Economic Data
(AU) AUSTRALIA FEB AIG PERFORMANCE OF SERVICE INDEX: 46.7 V 51.9 PRIOR (11-month low)
(AU) AUSTRALIA FEB TD SECURITIES INFLATION M/M: 0.1% V 0.2% PRIOR (3-month low); Y/Y: 2.0% V 2.2% PRIOR
(AU) AUSTRALIA FEB ANZ JOB ADVERTISEMENTS M/M: 3.3% V 7.5% PRIOR (2nd consecutive month of increase)
(AU) AUSTRALIA Q4 COMPANY OPERATING PROFIT Q/Q: -6.5% V 0.0%E (10-quarter low); INVENTORIES: 1.4% V 0.3%E
(CN) CHINA FEB HSBC SERVICES PMI: 53.9 V 52.5 PRIOR (4-month high)
(HK) HONG KONG FEB PURCHASING MANAGERS INDEX: 52.8 V 51.9 PRIOR
(NZ) NEW ZEALAND JAN NET MIGRATION: -650 V -530 PRIOR
(NZ) NEW ZEALAND Q4 VALUE OF ALL BUILDINGS Q/Q: 2.9% V 2.0%E
(UK) UK FEB LLOYDS BUSINESS BAROMETER: +1 V -11 PRIOR
(KR) South Korea Feb Foreign Exchange Reserves: $315.8B v $311.3B y/y (record high)
Markets Snapshot (as of 04:00GMT)
Nikkei225 -0.6%
S&P/ASX -0.3%
Kospi -0.9%
Taiwan Taiex -1.1%
Shanghai Composite -0.1%
Hang Seng -1.1%
S&P Futures -0.2% at 1,366
April gold +0.7% at $1,713/oz
April Crude +02% at $106.92
Overview/Top Headlines
Asia equity markets are in the red across the board as China Premier Wen announced lower 2012 GDP targets at the National People's Congress while giving no indication of looser policy or less stringent oversight for the housing sector. Taiwan and Hong Kong indices are leading to the downside, commodity currencies are paring recent gains, and even the prevalent recent weakness in JPY is taking a back seat to risk aversion. AUD/USD fell to 1-week low of $1.07 and USD/JPY declined below ¥81.50. Not helping matters, German press speculated private sector participation for a voluntary Greece bailout may fall come in on the lower end of expectations, potentially triggering a collective action clause (CAC). It remains unclear whether the miss would be below the 75% threshold as set by the terms of the 2nd bailout.
As anticipated, National Peoples Congress provided the forum for China's leadership to officially lower its 2012 GDP targets to 7.5%. China has had an informal 8% annual GDP target for the past 8 years, while 2011 GDP came in at 9.2%. NDRC also lowered 2012 CPI target to 4% as compared to 5.4% in 2011. Retail sales target was around trend at 14%, M2 money supply also estimated at 14%, and FDI forecasted to rise by 3.5%. In other notable comments, China Premier Wen pledged to clean up LGFV (local govt financing vehicles), boost Yuan flexibility, and continue to monitor inflation. On the housing front, China remains resolute to continue implementation of housing curbs to help lower prices to more affordable levels and also continue to expand capacity of state-sponsored dwellings. State economists offered somewhat conflicting views after the updated 2012 targets - PBoC adviser Li Daokui suggested that even 7.5% GDP forecast would be too optimistic, while Ministry of Finance Researcher Jia Kang noted the 2012 GDP would likely come in above 8%.
Speakers/Geopolitical/In the press
(AU) Australia Treasurer Swan: Growth in Australia under pressure from strong AUD
(CN) China Stats Bureau chief Ma: Inflation pressure in China is alleviating; Feb PPI and CPI data to be lower than Jan due to Lunar New Year effect
(CN) China sovereign wealth fund CIC receives $30B in new capital from state FX regulator SAFE to acquire European assets - China Daily
(CN) China to increase its defense spending by 11.2% in 2012 - US financial press
(GR) German govt denies press speculation that it pressured Troika officials to delete a passage from its report on Greece indicating it may need a 3rd bailout of as much as €50B - financial press (update)
(IR) Tehran may allow IAEA to visit suspected nuclear test site at Parchin - US financial press
(RU) Exit polls in Russia indicate Vladimir Putin is expected to win presidential elections with over 60% of the popular vote; Opposition candidates allege widespread fraud
Equities
AIG: Announces Proposed Sale of Ordinary Shares of AIA Group Limited
8035.JP: To purchase Switzerland's Oerlikon Solar for ¥22.5B - financial press
DCM: To partner with Telefonica to develop technology and services for smartphones - Nikkei News