Asian Markets

Stocks in Asia/Pacific Mixed, Japan’s Cabinet Office Leaves Economic Assessment Unchanged

Asia Session Key Developments

• Japan’s Consumer Confidence Extends January Advance
• New Zealand’s Performance of Services Climbs to 53.7
• Chinese Stocks Decline to Five-Week Low

Stocks in Asia/Pacific kicked off the week on a mixed note amid prospects that China will tighten policy over the coming months to curb inflation. Meanwhile, Japan’s cabinet office monthly economic report illustrated that although the economy has been picking up, it is only weakly self-sustaining and remains in a difficult situation as the private sector remains weak. Nevertheless, the economic docket for Japan showed that consumer confidence rose for the second consecutive month in February, with the gauge for employment rising to 34.2 from 33.1 in January. Moreover, New Zealand’s performance of services index increased to 53.7 from 53.1 during the same period, and conditions are likely to improve going forward as the Reserve Bank of New Zealand maintains a loose policy stance in an effort to encourage a sustainable recovery.

Nikkei 225                          10,751.98

Stocks in Japan advanced for the third consecutive day, leading the Nikkei 225 to push 0.72 points (0.01%) higher on Monday and close at 10,751.98. Half of the components rallied on the day, with financials leading the way, climbing 1.03%, while consumer services tumbled 0.64%.  Shares of Fuji Electric Holdings soared 8.86% as firm is likely to benefit from the Chinese government spending 4 trillion Yuan on smart power grinds, while Canon added 2.97% amid speculation that the company will report higher earnings. In addition, Mitsui Fudosan rose 1.37% following the Nikkei newspaper reporting that the company is likely to have a 20 billion yen profit from its stake in Oriental Land, while Nissan Motor tipped 0.39% higher as the automaker plans to invest 11.76 million Yuan in order to set up a design studio in Beijing.

Hang Seng                        21,079.10

The Hong Kong equity market pushed lower for a second successive session, with the benchmark equity index sinking 130.64 points (0.62%) to close at 21,079.10. Five out of the nine components fell on the day, with basic materials tumbling 3.59%, while technology added 3.51% to taper the decline. Shares of Aluminum Corporation of China lost 2.47% on the back of lower metal prices, while PetroChina shed 2.27% following the Australian Financial Review reporting that the company, along with Royal Dutch Shell may see their $3.03 billion bid for Arrow Energy rejected. At the same time, Industrial & Commercial bank of China lost 1.20% amid the company selling HK$275 million of floating rate notes which mature in March 2011, while Bank of China slipped 1.76% as it expects fewer loans this year compared to 2009.

S&P/ASX 200 Index           4,784.10

Shares in Australia pared Friday’s advance, leading the S&P/ASX 200 to shed 34.00 points (0.71%) and close at 4,784.10 as all ten components tumbled on the day. Shares of Fortescue Metals sank 3.04% on the back of lower metal prices, while BHP Billiton lost 0.65% as BHP Billiton Mitsubishi Alliance said the Hay Point port in Queensland remains closed due to weather conditions deteriorating over the weekend. Moreover, Henderson Group added 1.77% as the company considers cutting 25% of funds during its restructuring process, while Avoca Resources retreated 4.06% as gold marked its biggest loss in seven weeks on speculation that China will raise interest rates over the coming months to control inflation.

Notable Asian Session Event Risk / Economic Releases

Stocks in Asia/Pacific Mix, Japan Prime Minister Hatoyama Wants Firm Measures Against Yen Strength

Asia Session Key Developments

• Japan’s Industrial Production Rises for 11^th Straight Month
• Hong Kong Producer Prices Extend Three Month Decline

Stocks in Asia/Pacific were mixed on Friday amid speculation that Japan’s central bank will add additional funds to the financial system, while the Hang Seng tipped lower on speculation China’s government will tighten policy later this year. Taking a look at the economic docket, industrial production in Japan soared 18.5% in January, with the reading rising for the eleventh consecutive month, while Prime Minister Hatoyama stated that the government must take “firm measures” to keep the rising yen from hurting the economy. In addition producer prices in Hong Kong retreated 0.3% in the fourth-quarter after contracting 2.0% during the previous three-month period, while industrial outputs slipped at an annual pace of 4.9% during the same period after weakening 8.6% in the third quarter.

