Overview/Top Headlines
US equity index futures and the open Asian equity indices all gained today.
After the close Apple beat expectations, recording record sales of iPhones and iPads, this is sure to boost Taiwan names like Hon Hai (2317.TW) when the Taiex reopens; Korea's Hynix gained over 2% (will report this week). Tokyo stocks ended the morning session at a three-month high, as the USD/JPY tested a 4-week high above ¥77.85 and had similar movement against the euro. This encouraged investors to buy exporters on the back of Japan's 2011 trade deficit of ¥2.49T, the first in 31-years. Japan MoF Official attributed the decline in 2011 exports to the earthquake, strong yen and weak overseas demand. Traders are looking ahead to the FOMC meeting and rate decision. Australia 10-yr yield rose 8bps after the Q4 RBA trimmed mean (an inflation measure) came in ahead of estimates.
Treasurer Swan assured the markets that underlying inflation had moderated and well contained in the RBA target. Q4 CPI in Australia was at a 3-year low q/q with a flat reading y/y also disappointed forecasts coming in at 3.1% v 3.3% expected. London copper tested a 4-month high, silver tested $32.24.
Elsewhere business and political leaders are gathering in Davos Switzerland for their annual trek to the World Economic Forum.
Speakers/Geopolitical/In the press
(AU) Australian banking regulator (APRA) has been told by the IMF to conduct more stringent stress tests on its banks in order to make sure they could withstand another global financial crisis - The Australian
(JP) Japan govt officials already considering raising consumption tax beyond the 10% proposed by PM Noda - Nikkei News
(PH) Philippines Econ official: Sees Q4 GDP growth at 3.2-5.0% y/y; 2011 growth 3.6-4.0% y/y
(AU) Commonwealth Bank chief currency strategist Grace: "There's no hindrance for the RBA to cut rates from an inflation point of view because inflation is coming down" - SMH
Economic Data
(JP) JAPAN DEC MERCHANDISE TRADE BALANCE: -¥205B V -¥170BE; ADJUSTED TRADE BALANCE: -¥568B V -¥385BE (multi-year low); 2011 Trade deficit ¥2.49T (1st deficit since 1980)
(AU) AUSTRALIA Q4 CONSUMER PRICES Q/Q: 0.0% V 0.2%E (3-year low); Y/Y: 3.1% V 3.3%E
(AU) AUSTRALIA Q4 RBA TRIMMED MEAN Q/Q: 0.6% V 0.5%E; Y/Y: 2.6% V 2.4%E
(NZ) NEW ZEALAND DEC MANUFACTURING PMI 51.9 V 46.0 PRIOR (4-month high)
(SG) SINGAPORE DEC CPI M/M: 0.0% V 0.1%E; Y/Y: 5.5% V 5.5%E
(JP) BANK OF JAPAN (BOJ) JAN MONTHLY ECONOMIC REPORT: EXPORTS AND PRODUCTION TO STAY FLAT FOR THE TIME BEING
(NZ) NEW ZEALAND DEC CREDIT CARD SPENDING M/M: 0.9% V -3.4% PRIOR; Y/Y: 5.9% V 3.2% PRIOR
(PH) PHILIPPINES NOV TRADE BALANCE: -$1.6B V -$932M PRIOR; IMPORTS Y/Y: 0.6% V 2.3% PRIOR
(AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: -0.2% V +0.1% PRIOR
(AU) AUSTRALIA DEC DEWR INTERNET SKILLED VACANCIES: -1.1% V -1.0% PRIOR (6th consecutive decline)
Markets Snapshot (as of 05:30GMT)
Nikkei225 +1.2%
S&P/ASX +1.1%
Kospi +0.1%
Taiwan Taiex closed
Singapore Straits Times +0.9%
Shanghai Composite closed
Hang Seng closed
S&P Futures +0.3 at 1,315
Feb Gold +0.1% at $1,666/oz
March Crude +0.1% at $99.04
Equities
TM: Reports 2011 global sales 7.95M units; Raises FY12/13 Japan sales forecast to 1.63M units from 1.53M prior, +36% y/y
WHC.AU: Reports Dec quarter production 1.11MT v 1.09MT y/y
PBG.AU: Talks with KKR are continuing but still in very early stages; Institutional investors expressing some doubts that KKR is serious - The Australian
Yahoo Japan, 4689.JP: Reports 9-month Net ¥73B v ¥67.8B y/y, Op Profit ¥121B v ¥117.2B y/y, Rev ¥222B v ¥216.6B y/y
US Equities
CA: Reports Q3 $0.65 v $0.54e, R$1.26B v $1.2Be; increases share buyback program to $1.5B (13% of market cap); discloses increased quarterly dividend to $0.25/shr from $0.05/shr; +15% afterhours
AAPL: Reports Q1 $13.87 v $10.10e, R$46.33B v $39Be; +7.3% afterhours
STLD: Reports Q4 $0.14 v $0.11e, R$1.86B v $1.9Be; +1.9% afterhours
YHOO: Reports Q4 $0.25 v $0.24e, R$1.17B (ex-TAC) v $1.2Be; -0.9% afterhours
NSC: Reports Q4 $1.42 v $1.40e, R$2.80B v $2.8Be; -2.6% afterhours
ALTR: Reports Q4 $0.45 v $0.42e, R$458M v $448Me; -1.7% afterhours
AMD: Reports Q4 $0.19 v $0.16e, R$1.69B v $1.7Be; -2.9% afterhours
NVDA: Lowers Q4 Rev guidance to $950M +/- 1% v $1.06Be (Nov 10th guided Rev -2 to +2% q/q, implies $1.05-1.09B); -4.0% afterhours.