0452 GMT [Dow Jones] Indonesia shares turn lower by midday, down 0.2% at 2792.933 in light volume, off earlier high of 2809.284, led by profit taking in most blue chips after recent rally; support at 2780. "It's a healthy correction after the main index rose almost 3% in the previous four sessions," says trader at Lautandhana Securities; expects bargain buying by foreign funds later in session to offset index losses. Among decliners, bellwether Telkom (TLKM.JK) down 2.4% at IDR8,100, consumer goods producer Unilever (UNVR.JK) down 0.8% at IDR12,350, while cigarette maker Gudang Garam (GGRM.JK) down 2.5% at IDR25,150. (edhi.pranasidhi@dowjones.com)
0554 GMT [Dow Jones] Nikkei up 1.6% at 10,999.50 after breaching 11,000-level for first time since Oct. 3, 2008 as investors chasing market higher on weaker yen, which is raising hopes for Japanese corporate earnings recoveries, says Kenichi Hirano, strategist at Tachibana Securities. As such, futures buying helping to lead cash market, he says. Adds gains in Asian markets also contributing to better sentiment; next resistance level pegged at 11,500. "Investors will likely gradually come to focus on this (11,500) target level," he says. Earnings recovery for next FY through March 2011 almost certain, he adds, but whether trend will continue following FY still uncertain under current deflationary conditions. Exporters remain higher, especially technology shares; Tokyo Electron (8035.TO) up 2.3% at Y6,180. (ayai.tomisawa@dowjones.com)
0507 GMT [Dow Jones] Spot gold higher at $1,094.30/oz, up $3.30 vs NY close, EUR/USD firms to $1.3336. Market remains in consolidation phase despite reaching six-week lows this week as EUR/USD falls, says Mitsui precious metals director Anderson Cheung. Some market participants tipping gold's uptrend to wane, predicting prices to sag toward $900 level but Cheung says gold set to stay supported as long as interest rates remain low, adds physical buying evident on price dips. "The Fed overnight came out to say that interest rates will stay at low levels for some time to come. As long as U.S. interest rates stay very low, gold will stay supported," says Cheung. Low U.S. interest rates expected to push investors to seek alternative assets to dollar such as gold, while gold's role as hedge against potential future inflation as liquidity measures remain in place also making it attractive. Pegs strong support at $1,050, with pent-up physical buying interest to shore up gold should fall through near-term support at $1,080. (elisabeth.behrmann@dowjones.com)
0753 GMT [Dow Jones] HSI +1.4% at 21,061.68, with index back above 21,000 level, supported by rise in China markets, with Shanghai Composite ending up 1.3%, Shenzhen Composite +0.9%, says Ernie Hon at ICBC International. "Hong Kong is catching up with recent rise in the U.S., as lingering rate hike concerns in China, especially after India's recent rate hike, have dampened interest in the local market." HSI nearly flat in a month (+0.8% month-to-yesterday). Tips 21,500 as near term cap. Says rotational interest in property stocks and China coal stocks supporting gains of HSI, with Hang Seng Property Subindex +1.9%, after falling 2.6% so far this week; while rise in coal stocks likely supported by attractive valuations, with Shenhua (1088.HK) +3.8% at HK$32.60, China Coal (1898.HK) +2.8% at HK$11.76. Volume modest at HK$54.44 billion.
0754 GMT [Dow Jones] March HSI futures +1.6% at 21,087, outpacing cash market's 1.3% gain. Contrary to futures recently alternating between premium, discount to cash, contract trading at consistently big (around 30 points now) premium to cash in afternoon, which coupled with futures volume a lot higher than recent average at 96,450 lots, indicating underlying bias taking turn for better. (robert.li@dowjones.com)
0753 GMT [Dow Jones] USD/JPY may rise to 93.50, highest since Jan. 8, next week vs last 92.54 amid potential for uptrend in U.S. Treasury yields, says Sumitomo Mitsui Banking Corp. chief economist Etsuko Yamashita; players' trading may "shift to dollar-buying on expectations for (rises in) U.S. Treasury yields," rather than recent euro-selling flows due to Greek fiscal issues. Says upcoming U.S. reports are key for direction of U.S. Treasurys, USD/JPY; Tuesday's March Conference Board Consumer Confidence Index, Thursday's ISM manufacturing index, Friday's non-farm payrolls. While Treasury yield gains partly caused by recent sluggish tender, attention may shift toward whether U.S. data shows economy well positioned to recovery, possibly pushing yields higher, she says. Non-farm payrolls may have 187,000 job increase in March vs February's 36,000 jobs losses, according to Mizuho Corporate Bank. USD/JPY support at 91.00.