Nikkei 225                          10,751.26

Stocks in Japan extended yesterday’s advance, leading the Nikkei 225 to advance 86.31 points (0.81%) on Friday and close at 10,751.26. Nine out of the ten components pushed higher on the day, with basic materials leading the way, climbing 1.42%, while oil & gas slid 0.18%. Shares of Fuji Heavy Industries added 4.08% as Mitsubishi UFJ rated the company’s stock “strong outperform,” while Isuzu Motors surged 3.96% as the truck makers was rated “outer perform” by Mitsubishi. In addition, Kobe Steel pushed 2.81% higher on the back of higher metal prices, while Mitsui Chemicals retreated 1.47% as the company looks to shut down an ethylene plant in Chiba on February 28^th, which may have cost the company about 3 billion yen.

Hang Seng                        21,209.74

The Hong Kong equity market halted its five-day advance, with the benchmark equity index shedding 18.46 points (0.09%) and closing at 21,209.74. Six out of the nine components tumbled on the day, with consumer goods falling1.74%, which was followed by a 1.15% decline in technology.  Shares of Henderson Land Development pushed 2.72% higher as Sun Hung Kai Chairwoman expects the expansion in the housing market to continue for another year, while CNOOC increased 0.78% as the company, along with Total SA are expected to split a two-third stake in Tullow Oil Plc’s. Moreover, PetroChina rose 0.54% on the back of higher energy prices, while Bank of China climbed 0.25% as the nation’s best-performing primary-market debt fund stated that China’s Yuan bonds will return as much as 6% this year.

S&P/ASX 200 Index           4,818.10

Shares in Australia pared yesterday’s decline, leading the S&P/ASX 200 to rise 3.90 points (0.08%) and close at 4,818.10. Three out of the ten components rose on the day, with oil & gas leading the way, climbing 0.71%, while technology slid 1.08% to taper the advance.  Shares of Woodside Petroleum added 0.31% as crude-oil futures in New York rose 0.1%, while CuDeco soared 5.80% as the company is in “wide-ranging” talks with Xiangguang Copper and Sinosteel Group over its Rocklands project. At the same time, Alesco soared 3.29% as the company was raised from “sell” to “hold,” while Newcrest Mining gained 0.91% on the back of higher commodity prices.

Notable Asian Session Event Risk / Economic Releases

Asian Stocks Advance, ASX Falters as Employment Report Disappoints

Asia Session Key Developments

• Australian Employers Add Fewest Jobs in Six Months
• Japan’s GDP Expands Less Than First Estimated
• Lending in China Tops Forecast

Stocks in Asia tipped higher on Thursday as market participant held an improved outlook for global growth, while the ASX 200 bucked the trend as employment in the $1T economy rose the least in six months. Meanwhile, the economic docket in Japan showed that the economy expanded less than previously forecasted in the fourth quarter as companies scaled back on spending, while Australia’s labor market added 0.4K jobs in February, which fell short of expectations for a 15.0K rise. At the same time, consumer prices in China increased to an annual pace of 2.7% in February, with producer prices jumping to 10.3% to top forecasts for a n 8.5% rise, while retail spending surged 22.1% from the previous year. Moreover, industrial outputs increased 12.8%, with fixed investments advancing 26.6%, while new Yuan loans jumped 700.1B from January.

Nikkei 225                          10,664.95

Stocks in Japan pared yesterday’s decline, leading the Nikkei 225 to rally 101.03 points (0.96%) on Thursday and close at 10,664.95. Nine out of the ten components pushed higher on the day, with financials leading the way, climbing 1.70%, while oil & gas slid 0.55% to taper the advance. Shares of Mitsui & Co. added 2.73% subsequent to the Nikkei newspaper stating that Vale SA is aiming to increase prices of iron ore by 90%, while Okuma leapt 5.83% after Japan Machine Tool Builders’ Association announced orders amounted to 64.8 billion yen in February. At the same time, Shinsei Bank sank 3.85% as the lender may abandon its merger with Aozora Bank and instead sell shares to raise 75 billion yen, while Sumitomo Heavy soared 4.80% amid MF Global placing a “buy” rating on the stock.

