-(CN) CHINA FEB TRADE BALANCE:-$ 31.4B V-$ 5.4BE (widest deficiency since 1989); Y/Y export: + 18.4% v + 31.1%e; Imports Y/Y: + 39.6% v +31.8%e >-(JP) JAPAN FEB domestic CGPI M/M: 0.2% V 0.2%E; Y/Y: 0.6% V 0.6%E (first increase in 7 months)
-(JP) JAPAN JAN MACHINE ORDERS M/M: 3.4% V 2.3%E (3-month high); Y/Y: 5.7% V 4.4%E
-(MA) MALAYSIA JAN INDUSTRIAL PRODUCTION Y/Y: 0.2% V 0.8%E; MANUFACTURING SALES VALUE Y/Y: 3.8% V 1.1% PRIOR
-(UK) UK FEB LLOYDS EMPLOYMENT CONFIDENCE: 69 V-73 PRIOR
-(JP) JAPAN FEB CONSUMER CONFIDENCE: 39.5 V 40.5E
-(IN) India Feb car sales + 13.1% y/y at 211.4K units
-(UN) Viet Nam Central Bank cuts refi rate to 14% from 15% (as expected); effective Tuesday, 13th March
-(CN) China Feb year-to-date fiscal revenue + 13.1% y/y
B. Markets snapshot (as of 04: 30GMT).
-Nikkei225 + 0.3%
-S & P / ASX - 0.4%
-Kospi - 0.6%
-Taiwan TAIEX - 0.5%
-Singapore Straits Times + 0.1%
-Shanghai composite - 0.4%
-Hang Seng - 0.3 %
-S & P futures 0.3% at 1,368
-April gold - 0.3% at $1, 706/oz
-April crude - 0.6% at $106.71
B. Overview/top headlines.
-Markets were weaker today after China posted its widest trade deficiency since 1989 and much worse than expected by analysts. The yuan which set much weaker and declined in the session after exports grew only slightly better than half of what was expected at 18.4% and imports came in much higher at 39.6%. Nomura economist Zhiwei Zhang said that "China economic conditions getting weaker at a faster pace;" "Slowdown happening faster than the govt expected." The Japanese markets were propped up by a weaker yen staying in the ¥ 82 handle for the session, though the USD/JPY did progressively weaken through the session. Japan PM Noda said that the yen is still what relatively overvalued, while Japan Finance Minister Azumi said that Japan appropriate action will continue to take on the Japanese yen based on the stance that excessive forex moves are undesirable. EUR/USD extended its decline below $1.3090 despite Greece meeting requirements and expected to get a small portion of their bailout early this week. EU fin mins will meet on Monday to sign off on the second bailout for Greece and discuss fiscal tightening steps that would avoid return of the crisis. Greece's PASOK leader Papandreou stepped down to facilitate party leadership vote ahead of national elections next week with Greece new democracy party leader Samaras saying that national elections in Greece to take place immediately following Orthodox Easter on April 15th. In Moody's weekly credit outlook it commented that Greece may not have access to private debt market, continues to face major challenges and reiterated that a risk of Greek default after debt swap remains high. Moody's also expect Greek debt does not burden to return to 120% of GDP until 2020, at earliest.
-The PBoC held a rare press briefing saying they will take preemptive measures on monetary policy and fine tune policy as appropriate; Want to use exchange rate, RRR to shape policy in 2012. PBoC gov Zhou said that monetary policy needs to take into account international-conditions; saying that theoretically speaking, there is a lot of room for a RRR cut. Should therefore said that any move in interest rates need to consider capital flow situations. Delegates to the China people's political consultative conference are calling for Beijing to legalize underground banks to help support lending to SMEs. Looking ahead to tomorrow, the Bank of Japan (BoJ) conclude their wants two day meeting with a expected to be rate decisions, which is left unchanged. Japan cabinet member Ishida does not expect further easing by BOJ in tomorrow's meeting.
B. speakers/geopolitical/in the press.
-(ID) Indonesia Central Bank Deputy gov.: studying increasing banks' reserve requirements if excess liquidity remains "threatening" >-(KR) official bank of Korea (BoK): there is a high chance of a rate cut this year, as slowing growth is a bigger concern than inflation
-(CN) Shanghai new home sales w/w: - 25.9% v + 43.5% prior; new home prices w/w: + 1.0% v + 5.1% prior - UWIN
-(TW) Taiwan Central Bank gov Perng: oil prices will affect spending and hurt GDP growth; Hot money still flowing into Taiwan since the start of 2012
-(KR) South Korea fin min Bahk: global economy is likely to have low growth for some time; Asia needs its own financial safety net
-(AU) Australia Treasurer Swan: need to find "significant savings" in the budget to maintain target of surplus in FY12/13 - SCMP
-(CN) China's southern city of Guangzhou kerja down on foreign buyers purchasing commercial real estate, which is illegal, due to a 30% increase y/y of prices - finance press
B. equities.
-Kobe steel, 5406.JP: Reaches an agreement with Rio Tinto to cut iron ore prices by 10% for next quarter
-Great Wall motors, 2333.HK: CEO Wang: does not expect any stimulus from the Govt for the auto sector. The govt buying local brands is a positive signal
-IAG.AU: To cut 600 jobs over the next 3 years as part of a restructure of its CGU business - Australian press
-Viterra, VT.CA: Glencore of has made a £ 3.5B offer for Viterra - Telegraph
-COK.AU: SK networks increases stake to 40% with an additional A$ 313M investment or A$ 0.535 / shr
-Kirin Holdings, 2503.JP: Australian unit Lion secured the distribution contract with Mexican beverage manufacturer Grupo Modelo for Corona in Australia - Australian financial review
-FCG.NZ: Lowers FY12 payout forecast range to NZ$ 6.75-6.85 from NZ$ 6.90-7.00 - finance press
B. FX/fixed income/commodities.
-(KR) South Korea govt sells KRW2. 3T 5-year govt bonds at 3.59%
-(AU) Newcastle coal exports in the week ended Mar 12th w/w: - 5.4% v - 2.4% prior
-(SA) Saudi crude supplier keeps prices unchanged for one Asia buyer for April when compared to March prices; Production what bpd at 9.4M and expected to remain at this level for the short term - financial press
-(CN) according to China's Vice Minister of industry and information technology (MIIT) Miao Wei, China looking to consolidate its rare-earth industry to 2-3 main firms - Chinese press
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