China flash PMI falls to 1-year low

Asian Mid-session Update: China flash PMI falls to 1-year low, remains in contraction; RBNZ talks down NZD

Economic Data

- (CN) CHINA APR HSBC FLASH MANUFACTURING PMI: 49.2 V 49.6E (4th consecutive month of contraction; 1-yr low)

- (JP) JAPAN APR PRELIMINARY MARKIT/JMMA MANUFACTURING PMI: 49.7 V 50.7E (1st contraction in 11 months)

- (AU) AUSTRALIA Q1 NAB BUSINESS CONFIDENCE: 0 V 2 PRIOR

- (NZ) NEW ZEALAND APR ANZ CONSUMER CONFIDENCE INDEX: 128.8 V 124.6 PRIOR; M/M: 3.4% V 0.5% PRIOR

- (KR) SOUTH KOREA Q1 PRELIMINARY GDP Q/Q: 0.8% V 0.6%E; Y/Y: 2.4% V 2.3%E

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +0.3%, S&P/ASX -0.1%, Kospi +0.4%, Shanghai Composite -1.0%, Hang Seng flat, Jun S&P500 -0.1% at 2,098

Commodities/Fixed Income

- Jun gold flat at $1,187/oz, Jun crude oil +0.2% at $56.27/brl, May copper flat at $2.665/lb

- (JP) Japan investors bought net ¥432B in foreign bonds v bought ¥214B in prior week; Foreign investors bought net ¥595B in Japan stocks v bought ¥1.04T in prior week

Market Focal Points/FX

- Leading manufacturing indicators for the Far East bode a difficult start for Q2, as both advance PMIs for China and Japan showed significant deterioration. In China, flash manufacturing PMI remained in contraction for the 4th straight month and also marked a 1-year low at 49.2. New orders and both input and output prices decreased at a faster rate, signalling poor domestic demand and disinflationary pressures. On the bright side, employment continued to decrease but at a slower rate and export orders increased. Morning session was volatile, with more signs of hot money flowing into the stock market - weekly net cash flows rose for the 4th straight week to CNY781B v CNY273B w/w.

- Japan data was similarly troublesome, as manufacturing PMI fell into contraction for the first time in 11 months. New orders fell for the 2nd month, and Markit economist remarked the data signal worsening operating conditions. BOJ Gov Kuroda commentary offered little new, reiterating the economy is in gradual recover. Even though Kuroda said core CPI is at 0%, he still saw 2% inflation within reach.

- NZD/USD was the most notable mover in FX space, falling nearly 100pips below 0.7570. RBNZ's McDermott said weaker demand and soft prices would prompt rate cut considerations, adding it would not even consider higher rates at this time. USD was generally higher in other majors, with USD/JPY rising to a 1-week high above 120 and AUD/USD falling as low as 0.7720 - down 40pips from the highs.

- In key corporate news, Australia's Fortescue rallied sharply after much stronger than expected demand for its debt. Also out of Australia, top gold producer Newcrest reported Q3 gold output of 610Koz v 577Koz q/q and copper 24.3Kt v 25.5Kt q/q. Newcrest also raised 2015 copper output, affirmed gold production target, and cut capex target to A$585-625M v A$620-690M prior.

Equities

US equities/ADRs:

- MKSI: Reports Q1 $0.63 v $0.53e, R$213.9M v $206Me; +6.8% afterhours

- EBAY: Reports Q1 $0.77 v $0.71e, R$4.45B v $4.44Be; +6.2% afterhours

- CAKE: Reports Q1 $0.56 v $0.49e, R$518M v $519Me; +5.6% afterhours

- FUEL: Reports prelim Q1 adj EBITDA -$13.6M, non-GAAP net loss -$36.9M, Rev $104.3M v $106Me; To restructure operations and cut jobs; +4.2% afterhours

- ORLY: Reports Q1 $2.06 v $1.93e, R$1.90B v $1.85Be; +3.8% afterhours

- CLGX: Reports Q1 $0.46 (adj) v $0.31e, R$364.8M v $355Me; implenting productivity and cost management program; +3.2% afterhours

