Asian Market Update: January 27, 2012

Published 01/27/2012, 06:21 AM
Updated 01/01/2017, 02:20 AM
NZ reports trade surplus; Yen continues to strengthen

Economic Data

(NZ) NEW ZEALAND DEC TRADE BALANCE (NZ$): +338M V -50ME (1st surplus in 5-months)

(JP) JAPAN DEC RETAIL TRADE M/M: 0.3% V 0.4%E; Y/Y: 2.5% V 2.1%E (16-month high); LARGE RETAILERS' SALES Y/Y: % V -0.6%E

(JP) JAPAN DEC NATIONAL CPI Y/Y: -0.2% V -0.2%E; CORE Y/Y: -0.1% V -0.1%E; JAPAN JAN TOKYO CPI Y/Y: -0.3% V -0.4%E; CORE Y/Y: -0.4% V -0.3%E

(KR) SOUTH KOREA JAN CONSUMER CONFIDENCE: 98 V 99 PRIOR

(KS) SOUTH KOREA FEB BUSINESS SURVEY - MANUFACTURING: 81 V 79 PRIOR; NON-MANUFACTURING: 79 V 79 PRIOR

(SG) SINGAPORE Q4 URA PRIVATE HOME PRICES Q/Q: +0.2% V 1.3% PRIOR

(JP) JAPAN BOJ DEC 20-21 BOARD MEETING MINUTES

(TH) THAILAND DEC INDUSTRIAL PRODUCTION Y/Y: -25.8% V -28.0%E

Markets Snapshot (as of 05:30GMT)

Nikkei225 -0.3%

S&P/ASX +0.4%

Kospi +0.1%

Taiwan Taiex closed

Singapore Straits Times -0.1%

Shanghai Composite closed

Hang Seng -0.1%

S&P Futures -0.3% at 1,312

Feb Gold -0.5% at $1,718/oz

March Crude +0.1% at $99.77

Overview/Top Headlines

Markets were mixed and cautious in the final trading day of the week, US jobless benefit claims rose last week while durable goods beat estimates in December. Markets are also waiting for the release of Q4 GDP from the US. A drop in USD/JPY tested ¥76.90; yen crosses sold into the Tokyo fix but regained back towards US session levels. This strength weighed on exporting names and could trigger repatriation. Japan PM Noda tried to verbally deter the strength calling for "bold" action to stem the yen rise.

Commodities futures were all lower, silver and copper both falling 0.7%, wheat lost 1% while corn shed $2.20. Shares of NEC fell over 7.5% after reporting after the close on Thursday, NEC also said it would have to lay off 10,000 positions and forecasting its 4th consecutive yearly loss. Some attention was returned to the situation in Greece, it was again reported that the sides were close to an agreement but no new details were released. Euro was weaker through most of the session as was the Swissie.

RBNZ Gov Bollard talking after the December trade balance numbers said that the latest rate decision assumes a delay in Christchurch rebuild with a pick up in 2013; Market does not expect rate increase for a year. In the Q&A went on to say there is a 2012 GDP target of 2-3%; Growth expectations have not changed much.

Bank of Japan in their December 20-21st meeting minutes were mostly in agreement that the broader part of the EU economy remains sluggish, including Germany. One sees merit of high yen for domestic demand oriented firms in Japan. Some thought, the latest expansion of asset buying has been effective and there was a need to continue corp bond buying even though there was under subscription.

Speakers/Geopolitical/In the press

(KR) South Korea Govt and Bank of Korea (BoK): Need to redouble efforts to enter new markets as demand from Southeast Asia, China and developed countries for the country's exports is expected to fall

(JP) Japan Fin Min Azumi: MoF staff looking at the trade deficit number to determine if it is temporary

(ID) Indonesia Central Bank Gov: Sees Jan CPI 0.6-0.7% m/m and 3.5% y/y; Sees 2012 CPI at 5.2-5.5% y/y if fuel subsidies are imposed

USD/MYR: (MY) Former Malaysia PM Mahathir Mohammad said the world's biggest economies could return to a Bretton Woods-style currency system due to quantitative easing measures by major central banks - US financial press

Equities

Samsung Electronics, 005930.KR: Reports Q4 Net KRW4.0T, Op Profit KRW5.3T v KRW5.2Te, Rev KRW47.3T v KRW47Te

WPL.AU: Started taking indicative bids for a large fraction of its 50% stake in the Browse gas project; Could exceed A$1.0B for the stake - The Australian

DCM: Reports 9-month Net ¥395B v ¥443.9B y/y, Op Profit ¥743.8B v ¥758.5B y/y; Rev ¥3.17T v ¥3.2T y/y

HMC: Reports 2011 global vehicles sales -20.2% y/y to 2.9M units

TM: Reports 2011 global production -9.1% y/y to 6.9M units

NSANY: Reports 2011 global output +14.3% y/y to 4.6M

Kia Motors, 000270.KR: Reports FY11 Net profit KRW3.5T v KRW2.3T y/y; Op profit KRW3.5T v KRW1.7T y/y; Rev KRW43.2T v KRW23.3T y/y

LPL: Reports FY11 Net loss KRW991B v loss KRW842Be; Op loss KRW1.25T v loss KRW910Me; Rev KRW23.5T v KRW24Te

US Equities

SBUX: Reports Q1 $0.50 v $0.49e, R$3.44B v $3.3Be; Raises FY12 $1.78-1.82 v $1.83e, Affirms Rev +10%; Q1 non gaap op margin 16.2% v 17.0% y/y; margin contraction was due to higher commodity costs; -2.1% afterhours

JNPR: Reports Q4 $0.28 v $0.28e, R$1.12B v $1.1Be; Guides Q1 $0.11-0.14 v $0.26e, R$960-990B v $1.1Be; -8.1% afterhours

RVBD: Reports Q4 $0.25 v $0.24e, R$204M v $201Me; Guides Q1 $0.19-0.20 v $0.25e, R$183-187M v $197Me - conf call; -13.8% afterhours

RHI: Reports Q4 $0.30 v $0.31e, R$973M v $986Me; -3.9% afterhours

DV: Reports Q2 $0.85 (ex items) v $1.00e, R$524M v $536Me; -8.7% afterhours

AMGN: Reports Q4 $1.21 v $1.22e, R$3.97B v $3.9Be; +1.0% afterhours

KLAC: Reports Q2 $0.72 v $0.66e, R $642M v $631Me; Guides Q3 $1.00-1.18 v $0.82e, R$770-830M v $684Me; +3.7% afterhours

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