No hard landing in China, while Australia's two-speed economy continues to rear its ugly head
Economic Data
(CN) CHINA FEB HSBC MANUFACTURING PMI: 49.6 V 48.8 PRIOR (4th consecutive contraction; 4-month high)
(CN) CHINA FEB PMI MANUFACTURING: 51.0 V 50.9E (5-month high, 3rd consecutive increase)
(AU) AUSTRALIA Q4 PRIVATE CAPITAL EXPENDITURE Q/Q: -0.3% V +3.8%E (6-quarter low)
(AU) AUSTRALIA JAN BUILDING APPROVALS M/M: 0.9% V 2.0%E; Y/Y: -14.6% V -13.7%E
(NZ) NEW ZEALAND Q4 TERMS OF TRADE INDEX Q/Q: -1.4% V -1.9%E (2-year low)
(KR) SOUTH KOREA FEB EXTERNAL TRADE BALANCE: $2.2B V $1.3BE
(JP) JAPAN Q4 CAPITAL SPENDING Q/Q: +7.6% V -6.5%E (biggest rise since Q1 of 2007); EX-SOFTWARE Q/Q: 4.9% V -7.4%E
(TW) TAIWAN FEB HSBC MANUFACTURING PMI: 52.7 V 48.9 PRIOR (1st increase since May 2011)
(TH) THAILAND FEB CONSUMER PRICE INDEX (CPI) M/M: 0.4% V 0.5%E; Y/Y: 3.4% V 3.5%E; CORE Y/Y: 2.7% V 2.8%E
(ID) INDONESIA JAN TRADE BALANCE: $920M V $446ME; Exports y/y: 6.1% v 15.2%e; Imports y/y: 16.0% v 28.8%e
(ID) INDONESIA FEB INFLATION M/M: 0.1% V 0.3%E; Y/Y: 3.6% V 3.8%E; CORE Y/Y: 4.3% V 4.3%E
(JP) JAPAN JAN LOANS & DISCOUNTS CORP Y/Y: 0.0% V 0.0% PRIOR
(AU) AUSTRALIA JAN RPDATA-RISMARK HOUSE PX RAW: 0.8% V -1.0% PRIOR
(AU) AUSTRALIA FEB AIG PERFORMANCE OF MANUFACTURING INDEX: 51.3 V 51.6 PRIOR
(IN) INDIA JAN TRADE BALANCE: -$14.8B V -$14.7B PRELIM; Exports y/y: 10.1% v 6.7% prior; Imports y/y: 20.3% v 19.8% prior
(JP) JAPAN FEB VEHICLE SALES Y/Y: 31.9% V 40.7% PRIOR
(IN) INDIA FEB MARKIT MANUFACTURING PMI: 56.6 V 57.5 PRIOR
(RU) RUSSIA FEB HSBC MANUFACTURING PMI: 50.7 V 50.8 PRIOR
(HK) Hong Kong Jan Govt Monthly Budget (HKD): 43.0B v 38.3B prior
(JP) Japan investors bought ¥1.4T in foreign bonds last week v ¥100B sold in prior week
Markets Snapshot (as of 05:30GMT)
Nikkei225 -0.4%
S&P/ASX -1.0%
Kospi closed
Taiwan Taiex unchanged
Singapore Straits Times -0.1%
Shanghai Composite unchanged
Hang Seng -0.8%
S&P Futures -0.2% at 1,362
April gold +0.7% at $1,723/oz
April Crude unchanged at $107.05
Overview/Top Headlines
Markets were broadly weaker though fairly stagnant for the session after the US Fed's Bernanke failed to mention another round of QE. China headline manufacturing PMI climbed for the third consecutive month and hit a 5 month high at 51. New export orders rose to 51.1 from 46.9 prior. HSBC manufacturing PMI had a four month high but stayed in contraction. However the news was fresh confirmation that China was continuing its momentum despite European woes, a slow recovery in the US and a two speed economy in Australia. LTRO in Europe topped the first round of funding with €529.5B going to EU banks v €489B in the first offering. Japan capital spending picked up in Q4, one can assume that companies are getting into the core of rebuilding after last year's disasters in the country. Terms of trade for New Zealand dipped to a two year low, NZ$ had a little strength. AUD/USD was also slightly stronger though today's weaker private capital expenditures and building approvals highlighted the two-speed economy after yesterday's more robust data. Financial press reporting on Greece indicated that a "secret panel" comprised of representatives from 15 large banks and hedge funds said to be key to Greece CDS being triggered. The group will Thursday morning to rule on whether debt restructuring will trigger CDS payments. In Shanghai the government affirmed that it would no be easing housing rules and would stick to the wider policies of the country. Shanghai Gold Exchange announced that it would increase silver margin requirements to 18% and widen the daily trading limit to 15%. Silver in the states traded up to $35.23, while its golden counterpart continued to extended its gains testing $1,725.