- SKX: Reports Q1 $1.10 v $1.01e, R$768M v $707Me; +2.8% afterhours

- NCR: Said to consider strategic options including divestitures, buyback, dividend - financial press; +2.3% afterhours

- ISIS: Reports Positive Data From ISIS-TTR Rx in Patients With TTR Amyloidosis; +1.4% afterhours

- T: Reports Q1 $0.63 v $0.63e, R$32.6B v $32.9Be; +1.2% afterhours

- CTXS: Reports Q1 $0.65 v $0.68e, R$761M v $772Me [*Note: on 4/9, reported prelim Q1 $0.63-0.65, R$755-760M); +0.7% afterhours

- PBR: Reports audited results for Q4 Net loss BRL26.6B v profit BRL6.3B y/y, Adj EBITDA BRL20.1B v BRL15.6B y/y, Rev BRL85.0B v BRL81.0B y/y; Will not pay dividends this year; +0.5% afterhours

- STX: Announces New $2.5B Share Repurchase Authorization (13.1% of market cap); +0.5% afterhours

- AMP: Reports Q1 $2.18 v $2.33e, R$3.05B v $2.90Be; Raises dividend 16% to $0.67/shr; -0.5% afterhours

- WFT: Reports Q1 -$0.04 v +$0.01e, R$2.79B v $3.07Be; Expands layoffs to 10K from previously expected 8K; -0.6% afterhours

- TSCO: Reports Q1 $0.42 v $0.41e, R$1.33B v $1.31Be; -1.7% afterhours

- FB: Reports Q1 $0.42 v $0.40e, R$3.54B v $3.56Be; CFO: Expect Q2 FX headwinds to be even greater than the $190M Rev impact in Q1 - conf call; -2.2% afterhours

- FFIV: Reports Q2 $1.59 v $1.50e, R$472.1M v $471Me; -2.8% afterhours

- QCOM: Reports Q2 $1.40 v $1.33e, R$6.89B v $6.79Be; Cuts FY15 guidance; -3.0% afterhours

- XLNX: Reports Q4 $0.50 v $0.50e, R$567M v $570Me; -3.5% afterhours

- LVS: Reports Q1 $0.66 v $0.74e, R$3.01B v $3.31Be; -4.4% afterhours

- TXN: Reports Q1 $0.61 v $0.62e, R$3.15B v $3.20Be; -6.5% afterhours

- MOBL: Reports preliminary rev $32-33M v $36.1Me; -30.5% afterhours

- PIC.UK: To be acquired by ARRIS for $2.1B in cash and stock; ARRS sees accretion in first 12 months

- TSO: Reports prelim Q1 $0.98 v $1.92e

- LOGI: Reports Q4 $0.10 v $0.08e, R$467.2M v $468Me

Notable movers by sector:

- Consumer Discretionary: Chongqing Changan Automobile 000625.CN +10.0% (plans private placement on vehicle development)

- Financials: China Overseas Land 688.HK +3.0% (Q1 results)

- Materials: Fortescue FMG.AU +11.8% (offers upsized senior notes on strong demand); Newcrest Mining NCM.AU -3.6% (Q3 production results); Sandfire Resources SFR.AU +2.0% (Q3 production results)

- Industrials: Nidec Corp 6594.JP +1.8% (to actively seek out acquisitions); Nippon Shokubai 4114.JP -2.0% (speculation on FY15/16 results); Huayu Automotive Systems 600741.CN +10.0% (Q1 results; plans private placement for general corp purposes); China State Construction Holdings 3311.HK +3.7% (Q1 results); Shanghai Electric Group 2727.HK +4.1% (announces project in Pakistan)

- Technology: Sony 6758.JP +0.5% (raises FY14/15 guidance); Hynix Semiconductor 000660.KR +3.2% (Q1 results); LG Electronics 066570.KR +4.1% (said to enter supply deal with Tata)