Asia Pacific Equity Daily – 9 April 09

Market comment

U.S. indices closed higher on Wednesday, led by gains in auto and retailing sectors. Regarding U.S. data, inventories at U.S. wholesalers fell 1.5% in February while sales increased 0.6%, according to the Commerce Department.

In Asia, the Nikkei 225 (Japan) fell 2.69% to 8595.01, the Hang Seng (HK) fell 3.04% to 14474.86 and the S&P/ASX 200 (Australia) fell 2.34% to 3619.5.

Economic releases

 JN 01:50: Feb Machine Orders (MoM), exp.: -6.9%
JN 01:50: Apr 3 Foreign Buying Japan Bonds
JN 01:50: Apr 3 Foreign Buying Japan Stocks
AU 03:00: Apr Consumer Inflation Expectation
AU 03:30: Mar Employment Change, exp.: -25.0K
AU 03:30: Mar Full Time Employment Change, exp.: -10
AU 03:30: Mar Part Time Employment Change, exp.: -20
AU 03:30: Mar Unemployment Rate, exp.: 5.4%
AU 03:30: Mar Participation Rate, exp.: 65.4%
US 14:30: Feb Trade Balance, exp.: -$36.0B
US 14:30: Mar Import Price Index (MoM), exp.: 0.9%
US 14:30: Apr Initial Jobless Claims, exp.: 660K
US 14:30: Continuing Claims, exp.: 5800K

Corporate events

Results
Seven & I Holdings

Dividends
None

INDICES

Nikkei 225 (60 min)

Our preference: as long as 8450 is not broken down, we favour an upmove with 8840 and then 8992 as next targets.

Alternative scenario: a downside breakout of 8450 would open the way to 8350.

Hang Seng (60 min)

Our preference: as long as 14260 is a support, we are bullish with a target at 15147.

Alternative scenario: a break below 14260 would invalidate our bullish scenario. The index could then decline to 13955.

ASX 200 (60 min)

Our preference: as long as 3575 is not broken down, we favour an upmove with 3705 and then 3763 as next targets.

Alternative scenario: a break below 3575 would invalidate our bullish scenario. The index could then decline to 3550.

STOCKS TO WATCH

Seven & I Holdings (3382)

Our preference: as long as 2145 is a support, we are bullish with a target at 2405.

Alternative scenario: a break below 2145 would invalidate our bullish scenario. The stock could then decline to 2075.

China Petroleum & Chemical (386)

 Our preference: as long as 5.25 is a support, a rise towards 5.67 and even 5.85 seems likely.

Alternative scenario: a break below 5.25 would invalidate our bullish scenario. The stock could then decline to 5.1.

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