Hang Seng                        21,228.20

The Hong Kong equity market advanced on Thursday for the fifth successive session, leading the benchmark equity index to climb 19.91 points (0.96%) and close at 21,228.20. Five out of the nine components rallied on the day, with consumer goods climbing 3.07%, while basic materials lost 0.63%. Shares of Cathay Pacific Airways added 1.84% as Redford Assets rated the company a new “buy,” while China Mobile tipped 1.62% higher as China’s banking regulator remained “supportive” of the firm’s acquisition of a 20% stake in Shanghai Pudong Development Bank.  Moreover, New World Development dropped 1.05% as the company sold new apartments at The Masterpiece project it co-developed with the government to VIP clients before making them available to the public, while Aluminum Corp of China slid 0.86% on the back of lower metal prices.

S&P/ASX 200 Index           4,814.20

Shares in Australia extended yesterday’s decline, leading the S&P/ASX 200 to retreat 5.80 points (0.12%) and close at 4,814.20. Seven out of the ten components declined on the day, with technology leading the way, losing 1.93%, and was followed by a 0.62% decline in industrials. Shares of BHP Billiton slipped 0.53%on the back of lower energy prices, while Lihir Gold, Australia’s second largest gold producer sank 2.68% as the company, along with Equigold agreed to a $1.1 billion merger. At the same time, Fortescue Metals soared 2.07% as ING Groep NV expects annual contract prices for Australian iron ore to rise 80%, while Leighton Holdings added 1.67% after its Asia unit won a A$463 million contract to build a section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link.

Notable Asian Session Event Risk / Economic Releases

Stocks in Asia/Pacific Falter on Growth Concerns, Hang Seng Bucks Trend

Asia Session Key Developments

• Australian Consumer Confidence Improves in March
• Japan Machinery Orders Slump After Biggest Jump Since 2000

Stocks in Asia/Pacific weakened on Wednesday as policy makers held a cautious outlook for the region, while the Hang Seng bucked the trend as firms within the region posted better-than-expected earnings results for 2009. Bank of Japan’s board member Suda publicized that upside and downside risks for growth are almost balanced, sticking with the central bank’s view that the economy will continue to gradually expand. Meanwhile, the economic docket in Japan showed machinery orders pushed 3.7% lower in January after posting its biggest jump since 2000 the month prior, while the regions domestic goods price index advanced for the fourth consecutive month in February, with the gauge increasing 0.1% following the 0.3% rise in the previous month. Moreover, Australia’s Westpac consumer confidence index gained 0.2% in March, signaling that households are weathering RBA’s decision to raise borrowing costs for the fourth time in five meetings last week, while home loans unexpectedly slumped 7.9% in January after contracting a revised 5.1% in the month prior. At the same time, exports from China jumped at an annualized pace of 45.7% February to top expectations for a 38.3% rise, which outpaced the 44.7% expansion in imports.

Nikkei 225                          10,563.92

Stocks in Japan extended yesterday’s decline, leading the Nikkei 225 to shed 3.73 points (0.04%) on Wednesday and close at 10,563.92. Six out of the ten components retreated on the day, with telecommunications leading the way, falling 1.52%, while technology advanced 0.63%. Shares of Tokyo Gas tumbled 0.25% on the back of lower energy prices, while Casio Computer rallied 3.44% amid Nikkei English News stating that the company could see an operating profit of 20 billion yen for the year ending March 2011. In addition, CSK Holdings added 2.01% as the firm looks to sell its Cosmo Securities Co. brokerage unit to Iwai Securities for approximately 16 billion yen, while Nippon Light Metal soared 10.09% as UBS AG raised its outlook for the aluminum producer from “neutral” to “buy.”

Hang Seng                        21,208.29

The Hong Kong equity market advanced on Wednesday for the fourth consecutive session, leading the benchmark equity index to rise 0.74 points (0.00%) and close at 21,208.29. Seven out of the nine components rallied on the day, with technology climbing 2.13%, while consumer goods slipped 1.88%.  Shares of Cathay Pacific Airways soared 4.68% as the airline returned to profit in 2009, while Citic Pacific surged 7.47%as net income for the previous year topped market expectations. Moreover, China Petroleum & Chemical lost 1.45% on the back of lower energy prices, while HSBC Holdings slipped1.09% as the U.K. intends to force banks to increase disclosure on compensation.

