Japan officials promise discipline plan after Fitch cut rating

Economic Data

- (JP) JAPAN MAR RETAIL SALES M/M: -1.9% V 0.6%E; RETAIL TRADE Y/Y: -9.7% V -7.5%E (biggest decline since 1998)

- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 111.8 v 108.8 prior

- (AU) Australia Feb Conference Board Leading index m/m: 0.5% v 0.4% prior (3rd consecutive increase)

- (PH) PHILIPPINES FEB TRADE BALANCE: -$813M V -$315Me

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +0.5%, S&P/ASX -0.3%, Kospi -0.1%, Shanghai Composite flat, Hang Seng -0.4%, Jun S&P500 -0.1% at 2,102

Commodities/Fixed Income

- Jun gold -0.2% at $1,201/oz, Jun crude oil -1.3% at $56.23/brl, May copper -0.5% at $2.7575/lb

- GLD: SPDR Gold Trust ETF daily holdings fall 3.3 tonnes to 739.1 tonnes

- SLV: iShares Silver Trust ETF daily holdings rise to 10,284 tonnes from 10,239 tonnes prior; Highest since Dec 2014

- (CN) PBoC won't conduct open market operations (OMO) in today's session (3rd consecutive halt)

- USD/CNY: PBoC sets yuan mid point at 6.1209 v 6.1220 prior setting (strongest Yuan setting since Jan 16th)

- (AU) Australia MoF (AOFM) sells $200M in 2% indexed bonds due 2035; Avg yield: 0.5808%; Bid-to-cover: 2.88x

Market Focal Points/FX

- China markets are notably more subdued after yesterday's oversized rally driven by speculation of more aggresssive easing by the PBoC along with reports the govt will look to reduce the number of SOEs from 112 to as low as 40 through large scale mergers. Today's report from State-owned Assets Supervision and Administration Commission (SASAC) would not confirm those rumors. Also of note in China, the Mof reportedly urged regulators to speed up local govt bond sales, and PBoC Gov Zhou noted deposit insurance premium would be 0.01-0.02%. Separately, PBoC Dep Gov Yi Gang added PBoC operations can provide ample liquidity, and there is still large room to cut the relatively high RRR rate.

- RBA Gov Stevens may have tipped the central bank's hand, expressing concern that the low interest rate environment in Australia makes for a very challenging retirement system. Local press reports interpreted the remarks as indication the RBA will likely stand pat next month, with fixed income markets recently showing a near-even split in expectations of another rate cut. Earlier, Treasurer Hockey said Australia's AAA sovereign rating is at risk if budget is not returned to growth, with borrowing unsustainable in the long term. AUD/usd fell below 0.7840 on Hockey comments but bounced above 0.7870 after the speech by Stevens.

- In Japan, Econ Min Amari said the govt will announce a fiscal discipline plan that will renew public trust in Japan's finances. Remarks follow yesterday's cut of Japan's sovereign rating at Fitch to A from A+. In corporates, Canon traded lower after disappointing earnings and lower camera sales guidance. Honda and Panasonic are on tap for release after market close today.

Equities

US equities/ADRs:

- RTEC: Reports Q1 $0.17 v $0.11e, R$52.6M v $49.0Me; +13.0% afterhours

- RCII: Reports Q1 adj $0.52 v $0.50e, R$877.6M v $859Me; +8.5% afterhours

- WNC: Reports Q1 $0.19 v $0.17e, R$438M v $424Me; +2.9% afterhours

- MRK: Announces the Trial Evaluating Cardiovascular Outcomes with Sitagliptin (TECOS) Met Primary Endpoint; +2.5% afterhours

- AAPL: Reports Q2 $2.33 v $2.19e, R$58B v $56.3Be; raises dividend 11% to $0.52; increases buyback program to $140B from $90B; +1.3% afterhours

- HIG: Reports Q1 $1.04 v $0.97e, R$4.62B v $3.78Be; +0.5% afterhours

- TWC: Said to be open to merger discussions with Charter Communications - financial press; +0.4% afterhours

- DB: Plans to become a pure investment bank/corporate lender were foiled by the ECB stress tests - financial press; +0.1% afterhours

- CR: Reports Q1 $0.92 v $1.01e, R$679M v $680Me; -1.4% afterhours

- ABX: Reports Q1 $0.05 v $0.10e, R$2.25B v $2.33Be; -3.1% afterhours

- CUDA: Reports Q4 $0.07 v $0.06e, R$72M v $71.8Me; -4.4% afterhours

- ALSN: Reports Q1 $0.38 v $0.33e, R$503.6M v $511Me; Guides Q2 Rev down y/y; -5.7% afterhours

- AMKR: Reports Q1 $0.12 v $0.10e, R$743M v $740Me; -9.2% afterhours

- TCS: Reports Q4 $0.24 v $0.31e, R$224.3M v $233Me; -25.5% afterhours

Notable movers by sector:

- Financials: Galaxy Securities 6881.HK +0.3% (prices secondary offering); Bank of Nanjing 601009.CN +5.0% (FY14 results); Industrial Securities 601377.CN +2.2% (Q1 results)

- Materials: Regis Resources RRL.AU +4.9% (Q3 production results)

- Energy: Osaka Gas 9532.JP +4.3% (FY14/15 results); Beach Energy BPT.AU -3.2% (Q3 results)

- Industrials: Fuji Electric Holding 6504.JP -5.6% (FY14/15 results); Hitachi Construction Machinery 6305.JP -6.4% (FY14/15 results); Daihatsu Motor 7262.JP -6.0% (FY14/15 results); Fanuc 6954.JP +6.0% (FY14/15 results); Komatsu 6301.JP -4.7% (FY14/15 results); UGL UGL.AU +1.5% (shareholder raises stake)

- Technology: Tokyo Electron 8035.JP -14.7% (ends merger plan with Applied Materials due to DoJ's decision); Kyocera 6971.JP -5.7% (FY14/15 results); Canon 7751.JP -2.5% (Q1 results); Gree Electric Appliances 000651.CN +10.0% (FY14 results)