PBoC Zhou commits China resources to Europe; Yen weakens
Economic Data
(NZ) NEW ZEALAND Q4 RETAIL SALES EX-INFLATION AND EX-AUTOS/FUEL Q/Q: 2.2% V 1.2%E
(KR) SOUTH KOREA JAN UNEMPLOYMENT RATE: 3.2% V 3.2%E (4-month high)
(JP) JAPAN JAN FINAL MACHINE TOOL ORDERS Y/Y: -6.9% V -6.6% PRELIM
(JP) BANK OF JAPAN (BOJ) FEB MONTHLY REPORT: Maintains economic assessment; Japanese economy has been flat and is expected to remain so for the time being
(SG) SINGAPORE DEC RETAIL SALES M/M: -2.4% V -0.1%E; Y/Y: 4.2% V 5.2%E; EX-AUTO Y/Y: 8.1% V 5.0%E
(KR) SOUTH KOREA JAN EXPORT PRICE INDEX M/M: 1.1% V 0.3% PRIOR; Y/Y: 4.6% V 2.5% PRIOR; IMPORT PRICE INDEX M/M: 0.8% V 0.2% PRIOR; Y/Y: 7.9% V 7.1% PRIOR
(NZ) NEW ZEALAND JAN NON RESIDENT BOND HOLDINGS: 59.3% V 59.1% PRIOR
(JP) JAPAN NOV CONFERENCE BOARD LEADING ECONOMIC INDEX: -0.1% V -0.2% PRIOR
(AU) AUSTRALIA JAN NEW MOTOR VEHICLE SALES M/M: +1.3% V -2.7% PRIOR (5-month high); Y/Y: 2.7% V -3.0% PRIOR
(AU) AUSTRALIA FEB WESTPAC CONSUMER CONFIDENCE INDEX: 101.1 V 97.1 PRIOR
(CL) CHILE CENTRAL BANK LEAVES NOMINAL INTEREST RATE AT 5.00%; AS EXPECTED
(PH) PHILIPPINES DEC OVERSEAS REMITTANCES Y/Y: 6.2% V 10.6% PRIOR; OVERSEAS WORKERS REMITTANCES: $1.8B V $1.78B PRIOR
(JP) BANK OF JAPAN (BOJ) FEB MONTHLY REPORT: Maintains economic assessment; Japanese economy has been flat and is expected to remain so for the time being.
(NZ) New Zealand Jan Skilled Job Vacancies +0.8% m/m
Markets Snapshot (as of 05:30GMT)
Nikkei225 +2.6%
S&P/ASX +0.3%
Kospi +1.2%
Taiwan Taiex +1.5%
Singapore Straits Times +0.8%
Shanghai Composite +0.9%
Hang Seng +2.1%
S&P Futures +0.7% at 1,356
April gold +0.6% at $1,728/oz
March Crude +0.9% at $101.69
Overview/Top Headlines
Markets rallied after PBoC Gov Zhou said China would expand its investments in Europe, saying that China has not cut its reserve exposure to Europe during the crisis. Zhou affirmed that China would play a bigger role in the crisis through participation in EFSF and IMF, saying it can assist through the Central Bank and sovereign wealth fund. He is hopeful that that EU can offer more attractive investment products.
This is the clearest statement from a Chinese official on how it may assist the EU. Markets soared on the comments, March S&P500 futures were up over 7 handles above 1,355 on the comments. EUR/USD gained 35 pips around the $1.3165 area, EUR/JPY also gained around 35 pips to ¥103.38. Right before the US session close Greece party leaders Papandreou (PASOK) and Samaras (ND) said they would commit to austerity measures in letter to Troika to be sent tomorrow. This boosted the EUR/USD back above the $1.31 handle.
Nikkei225 had a record day after the BoJ announced new easing measures yesterday. It ended at the highest close in 5-months. 5-year JGB yields fell below 0.32% as 3-month low and the 2-year note fell below 0.11% a 16-month low on the news that the additional ¥10.0T in easing would be used exclusively for JGB buying. USD/JPY hit fresh 3-month highs above ¥78.65.