Speakers/Geopolitical/In the press
(NZ) NZIER chief economist Eaqub: Estimates 2012 New Zealand GDP at 1.5% and 2013 at 2.4% - NZ Herald
(CN) Shanghai Feb home prices -0.06% m/m; Beijing home prices -0.6% m/m - Soufun
(US) Fed's Plosser: Bad outcomes occur when central banks lose independence; have seen "fairly substantial firming of growth" - CNBC interview
(JP) Japan ruling party requests BoJ to increase inflation target, wants the central bank to conduct "full-scale" easing in March - financial press
USD/CNY: (CN) China State Administration of Foreign Exchange (SAFE): Institutions and individuals in China selling more foreign currencies in Jan than purchased for the first time in 3 months - China Daily
Equities
WOW.AU: Reports H1 Net A$967M v A$956Me
CITIC Pacific, 267.HK: Reports FY11 Net profit HK$9.2B v HK$10Be; Rev HK$100.1B v HK$70.6B y/y
Samsung Electronics, 005930.KR: May partner with Germany's BMW on car batteries - Korean press
NHC.AU: Guides H1 Net +18-25% y/y; Terminated sales process; did not get any definitive proposal
Hyundai Motor, 005380.KR: Sonata replaces Nissan Altima as "top pick" in US Consumer Reports "best affordable family sedan" category - Korean press
Bank of China, 3988.HK: Forms an alliance with the CME on yuan futures - financial press
Economic Data
(CN) CHINA FEB HSBC MANUFACTURING PMI: 49.6 V 48.8 PRIOR (4th consecutive contraction; 4-month high)
(CN) CHINA FEB PMI MANUFACTURING: 51.0 V 50.9E (5-month high, 3rd consecutive increase)
(AU) AUSTRALIA Q4 PRIVATE CAPITAL EXPENDITURE Q/Q: -0.3% V +3.8%E (6-quarter low)
(AU) AUSTRALIA JAN BUILDING APPROVALS M/M: 0.9% V 2.0%E; Y/Y: -14.6% V -13.7%E
(NZ) NEW ZEALAND Q4 TERMS OF TRADE INDEX Q/Q: -1.4% V -1.9%E (2-year low)
(KR) SOUTH KOREA FEB EXTERNAL TRADE BALANCE: $2.2B V $1.3BE
(JP) JAPAN Q4 CAPITAL SPENDING Q/Q: +7.6% V -6.5%E (biggest rise since Q1 of 2007); EX-SOFTWARE Q/Q: 4.9% V -7.4%E
(TW) TAIWAN FEB HSBC MANUFACTURING PMI: 52.7 V 48.9 PRIOR (1st increase since May 2011)
(TH) THAILAND FEB CONSUMER PRICE INDEX (CPI) M/M: 0.4% V 0.5%E; Y/Y: 3.4% V 3.5%E; CORE Y/Y: 2.7% V 2.8%E
(ID) INDONESIA JAN TRADE BALANCE: $920M V $446ME; Exports y/y: 6.1% v 15.2%e; Imports y/y: 16.0% v 28.8%e
(ID) INDONESIA FEB INFLATION M/M: 0.1% V 0.3%E; Y/Y: 3.6% V 3.8%E; CORE Y/Y: 4.3% V 4.3%E
(JP) JAPAN JAN LOANS & DISCOUNTS CORP Y/Y: 0.0% V 0.0% PRIOR
(AU) AUSTRALIA JAN RPDATA-RISMARK HOUSE PX RAW: 0.8% V -1.0% PRIOR
(AU) AUSTRALIA FEB AIG PERFORMANCE OF MANUFACTURING INDEX: 51.3 V 51.6 PRIOR
(IN) INDIA JAN TRADE BALANCE: -$14.8B V -$14.7B PRELIM; Exports y/y: 10.1% v 6.7% prior; Imports y/y: 20.3% v 19.8% prior
(JP) JAPAN FEB VEHICLE SALES Y/Y: 31.9% V 40.7% PRIOR
(IN) INDIA FEB MARKIT MANUFACTURING PMI: 56.6 V 57.5 PRIOR
(RU) RUSSIA FEB HSBC MANUFACTURING PMI: 50.7 V 50.8 PRIOR
(HK) Hong Kong Jan Govt Monthly Budget (HKD): 43.0B v 38.3B prior
(JP) Japan investors bought ¥1.4T in foreign bonds last week v ¥100B sold in prior week
Markets Snapshot (as of 05:30GMT)
Nikkei225 -0.4%
S&P/ASX -1.0%
Kospi closed
Taiwan Taiex unchanged
Singapore Straits Times -0.1%
Shanghai Composite unchanged
Hang Seng -0.8%
