Hong Kong Trade Balance On Tap For Tuesday

Hong Kong will on Tuesday provide February figures for imports, exports and trade balance, highlighting a modest day for Asia-Pacific economic activity.

Imports are expected to rise 5.7 percent on year following the 10.5 percent contraction in January. Exports are called higher by 0.2 percent on year after falling 8.6 percent in the previous month. The trade balance is expected to reflect a deficit of 36.2 billion Hong Kong dollars after showing a shortfall of 8.9 billion HKD a month earlier.

Taiwan will show the results of its leading index for February; it saw an increase of 1.02 percent on month in January.

The Philippines will announce January figures for imports and trade balance. Imports are expected to fall 9.4 percent on year after shedding 6.5 percent in December. The trade balance is tipped to show a deficit of $685 million after posting a shortfall of $1.221 billion in the previous month.

Japan will announce the February results of corporate service prices, with analysts expecting a decline of 0.4 percent on year following the 0.2 percent contraction a month earlier.

Japan Corporate Service Price Index -0.6% On Year In February

- An index measuring corporate service prices in Japan was down 0.6 percent on year in February, the Bank of Japan said on Tuesday, standing at 95.7.

That missed forecasts for a 0.4 percent contraction following the downwardly revised 0.4 percent decline in January - which saw an original reading of -0.2 percent.

On a monthly basis, corporate service prices were up 0.1 percent following the 0.6 percent contraction in January.

Among the individual components, prices declined for advertising and transportation - while they moved higher for communications and leasing.

Chinese Industrial Profits Decline

China's industrial companies logged a decline in profits during January to February, the National Bureau of Statistics said Tuesday.

Firms made a profit of CNY 606 billion, down 5.2 percent from a year ago. During the same period of 2011, profits were up 34.3 percent.

In 2011, total industrial profits climbed 25.4 percent.

S. Korean Consumer Confidence Strengthens For Second Month

South Korean consumer sentiment improved for the second month in March, survey results from the Bank of Korea showed Tuesday.

The consumer confidence index, which measures consumers' overall economic outlook, living conditions and future spending, improved to 101 from 100 a month ago.

Consumer sentiment on current living standards dropped by 2 points to 84, while that concerning the outlook remained stable at 94 in March. At the same time, consumer sentiment regarding current domestic economic conditions and their future outlook rose by 2 points each to 70 and 82, respectively.

Consumer sentiment on prospective changes in total household income rose by 1 point to 97, while that on prospective spending decisions held steady at 108.

The survey showed that consumer sentiment concerning the outlook for price movements dropped by 1 point to 141, and that regarding expected inflation dipped by 0.1 percentage point to 3.9 percentage.

European Economics Preview: German GfK Consumer Sentiment Data Due

Consumer confidence survey results from Germany and Distributive Trades data from the U.K. are the major reports due on Tuesday.

At 2.00 am ET, German GfK consumer confidence data is due. The consumer sentiment is expected to remain unchanged at 6 points in April.

In the meantime, the Federal Statistical Office is set to publish German import prices. Economists forecast import price annual inflation to fall to 3.5 percent in February from 3.7 percent in January.

The French statistical office Insee is slated to release consumer confidence survey data at 2.45 am ET. The sentiment index is forecast to remain unchanged at 82 in March.

At 3.30 am ET, Statistics Netherlands is scheduled to issue final GDP figures for the fourth quarter. Also, Sweden's February producer prices and trade balance figures are due.

Spain's short-term bill auction results are due at 5.30 am ET. The government aims to raise a maximum of EUR 1.75 billion from 3-month T-bill auction and EUR 1.25 billion from 6-month T-bill issue.

At 6.00 am ET, the Confederation of British Industry is scheduled to release results of Distributive Trades survey. The retail sales balance is seen falling to -5 in March from -2 in February.