Copper and silver both gained over 1% while wheat and corn gained over 0.2%.
Speakers/Geopolitical/In the press
(NZ) New Zealand Fin Min English: Asset sales will reduce debt, boost savings and improve company performance; Benefit budget by NZ$800M
(AU) Australia Dept of Education, Employment and Workplace Relations leading employment indicator fell for the first time in 5 consecutive months from Jan to Feb - Australian press
(CN) China Banking Regulatory Commission (CBRC) has asked banks for more local government financing information - China Daily
(US) Fed's Lockhart: Monetary policy stance is appropriate for moderate growth until there is further proof of sustained improvement
Equities
Samsung Electronics, 005930.KR: Considering spinning off LCD operations into its own company; Should make it more competitive - financial press
Elpida Memory, 6665.JP: Exec: There is "uncertainty" over remaining in business because it still doesn't have the necessary financing to repay debts coming due in April - Japan press
FMG.AU: Reports H1 Net $801M v $840Me; Rev $3.36B v $2.53B y/y
MTR Corporation, 66.HK: Reports 350M shoppers visited its 12 malls in 2011, +40% y/y - HK press
OZL.AU: Reports FY11 Net A$275M v A$268Me; Rev A$1.12B v A$1.1B y/y
CBA.AU: Reports H1 Net A$3.6B v A$3.5Be
US Equities
AAPL: CEO: Company is 'judicious' about how the company spends its cash [in response to question about a potential dividend] - Goldman conf; +0.4% after hours
ZNGA: Reports Q4 $0.05 v $0.03e, R$311.2M v $301Me; -7.0% after hours
FTI: Reports Q4 $0.41 v $0.51e, R$1.5B v $1.4Be; -3.3% after hours
PEET: Reports Q4 $0.42 v $0.43e, R$101.6M v $103Me; -4.1% after hours
Economic Data
(NZ) NEW ZEALAND Q4 RETAIL SALES EX-INFLATION AND EX-AUTOS/FUEL Q/Q: 2.2% V 1.2%E
(KR) SOUTH KOREA JAN UNEMPLOYMENT RATE: 3.2% V 3.2%E (4-month high)
(JP) JAPAN JAN FINAL MACHINE TOOL ORDERS Y/Y: -6.9% V -6.6% PRELIM
(JP) BANK OF JAPAN (BOJ) FEB MONTHLY REPORT: Maintains economic assessment; Japanese economy has been flat and is expected to remain so for the time being
(SG) SINGAPORE DEC RETAIL SALES M/M: -2.4% V -0.1%E; Y/Y: 4.2% V 5.2%E; EX-AUTO Y/Y: 8.1% V 5.0%E
(KR) SOUTH KOREA JAN EXPORT PRICE INDEX M/M: 1.1% V 0.3% PRIOR; Y/Y: 4.6% V 2.5% PRIOR; IMPORT PRICE INDEX M/M: 0.8% V 0.2% PRIOR; Y/Y: 7.9% V 7.1% PRIOR
(NZ) NEW ZEALAND JAN NON RESIDENT BOND HOLDINGS: 59.3% V 59.1% PRIOR
(JP) JAPAN NOV CONFERENCE BOARD LEADING ECONOMIC INDEX: -0.1% V -0.2% PRIOR
(AU) AUSTRALIA JAN NEW MOTOR VEHICLE SALES M/M: +1.3% V -2.7% PRIOR (5-month high); Y/Y: 2.7% V -3.0% PRIOR
(AU) AUSTRALIA FEB WESTPAC CONSUMER CONFIDENCE INDEX: 101.1 V 97.1 PRIOR
(CL) CHILE CENTRAL BANK LEAVES NOMINAL INTEREST RATE AT 5.00%; AS EXPECTED
(PH) PHILIPPINES DEC OVERSEAS REMITTANCES Y/Y: 6.2% V 10.6% PRIOR; OVERSEAS WORKERS REMITTANCES: $1.8B V $1.78B PRIOR
(JP) BANK OF JAPAN (BOJ) FEB MONTHLY REPORT: Maintains economic assessment; Japanese economy has been flat and is expected to remain so for the time being.