S&P Futures -0.2% at 1,362
April gold +0.7% at $1,723/oz
April Crude unchanged at $107.05
Overview/Top Headlines
Markets were broadly weaker though fairly stagnant for the session after the US Fed's Bernanke failed to mention another round of QE. China headline manufacturing PMI climbed for the third consecutive month and hit a 5 month high at 51. New export orders rose to 51.1 from 46.9 prior. HSBC manufacturing PMI had a four month high but stayed in contraction. However the news was fresh confirmation that China was continuing its momentum despite European woes, a slow recovery in the US and a two speed economy in Australia. LTRO in Europe topped the first round of funding with €529.5B going to EU banks v €489B in the first offering. Japan capital spending picked up in Q4, one can assume that companies are getting into the core of rebuilding after last year's disasters in the country. Terms of trade for New Zealand dipped to a two year low, NZ$ had a little strength. AUD/USD was also slightly stronger though today's weaker private capital expenditures and building approvals highlighted the two-speed economy after yesterday's more robust data. Financial press reporting on Greece indicated that a "secret panel" comprised of representatives from 15 large banks and hedge funds said to be key to Greece CDS being triggered. The group will Thursday morning to rule on whether debt restructuring will trigger CDS payments. In Shanghai the government affirmed that it would no be easing housing rules and would stick to the wider policies of the country. Shanghai Gold Exchange announced that it would increase silver margin requirements to 18% and widen the daily trading limit to 15%. Silver in the states traded up to $35.23, while its golden counterpart continued to extended its gains testing $1,725.
Speakers/Geopolitical/In the press
(NZ) NZIER chief economist Eaqub: Estimates 2012 New Zealand GDP at 1.5% and 2013 at 2.4% - NZ Herald
(CN) Shanghai Feb home prices -0.06% m/m; Beijing home prices -0.6% m/m - Soufun
(US) Fed's Plosser: Bad outcomes occur when central banks lose independence; have seen "fairly substantial firming of growth" - CNBC interview
(JP) Japan ruling party requests BoJ to increase inflation target, wants the central bank to conduct "full-scale" easing in March - financial press
USD/CNY: (CN) China State Administration of Foreign Exchange (SAFE): Institutions and individuals in China selling more foreign currencies in Jan than purchased for the first time in 3 months - China Daily
Equities
WOW.AU: Reports H1 Net A$967M v A$956Me
CITIC Pacific, 267.HK: Reports FY11 Net profit HK$9.2B v HK$10Be; Rev HK$100.1B v HK$70.6B y/y
Samsung Electronics, 005930.KR: May partner with Germany's BMW on car batteries - Korean press
NHC.AU: Guides H1 Net +18-25% y/y; Terminated sales process; did not get any definitive proposal
Hyundai Motor, 005380.KR: Sonata replaces Nissan Altima as "top pick" in US Consumer Reports "best affordable family sedan" category - Korean press
Bank of China, 3988.HK: Forms an alliance with the CME on yuan futures - financial press