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Reports Asia

Asian stock market, economy and companies update (September 13, 2013)

September 13, 2013, Friday, 05:27 GMT | 00:27 EST | 09:57 IST | 12:27 SGT
Contributed by Trade The News


***Observations/Insights***
- Twitter tweets it has submitted an S-1 in preparation of an IPO.
- Bullish sentiment recedes on profit taking as investors take to the sidelines going into next week's critical FOMC meeting; WSJ poll of economists see over 65% forecasting the Fed will announce the start of a taper
- Japan cabinet office tracks BOJ with a raise of economic assessment for September, noting the economy is headed toward a gradual recovery.
- Japan govt officials continue to respond to press speculation of a sales tax hike accompanied by a fiscal stimulus and/or corporate tax cut.
- NDRC denies a property bubble in the wake of reports of mortgage lending moratorium.


***Fixed Income/Commodities/Currencies***
- (CN) China MoF sells 30-yr bonds at 4.76% - press
- (JP) BOJ offers to buy ¥250B in 1-3 yr JGBs, ¥350B in 3-5 yr JGBs and ¥200B in JGB with maturity over 10 yrs from the market
- (AU) Australia MoF (AOFM) sells 4.75% A$800M in 2016 Bonds; avg yield: 2.9085%; bid-to-cover: 4.38x
- (US) Weekly Fed Balance Sheet Assets Week ending Sept 11th: $3.619T (record high) v $3.610T prior; M1 y/y change: 10.5% v 10.5% w/w; M2 y/y change: 6.9% v 6.9% w/w

- USD modestly firmer across the board, bid by continued Septaper expectations - EUR/USD falls over 20pips below 1.3280, AUD/USD down over 30pips below 0.9240, NZD/USD down over 30pips below 0.8110, USD/JPY up 40pips above 99.80. Key US economic data expected in early Friday session with the release of Retail Sales and U of Mich consumer sentiment.

***Speakers/Political/In the Papers***
- (CN) China Tier 1 cities experience over 40 months of consecutive increases in housing rent - Chinese press
- (CN) China National Development and Reform Commission (NDRC) official Li: China is not experiencing property bubble nationwide
- (CN) Shanghai pilot free trade zone to officially open on Sept 29th, allowing for free yuan convertibility under the capital account and liberal rates/foreign exchange - Shanghai Daily

- (JP) Japan Govt is evaluating lowering the corporate tax rate in FY14 as part of the spending package designed to ease the impact of raising consumption taxes - Japan press
- (JP) Japan ruling LDP party tax panel chief Noda: cutting corporate tax rate is not on agenda this fall
- (JP) Japan Econ Min Amari: Japan PM has not yet decided on consumption tax increase; Abe can decide to raise sales tax if steps to offer immediate boost and sustained growth to economy can be taken.
- (JP) Japan Fin Min Aso: To consider stimulus without issuance of new govt bonds - financial press

- (KR) South Korea Fin Min Hyun: Still possible to achieve 4% growth rate target in 2014; Expects 2013 tax rev to be KRW 7-8T short of target.
- (ID) Goldman Sachs sees Indonesia Central Bank (BI) to raise interest rate by another 50bps over the next two meetings - financial press

- (US) Survey finds 66% of economists expect Fed to begin to taper its asset purchase program at next week's policy meeting - financial press

***Equities***
Markets Snapshot (as of 03:30 GMT):
- Nikkei225 -0.3%, S&P/ASX -0.4%, Kospi -0.4%, Shanghai Composite -0.8%, Hang Seng -0.6%, Sept S&P500 flat at 1,679, Dec gold -0.3% at $1,327, Oct crude oil flat at $108.54/brl

US markets:
- TWET: Twitter tweets that it has "confidentially submitted an S-1 to the SEC for a planned IPO"; Goldman said to be the lead underwriter for the Twitter IPO
- NXPI: Selling shareholders commence 25M share secondary offering of Common Stock; -1.6% afterhours
- HAIN: Announces sale of 3.59M shares of common stock by Carl Icahn, liquidating his remaining 7.5% stake; -1.4% afterhours

Notable movers by sector:
- Industrials: ANA Holdings Inc 9202.JP -0.9% (Asia expansion plans); China Southern Airlines Co 600029.CN +1.3%, China Eastern Airlines 600115.CN +5.9% (Goldman Sachs analyst comments Shanghai free-trade zone is a boost for China airlines)
- Technology: Hynix Semiconductor 000660.KR +0.5% (China operations to be restored in Oct), Samsung Electronics 005930.KR -0.4% ($500M investment plans), Lenovo Group Ltd 992.HK -1.1% (smartphone expansion plans), Sharp Corp 6753.JP -4.7%, Everlight Electronics Co 2393.TW -2.3% (patent suit lost), United Microelectronics Corp 2303.TW -0.8% (lowered Q4 rev guidance)
- Financials: China Merchants Bank Co Ltd 600036.CN -1.5% (rejects speculation of mortgage loan halt), Fosun International 656.HK -2.4% (to invest in Caruso Spa)
- Materials: Newcrest Mining Ltd NCM.AU -1.6%, Oz Minerals OZL.AU -1.6%; Australia precious metal miners lower on decline in gold price.


***Economic Data***
- (NZ) NEW ZEALAND AUG BUSINESS NZ MANUFACTURING PMI: 57.5 V 59.5 PRIOR
- (NZ) NEW ZEALAND AUG FOOD PRICES M/M: -0.5% V +0.5% PRIOR (1st decline in 5 months)
- (NZ) NEW ZEALAND SEPT ANZ CONSUMER CONFIDENCE: -3.4% V +2.7% PRIOR; ANZ CONSUMER CONFIDENCE INDEX: 118.8 V 123.0 PRIOR
- (NZ) NEW ZEALAND AUG NON-RESIDENT BOND HOLDINGS: 68.3% V 67.9% PRIOR
- (SG) SINGAPORE Q2 FINAL UNEMPLOYMENT RATE: 2.1% V 2.1% PRELIM
- (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.25%, AS EXPECTED
- (CL) CHILE CENTRAL BANK LEAVES OVERNIGHT RATE TARGET UNCHANGED AT 5.00%; AS EXPECTED