Reports » Asia

Asian stock market, economy and companies update (January 07, 2013)

Contributed by Trade The News

***Markets Snapshot (as of 05:00 GMT)***
- Nikkei225 -0.2%%
- S&P/ASX -0.1%
- Kospi -0.1%
- Shanghai Composite +0.2%
- Hang Seng +0.1%
- Mar S&P500 -0.1% at 1,456
- Feb gold +0.6% at $1,658/oz
- Feb Crude Oil -0.3% at $92.86/brl

***Notes/Observations***
- Asian equity markets are trading with little conviction, tracking a tepid US non-farm payrolls report on Friday. Instead, investors reduced some of the more outstretched positions such as short JPY after Japan Fin Min Aso backtracked from the govt vs BOJ standoff, noting there is no need for a formal accord with the BOJ holding them to inflation target pledge if the two camps can maintain regular communication. Later in the day, Chief Cabinet Sec Suga did signal that the two sides will issue a joint statement at the next policy meeting on Jan 22nd. Conciliatory tone raised speculation over a compromise between the contently victorious PM Abe and the notoriously reluctant central bank that would be less potent than the explicit commitment to take "unlimited" easing measures until inflation hits 2%. USD/JPY sold off over 50pips below ¥87.80, while Nikkei225 traded down to 10,600 going into close.

- On the banking front, financial press reported the Basel Committee on Banking Supervision has backed away from tighter lending standards, widening its definition of the easy-to-sell assets that banks will have to hold to survive a 30-day liquidity crisis. Banks are said to be able to use certain equities, corporate debt and residential-mortgage-backed securities to cover up to 15% of their LCR. Also note that the full implementation will now be required in 2019 vs 2015 initial target.

***Currencies/Fixed Income/Commodities***
- (CN) China Iron and Steel Association (CISA): 2012 crude steel production expected at 720M tons (record high) - financial press
- JGB: (JP) Japan Ministry of Finance may resume inflation-linked JGB offerings in FY13 - Japanese press
- NZD/USD: BNZ analyst Jones: Fundamentals underpinning NZD have not changed; Dips to $0.80 likely to be short-lived - NZ press
- SLV: iShares Silver Trust ETF daily holdings fall to 10,061 tons from 10,080 tons - update as of Jan 4th
- GLD: SPDR Gold Trust ETF daily holdings rise by 1.8 tons to 1,342.1 tons (first rise since Dec 7th) - update as of Jan 4th

***Speakers/Political/In the Papers***
- (CN) China may set 2013 GDP target at 8% vs 7.5% for 2012 - Chinese press
- (CN) According to the latest survey from Xinhua News, Dec CPI has accelerated to 2.3% from 2.0% in Nov due to food shortages as a result of cold weather - China Daily
- (CN) China said to be experiencing its coldest weather in 28 years - Shanghai Daily citing China Meteorological Administration
- (CN) China resumes construction of a "fourth generation" nuclear power plant that was suspended after Fukushima disaster in Japan
- (CN) China PBoC Dep Gov Pan: To support lending to small businesses - Chinese press

- (JP) Japan supplementary budget may amount to about ¥12T; May include ¥5-6T in public works spending - Japan press
- (JP) According to a Nikkei News survey of corporate chiefs, 65% see Southeast Asia as the best opportunity for investment, followed by 47% for China
- (JP) LDP policy chief Takaichi: To support PM Abe if he decides to join TPP free trade talks - Nikkei News
- (JP) Japan scrambled fighter jets on Saturday after a Chinese maritime aircraft flew about 75mi north of the disputed Senkaku islands - financial press
- (JP) Close to half of local leaders support restart of nuclear facilities - Yomiuri News

- (KR) Analysts are said to be split on whether Bank of Korea (BOK) will cut interest rates by another 25bps at its policy decision this week - Korean press
- (AU) According to economists, Reserve Bank of Australia (RBA) is set to cut its cash target rate another 25bps during Q1 - AFR
- (PT) IMF's Lagarde: Portugal is on the right track in meeting economic targets - Portugal press

***Equities***
- WHC.AU: Says the press report that ANZ has pulled its A$1.2B credit facility is a hoax
- RIO: Considering suspending operations at the unprofitable alumina refinery in Arnhem Land - AFR
- LYC.AU: Commissioning cracking and extraction units at LAMP site in Malaysia - financial press
- 200002.CN: China Vanke remained the country's largest real estate developer in 2012 with CNY145B in sold property - Shanghai Daily
- Huawei 02502.CN: CEO: 2012 Rev expected to rise 10% y/y above $35B - Shanghai Daily
- TM: To delay new facility production for three years; To focus on more efficient production at existing plants - Nikkei News
- Toshiba 6502.JP: Said to have paid about ¥125B to acquire 20% stake in Westinghouse Electric from Shaw Group - financial press

- DAI: China Sovereign Wealth Fund (CIC) may take a stake of 4-10% in Daimler - Chinese press
- ILMN: Roche Chairman: No longer considering a bid for Illumina - financial press
- ILMN: Acquires Verinata Health for $350M, plus up to $100M in milestone payments
- IBM: Services division head Michael E. Daniels to retire on Mar 31st after 36 years on the job - US financial press

***Economic Data***
- (JP) JAPAN NOV LOANS & DISCOUNTS CORP M/M: 0.4% V 0.3% PRIOR
- (JP) JAPAN DEC MONETARY BASE Y/Y: 11.8% V 5.0% PRIOR (11-month high)
- (JP) JAPAN DEC VEHICLE SALES Y/Y: -3.4% V -3.3% PRIOR
- (TW) TAIWAN DEC CPI Y/Y: 1.6% V 1.4%E; WPI Y/Y: -4.0% V -4.0%E
- (UK) UK DEC LLOYDS EMPLOYMENT CONFIDENCE: -42 V -42 PRIOR