TradeTheNews.com Asian Market Update: Japan approves emergency budget; China MoC sees in US Govt finances
***Economic Data*** – (US) North America Semi Equipment Industry Mar Sales book to bill ratio m/m: 0.95 v 0.87 prior (4-month high)
***Markets Snapshot (as of 04:30GMT)*** – Nikkei225 +0.3% – S&P/ASX closed – Kospi -0.2% – Taiex +0.2% – Shanghai Composite -0.1% – Hang Seng closed – Straits Times Index closed – Jun S&P Futures closed – Spot Gold +0.3% at $1,506/oz – June Crude closed – May Copper closed
***FX USD Majors Session Range*** – EUR/USD: 1.4576-1.4541 – GBP/USD: 1.6526-1.6505 – USD/CHF: 0.8875-0.8854 – USD/CAD: 0.9533-0.9522 – AUD/USD: 1.0757-1.0721 – NZD/USD: 0.8036-0.8007 – USD/JPY: 81.97-81.65
***Overview/Top Headlines*** – Markets were slightly lower with thin trading due to the majority of the markets being closed for Good Friday. Nikkei225 was feeling some weight from the stronger yen, which oscillated moderately up and down. European currencies stayed quietly range bound with all markets closed for the day. Spot gold saw only small gains with little new catalyst ahead of the long weekend.
- China truck drivers at Shanghai port facilities strike for a 3rd day in a row; they are calling for higher freight rates to offset increases in diesel prices. Police have tried to disperse strikers. It is not immediately clear whether the strike was affecting cargo traffic, although some North American logistics companies warned of possible delays earlier this week.
- China Commerce Ministry: Expects import growth to exceed export growth in 2011 with the trade balance continuing to improve. Imports are growing due to Govt supports and rising commodity prices. Commenting on the global economy, ECB rate hike may worsen Euro debt crisis; Spain’s sovereign debt risk is rising and sees a “shadow of a fiscal crisis” in US Govt finances.
- Japan Cabinet has approved emergency budget of ¥4.02T for disaster relief; Includes ¥1.6T for infrastructure related spending. Reiterates Govt will try to avoid issuing new bonds to fund spending for emergency budget. BNP Paribas analysts cited in the Japanese press think that another intervention is unlikely at this point, but Japan authorities ” will not be keen to encourage another dip below ¥80″, USD/JPY spent the session in the upper ¥81 range.
***Speakers/Geopolitical/In the press*** – (JP) Japan Automobile Manufacturers Association: Automakers anticipate shutting down plants for 2 days per week; Will work weekends in the summer instead – Japanese press – (KS) Samsung Economic Research Institute (SERI): Raised South Korea 2011 GDP estimate to 4.3% from 3.8%, CPI forecast to 4.1% from lower 3% range – Korean press – (JP) Japan Fin Min Noda: To be mindful of fiscal discipline in implementation of earthquake relief; Aware Japan is being monitored by investors overseas – Nikkei News USD/CNY: (CH) PBoC Official: Reiterates China can allow the yuan to can to help ease inflation; Sees 2011 inflation at 4.1%
***Equities*** – NSANY: To create new company, Nissan Motor Kyushu Co, in Fukuoka to deal with maintaining output of at least 1M units – LYC.AU: Malaysia Trade Min Mustapa: Appointing an independent panel to review rare earth project with Lynas Corp; Expected to take 1-month – Samsung Electronics: 005930.KS: Filed lawsuit against Apple in Korea, Japan and Germany over patents – Asustek Computer: 2357.TT: Company remains optimistic about Q2 despite the downgrade to shipments forecast from primary competitor Acer – DigiTimes citing industry sources
***US Equities*** – BUCY: Reports Q1 $0.69 v $1.16e (unclear if comparable), R$909.7M v $1.0Be; flat after hours – AMD: Reports Q1 $0.08 v $0.05e, R$1.61B v $1.6Be; -1.3% after hours – IGT: Reports Q2 $0.23 v $0.20e, R$492M v $479Me; +9.3% after hours – AAPL: IHS iSuppli: Cuts 2011 Apple iPad shipments to 39.7M units v 43.7M prior; Q1 supply fell far short of demand
***FX/Fixed Income/Commodities*** – (JP) Nisshin, Showa planning to raise price on commercial flour by 10% – Japanese Press – USD/CNY: (CH) PBoC sets yuan mid point at 6.5156 v 6.5205 prior close (new yuan high since July 2005 revaluation) – GLD: SPDR Gold Trust ETF daily holdings fall by 0.6 tons to 1229.6 tons
Similar Posts:
- TradeTheNews.com Asian Market Update: China releases new property price measurements;
- Market Update February 21, 2012
- Asian Market Update: Cautious markets ahead of the weekend; Korea and Peru hold interest rates
- Asian Market Update: Equities remain weak throughout the region; Dollar weakens, commodities gain
- Asian Market Update: Renewed focus on the state of China’s economic health as outflows continue from the Asian giant
