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Reports Asia

Asian stock market, economy and companies update (December 31, 2013)

December 31, 2013, Tuesday, 05:36 GMT | 00:36 EST | 10:06 IST | 12:36 SGT
Contributed by Trade The News


***Observations/Insights***
- PBoC pledges to continue "prudent" monetary policy with "appropriate" liquidity levels, but returns to the sidelines in terms of open market operations after injecting liquidity for the first time in December last week. 1-w Shibor rates rise for the first time in 6 sessions.
- Magnitude 5.4 earthquake shakes buildings in Tokyo, but no tsunami warning was triggered.
- China Vanke denies press speculation it has over CNY4B in unpaid land appreciation tax.
- Australia's S&P/ASX closes the year up 15%, Hong Kong up just over 2%, Nikkei225 and Kospi closed for trading today (up 57% and 0.7% respectively for 2013).


***Fixed Income/Commodities/Currencies***
- (CN) PBoC won't conduct open market operations (OMO) in today's session
- (CN) Daily Shibor fixings: O/N: 3.1480% v 3.2050% prior (6th consecutive decline); 1-week: 5.2500% v 4.8410% prior (1st rise in 6 consecutive sessions)
- GLD: SPDR Gold Trust ETF daily holdings fall 3.0 tonnes to 798.2 tonnes (lowest since Jan 2009)
- (CN) PBoC sets yuan mid point at 6.0969 v 6.1024 prior setting (record high setting for Yuan)
- AUD/USD: According to a survey by Citi and East & Partners, most importers and exporters in Australia prefer AUD/USD to remain in $0.90-1.00 range - SMH

- In FX, traders are unwinding some of the more crowded short yen and short AUD trades in the final Asian session of 2013. After four consecutive gaining sessions, USD/JPY is down marginally for the 2nd consecutive day, falling about 30 pips below ¥104.90. AUD/USD is also up about 30pips from the lows, trading above $0.8930. Note that the latest CFTC positioning saw net AUD shorts at highest levels since early September, while net Yen shorts are at the highest levels since 2007. EUR/USD and GBP/USD were confined to 20pip ranges around $1.38 and $1.6480. NZD/USD was marginally higher above $0.8220, while offshore KRW continued to strengthen against the greenback, with USD/KRW falling back below KRW1,050. USD was also weaker against SGD, as USD/SGD fell 30pips below SG$1.2650.

***Speakers/Political/In the Papers***
- (CN) PBoC: reiterates to pursue prudent monetary policy; to keep appropriate liquidity level - Statement on Monetary Policy Meeting
- (CN) China 2014 CPI target may be set at 4.0% v 3.5% in 2013 - Chinese press
- (CN) China Academy of Sciences (CAS): 26% of PMI 2.5 particles in Beijing comes from industrial pollution; 20% from secondary inorganic aerosols; 18% from coal; Only 4% comes from waste incineration and vehicle emission - Chinese press
- (CN) Nomura analyst: Local govt debt volumes still pose a risk in China - financial press
- (CN) China raises individual investors assets threshold for OTC trading to CNY5M v CNY3M currently - financial press
- (CN) China Securities Regulatory Commission (CSRC) resumes IPOs with approval of 5 companies - press
- (JP) Magnitude 5.4 earthquake reported in Japan's Ibaraki prefecture; Buildings in Tokyo said to have shaken - financial press
- (JP) Japan nuclear regulators: domestic nuclear facilities have been unaffected by earthquake
- (KR) South Korea Fin Min Hyun: South Korea at crossroads between recession and advanced economy
- (KR) Bank of Korea (BOK) Gov Kim: South Korea has low chance of deflation
- (KR) South Korea ruling party and opposition lawmakers agree to keep top corporate tax rate at 22%; Raises bottom end from 16% to 17% - Korean press

***Equities***
Market Snapshot (as of 04:30 GMT):
- Nikkei225 closes, S&P/ASX -0.1%, Kospi closes, Shanghai Composite +0.9%, Hang Seng +0.3%, Mar S&P500 flat at 1,834, Feb gold -0.5% at $1,197, Feb crude oil flat at $99.27/brl

US markets:
- MRVL: KKR raises stake to 6.8% from 4.5% - filing; +6.0% afterhours
- HTZ: Adopts One-Year Shareholder Rights Plan with a 10% trigger; "Company has had dialogue with a number of shareholders"; +2.3% afterhours
- PTC: Acquires ThingWorx for $112M plus an additional $18M earn out; Guides Q1 Rev to high end of $310-320M v $316Me; affirms FY14 $2.00-2.10 v $2.04e from 11/6; +1.3% afterhours
- NFLX: Terminates stockholder rights plan effective immediately; Spokesperson: Confirms company is testing $6.99/month (SD only) plans for some new users; testing a pricing model based on the use of multiple screens - financial press; -0.4% afterhours

Notable movers by sector:
- Consumer staples: China Starch Holdings 3838.HK -7.2% (issues profit warning)
- Industrials: Shanghai Zhenhua Heavy Industries 600320.CN +1.2% (awarded contract); Henan Pinggao Electric 600312.CN +2.6% (awarded contract); BBMG Corp 2009.HK +7.4%, 601992.CN +2.9% (provides FY13 guidance); Gome Electrical Appliances Holdings 493.HK +4.4% (awarded order)
- Financials: Biostime International Holdings 1112.HK +1.3% (announces acquisition); China Fortune Land Development 600340.CN +1.9%, Cinda Asset Management 1359.HK +2.3% (enters strategic alliance); Tianjin Jinbin Development 000897.CN +3.0%, Tianjin Port Development 600717.CN +2.5% (Premier Li comments on Tianjin)
- Materials: Inner Mongolian Baotou Steel Union 600010.CN +10.0% (announces private placement); Forge Group FGE.AU +9.8% (continues to rise on contract award)
- Healthcare: Yunnan Baiyao Group 000538.CN +2.1% (plans acquisition)
- Energy: AusTex Oil Ltd AOK.AU +3.7% (shareholder raises stake)
- Technology: NavInfo 002405.CN +1.2% (corp tax rate adjustment); Wonders Information 300168.CN +1.6% (awarded contract)


***Economic Data***
- (AU) AUSTRALIA NOV PRIVATE SECTOR CREDIT M/M: 0.3% V 0.4%E; Y/Y: 3.8% V 3.9%E
- (KR) SOUTH KOREA DEC CPI M/M: 0.1% V 0.2%E; Y/Y: 1.1% V 1.0%E; CPI CORE Y/Y: 1.9% V 2.0% PRIOR
- (SG) SINGAPORE NOV MONEY SUPPLY M1 Y/Y: 11.9% V 13.4% PRIOR; M2 Y/Y: 5.2% V 7.1% PRIOR
- (SG) SINGAPORE NOV CREDIT CARD BAD DEBTS (SGD): 21.6M V 20.6M PRIOR; CREDIT CARD BILLINGS: 3.6B V 3.6B PRIOR