S&P/ASX 200 Index           4,820.00

Shares in Australia pared yesterday’s advance, leading the S&P/ASX 200 to retreat 0.10 points (0.00%) and close at 4,820.00. Six out of the ten components tumbled on the day, with consumer goods leading the way, falling 0.43%, while telecommunications surged 2.55% to taper the decline. Shares of Alesco took a free fall of 31.58% as the company lowered its earnings forecast and UBS downgrading its stock rating from “neutral” to “sell,” while CuDeco leapt 12.98 % as Xiangguang Copper looks to take a 15% stake in the firm. At the same time, Telstra Corp advanced 2.75% after the Australian Financial Review said Communications Minister Stephen Conroy lacks political support to split up the firm, while Atlas Iron soared 4.52% as the Australian iron ore producer will purchase Aurox Resources for A$149 million in shares.

Notable Asian Session Event Risk / Economic Releases

Stocks in Asia/Pacific Mixed, Australia’s Business Confidence Rises for Second Month

Asia Session Key Developments

• Australian Shares Rally for Eight Straight Day
• Japan’s Machine Tool Orders Post largest Increase on Record

Stocks in Asia/Pacific were mixed on Tuesday following a lackluster performance on Wall Street. Meanwhile, the economic docket showed business confidence in Australia advanced for the second straight month in February, with the NAB index increasing to 19 from 15 from the previous month, while job ads in the region leapt the most in a decade during the same period after rising 19.1% from January. Moreover, Japan’s leading index rose to 97.1 during the first month of 2010, extending the reading’s 10-month advance, while machine tool orders in the region jumped at an annualized pace of 217.3% in February, posting its largest increase since records began in 1987.

Nikkei 225                          10,567.65

Stocks in Japan pared yesterday’s advance, leading the Nikkei 225 to retreat 18.27 points (0.17%) on Tuesday and close at 10,567.65. Eight out of the ten components tumbled on the day, with telecommunications leading the way, shedding 1.37%, while industrials added 0.09%. Shares of NTT Data rallied 2.15% as the network-services company plans to scale back its domestic group in order to cut costs, while Nippon Light Metal tipped 0.93% higher as the company publicized that it will sell an aluminum subsidiary to housing-material manufacture JS Group Corp. In addition, Mazda Motor rose 0.43% following the company’s announcement that it will install brake override systems in all new models, while JTKET sank 3.01%  subsequent to Credit Suisse slashing the company’s credit rating from “outer perform” to “neutral.”

Hang Seng                        21,207.55

The Hong Kong equity market pushed higher on Tuesday for the third successive day, leading the benchmark equity index to rise 10.68 points (0.05%) and close at 21,207.55. Two out of the nine components rose on the day, with utilities rising 0.34%, while consumer goods retreated 2.69%. Shares of China Life Insurance added 2.98% as the company expects net profit to climb more than 200% in 2009, while China Mobile inched 0.14% higher amid the mobile company stating that it was in preliminary talks with Shanghai Pudong Development Bank on a potential subscription of the bank’s new shares. Moreover, Aluminum Corporation of China lost 0.85% on the back of lower metal prices, while Cathay Pacific Airways slipped 0.14% as February air cargo tonnage throughput from the Hong Kong air cargo terminals sank 15.3% in February from the month prior.

S&P/ASX 200 Index           4,820.10

Shares in Australia rallied for an eighth consecutive session on Tuesday, leading the S&P/ASX 200 to increase 12.20 points (0.25%) and close at 4,820.10. Seven out of the ten components pushed higher on the day, with health care adding 0.68%, while technology fell 1.67% to taper the advance. Shares of Seek gained 1.07% following a marked rise in advertisements for job vacancies, while Fortescue Metals Group slumped 0.62% on the back of lower metal prices. At the same time, UGL shed 1.61% after UBS lowered its rating on the stock to “neutral” from “buy,” while Harvey Norman edged 0.51% higher on the back of Australian business confidence increasing in February for the second straight month.

