13 copper output target
  • China Unicom 762.HK: Reports Mar metrics: Mobile net adds at 4.59M
  • Samsonite 1910.HK: Reports Q1 Rev $466.5M v $403.7M y/y
  • Kawasaki Heavy 7012.JP: Set to launch merger talks with Mitsui Engineering & Shipbuilding - Nikkei News
  • JFE 5411.JP: May report FY12/13 Pretax profit ¥45B v ¥45B prior guidance - Nikkei News
  • Sumitomo 8316.JP: To increase retail staff by 20% to 3.5k by end-FY15 - Japanese press
  • Oriental 4661.JP: May report FY12/13 Op profit ¥80B v ¥76B prior guidance - Nikkei News
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.