0647 GMT [Dow Jones] Singapore stocks holding on to gains but overall market generally ho-hum with investors not having much to trade on. STI +0.5% at 2903.05; not expected to test last week's 2-month high of 2932. With no key drivers in sight, attention remains centered on lower liners, where players find more potential for higher absolute gains vs blue chips. "Trading interest appeared to be centered on small- and mid-cap stocks. Expect the local market to end the day in positive territory, taking the cue from gains across regional markets," says CIMB. FTSE ST Mid Cap Index +0.8%, FTSE ST Small Cap Index +0.6%, FTSE ST Catalist Index (which tracks penny stocks) +0.4%. Overall volume light at about 1 billion shares. Among blue chips, top performers include Jardine Cycle & Carriage (C07.SG), +3.2% at S$29.00, Fraser & Neave (F99.SG), +2.2% at S$4.64, CapitaLand (C09.SG), +2.0% at S$4.02.(frankie.ho@dowjones.com)
0255 GMT [Dow Jones] NZD/USD will be dragged down by EUR as disappointment about Greece bailout package weighs single currency down, taking risk-sensitive currencies with it, says RBC Capital Markets currency strategist Sue Trinh; "Kiwi is a victim of overall global sentiment. The euro remains in a world of pain with the bailout package for Greece very disappointing." Adds still unresolved conflict within EU about dealing with Greece, leaving EUR struggling to retain any gains, "and that's what's keeping the lid on the Kiwi." Notes "risk aversion remains the theme in that environment, so Kiwi dollar gains will be capped." NZD/USD has stubborn resistance at 0.7145, initial support at 0.7000, with a break below opening up 0.6850. Pair last 0.7052.
Friday Look Ahead: Markets Watching Greece, Obama Housing Plan, RatesMarket focus has spun back to Greece and EU politics, and developments there could be a driver for U.S. markets Friday.
http://www.cnbc.com/id/36045560
Stay in Market, but Watch Headwinds: Pros
Investors need to participate in this market because uncertainty has been largely removed and there are still some great opportunities, said Ray Harrison, founder of Harrison Financial Group and Alan Lancz, president of Alan B. Lancz & Associates.
http://www.cnbc.com/id/36033468
Dollar Rally Versus Yen May Be Near End: Technical Analysis
(Bloomberg) -- The dollar’s rally against the yen may be approaching an end after the biggest two-day gain since December, a gauge of momentum indicates.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a64AGQHpEtpI
Treasury Yield ‘Breakout’ Will Boost Dollar: Technical Analysis
(Bloomberg) -- Treasury 10-year notes have shattered a recent pennant pattern in a “bearish breakout” that indicates support for the dollar, according to Royal Bank of Canada, the nation’s biggest lender.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atykgzPn2sOM
Indian Stimulus Exit Won’t ‘Kill’ Stocks Rally, Prudential Says
(Bloomberg) -- India’s stocks will withstand the withdrawal of stimulus measures and extend last year’s rally, the biggest in 18 years, as domestic spending strengthens, said Prudential Financial Inc.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abFoL8Dd9MnE
China to Lead Emerging Stock Values Higher, Morgan Stanley Says
(Bloomberg) -- Developing nation stocks may see their market values rise more than fourfold in the next decade, propelled by the increasing significance of China, according to Morgan Stanley.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=av1XJ7OdE2Bw
Dollar May Reverse Yen Gain on Slow Fed, Nomura Securities Says
(Bloomberg) -- The dollar may reverse gains versus the yen made over the past three months as the Federal Reserve will limit increases in interest rates through to the end of 2011, according to Nomura Securities Co.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=at95_g_B_TwI
U.S. Equities Are Cheap in Minds of Fund Managers, Says Russell
(Bloomberg) -- More investors consider U.S. stocks to be cheap even as the country’s benchmark indexes outperformed developed markets since the start of the year, according to a survey by Russell Investments Ltd.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aqCcEDONo0w0
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