Notable Asian Session Event Risk / Economic Releases

Asian Stock Markets Advance Amid Accelerating Economic Growth, France Pledges to Support Greece

Asia Session Key Developments

• Asian Stocks Rally to Six-Week High
• Bank Lending in Japan Tumbles for the Seventh Month
• Japan Trade Surplus Widens More-Than-Expected on Exports

Stocks in Asia/Pacific began the week on a strong note, rallying to a six-week high following French President Nicolas Sarkozy stating that the euro region stands ready to rescue Greece should the government struggle to fund its budget deficit. Meanwhile, the economic docket overnight showed bankruptcies in Japan tumbled for the seventh straight month as emergency government programs helped companies stay afloat, with the gauge slipping 17.3% from the previous year, while bank lending weakened 1.5% during the same period amid expectations for a 1.7% decline. Moreover, the trade surplus widened to 1712.8B yen in January as exports jumped at an annual pace of 40.6%, which exceeded forecasts for a rise to 1249.5B yen, while the Eco Watchers Outlook survey surged to the highest since July 2009, with the index increasing to 44.8 in February from 41.9 in the previous month.

Nikkei 225                          10,595.92

Stocks in Japan extended Friday’s advance, leading the Nikkei 225 to rally 216.93 points (2.09%) on Monday and close at 10,585.92. Nine out of the ten components pushed higher, with consumer goods leading the way, rising 2.56%, while utilities retreated 0.13%. Shares of Yahoo Japan added 4.69% as Tokai Tokyo Securities upgraded the company’s rating from “neutral” to “above average,” while Dentsu Inc rallied 6.04% after reporting an 8.8% rise in February revenue.” In addition, Mitsui Mining & Smelting rose 2.00% amid the Nikkei English News reporting that the company plans to start recycling metals used in batteries for hybrid and electric vehicles as early as 2014, while Nissan Motor soared 4.71% as Dow Jones publicized that the automaker expects vehicle production at its two plants in Mexico to rise by about 20% this year.

Hang Seng                        21,196.87

The Hong Kong equity market pushed higher on Monday for the second day, leading the benchmark equity index to rise 409.90 points (1.97%) and close at 21,196.87 as all nine components advanced on the day. Shares of PetroChina advanced 2.80% amid the company, along with Royal Dutch Shell made an offer worth more than A$3.3 billion to acquire Arrow Energy, while Li & Fung, the largest supplier of toys and clothing to Wal-Mart, added 4.20% as the U.S. unemployment rate unexpectedly held at 9.7% in March. Moreover, Aluminum Corporation of China climbed 4.19% on the back of higher metal prices, while China Overseas Land & Investment rose 2.17% after publicizing that property sales in February added 52%.

S&P/ASX 200 Index           4,807.90

Shares in Australia advanced for a seventh straight session on Monday, leading the S&P/ASX 200 to increase 40.70 points (0.85%) and close at 4,807.90 as all ten components pushed higher on day. Shares of BHP Billiton climbed 2.38% as copper futures rose 1.2%, while Woodside Petroleum surged 1.64% as oil surged to nearly an eight-week high on Friday. At the same time, Linc Energy leapt 3.58% amid CEO Peter Bond stating that investor confidence in the coal market has “come back over the last few weeks and months,” while Arrow Energy jumped 46.84% after Royal Dutch Shell and PetroChina made a bid for the firm.

Notable Asian Session Event Risk / Economic Releases

Asian Stock Markets Rally as Global Growth Prospects Improve

Asia Session Key Developments

• Australian Foreign Reserves Narrows in February
• Construction in Australia Grows at Slower Pace
• Japan Reserve Assets Tip Lower for Second Month

Stocks in Asia/Pacific ended the week on a higher note subsequent to the drop in U.S. jobless claims, while the Japanese yen weakened amid speculation that the Bank of Japan will expand easing measures in order to support the domestic economy. Meanwhile, the economic docket overnight showed official reserve assets in the world’s second largest economy narrowed for the second time in the past seven months, with the figure slipping to $1051.1B in February from $1053.1B in the previous month. Meanwhile, construction in Australia grew at a slower pace in February as the AiG’s Performance of Construction Index pulled back to 52.8 from 57.7 in the previous month, while the nation’s foreign reserves weakened to A$44.3B during the same period from A$46.6B in January.

