Economic Data
(JP) JAPAN JAN MERCHANDISE TOTAL TRADE BALANCE: -¥1.48T V -¥1.46TE; ADJUSTED TRADE BALANCE: -¥613B V -¥848BE; Record HIGH monthly trade deficit
(NZ) NEW ZEALAND Q4 PRODUCER PRICE INPUTS Q/Q: 0.5% V 0.4%E (2-year low); OUTPUTS Q/Q: 0.1% V 0.5%E (2-year low)
(NZ) NEW ZEALAND JAN PERFORMANCE SERVICES INDEX: 53.6 V 50.9 PRIOR
(UK) UK FEB RIGHTMOVE HOUSE PRICES M/M: 4.1% V -0.8% PRIOR (multi-year high); Y/Y: 1.4% V 0.4% PRIOR
(JP) JAPAN DEC FINAL LEADING INDEX: 94.0 V 94.3 PRELIM; COINCIDENT: 93.6 V 93.2 PRELIM
(TH) THAILAND Q4 GROSS DOMESTIC PRODUCT (GDP) Q/Q: -10.7% V -7.9%E; GDP Y/Y: -9.0% V -5.0%E; ANNUAL GDP Y/Y: 0.1% V 1.0%E
(JP) Japan Jan Nationwide Department Sales y/y: -1.1% v 0.8% prior; Tokyo Department Store Sales y/y: -3.1% v 0.3% prior
(PH) PHILIPPINES JAN BALANCE OF PAYMENTS: +$864M V -$114M PRIOR
Markets Snapshot (as of 05:30GMT)
Nikkei225 +1.1%
S&P/ASX +1.4%
Kospi +0.3%
Taiwan Taiex +0.8%
Singapore Straits Times +0.4%
Shanghai Composite +0.7%
Hang Seng +0.5%
S&P Futures +0.5% at 1,367
April gold +0.6% at $1,737/oz
March Crude +1.7% at $105.00
Overview/Top Headlines
Markets opened noticeably higher after the PBoC cut the reserve ratio requirement (RRR) over the weekend by 50bps, which is expected to add CNY400B into the financial system. China also reported housing data over the weekend showing a marked drop in transactions and prices, China reiterated that it will maintain its tight property controls. Nikkei225 opened above 9,500 for the first time in over 6 months. Crude spiked higher testing above $105 after Iran stopped oil shipment to France and the UK ahead of the EU embargo. France gets about 6% of its oil from Iran. Iran also sent warships to the Mediterranean to demonstrate its 'might' to regional nations. All the currencies opened much higher with A$ and NZ$ gaining 60 pips on the China RRR cut, USD/JPY extended about ¥79.80, EUR/USD stayed relatively unchanged around the $1.3220 level. Markets and currencies were little changed in the session mostly holding their gains ahead of the EU meeting on Greece at 14:00GMT. Over the weekend there was a report that the IMF would only contribute a small amount to Greece's bailout and that EU governments are looking to the ECB and other euro banks for contributions for the bulk of the money. Japan and China governments agreed to coordinate a response with the IMF assuming more assistance is needed in the EMU debt crisis. The second bailout total is seen at about €170B (€136B in new funds and €34B left over from the first sum). One EU official stating that forcing Greece to direct some of the govt revenues into the escrow account is "not off the table." The escrow account would give legal priority to debt and interest payments over paying for government services. Unclear whether only funds from the bailout would be funneled into the account or whether Greece will also be expected to pay in some taxpayer money. According to a leaked draft from the IMF, Greece debt will reach 129% of GDP by 2020. Lastly, Japan's 'merchandise trade balance came in at a record high deficit at ¥1.48T. Japan exports to China fell 20.1% y/y and -13.7% to Asia in Jan. Japan has applied to purchase CNY10B in China government bonds.
Speakers/Geopolitical/In the press
(CN) China Finance Min Xie: Domestic and global environment in 2012 remaining "grim"; To continue use of fiscal policy to support economy - financial press
(AU) Talk is intensifying about Australia Foreign Min Rudd challenging PM Gillard for her position - Australian press
(JP) SEAJ: Japan JAN global semiconductor manufacturing equipment Book-to-bill: 1.06 v 1.20 m/m v 0.99 y/y (second consecutive month above parity)
(CN) Shanghai New home prices -40.1% w/w; New home sales -89% w/w - uwin
(CN) China city of Shanghai plans to relax its housing criteria in order to help more people qualify for preferential tax treatment to help boost the local property market - SCMP
Equities
China CITIC Bank, 998.HK: VP Cao Tong: China should use its own currency to pay for oil imports from the Middle East, Central Asia and Russia to boost the yuan's global role and challenge the dollar's dominance - Chinese press
BBG.AU: $825M offer from TPG does not preclude the planned sale of 50% stake in its Nixon watch brand - financial press
Lenovo, 992.HK: CEO: Still facing a supply shortage due to hard drive delivery disruptions following Thailand flooding
BSL.AU: Reports H1 Net loss A$530M v loss A$55M y/y; Rev A$4.5B v A$4.6B y/y
Panasonic, 6752.JP: To cut approx 280 jobs at its semiconductor facility
RIO: CEO Walsh: Investing $518M into driverless trains for the 1.5 km Western Australia iron ore rail network - financial press