(NZ) New Zealand Jan Skilled Job Vacancies +0.8% m/m
Markets Snapshot (as of 05:30GMT)
Nikkei225 +2.6%
S&P/ASX +0.3%
Kospi +1.2%
Taiwan Taiex +1.5%
Singapore Straits Times +0.8%
Shanghai Composite +0.9%
Hang Seng +2.1%
S&P Futures +0.7% at 1,356
April gold +0.6% at $1,728/oz
March Crude +0.9% at $101.69
Overview/Top Headlines
Markets rallied after PBoC Gov Zhou said China would expand its investments in Europe, saying that China has not cut its reserve exposure to Europe during the crisis. Zhou affirmed that China would play a bigger role in the crisis through participation in EFSF and IMF, saying it can assist through the Central Bank and sovereign wealth fund. He is hopeful that that EU can offer more attractive investment products.
This is the clearest statement from a Chinese official on how it may assist the EU. Markets soared on the comments, March S&P500 futures were up over 7 handles above 1,355 on the comments. EUR/USD gained 35 pips around the $1.3165 area, EUR/JPY also gained around 35 pips to ¥103.38. Right before the US session close Greece party leaders Papandreou (PASOK) and Samaras (ND) said they would commit to austerity measures in letter to Troika to be sent tomorrow. This boosted the EUR/USD back above the $1.31 handle.
Nikkei225 had a record day after the BoJ announced new easing measures yesterday. It ended at the highest close in 5-months. 5-year JGB yields fell below 0.32% as 3-month low and the 2-year note fell below 0.11% a 16-month low on the news that the additional ¥10.0T in easing would be used exclusively for JGB buying. USD/JPY hit fresh 3-month highs above ¥78.65.
Copper and silver both gained over 1% while wheat and corn gained over 0.2%.
Speakers/Geopolitical/In the press
(NZ) New Zealand Fin Min English: Asset sales will reduce debt, boost savings and improve company performance; Benefit budget by NZ$800M
(AU) Australia Dept of Education, Employment and Workplace Relations leading employment indicator fell for the first time in 5 consecutive months from Jan to Feb - Australian press
(CN) China Banking Regulatory Commission (CBRC) has asked banks for more local government financing information - China Daily
(US) Fed's Lockhart: Monetary policy stance is appropriate for moderate growth until there is further proof of sustained improvement
Equities
Samsung Electronics, 005930.KR: Considering spinning off LCD operations into its own company; Should make it more competitive - financial press
Elpida Memory, 6665.JP: Exec: There is "uncertainty" over remaining in business because it still doesn't have the necessary financing to repay debts coming due in April - Japan press
FMG.AU: Reports H1 Net $801M v $840Me; Rev $3.36B v $2.53B y/y
MTR Corporation, 66.HK: Reports 350M shoppers visited its 12 malls in 2011, +40% y/y - HK press
OZL.AU: Reports FY11 Net A$275M v A$268Me; Rev A$1.12B v A$1.1B y/y
CBA.AU: Reports H1 Net A$3.6B v A$3.5Be
US Equities
AAPL: CEO: Company is 'judicious' about how the company spends its cash [in response to question about a potential dividend] - Goldman conf; +0.4% after hours
ZNGA: Reports Q4 $0.05 v $0.03e, R$311.2M v $301Me; -7.0% after hours
FTI: Reports Q4 $0.41 v $0.51e, R$1.5B v $1.4Be; -3.3% after hours
PEET: Reports Q4 $0.42 v $0.43e, R$101.6M v $103Me; -4.1% after hours