Nikkei 225                          10,368.96

Stocks in Japan pared yesterday’s decline, leading the Nikkei 225 to rally 223.24 points (2.20%) on Friday and close at 10,368.96. Eight out of the ten components pushed higher on the day, with consumer services rising 2.96%, which was followed by 2.58% advancement in technology. Shares of Mitsui Chemicals soared 4.92% as the company announced it will take additional measures to cut costs, while JFE Holdings added 2.99% as the Nikkei English News said the company plans to purchase a 24% state in China’s Pancheng Yihong Pipe Co. for approximately 1 billion yen. In addition, Kawasaki Kisen Kaisha climbed 4.89% as Mitsubishi UFJ Financial Group lifted the company’s stock rating from “market perform” to “outer perform,” while Sony added 3.39% following a Wall Street Journal report that said the firm will release new hand-held products which will compete against Apple.

Hang Seng                        20,787.96

The Hong Kong equity market pared yesterday’s decline, leading the benchmark equity index to gain 212.19 points (1.03%) and close at 20,787.97as all nine components advanced on the day. Shares of Cosco Pacific surged 3.64% as the shipping company expects annual profit on trade and rates, while Li & Fung, the biggest supplier of toys and clothing to Wal-Mart, added 2.21% amid the drop in U.S. jobless claims. Moreover, PetroChina gained 1.82% as crude pushed higher on Friday due to speculation that a recovery would boost demand for oil, while Aluminum Corporation of China advanced 2.08% on the back of higher metal prices.

S&P/ASX 200 Index           4,767.20

Shares in Australia rallied for the sixth successive session on Friday, leading the S&P/ASX 200 to increase 16.70 points (0.35%) and close at 4,767.20. Nine out of the ten components pushed higher on the day, with technology rising 1.72%, while telecommunications shed 0.36% to taper the advance. Shares of Australian Worldwide Exploration leapt 4.71% amid the company publicizing that it will begin drilling off New Zealand’s coast, which could potentially contain 250 million barrels of oil, while Tower Australia added 1.59% after the Australian Prudential Regulation Authority and Foreign Investment Review Board approved Dai-ichi Mutual Life Insurance’s bid to increase their stake in the insurance firm. At the same time, AWB slumped 2.27% as Commonwealth Bank of Australia expects a drop in grain harvest, while OZ Minerals added 2.27% on the back of higher metal prices.

Notable Asian Session Event Risk / Economic Releases

Asian Stock Markets Mixed on Speculation China Will Tighten Policy

Asia Session Key Developments

• Gold Climbs to Six-Week High
• Copper Prices Rally for a Fourth Straight Day
• Hong Kong Retail Sales Rise Less-Than-Expected

Stocks in Asia/Pacific were mixed on Thursday for the third consecutive day amid concern policy makers in China will tighten policy over the coming months, which could further weigh on bank lending going forward. Nevertheless, the economic docket for Hong Kong showed retail spending increased at an annual pace of 3.2% in January, which fell short of expectations for a 6.7% rise, while the value of sales increased 6.6% amid forecasts for a 10.1% expansion. Moreover, capital spending in Japan slumped 17.3% during the fourth quarter, which missed projections for an 18.4% decline, while Australia’s trade deficit narrowed to 1176M in January from a revised 2174M shortfall in the previous month.

Nikkei 225                          10,145.72

Stocks in Japan pared yesterday’s advance, leading the Nikkei 225 to shed 107.42 points (1.05%) on Thursday, and close at 10,145.72 as all ten components traded lower on the day. Shares of Mitsubishi Chemicals added 3.10% subsequent to Credit Suisse Group AG raising the company’s stock rating from “neutral” to “outer perform”, while TDK slumped 2.91% as Barclay Capital lowered its outlook for the firm to “underweight” from “overweight.” In addition, Mitsubishi Motors tumbled 10.61% as the company, along with PSA Peugeot Citroen stated that they would not form a capital alliance, while Sumitomo Metal Mining added 0.76% on the back of higher commodity prices.

