Economic Data
(AU) RESERVE BANK OF AUSTRALIA (RBA) BOARD MINUTES FOR MARCH: APPROPRIATE FOR INTEREST RATES TO BE AT CURRENT AVERAGE LEVELS
(AU) AUSTRALIA JAN CONFERENCE BOARD LEADING INDEX: 1.1% V -0.3% PRIOR (29-month high)
(AR) Argentina Feb Budget Balance (ARS): +698.4M v +622.4M prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 closed
S&P/ASX -0.4%
Kospi -0.3%
Taiwan Taiex -0.6%
Singapore Straits Times +0.5%
Shanghai Composite -0.8%
Hang Seng -0.7%
S&P Futures -0.1% at 1,402
Spot gold -0.6% at $1,657/oz
May Crude -0.6% at $107.96
Overview/Top Headlines
Markets were weaker again today, with both China and Hong Kong falling over 1%. China implemented another rate hike to fuel prices, this was the second time in approximately 6 weeks. This will trigger concerns that higher energy prices will slow growth. Prices of crude weakened in the Asian session though remained near the $108 level. Brent crude was also down 0.5% but above the $125 level. USD continues to be strong across the majors, seeing the most gain against the A$ and NZ$. The RBA released its March meeting minutes indicating that current rate level of 4.25% is appropriate. RBA also indicated that there is ample scope to cut rates if Europe weakens further. RBA also thought that the worst case scenario is somewhat is less likely than a few months ago. After the comments the A$ gained about 15 pips above $1.0610, later on AUD/USD continued its decline below $1.0560. Additional uncertainty continues in Australia with PM Gillard being accused of 'misunderstanding' or forming a 'contrived misrepresentation' of details essential to the Govt meeting its projected revenues from the minerals resources rent tax. The parties in opposition to the new tax, including some of the major miners (who all were weaker in the session), are launching a legal challenge against the new tax. Both Finance Minister Wong and Treasurer Swan gave their support for the PM and the MRRT. Commodities continued to be weaker, copper lost over 0.6% testing to a low of $3.87, silver fell over 1% to a session low of $32.61. Two of the world's largest miners, BHP and Rio Tinto, indicated that they see demand growth for iron ore slowing in China; BHP said it may even change its Capex plans due to the slowdown. New Hope Coal said that they expect coal demand in Asia to remain strong and prices to hold steady. An unnamed former PBoC advisor speaking to Chinese press said that China should not loosen its monetary policy even if the economy slows; Expects GDP to avg 7% for next 5-years.
Speakers/Geopolitical/In the press
(US) Treasury Sec Geithner: Euro zone crisis has done significant damage to US and global growth; fiscal reform is only one part of the remedy
(CN) PBoC researcher Ji Min said China should purchase additional EFSF bonds - Chinese Press
(PH) Philippines Central Bank Deputy Gov Guinigundo: Met with S&P on Monday, there is a 'very good' chance of a ratings upgrade
(CN) PBoC Gov Zhou: Conditions are basically prime for pushing ahead with interest rate liberalization
Equities
CHA: Reports FY11 Net CNY16.5B v CNY18Be; Rev CNY245B v CNY219B y/y
Acer, 2353.TW: Chairman: Q1 on track to meet guidance; Q2 performance will be better than Q1
CHL: Reports Feb subscribers 661.4M v 655.4M prior
TCL.AU: Block of 115M shares trades at A$5.51 (7.9% of shares outstanding)
STAN.UK: CEO: London is the logical place for offshore yuan trading - SCMP
BHP: Chairman: May reconsider high CAPEX plans for 2012 due to uncertainty over demand for commodities in China - Australian press
EXT.AU: Follow Up: Rio Tinto Accepted China Guangdong Nuclear Power's (CGNPC) offer for its 14% stake in Extract Resources; Deal totals $330M or A$8.65/shr for the stake
US Equities
BAC: *DENIES SPECULATION IT WOULD UNDERTAKE A SECONDARY OFFERING - CNBC; +1.5% after hours
DIS: Estimates about $200M in Q2 operating loss related to disappointing 'John Carter' film - financial press; -1% after hours