Economic Data
(AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 4.25%, AS EXPECTED
(AU) AUSTRALIA Q4 CURRENT ACCOUNT BALANCE (A$): -8.4B V -8.0BE; NET EXPORTS OF GDP: 0.3% V 0.0%E
(JP) JAPAN JAN LABOR CASH EARNINGS Y/Y: 0.0% V -0.3%E
(PH) PHILIPPINES FEB CONSUMER PRICE INDEX M/M: 0.0% V 0.4%E; Y/Y: 2.7% V 3.2%E
(UK) UK FEB BRC SALES LFL Y/Y: -0.3% V -0.3% PRIOR
(CO) COLOMBIA FEB CPI M/M: 0.6% V 0.8%E; Y/Y: 3.6% V 3.7%E
(CO) Colombia Jan Exports FOB: $4.69B v $5.50B prior
Markets Snapshot (as of 05:30GMT)
Nikkei225 -0.9%
S&P/ASX -1.4%
Kospi -1.0%
Taiwan Taiex -1.0%
Singapore Straits Times -1.4%
Shanghai Composite -1.5%
Hang Seng -1.6%
S&P Futures -0.4% at 1,359
April gold -0.1% at $1,702/oz
April Crude -0.1% at $106.70
Overview/Top Headlines
Markets were materially weaker today, after China cut its GDP forecast to 7.5% yesterday. This took some wind out of the region's sails, copper fell over 0.5%, major miners BHP and Rio Tinto both fell 2.3% as Australia's leading trade partner China gave its growth warning. The Greenback strengthened against everything expect the yen, which gained 0.2% to ¥81.34; NZ$ lost over three-quarters of a percent to $0.8140 after New Zealand announced a wider budget deficit than expected after increased earthquake insurance liabilities.
AUD/USD fell 0.5% to $1.0615 after the RBA left rates unchanged at 4.25% on improved growth prospects in the US, robust outlook for China while reiterating that Europe remains a risk. The RBA reiterated that policy remains appropriate and there is scope to cut rates if needed. "Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy." RBA continues to expect China's demand for commodities to keep growth alive in the domestic economy. The euro declined against both the yen and the dollar ahead of Euro Zone Q4 preliminary GDP later today. Shares of AIA in Hong Kong fell well over 5% after AIG announced pricing of a $6.0B stake sale.
Speakers/Geopolitical/In the press
(CN) PBoC Advisor Li Daokui: Feb inflation may be 2.5% and 2012 CPI at 3.0% v 4.0% official target; China should start to move to market set rates
(NZ) S&P Comments on New Zealand: There are risks that investors could shift away from NZ$ assets due to concerns about private sector debts spurring a depreciation in the currency
(KR) According to a Korean press survey, analysts are unanimous forecasting Bank of Korea (BOK) will leave rates unchanged at 3.25% on Thursday - Korean press
(JP) Japan Govt aiming to cut civil servant hiring for FY12 by 40% from 2009 levels - Japanese press
(AU) Australia's Evans: Sees 2012 Australia unemployment rate at 5.75-5.8%; Need lower interest rate to support employment
(JP) S&P comments on Japan: Sovereign downgrade likely if medium term outlook for real GDP per capita falls below 1.2%
Equities
BOQ.AU: Raised standard variable home loan rate by 10bps to 7.46%, effective March 16th - US financial press
LEI.AU: Dubai Unit: Would consider IPO, but no current plan for such a transaction - US financial press
Want Want China, 151.HK: Reports FY11 Net $419.5M v $399Me; Rev $2.95B
China Steel, 2002.TW: Has asked BHP and Rio Tinto to cut iron ore prices; Has reached an agreement with Vale already
China Vanke, 200002.CN: Exec: Contract sales in Jan-Feb of 2012 are down 27% y/y at CNY19.1B - HK press
Bank of China, 3988.HK: Chairman: Sees non-performing loan ratio for local govt financing to be less than 1%, does not expect any widespread defaults - Chinese press
1299.HK: AIG Prices 1.72B common shares of AIA at HK$27.15/shr ($3.50/shr), approx a 7% discount to last traded price