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Reports Asia

Asian stock market, economy and companies update (December 24, 2013)

December 24, 2013, Tuesday, 07:18 GMT | 02:18 EST | 11:48 IST | 14:18 SGT
Contributed by Trade The News


***Observations/Insights***
- Asian bourses were mainly in positive territory following another strong performance out of the US markets. Japan stocks reopened for the first time this week following a public holiday and surged above 16,000 for the first time in six years aided by a weak yen currency. The yen fell against most of the major pairs, with the Australian dollar falling against the US dollar for the first time in four days.
- The Japan Cabinet office released its monthly economic report for December. The report omitted the word deflation for the first time since 2009, instead adding that prices held firm. In addition, the government approved a record-high FY14/15 budget draft of ¥95.8T, while curbing new bond issuances by ¥1.6T to ¥41.25T
- China equities were trading higher for the second consecutive day, despite a cash crunch that allowed interbank rates to reach six-month high.
- China PBOC offered CNY29B in 7-day reverse repurchase agreements, signaling for the first time in three weeks that it is injecting funds to help ease liquidity concerns; the 7-day repo rate continued to remain high at 5.55% though below 8.90% from Monday's close


***Fixed Income/Commodities/Currencies***
- (CN) Daily Shibor fixings: O/N: 4.1450% v 4.5150% prior (1st decline in 7 consecutive sessions); 1-week: 6.1970% v 8.8430% prior (1st decline in 7 consecutive sessions)
- (CN) China 7-day repo rate falls by almost 340bps to 5.55% from 8.94% on Monday
- (CN) PBoC offers CNY29B in 7-day reverse repos (1st injection in 3 weeks since Dec 3rd) - Chinese press

***Speakers/Political/In the Papers***
- (JP) Japan Cabinet approves FY14/15 budget draft with ¥95.88T in spending (as expected with record amount)
- (JP) Bank of Japan (BOJ) Dec Monthly Report: Maintains Economic Assessment
- (JP) Japan Pension Fund (GPIF) selects Wellington Management as foreign stocks manager - financial press
- (JP) Japan PM Abe cabinet approval declines by 5% to 49% - Mainichi News

- (CN) Some China provinces may begin child reform policy in Q1 - Chinese press
- (CN) Some Beijing existing home prices may decline 10% from Nov - Chinese press
- (CN) Bank of China researcher: China 2014 liquidity outlook not optimistic - Chinese press
- (CN) Guandong FTZ plan submitted to state council - Chinese press
- (CN) China to start municipal bond trial in 2014 - Chinese press

- (KR) South Korea Financial Supervisory Service (FSS): banks' fx liquidity is in sound condition

***Equities***
Market Snapshot (as of 04:30 GMT):
- Nikkei225 +0.9%, S&P/ASX +0.7%, Kospi +0.4%, Shanghai Composite +0.7%, Hang Seng +1.0%, Mar S&P500 flat, Feb gold +0.1% at $1,198, Feb crude oil -0.2% at $98.68/brl

US markets:
- DIS: Twitter Chairman Jack Dorsey has been elected to the Disney board; +1.2% afterhours
- JNJ: Follow up: Carlyle said to be nearing deal for J&J's Ortho unit; deal could be valued by as much as $4B; -0.1% afterhours

Notable movers by sector:
- Industrials: Boart Longyear BLY.AU % (audit assessment); Nufarm Ltd NUF.AU +3.4% (resolves tax issue); Guangzhou Baiyun International Airport 600004.CN +5.0%, Shenzhen Chiwan Wharf Holdings 000022.CN 6.9%, Guangzhou Shipyard International 600685.CN +5.2%, Shenzhen Yantian Port 000088.CN +8.9% (Guangdong FTZ)
- Materials: Elemental Minerals ELM.AU -18.6% (to continue with Dingyi offer)
- Utilities: Tokyo Electric Power 9501.JP % (govt compensation fund)
- Energy: Zhengzhou Coal Industry & Electric Power 600121.CN -4.8% (chairman under investigation)
- Consumer discretionary: Chengdu Dr Peng Telecom 600804.CN +5.4% (resale license)
- Technology: HTC 2498.TW +2.6% (cooperation agreement); Acer 2353.TW +6.2% (CEO appointment)


***Economic Data***
(JP) JAPAN CABINET OFFICE (GOVT) DEC MONTHLY REPORT: Maintains overall assessment; Drops deflation term from economic report for the first time since 2009