Hang Seng                        20,575.78

The Hong Kong equity market extended yesterday’s decline, leading the benchmark equity index to dive 301.01 points (1.44%) and close at 20,575.78 on Thursday. Seven out of the nine components tipped lower on the day, with technology leading the way, falling 3.39% and was followed by a 2.09% decrease in telecommunications. Shares of China Mobile shed 2.41% following Daiwa Securities Capital Markets downgrading the company from “outer perform” to “underperform,” along with concerns that the company will deviate from its main business as it looks to invest in Shanghai Pudong Development Bank, while Aluminum Corporation of China tumbled 2.28% on the back of lower metal prices. Moreover, Henderson Land Development shed 0.47% as home completions last year were the lowest since at least 1999, while the Bank of China, the nation’s second-largest lender by market value retreated 3.47% as the bank plans to sell 24.93 billion yuan ($3.7 billion) of subordinated bonds next week to replenish its capital.

S&P/ASX 200 Index           4,750.50

Shares in Australia rallied for the fifth session on Thursday, leading the S&P/ASX 200 to advance 14.80 points (0.31%) and close at 4,750.50. Four out of the ten components pushed higher on the day, with basic materials climbing 1.03%, while utilities tumbled 1.81% to taper the advance. Shares of BHP Billiton, the world’s largest mining company added 1.46% as copper prices rose for the fourth straight day, while Newcrest Mining, Australia’s largest gold producer gained 1.67% as gold prices climb to a six week high. At the same time, Henderson Group rose 0.96% as Goldman Sachs JBWere raised its rating on the firm to “buy” from “hold,” while Ramsay Health Care fell 1.77% as Morgan Stanley cut the company’s stock rating from “overweight” to “equal weight.”

Notable Asian Session Event Risk / Economic Releases

Asian Stock Markets Mixed on Greece Measures, Australia GDP Expands 0.9%

Asia Session Key Developments

• Gold Futures Rise to Highest in Almost Six Weeks
• Australia’s GDP Grows At Fastest Pace in Almost Two Years

Stocks in Asia/Pacific were mixed on Wednesday for the second straight day amid speculation that the additional measures announced by Greek policy makers will bolster confidence in the global recovery, while commodity prices edged slightly higher on the day. Meanwhile, the economic docket for Australia showed economic activity grew at the fastest pace in almost two years during the fourth quarter, reinforcing the Reserve Bank of Australia’s decision to increase borrowing costs for the fourth time in five meetings. Moreover, Japan’s labor cash earnings in January rose for the first time in the past five months, while the loans & discounts corporation index extended its two-month decline.

Nikkei 225                          10,253.14

Stocks in Japan strengthened on Wednesday for the fourth consecutive day, leading the Nikkei 225 to advance 31.30 points (0.31%) and close at 10,253.14. Six out of the ten components pushed higher on the day, with consumer services rising 2.30%, while financials lost 0.72%. Shares of Sumitomo Metal Industries rallied 3.98% subsequent to China Steel, Taiwan’s largest producer stating demands have returned to pre-crisis levels, while Canon climbed 0.66% as the company enhanced its CXDI – series digital radiography system lineup with the development of first wireless, cassette-size model. In addition, Bridgestone, the world’s largest tire maker shed 0.96% as Goldman Sachs Group slashed the company’s stock rating from “neutral” to “sell,” while Toyota Motor added 3.17% after its February U.S. sales topped market expectations.

Hang Seng                        20,876.79

The Hong Kong equity market tumbled on Wednesday, leading the benchmark equity index to slump 29.32 points (0.14%) and close at 20,876.79. Four out of the nine components pushed lower on the day, with telecommunications falling 2.34%, which was followed by a 1.17% decline in consumer goods. Shares of Sino Land slumped 2.92% as market participants speculate policy makers will look to curb rising property prices at the Chinese People’s Political Consultative Conference, while China Merchants Bank advanced 1.71% after President Ma Weihua held an improved outlook for future profits. Meanwhile, CLP Holdings slid 0.83% as the company hired four banks to arrange its largest sale of U.S. dollar-denominated bonds since 2002, while PetroChina tipped 0.68% higher on the back of rising energy prices.

