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Reports Asia

Asian stock market, economy and companies update (January 13, 2014)

January 13, 2014, Monday, 06:51 GMT | 01:51 EST | 11:21 IST | 13:51 SGT
Contributed by Trade The News


***Observations/Insights***
- Tracking the cues from the US markets on Friday, Asian markets were mixed as Japan was closed on national holiday. Last week the US markets ended mixed as the payrolls data increase at the slowest pace since Jan of 2011.
- Trading in China's Shanghai was subdued following the yuan setting at a record high, continued currency appreciation.
- Australia reported total number of owner-occupied home loans for November rose a seasonally adjusted 1.1% from the prior month beating estimates. The total loans for the construction of new dwellings were at 5.6k rising 2.3%, while loans for the purchase of new dwellings declined 4.3% to 2.9K.
- The AUD continued its sharp rise against the USD from last week following the Australia home loans data. Despite the S&P/ASX trading in negative territory the big miners were trading higher earlier during the session due to gains in gold, commodity prices and Indonesia implementing plans to regulate mineral exports.
 
 
***Fixed Income/Commodities/Currencies***
- (CN) PBoC gauges demand for 7-day, 14-day reverse repos, 28-day repos and 91-day bill sales
- (CN) PBoC sets yuan mid point at 6.0950 v 6.1008 prior setting (record high setting for Yuan)
- (TW) Taiwan sells NT$25B in 182-day treasury bills
 
***Speakers/Political/In the Papers***
- (CN) S&P: China property developers have mixed growth outlook for 2014
- (CN) China Ministry of Housing and Urban-Rural Development (MOHURD) official: China 2014 property sales may grow less than 10% - Chinese press
- (CN) Beijing plans to add CNY1.25B to tackle air pollution curb - Chinese press
- (CN) China Securities Regulatory Commission (CSRC) issues policies to tighten new shares issuance - financial press
- (CN) China Zhejiang Province reports 3 new cases of H7N9 bird flu; Guangdong Province reports 2 new cases of H7N9 bird flu - Chinese press
- (CN) China sovereign wealth fund (CIC) official: China local govt won't default - Xinhua
- (CN) Former PBoC adviser Li Daokui: China's stock market has come to "darkest moment"; A downturn in stock market is unfavorable for investor's sentiment, could affect the pace of reform - Chinese press
- (CN) China Ministry of Finance (MOF) researcher: China 2014 GDP likely to be 7.5%: Lower GDP limit to be at 7% - Chinese press
 
- (JP) Japan may draft collective self-defense view in April - Asahi News
- (JP) Japan PM Abe support rating increases to 62% - Yomiuri
- (JP) Japan to compile economic stimulus when determining sales tax hike - Japanese press
- (JP) Japan Coast Guard sight three China vessels near disputed islands - Kyodo News
 
- (KR) South Korea Fin Min Hyun: South Korea to improve regulations to support entrepreneurs
- Asian Development Bank (ADB) President Nakao: QE tapering effect has already factored into emerging markets - financial press
- International regulators set new standards for leverage ratio - FT
- (EU) ESM's Regling: ESM could sell debt in non-Euro currencies; could sell yuan-denominated debt in a few years - financial press
- (IR) Iran, world powers advance nuclear agreement; Iran nuclear deal to start Jan 20th - financial press
 
***Equities***
Market Snapshot (as of 04:30 GMT):
- Nikkei225 closes, S&P/ASX -0.3%, Kospi +0.7%, Shanghai Composite -0.1%, Hang Seng -0.1%, Mar S&P500 -0.2% at 1,833, Feb gold +0.2% at $1,249, Feb crude oil -0.8% at $92.45/brl
 
US markets:
- NPO: Judge estimates Garlock Sealing Technologies' mesothelioma liability at $125M, in line with Enpro's estimate
- GM: To recall 370K units of 2014 full-size pickup trucks, citing a software glitch that could cause engine fires - press
- ICPT: NIH says patients taking ICPT's liver-disease drug had "disproportionate lipid abnormalities" compared to patients taking placebo in the trial - financial press
- CLVS: Citigroup biotech analyst makes positive comments on CNBC; expects good results from its lung cancer product with data out in the next few weeks
- QSII: Guides Q3 results below analyst consensus - filing
 
Notable movers by sector:
- Financials: Xinhu Zhongbao +0.3% (issues profit warning); Poly Property Group 119.HK -1.7% (2013 contracted sales result)
- Materials: Aluminum Corp of China 2600.HK +6.2%, Yunnan Aluminum 000807.CN +4.2%, Shandong Nanshan Aluminum 600219.CN +2.7% (Aluminum Corp of China issue positive profit alert)
- Energy: Sinovel Wind Group 601558.CN -9.7% (investigated by CSRC); Jutal Offshore Oil Services 3303.HK +4.6% (awarded order); Dart Energy DTE.AU +8.7% (enters agreement with Total); Korean Gas 036460.KR -2.1% (Dec sales result)
- Healthcare: China National Accord Medicines 1099.HK -2.6% (VP detained on corruption)
- Telecom: Telstra Corp TLS.AU -0.2% (considers sale unit)
 
 
***Economic Data***
- (AU) AUSTRALIA NOV CREDIT CARD BALANCES (A$): 49.7B V 48.9B PRIOR; CREDIT CARD PURCHASES: 22.4B V 23.0B PRIOR
- (AU) AUSTRALIA NOV HOME LOANS M/M: 1.1% V 1.0%E; INVESTMENT LENDING: 1.5% V 8.2% PRIOR; OWNER-OCCUPIED LOAN VALUE: 1.9% V 1.7% PRIOR
- (AU) AUSTRALIA DEC ANZ JOB ADVERTISEMENTS M/M: -0.7% V -0.9% PRIOR