Japanese March Small Business Confidence Improves

Japanese small business confidence rose to 48.7 in March from 45.3 in February, data from Shoko Chukin Bank showed Tuesday. However, a reading below 50 indicates that pessimists outnumber optimists.

Confidence among manufacturers rose to 48.7 from 44.7 a month ago. In April, confidence is expected to fall again to 44.7.

At the same time, non-manufacturers' confidence improved to 48.7 in March from 45.7 in February. It is seen easing to 47.7 in April.

Philippine Imports Fall For Second Month

Philippines' merchandise imports decreased for the second consecutive month in January, data released by the National Statistics Office showed Tuesday.

The value of imports decreased 3.2 percent year-on-year to $5.134 billion in January, after falling 6.4 percent in December. On a monthly basis, import of goods increased 10.8 percent during the month.

Arrivals of electronic products fell 26.9 percent annually to $1.344 billion in January, slightly faster than the previous month's 25.7 percent decease.

Imports of industrial machinery and equipment dropped 12 percent, while arrivals of telecommunication equipment and electrical equipment fell by 11.3 percent during the month. There was a 9 percent annual fall in imports of metalliferous ores and metal scrap.

Meanwhile, exports increased 3.1 percent on an annual basis to $4.123 billion in January, after recording declines in all of the previous eight months.

The trade balance was a deficit of $1.010 billion in January, down from the $1.302 billion deficit recorded a year earlier.

Austria January Production Index Up 1.7%

Austria's production index rose in January from a year ago, data from Statistics Austria showed Monday.

The production index combining industries and construction climbed a working-day adjusted 1.7 percent on an annual basis in January. Industrial production rose 1.2 percent, while construction output grew 5.4 percent.

Month-on-month, industrial output advanced a seasonally adjusted 2.5 percent in January. Industrial output increased 2.8 percent and construction rose 2.2 percent.

Dutch Producer Confidence Weakens For Third Month

Producer confidence in the Netherlands deteriorated for the third consecutive month in March, data released by the Central Bureau of Statistics showed Monday.

The producer confidence index dropped to -2.6 in March from -1.5 in February. In January and December, the readings were -1.4 and -1.3 respectively.

Among the components of the headline index, Dutch producers' views of their order books deteriorated sharply in March, with the relevant indicator falling to -4.7 form -1.6 in February. Producers were slightly more pessimistic about their expected activity in the coming three months. The corresponding indicator dropped to -5.8 in March from -5.3 in the previous month.

Meanwhile, the sub-indicator that measures producers' perception of stocks of finished products moved up to 2.6 in March from 2.5 percent in February, the agency said.

ECB Should Exit Exceptional Policies Once Economic Conditions Ripe, Says Coeure

The European Central Bank should exit from non-standard measures and return to a less accommodative policy stance once the economic conditions ripe, Executive Board member Benoit Coeure said Monday.

"We can withdraw the ample liquidity created as a side effect of the long-term operation whenever the Governing Council deems liquidity conditions are excessive in view of the outlook for price stability," he said.

"All the tools necessary for large-scale liquidity withdrawal are already in place or will be readily available when needed," said Coeure.

A prolonged period of monetary policy accommodation might fuel excessive risk-taking, leverage and asset price bubbles, Coeure added. Moreover, it might discourage banks, companies and governments from strengthening their balance sheets and therefore create a dependence on low rates.

Obama Discusses Syria, Iran With Turkish PM

 United States President Barack Obama and Turkish Prime Minister Recep Tayyip Erdogan have discussed the situation in Syria and Iran's nuclear standoff with the West at a hotel in Seoul ahead of an international nuclear summit.

The two leaders met for 90 minutes on Sunday prior to the start of the summit in the South Korean capital. Obama told reporters after the meeting that political developments in Syria dominated the agenda and said they were "very much in agreement that transition to legitimate government in Syria is needed."

Erdogan, whom the the U.S. President described as an "outstanding partner," said his and Obama's views were in general overlapped on the Syrian issue. "As people with a conscience, we cannot remain spectators and have to do something [about Syria] via international law," Erdogan was quoted by Turkish media as saying.

