Reports » Asia

Asian stock market, economy and companies update (September 13, 2012)

Contributed by Trade The News

***Markets Snapshot (as of 03:30GMT)***
- Nikkei225 +0.5%
- S&P/ASX -0.4%
- Kospi flat
- Shanghai Composite -0.5%
- Hang Seng +0.1%
- Dec S&P500 -0.1% at 1,431
- Dec gold flat at $1,734/oz
- Oct Crude oil +0.1% at $97.08/brl

***Notes/Observations***
- Asian equity markets are trading mixed once again despite the modestly positive lead from Wall St where investors cheered less than the onerous conditions attached to German high court decision on ESM. Nikkei225 is the outperformer, supported by the tech sectors' supply chain firms for Apple's widely anticipated release of iPhone5. Korean firms would have in all likelihood also participated in the rally, however Bank of Korea's rate freeze against expectations of an easing ate into their gains. In a unanimous decision BOK stood pat at 3.00%, instead opting for a 5-year KRW1.5T lending program to small businesses. BOK also reiterated inflation would remain below 3% and stressed fiscal stimulus announced by the finance ministry earlier this week as a more effective way of sustaining growth at this juncture. Korean central bank did note that downside risks to global economy are on the rise and the euro zone slump is deepening.

- New Zealand rate decision was less exciting as RBNZ kept interest rates unchanged for the 12th consecutive time. RBNZ mainly reiterated last month's language, only adding that China growth has slowed. In his last post-decision conference (Bollard is retiring to be replaced by Wheeler effective in 2 weeks), RBNZ Gov echoed comments from New Zealand fin min English early this week pointing to FX headwinds for New Zealand that also included a reference to the currency impact of QE programs overseas. Lastly, Bollard noted that Australia economy is still in decent shape and commodity prices have likely reached bottom.

***Fixed Income/Currencies/Commodities***
- Major USD pairs are bracing for the FOMC decision coming up in the US session. USD/JPY flirted with its 3-month low around ¥77.70 but held that support as stops build beyond the early June low of ¥77.65. Euro outperformed, building on its overnight gains after Netherlands election results indicated the pro-European Liberals led by incumbent PM Rutte would hold on to power. NZD also extended its rally beyond $0.82 despite the warnings from central bank governor, while AUD crept up about 20pips toward the $1.05 handle.

- (JP) Japan's MoF sells ¥1.10T 20-yr 1.7% JGBs; Avg yield: 1.671% v 1.647% prior; bid-to-cover: 4.54x v 2.38x prior
- (NZ) Deutsche Bank sees RBNZ leaving cash rate unchanged at 2.5% until Sept 2013 (previously expected an increase in June 2013)
- (NZ) Bank of New Zealand sees RBNZ leaving cash rate unchanged at 2.5% until Dec 2013 (previously expected an increase in March 2013)
- (AU) RBA Quarterly Bulletin: Australia likely to remain China's top iron ore supplier; China imports of Australian coking coal to remain elevated
- SLV: iShares Silver Trust ETF daily holdings fall to 9,791 tons from 9,803 tons
- GLD: SPDR Gold Trust ETF daily holdings fall by 3.7 tons to 1,289.4 tons (first decline since Jul 27th)

***Speakers/Political/In the Papers***
- (CN) China Ministry of Commerce (MOFCOM) official Fang: China retail sales growth is stabilizing; Will rebound in coming months
- (NL) Netherlands incumbent PM Rutte of Liberal party has accepted victory; Labor party leader has conceded; Liberals won 44 seats, Labour 40 seats (total of 150 seats)
- (LY) US orders two warships to patrol Libyan coast - financial press
- (JP) Japan Automobile Dealers Association: Aug sales of used vehicles rose 9.3% y/y to 337K units, 10th consecutive increase - Nikkei News
- (JP) Bank of Japan (BOJ) concerned about export slowdown; To discuss slowing exports to China as part of this week's policy meeting - Nikkei News

***Asia Equities***
- MYR.AU: Reports FY12 Net A$139M v A$159.7M y/y, Rev A$3.12B v A$3.1B y/y
- NSANY: CEO: Expects to post double-digit sales growth in FY12/13 amid strong demand from China and despite weakness in Europe - Nikkei News
- DOLE: Itochu nearing deal to purchase Dole Food global canned fruit and juice processing business for $1.7B - Nikkei News

***US Equities/ADRs***
- SNY: FDA Approves Genzymes AUBAGIO(teriflunomide), a Once-Daily, Oral Treatment for Relapsing Multiple Sclerosis; +1.5% afterhours
- PLL: Reports Q4 $0.86 (adj) v $0.77e, R$722.4M v 715Me; +7.9% afterhours
- HF: To enter the S&P SmallCap 600 index effective close of trading on Sept 18th, replacing Stratasys Inc; +5.1% afterhours

***Economic Data***
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 3.00%, (NOT EXPECTED)
- (NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) LEAVES OFFICIAL CASH RATE UNCHANGED AT 2.50% (AS EXPECTED)
- (NZ) NEW ZEALAND AUG BUSINESS NZ PMI: 47.2 V 49.4 PRIOR (3rd month of contraction and a 9-month low)
- (AU) AUSTRALIA SEPT CONSUMER INFLATION EXPECTATION: 2.4% V 2.4% PRIOR
- (JP) JAPAN AUG TOKYO CONDOMINIUM SALES Y/Y: +17.3% V -1.0% PRIOR