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Reports » Asia

Asian stock market, economy and companies update (December 13, 2012)

December 13, 2012, Thursday, 06:26 GMT | 01:26 EST | 11:56 IST | 14:26 SGT
Contributed by Trade The News


***Markets Snapshot (as of 05:30 GMT)***
- Nikkei225 +1.8%
- S&P/ASX flat
- Kospi +0.7%
- Shanghai Composite -0.6%
- Hang Seng +0.1%
- Dec S&P500 +0.1% at 1,429
- Feb gold -0.9% at $1,702/oz
- Jan Crude Oil -0.2% at $85.56/brl


***Notes/Observations***
- Markets are mixed in the wake of the surprising FOMC announcement to shift from calendar pledge for low rates to numeric thresholds of 6.5% unemployment (as long as inflation below 2.5%), along with the expiry of Twist to be replaced by $45B monthly treasury purchase program coined as QE4. In spite of another dose of liquidity, precious metals were hard hit in the Asia session - gold fell over $15 below $1700 while silver fell over 2% below $33/oz. JPY is the biggest mover on the day, falling to fresh 8-month lows against USD and EUR. Analysts indicate the yen weakness not only reflects the growing confidence in LDP victory on Sunday but also preemptive, as BOJ will be forced to match the easier policy stance taken by the Fed with a more aggressive stance of its own.

- In other currency majors, EUR/USD rose about 40 pips from session lows after EU finance ministers reached an agreement to supervise banks in the euro zone with a single regulatory body of the ECB. The central bank will supervise banks with assets over €30B or assets equivalent to a fifth of their home country's economic output. AUD/USD held up well above $1.05 handle despite multi-year lows in Dec consumer inflation expectations and cautions commentary from Westpac and from the NAB shareholder meeting.

- Bank of Korea largely toned down sentiment from its most recent decision, holding rates at 2.75% for the 2nd consecutive month as expected. BOK noted inflation would remain low for the time being but also warned downside risks to global recovery are substantial and negative impact in domestic economy would persist for a considerable time. Previously, BOK suggested domestic economy may be on the mend. Bullish sentiment in Korean Won, supported by the easy dollar, was undeterred just as it was after the rocket launch by the North overnight with USD/KRW extending its decline to KRW1,071. BOK Gov Kim said the central bank is prepared to take more aggressive action on KRW if necessary.


***Currencies/Fixed Income/Commodities***
- JGB: (JP) Japan's MoF sells ₯2.28T in 0.2% 5-yr notes; Avg yield: 0.163% v 0.0189% prior; Bid to cover: 3.54x v 4.96x prior
- EUR/JPY: Extending gains above ₯109 handle; fresh 8-month high
- USD/JPY: Rises above ₯83.60; 8-month highs
- XTA.UK: Postpones estimated start for production of its $6B Tampakan copper-gold project in Philippines by 3 years to 2019 - AFR
- GLD: Feb gold extending decline below $1,700; Down over $15/oz in Asian session
- SLV: Mar Silver falling over 2% below $33/oz


***Speakers/Political/In the Papers***
- (CN) China Nov avg passenger vehicle prices -2% (domestically produced cars) - NDRC
- (CN) China Academy of Social Sciences (CASS) researcher Liu: Sees China 2012 GDP at 7.7% (target is 7.5%) and 2013 GDP at 8.5% - Chinese press
- (CN) China Central Economic Work Conference to take place this weekend; To include setting of 2013 economic policy and targets - Chinese press
- (CN) China Stats Bureau: Forecasts China prices to rise moderately; Prices faced with external uncertainty in 2013 - Chinese press
- (CN) Beijing residential apartment sales up over 50% from Jan to Nov - Chinese press
- (CN) China may increase the scale of Qualified Foreign Institutional Investors (QFII) approvals - Chinese press
- (SG) Singapore parliament speaker Michael Palmer has resigned after admitting extramarital affair - press
- (JP) Four China vessels said to have entered into waters near disputed Senkaku islands - financial press
- (KR) South Korea's ruling New Frontier Party candidate Park is in the lead ahead of Dec 19th elections with 48% support - Korean press
- (KR) South Korea Vice Fin Min Shin: South Korea is faced with economic uncertainty following North Korea satellite launch


***Equities***
- 2.HK: To sell 120.3M shares through placement; to place shares at HK$63.25/shr - financial press
- AUO: May see 7% decline in production capacity in Dec - DigiTimes

- GNC.AU: ADM Issues statement regarding bid for GrainCorp, to consider all options; GNC.AU: GrainCorp rejects A$12.20/shr revised offer from ADM, says it still undervalues the company
- NAB.AU: Chairman: FY12 results below budget set last year - AGM
- BOQ.AU: Chairman: State of Queensland economy has stabilized, though remains subdued
- WBC.AU: Chairman: 2012 was another challenging year; Sees next RBA rate cut in early 2013 - AGM
- BHP: Approves $520M investment in Longford Gas Conditioning Plant
- FMG.AU: Announced increase in Iron Bridge deposits by 2B tons to 5.2B tons - financial press

- Panasonic 6752.JP: Could delay construction of facility in Europe; To increase overseas solar panel production rate by 50% in FY13 - financial press
- NSANY: Discloses new battery plant in Tennessee for the manufacture of components for the new Leaf EV; Investment estimated at up to $1.7B
- Marubeni8002.JP: Awarded joint contract with Hyundai Engineering & Construction Co to build a 400K KW gas-fired power plant in Bangladesh; Contract valued at ₯30B - Nikkei News
- Tokyo Electron 8035.JP: To shift production of LCD panel equipment to China to help reduce costs - Nikkei News

- HXL: Guides initial FY13 EPS $1.66-1.78 v $1.75e, Rev $1.64-1.74B v $1.71Be; board authorizes repurchase of $50M in common stock (approx 2% of market cap)


***Economic Data***
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 2.75%, AS EXPECTED
- (AU) AUSTRALIA DEC CONSUMER INFLATION EXPECTATION: 1.8% V 2.2% PRIOR (multi-year low)
- (AU) AUSTRALIA NOV NEW MOTOR VEHICLE SALES M/M: 0.0% V -2.5% PRIOR; Y/Y: 9.7% V 8.6% PRIOR
- (NZ) NEW ZEALAND DEC ANZ CONSUMER CONFIDENCE INDEX Y/Y: 0.5% V 3.3% PRIOR; ANZ CONSUMER CONFIDENCE: 114.7 V 114.1 PRIOR
- (NZ) NEW ZEALAND NOV FOOD PRICES M/M: -0.8% V -0.6% PRIOR (3rd consecutive decline)
- (NZ) NEW ZEALAND NOV BUSINESS NZ PMI: 48.8 V 50.3 PRIOR
- (NZ) NEW ZEALAND NOV ANZ NZ JOB ADS M/M: -0.8% V -0.8% PRIOR
- (JP) JAPAN NOV TOKYO CONDOMINIUM SALES Y/Y: -13.3% V -14.4% PRIOR
- (VN) VIETNAM NOV TRADE BALANCE: +$395M V -$50ME
- (JP) Japan in-vestors sold net ₯591.7B in Foreign Bonds last week vs bought net ₯494.2B prior week; Foreign Investors bought net ₯116.5B in Japan stocks last week vs bought net ₯184.3B in prior week