Reports » Asia

Asian stock market, economy and companies update (January 04, 2012)

Contributed by Trade The News

By Trade The News

***Markets Snapshot (as of 04:30GMT)***
- Nikkei225 +1.3%
- S&P/ASX 1.8%
- Kospi -0.1%
- Taiwan Taiex +0.3%
- Singapore Straits Times +0.5%
- Shanghai Composite -0.2%
- Hang Seng -0.3%
- S&P Futures -0.1% at 1,271
- Feb Gold -0.1% at $1,599/oz
- March Crude -0.3% at $102.65

***Overview/Top Headlines***
- Markets opened to the upside tracking a stronger round of economic data from around the globe. However, aside from the ASX, markets drifted lower on profit taking and caution. AUD/USD continued to fall from US session lows below $1.0330, Feb gold reversed US gains falling below $1,600/oz. Brent crude gained in the session, testing $112.30. PBoC again set a new yuan high since the July 2005 revaluation after being closed for the holidays. The new setting of 6.3001 compared to last close of 6.2940 and setting of 6.3009.
- China's National Audit Office said to have discovered CNY530B in irregularities related to local government debt. The irregularities include loan guarantees, collateral and capital levels. Reminder, last week, an analyst at the Bank of China said local government debt may be higher than the official estimate of CNY10.7T.
- HK press citing an un-named analyst said that he expects that China will offer fresh stimulus measures in 2012 to deter any slowdown in economic growth. More specifically new stimulus may be geared towards home appliances versus in 2009 when China offered subsidies to the car industry to boost growth.
- An un-named China State Researcher said that China's property market is likely to avoid a hard landing. Average prices for land in Shanghai fell 41% in 2011 due to Govt cooling measures. UWIN reported that Shanghai Dec average new home price -8.6% y/y, new home sales +18% m/m.
- New Zealand Port of Auckland discloses that Fonterra will move its shipments to other ports starting the end of Jan due to strikes. Fonterra's move will takes away weekly trade worth around NZ$27M to the ports of Tauranga and Napier instead of Auckland. It should be noted that Fonterra is New Zealand's largest exporter.

***Speakers/Geopolitical/In the press***
- (CN) According to Soufun DEC Beijing Home prices -0.3% m/m, +1.5% y/y; Shanghai home prices -0.4% m/m, +0.7% y/y (4th consecutive monthly drops)
- (JP) Japan PM Noda: Will strengthen cooperation with the BOJ to tackle deflation; Tax and social reforms are the biggest challenges
- (CN) According to National Development and Reform Commission (NDRC), China shipbuilding in Jan-Nov of 2011 fell 47% y/y to 33.7M deadweight tons - China Daily

***Equities***
- Hong Kong Exchanges and Clearing, 388.HK: CEO Xiaojia: Internationalization of the yuan is a must, despite difficulties, and the process may take up to 10-years - HK press
- KB: Denies press speculation it may pay high rate dividend; Still undecided about payout - financial press
- Toshiba, 6502.JP: Denies press speculation that it is considering a merger with Elpida
- TonenGeneral, 5012.JP: Exxon considering selling most of its 50.02% stake in TonenGeneral; Could sell for around ¥400B - financial press

***FX/Fixed Income/Commodities***
- (CN) China pork prices +0.4% in late DEC - Chinese press
- (CN) According to China Southern Power Grid Co, China to face more power shortages in 2012; Coal prices likely to rise after govt curbs expire - China Daily
- (PH) Philippines may announce 25-yr dollar denominated global bond offering

***Economic Data***
- (JP) JAPAN NOV LOANS & DISCOUNTS CORP Y/Y: -0.4% V -0.8% PRIOR
- (TH) THAILAND DEC CPI M/M: -0.5% V -0.1%E; Y/Y: 3.5% V 4.0%E; CORE CPI Y/Y: 2.7% V 2.8%E; 2011 CPI 3.8% Y/Y
- (IN) INDIA DEC MARKIT SERVICES PMI: 54.2 V 53.2 PRIOR (5-month high)
- (JP) Japan investors bought ¥146.6B in foreign bonds last week v ¥19.2B bought in prior week