Reports » Asia

Asian stock market, economy and companies update (January 16, 2013)

Contributed by Trade The News

***Markets Snapshot (as of 04:30 GMT)***
- Nikkei225 -2.0%
- S&P/ASX +0.4%
- Kospi +0.3%
- Shanghai Composite -0.4%
- Hang Seng -0.2%
- Mar S&P500 +0.1% at 1,465
- Feb gold -0.1% at $1,682/oz
- Feb Crude Oil +0.3% at $93.59/brl

***Notes/Observations***
- Asian equity markets are trading mixed, with much of the focus remaining with the Japanese yen for the 2nd consecutive session. After Econ Min Amari warned over an excessive declines in the currency overnight, a second cabinet (LDP gen sec) official expressed concern the parabolic JPY decline could be to the detriment of certain industries and companies. Coupled with a widely circulated report from BNP questioning the ability of "Abenomics" to spin synthetic inflation, more yen short-covering took USD/JPY below ¥88 and EUR/JPY below ¥117.

- World Bank cuts its global 2013 GDP target to 2.4% from 3.0% prior and 2014 GDP to 3.1% from 3.4% prior. World Bank also raised its 2013 China GDP target by a decimal to 8.4% but cautioned growth would slow by 2015 to 7.9%. Regarding Euro area, WB noted 2013 would be in modest 0.1% contraction but return to growth in 2014 and 2015 to the tune of 0.9% and 1.4% respectively. WB also said market conditions are improving and global inflation is under control.

- Boeing will surely be under pressure again on Wednesday after Japan's ANA airlines reported its Tokyo-bound 787 Dreamliner was forced into an emergency landing in Takamatsu after reports of cabin fire. All passengers and crew were able to de-board safely, but ANA and JAL both grounded their 787 fleet to perform further safety checks. FAA said it will await more details from the incident while some of the other airlines have yet to suggest they would modify their 787 orders.

***Currencies/Fixed Income/Commodities***
- EUR/JPY: Falls to fresh session lows below ¥117; USD/JPY falls below ¥88
- USD/CNY: (CN) PBoC sets yuan mid point at 6.2745 v 6.2136 prior close (CNY weakened by largest margin since Sept 18th)
- JGB: (JP) Japan's MoF sells ¥2.286T in 0.2% 5-yr notes; Avg yield: 0.156% v 0.163% prior; Bid to cover: 3.44x v 3.54x prior
- JGB: (JP) Japan's MoF to issue additional ¥300B in February and March to help pay for extra budget spending - Nikkei News
- XAU/EUR: (DE) Telegraph's Ambrose Evans-Pritchard believes that if Bundesbank seeks to repatriate some of its gold this could be a sign that trust among central banks is breaking down
- (US) API PETROLEUM INVENTORIES CRUDE: +46K V +2ME; GASOLINE: +4.09M V +2ME; DISTILLATE: -570K V +1.5ME; UTILIZATION: 88% V 88.9% W/W
- (EU) Outgoing Eurogroup President Juncker (Luxembourg PM): EUR exchange rate is dangerously high

***Speakers/Political/In the Papers***
- (HK) Hong Kong Chief Exec Leung: govt priority to ensure economic development; Housing is top priority this year - 2013 policy address
- (KR) South Korea Vice Fin Min Shin: Studying additional capital flow control measures; Economic uncertainties have eased
- (CN) Some China banks may raise 2013 property loan quotas - financial press
- (CN) According to China's State Electricity Regulatory Commission, clean energy accounted for about 21% of total power consumption in 2012 - Shanghai Daily
- (JP) BNP Paribas analyst Kono: 'Abenomics' will not solve Japan's economic issues - Nikkei News interview
- (JP) Inventory of aluminum at Japan's top 3 ports said to have increased to a 44-month high of 284-291K MT at the end of Dec - financial press
- (US) Treasury Dept to deploy additional measures to help avoid hitting debt ceiling - press

***Equities***
- Hyudai Heavy 009540.KR: Awarded $600M order from Seaspan for 14K TEU ships
- NTDOY: Planning to combine home video game console and handheld device business units - Japan press

- IBKR: Reports Q4 $0.19 v $0.21e, R$259.6M v $273Me
- DELL: CNBC's Faber: Price talk for potential going private deal is in the $13.50-14/shr range; deal could get done within a week or two
- CMG: Reports prelim Q4 $1.92-1.97 v $2.10e, Rev $699M v $692Me

***Economic Data***
- (CN) CHINA DEC ACTUAL FDI Y/Y: -4.5% V -2.0%E
- (AU) AUSTRALIA DEC NEW MOTOR VEHICLE SALES M/M: 2.2% (3-month high) V 0.0% PRIOR; Y/Y: 17.9% V 9.7% PRIOR
- (AU) AUSTRALIA JAN WESTPAC CONSUMER CONFIDENCE INDEX: 100.6 V 100.0 PRIOR; M/M: +0.6% V -4.1% PRIOR
- (JP) JAPAN DEC DOMESTIC CGPI M/M: 0.3% V 0.2%E; Y/Y: -0.6% V -0.7%E (9th straight decline)
- (JP) JAPAN NOV MACHINE ORDERS M/M: 3.9% V 0.3%E (second straight rise); Y/Y: +0.3% V -7.3%E
- (NZ) NEW ZEALAND JAN NON RESIDENT BOND HOLDINGS: 64.0% V 62.7% PRIOR