S&P/ASX 200 Index           4,735.70

Shares in Australia rallied for the fourth time on Wednesday, leading the S&P/ASX 200 advance 33.80 points (0.72%) and close at 4,735.70. Eight out of the ten components soared on the day with basic materials adding 1.83%, while health care declined 0.37% to taper the advance. Shares of BHP Billiton, the world’s largest mining rose 1.41% as the firm plans to focus on “organic” growth, while Newcrest Mining, Australia’s largest gold producer tipped 1.35% higher as gold futures for April delivery rose to its highest price in almost six weeks. At the same time, Panoramic Resources surged 8.02% as the firm discovered new reserves at its Savannah mine in Western Australia, while Platinum Australia sank 5.00% as workers at the company’s Smokey Hills mine in South Africa have refused to go underground, which has resulted in suspension of almost all operations at the mine.

Notable Asian Session Event Risk / Economic Releases

Asian Stock Markets Mixed on Outlook for Future Earnings, Reserve Bank of Australia Hikes Rate to 4.00%

Asia Session Key Developments

• Japan’s Jobless Rate Falls to 4.9%
• Australia’s Building Approvals Tumble in January
• RBA Hikes Cash Rate 25 Basis Points to 4.00%

Stocks in Asia/Pacific were mixed on Wednesday as the economic docket from the U.S. reinforced an improved outlook for future growth, while commodity prices pushed lower overnight to taper the advance.  Meanwhile, the economic calendar in Japan showed that the jobless rate slipped to 4.9% in January from 5.1% the previous month, while household spending added 1.7% during the same period, marking the sixth straight month that the index has risen. Moreover, a separate report illustrated Australia’s building approvals in January tumbled for the first time in five months, while retail sales jumped 1.2% after contracting a revised 0.9% in December, which exceeded expectations for a 0.5% rise. Nevertheless, the Reserve Bank of Australia raised borrowing rates by 25 basis points to 4.00% amid the resilience in the economic recovery, with Governor Glenn Stevens stating that the “economy may have already been at or close to trend for a few months.”

Nikkei 225                          10,221.84

Stocks in Japan strengthened on Tuesday for a third successive session, leading the Nikkei 225 to rally 49.78 points (0.49%) and close at 10,221.84. Seven out of the ten components rose on the day, with technology leading the way, climbing 1.12%, while financials tumbled 0.33% to taper the advance. Shares of Mitsumi Electric advanced 3.31% after JP Morgan Chase raised its rating on the firm to “overweight” from “neutral,” while Sekisui House gained 3.33% as the company anticipates 27B yen in net income. Moreover, Sumco surged 4.57% after the Semiconductor industry Association saw a 0.3% in January sales, while Toshiba added 2.01% after the Nikkei English News paper said the firm is likely to benefit from the 1.7T yen high-speed railroad project in Brazil.

Hang Seng                        20,906.11

The Hong Kong equity market pared Monday’s advance, leading the benchmark equity to slump 150.82 points (0.72%) and close at 20,906.11. Three out of the nine components retreated on the day, with financials leading the way, falling 1.27%, while consumer goods rose 2.95% to taper the decline. Shares of HSBC Holdings sank 7.04% as net income for 2009 fell short of expectations, while Hang Seng Bank dived 5.13% after announcing a 6% drop in net income. In addition, Li & Fung, the largest supplier of toys and clothing to Wal-Mart, added 2.95% following the bigger-than-expected rise in U.S. personal spending, while China Shenhua Energy rose 0.59% on the back of higher energy prices.

S&P/ASX 200 Index           4,701.90

Shares in Australia advanced for a third consecutive day, leading the S&P/ASX 200 to climb 15.40 points (0.33%) and close at 4,701.90.  Three out of the ten components rallied on the day, with oil & gas leading the way, adding 1.21%, and was followed by a 0.16% rise in basic materials. Shares of Nufarm, Australia’s largest supplier of farm chemicals sank 2.87% as the company expects a first-half loss of A$40M , while Tatts Group, Australia’s third-largest gambling company tumbled 7.26% amid the company agreeing to buy New South Wales Lotteries for A$850 million.  Meanwhile, Lihir Gold added 1.46% as CEO Phil Baker stated that the company will look to produce 1.45 million ounces a year on average for the five years starting in 2012, while Riversdale Mining surged 4.22% on the back of higher commodity prices.

Notable Asian Session Event Risk / Economic Releases

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