China President Hu Warns That Allowing The Yuan To Rise Will Not Fix US Economic Issues
Economic Data
Japan Corp Service Price Index Y/Y, February: -0.6% V -0.4%E (8-month low).
China Industrial Profits YTD and Y/Y, February: -5.2% V +25.4% prior.
Philippines Trade Balance, January: -$1.0B V -$12B prior.
Total Monthly Imports: $5.1B V $4.6B prior.
Total Imports Y/Y: -3.2% V -6.4% prior.
South Korea Consumer Confidence, March: 101 V 100 prior.
Japan Small Business Confidence, March: 48.7 v 45.3 prior (update).
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.6%
S&P/ASX +0.8%
Kospi +0.7%
Taiwan Taiex +0.5%
Singapore Straits Times +0.8%
Shanghai Composite +0.2%
Hang Seng +1.4%
S&P Futures unchanged at 1,414
April gold +0.1% at $1,686/oz
May Crude -0.3% at $106.74
Overview/Top Headlines
Asian markets had a strong session after Fed's Chairman Bernanke indicated that the central bank will continue to support the US economic recovery with policy easing. This provided a boost in sentiment felt throughout Asia.
Korean gained over 0.5% against the dollar after stronger consumer confidence and its second consecutive rise. EUR/USD traded above $1.3365, and USD/JPY was unchanged for the session though tested above ¥83 handle, the weaker yen boosted the major exporters.
Both corn and wheat futures gained modestly, while copper declined 0.3% to $3.87 and silver gained 0.3% to $32.83. The PBoC again set a new yuan high since the July 2005 revaluation at 6.2840.
AUD/USD weakened in the session, testing $1.05. RBA Assist Gov Debelle noted that the strong AUD having material impact on economy and the currency is only slightly off the highs. Current AUD currency levels are "in the ballpark" relative to terms of trade. DeBelle sees Australia bank funding pressure coming from deposits. Japan Finance Minister Azumi is pushing for the tax hike decision by Tuesday, ahead of the end of the month deadline.
Speakers/Geopolitical In The Press
USD/CNY
Japan Finance Minister Azumi: Hopeful yuan-denominated settlements in Japan-China trade will increase. - Financial Press
RBA member Corbett: EU crisis is stabilizing, slowdown in China is modest; Neutral on Australian economy.
China President Hu: A large rise in the yuan will not solve the US economic problems; hopeful that the US will take material measures to lift export controls.
Fitch: Australian mortgage delinquencies rose unexpectedly in Q4.
Equities
Cosco Pacific, 1199.HK: Reports FY11 Net $388.8M v $397Me; Rev $599M v $447M y/y.
JX Holdings, 5020.JP: Shut down 127K bpd refinery in Marifu due to power outage, no restart set at this time.
NEC, 6701.JP: Labor unions agree to 4% cut in wages. - Financial Press
HIT: Confirms press speculation it is looking to cut 5% in costs by FY15/16 through procuring supplies locally in China and Asia.
RIO: Starting strategic review of diamond business, may sell diamond interests.
Rusal, 486.HK: En+ Group is considering buying Rusal's stake in OAO GMK Norilsk Nickel; Could offer $9.0B for the 25% stake. - HK Press
SGP.AU: Lowers FY12 guidance: "Expects that sales will continue to be slow for the rest of the year" from "stronger results in H2" prior.
BOQ.AU: CEO Grimshaw stated that the bank has lost its way trying to compete with the big four; there is a "significant" rise in non-performing commercial and residential mortgages. - The Australian
US Equities
ISTA: Bausch + Lomb to Acquire ISTA Pharmaceuticals for $9.10/shr or about $500M in cash; +8% after hours.
APOL: Reports Q2 $0.58 (adj) v $0.37e, R$969M v $933Me; -3.9% after hours.
Economic Data
Japan Corp Service Price Index Y/Y, February: -0.6% V -0.4%E (8-month low).
China Industrial Profits YTD and Y/Y, February: -5.2% V +25.4% prior.
Philippines Trade Balance, January: -$1.0B V -$12B prior.
Total Monthly Imports: $5.1B V $4.6B prior.
Total Imports Y/Y: -3.2% V -6.4% prior.
South Korea Consumer Confidence, March: 101 V 100 prior.
Japan Small Business Confidence, March: 48.7 v 45.3 prior (update).
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.6%
S&P/ASX +0.8%
Kospi +0.7%
Taiwan Taiex +0.5%
Singapore Straits Times +0.8%
Shanghai Composite +0.2%
Hang Seng +1.4%
S&P Futures unchanged at 1,414
April gold +0.1% at $1,686/oz
May Crude -0.3% at $106.74
Overview/Top Headlines
Asian markets had a strong session after Fed's Chairman Bernanke indicated that the central bank will continue to support the US economic recovery with policy easing. This provided a boost in sentiment felt throughout Asia.
Korean gained over 0.5% against the dollar after stronger consumer confidence and its second consecutive rise. EUR/USD traded above $1.3365, and USD/JPY was unchanged for the session though tested above ¥83 handle, the weaker yen boosted the major exporters.
Both corn and wheat futures gained modestly, while copper declined 0.3% to $3.87 and silver gained 0.3% to $32.83. The PBoC again set a new yuan high since the July 2005 revaluation at 6.2840.
AUD/USD weakened in the session, testing $1.05. RBA Assist Gov Debelle noted that the strong AUD having material impact on economy and the currency is only slightly off the highs. Current AUD currency levels are "in the ballpark" relative to terms of trade. DeBelle sees Australia bank funding pressure coming from deposits. Japan Finance Minister Azumi is pushing for the tax hike decision by Tuesday, ahead of the end of the month deadline.
Speakers/Geopolitical In The Press
USD/CNY
Japan Finance Minister Azumi: Hopeful yuan-denominated settlements in Japan-China trade will increase. - Financial Press
RBA member Corbett: EU crisis is stabilizing, slowdown in China is modest; Neutral on Australian economy.
China President Hu: A large rise in the yuan will not solve the US economic problems; hopeful that the US will take material measures to lift export controls.
Fitch: Australian mortgage delinquencies rose unexpectedly in Q4.
Equities
Cosco Pacific, 1199.HK: Reports FY11 Net $388.8M v $397Me; Rev $599M v $447M y/y.
JX Holdings, 5020.JP: Shut down 127K bpd refinery in Marifu due to power outage, no restart set at this time.
NEC, 6701.JP: Labor unions agree to 4% cut in wages. - Financial Press
HIT: Confirms press speculation it is looking to cut 5% in costs by FY15/16 through procuring supplies locally in China and Asia.
RIO: Starting strategic review of diamond business, may sell diamond interests.
Rusal, 486.HK: En+ Group is considering buying Rusal's stake in OAO GMK Norilsk Nickel; Could offer $9.0B for the 25% stake. - HK Press
SGP.AU: Lowers FY12 guidance: "Expects that sales will continue to be slow for the rest of the year" from "stronger results in H2" prior.
BOQ.AU: CEO Grimshaw stated that the bank has lost its way trying to compete with the big four; there is a "significant" rise in non-performing commercial and residential mortgages. - The Australian
US Equities
ISTA: Bausch + Lomb to Acquire ISTA Pharmaceuticals for $9.10/shr or about $500M in cash; +8% after hours.
APOL: Reports Q2 $0.58 (adj) v $0.37e, R$969M v $933Me; -3.9% after hours.