Meanwhile, Turkey suspended all activities at its Embassy in the Syrian capital Damascus on Monday in the wake of further deterioration of the security situation in that Arab country, the Foreign Ministry said.

Citing Turkish diplomatic sources, the state-run Anatolia news agency reported that Turkey had also temporarily recalled its Ambassador to the Syrian capital.

Violent crackdowns by security forces on pro-democacy protesters for the past one year have claimed more than 8,000 lives and forced at least 50,000 syrians to flee to neighboring Turkey forcing it think about creating a buffer zone inside Syria.

Erdogan said his proposed visit to Iran this week would be about Syria and that he discussed it with Obama along with developments in Iraq. "It was a very productive meeting," he added.

Erdogan said measuresdemocracySyrians against attacks by the "terrorist" Kurdistan Workers' Party (PKK) in southeast Turkey were also discussed with Obama. "We are particularly delighted to see the U.S. to stand by Turkey in its fight against the PKK. Our fight will continue," he added.

Turkish security forces have killed at least 25 PKK activists, including 15 female members, over the past few days in clashes in south-eastern Turkey. A clash in Bitlis was believed to be the largest one-time casualty toll for women since the PKK, which was designated as a terrorist organization by several countries, began fighting for autonomy nearly 28 years ago.

Foreign Minister Ahmet Davutoglu, Justice and Development Party (AK Party) Deputy Chairman Ömer Çelik, National Intelligence Organization (MIT) Under-Secretary Hakan Fidan and Deputy Chief of General Staff Gen. Hulusi Akar accompanied Erdogan during the meeting.

Singapore Feb. Inflation Slows Unexpectedly

Singapore's annual inflation eased unexpectedly in February largely on account of lower contributions from food prices and services fees, a joint release from the Ministry of Trade and Industry and the Monetary Authority of Singapore showed Friday.

Inflation slowed to 4.6 percent from 4.8 percent a month ago. Economists were expecting the annual rate to rise to 5 percent. Month-on-month, consumer prices dipped 0.3 percent, after rising 0.9 percent in the preceding month.

Excluding the costs of accommodation and private road transport, MAS core inflation slowed to 3 percent annually in February from 3.5 percent in January.

Both CPI and MAS core inflation will remain elevated over the next few months, at around 5 percent and 3 percent year-on-year, respectively before moderating gradually, the ministry said.

Macau Visitor Arrivals Rise In February

Visitor arrivals in Macau increased from last year in February, data released by the Statistics and Census Service showed Friday.

The number of visitors arriving in the country increased 1.5 percent year-on-year to 2,130,977 in February. Same-day visitors accounted for 53.3 percent of the total arrivals.

The number of visitors from Mainland China increased 6.7 percent annually, while arrivals from Hong Kong and Taiwan declined 20.9 percent and 3.4 percent respectively during the month. There was a 15.5 percent annual growth in visitors from the Republic of Korea, and a 25.1 percent rise in arrivals from Japan.

In the two months ended February, visitor arrivals in Macau increased 8.3 percent from the same period last year to 4,592,617, the agency said.

China Feb. Confidence Board Leading Index Rises 0.8%

A leading indicator of China's economic activity rose at a slower pace in February, suggesting that the economy is unlikely to saw a stronger growth rate in the coming months.

The Conference Board said that its leading economic index (LEI) for China increased 0.8 percent in February to 227.2, following a 1.5 percent increase in January and a 0.8 percent increase in December. Four of the six components contributed positively to the index in February.

"The LEI for China continued to increase through February, but the pace of the six-month growth rate remains slower than that reached in mid-2011," Conference Board's Resident China Economist Andrew Polk said.

"Hence while the economy continues to expand, it is unlikely to strengthen any further in the coming months. In particular, the momentum in consumer expectations slowed this month, and new loans remain distinctly subdued compared to last year," Polk said.

