Markets Continue To Weaken On Renewed EU Concerns; Major Japan Names Give Profit Warnings

(AU) AUSTRALIA FEB HOME LOANS M/M: -2.5% V -4.0%E (1-year low); INVESTMENT LENDING: +4.4% V -6.8% PRIOR; OWNER-OCCUPIED HOME LOAN VALUE: -4.0% V 0.0% PRIOR

(JP) JAPAN MAR BANK LENDING EX-TRUSTS Y/Y: 0.9% V 0.7%E (6th consecutive increase); INCLUDING TRUSTS Y/Y: 0.8% V 0.6% PRIOR

(NZ) NEW ZEALAND Q1 NZIER BUSINESS OPINION SURVEY: 13 V 0 PRIOR

(AU) AUSTRALIA APR WESTPAC CONSUMER CONFIDENCE INDEX: 94.5 V 96.1 PRIOR; Y/Y: -1.6% V -5.0% PRIOR (similar to mid-2011 levels)

(JP) JAPAN FEB MACHINE ORDERS M/M: +4.8% V -0.8%E (3-month high); Y/Y: 8.9% V 3.0%E; Cabinet upgrades core machinery orders assessment to midly increasing trend

(UK) UK MAR BRC SALES LIKE-FOR-LIKE Y/Y: 1.3% V 0.0%E (3-month high)

(JP) BANK OF JAPAN (BOJ) APRIL MONTHLY REPORT: BUSINESS SENTIMENT REMAINS UNCHANGED ON THE WHOLE

(VN) Vietnam Central Bank cuts repo rate from 13% to 12%; Effective today

Markets Snapshot (as of 04:30GMT)

Nikkei225 -1.6%

S&P/ASX -0.9%

Kospi closed

Taiwan Taiex +0.1%

Singapore Straits Times -1.0%

Shanghai Composite -0.3%

Hang Seng -1.3%

S&P Futures +0.4% at 1,361

June gold -0.3% at $1,656/oz

May Crude +0.3% at $101.35

Overview/Top Headlines

Asian markets were weaker today after Spanish yields hit 6% in yesterday's European session and PM Rajoy said that Spain's future is at stake in its battle to tame increasing bond yields. Only the Taiex entered positive territory later in the session after it was reported that Taiwan regulators have not made up their minds on implementing a capital gains tax.

The Bank of Japan April monthly report just reiterated comments from the rate decision earlier this week. Chatter that the Bank of Japan (BoJ) will consider additional easing at the April 27th meeting circulated. Expected that the BoJ may increase the size of asset purchase fund by ¥5-10T which gave a little boost to the market, though it was short lived. Both Sony and Sharp saw their shares fall after cutting FY11/12 guidance after the Nikkei close yesterday.

USD/JPY was slightly stronger to a high of ¥80.94. AUD/USD fell to a 3-month low below $1.0240 before lower-than-expected February home loans data. Month/month fell 2.5%, a 1-year low. Investment lending was higher than prior +4.4%. Copper futures climbed higher to $3.67 after better than expected Alcoa earnings. Asia Development Bank released updated GDP and inflation projections for the region; sees Asia inflation to slow to 4.6% in 2012, 4.4% in 2013 and developing Asia GDP at 6.9% in 2012 7.3% in 2013.

ADB cut China 2012 GDP growth forecast to 8.5% from 9.1% prior; Believes PBoC has scope to ease monetary policy. USD/KRW climbed higher, despite the Kospi being closed for parliament elections due to worries that the controlling party could lose control and the continued tension with North Korea.

Speakers/Geopolitical/In The Press

(AU) Australia Workers Union (AWU) chief Howes: RBA has been wrong on policy all year; Govt needs to pressure RBA to ease. - The Australian Press

(VN) Vietnam Central Bank cuts 2012 GDP to 5.5-6.0% from 6.0-6.5%.

(TW) Taiwan has not decided if it will implement a capital gains tax. - Financial Press

USD/JPY: (JP) Japan Fin Min Azumi: Will not react to every move in FX markets. - Financial Press

(CN) China's two largest ports Shanghai and Shenzhen saw March container throughput volumes rising 3.5% y/y; Growth of volume of bulk goods (such as coal) was in double-digits. - SCMP

Equities

BHP.AU: Approves initial $708M in funding related to phase 2 of the Mad Dog project.

GNS.AU: Remains in trading halt: Confirms the company is considering a name change and moving headquarters. - Australian Press

Hon Hai, 2317.TW: Reports Mar Rev NT$278.7B, +17.8% m/m and +29.7% y/y.

Fast Retailing, 9983.JP: To open hundreds of stores in US; looking at 29K sqf location in San Francisco and more locations across California. - US Financial Press

MMW.AU: Directors unanimously recommend that shareholders reject offer from Panoramic Resources.

US Equities

AA: Reports Q1 $0.10 (adj) v -$0.04e, R$6.0B v $5.8Be; +5.4% after hours.

CVX: Issue interim update for Q1: Earnings expected to be higher q/q (implies Q1 EPS higher than $2.58 v $3.14e); 2012 production guidance unchanged; +0.6% after hours.

CSC: Guides Q4 EPS $0.19-0.21 (adj) v $0.97e; Rev $4.1B v $4.1Be; FY12 $2.45-2.49 (adj) v $4.30e; Rev $15.9B v $15.9Be; -4.2% after hours.