The coincident economic index, which measures current economic activity, increased 4.1 percent in February to 220, following a revised 2 percent decrease in January and a 1 percent increase in December. All five components contributed positively to the index.

European Economics Preview: French Business Sentiment Due

Business confidence survey data from France and mortgage approvals from the U.K. are the important reports due on Friday, headlining a light day for the European economic news.

At 3.45 am ET, the French statistical office Insee is scheduled to release business sentiment survey results for March. Business confidence is expected to rise to 93 from 92 a month ago.

Spain's statistical office INE is slated to publish producer price data at 4.00 am ET. Economists forecast producer prices to rise 3.4 percent year-on-year, following January's 3.6 percent increase.

At 5.00 am ET, Italy's retail sales figures are due. Retail sales are expected to fall 0.1 percent on a monthly basis in January after easing 1.1 percent in December. Annually, the decline is seen at 3.4 percent.

Also, the KOF Swiss Economic Institute is scheduled to issue March Economic Forecast. In the meantime, Iceland's wage cost index for February is due.

Turkey's foreign tourist arrival figures for February are also due at 5.00 am ET. Tourist arrivals increased 0.6 percent year-on-year in January.

British Bankers' Association is set to publish February mortgage approvals for February. The number of mortgages approved in February is seen at 37,250 compared to 38,092 a month ago.

Gold Flat In Asian Trade

The price of gold was little changed in Asian trading Friday amid a steady US dollar.

Gold for April delivery, the most actively traded contract, edged up $1.10 to $1,643.60 an ounce. Yesterday, gold ended lower at a nine-week low, as the dollar strengthened while commodity prices dropped on some weak economic data from China and euro zone, fueling further concerns of an economic slowdown.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1.282.69 tons from 1,293.27 tons.

Crude Edges Up In Asian Session

The price of crude oil was steady above $105 in Asian session Friday, with Light Sweet Crude Oil (WTI) futures for May delivery, edging up $0.15 to $105.50 a barrel.

Yesterday, oil ended lower after some disappointing manufacturing data from China and the euro zone fueled concerns of an economic slowdown globally which could lower demand for oil. While the dollar strengthened, oil prices again came under pressure on speculation that some of the big nations may be considering release of strategic oil reserves.

China's End-2011 Foreign Debt Declines

China's foreign debt fell to $695 billion at the end of 2011, the State Administration of Foreign Exchange said Thursday. It decreased from $697.2 billion in the third quarter.

The registered foreign debt totaled $445.79 billion, of which 75.94 percent was denominated in the U.S. dollar and 8.06 percent in Japanese yen. Euro denominated debt was 7.49 percent.

According to commerce ministry, China attracted $7.7 billion in foreign direct investment in February, which was 0.9 percent less than in February 2011.

RBA Signs Bilateral Currency Swap Deal With China

The Reserve Bank of Australia signed a A$30-billion currency swap agreement with the People's Bank of China, a statement from Australia's central bank showed Thursday.

The agreement allows for the exchange of local currencies between the two central banks of up to A$30 billion or CNY 200 billion. It is for an initial period of three years and can be activated by either party, RBA said.

The agreement, signed by PBoC Governor Zhou Xiaochuan and RBA Governor Glenn Stevens in Beijing, are aimed at supporting trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation.

RBA said the agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese yuan and to make yuan-denominated investments.

The agreement follows a decision by the Chinese authorities last November to allow convertibility between Australian dollars and Chinese yuan in the interbank market in China.

ECB Chief Says Situation In Eurozone Stabilizing: Report

The worst of the Eurozone crisis is over, European Central Bank President Mario Draghi reportedly said in an interview released on Thursday. "But there are still risks."

If inflation risks rise, the ECB will act immediately, the central bank chief told German daily Bild Zeitung.

The ECB hasn't had to buy sovereign bonds for weeks, suggesting that investor confidence is returning, he said.