Economic Data
- (CN) CHINA DEC HSBC FLASH MANUFACTURING PMI: 50.9 V 50.8E (14-month high; 2nd consecutive month of expansion after 12 months of contraction)
- (JP) JAPAN Q4 TANKAN LARGE MANUFACTURING INDEX: -12 V -10E (11-quarter low); LARGE ALL INDUSTRY CAPEX: 6.8% V 5.4%E; LARGE MANUFACTURING OUTLOOK: -10 V -9E
- (JP) JAPAN OCT FINAL INDUSTRIAL PRODUCTION M/M: 1.6% V 1.8% PRELIM; Y/Y: -4.5% V -4.3% PRELIM; CAPACITY UTILIZATION M/M: +1.6% V -5.5% PRELIM
- (KR) SOUTH KOREA NOV EXPORT PRICE INDEX M/M: -2.6% V -1.9% PRIOR; Y/Y: -5.5% V -5.2% PRIOR; IMPORT PRICE INDEX M/M: -2.8% V -3.3% PRIOR; Y/Y: -7.6% V -6.4% PRIOR
- (KR) South Korea OCT Conference Board Leading Economic Index m/m: +0.8% to 120.9 vs +1.1% prior
- (SG) SINGAPORE Q3 FINAL UNEMPLOYMENT RATE: 1.9% V 1.9% PRIOR
- (SG) SINGAPORE OCT RETAIL SALES M/M: +0.6% V 0.5%E; Y/Y: -1.0% V -0.8%E; RETAIL SALES EX-AUTO Y/Y: 1.3% V 2.4%E
- (CL) CHILE CENTRAL BANK LEAVES NOMINAL OVERNIGHT RATE TARGET UNCHANGED AT 5.00%; AS EXPECTED
(as of 05:30 GMT)
- Nikkei225 +0.2%
- S&P/ASX flat
- Kospi -0.2%
- Shanghai Composite +4.1%
- Hang Seng +0.7%
- Mar S&P500 +0.2% at 1,415
- Feb gold +0.1% at $1,699/oz
- Jan Crude Oil +0.8% at $86.57/brl
Asian equity markets are trading mixed going into the weekend rife with implications for regional investor sentiment next week. Shanghai Composite was all the rage on Friday, rising over 4% at one point in the session. Buying accelerated after the release of a slightly better than expected HSBC flash manufacturing PMI, but bullish bias was arguably pre-loaded with renewed commitment to easy money by the Fed as well as growing perception of a pronounced progress in Europe - China's biggest export market. Investors see the end of "Grexit" following disbursement of loans to Athens and a more ductile Germany in negotiations on the banking union this week as positive developments that will not only help China avoid a hard landing, but will also lead to a rosier environment in 2013. To that end, the Politburo will convene China's Central Economic Work Conference this weekend to set out 2013 economic policy and targets. Note 2012 GDP, inflation, and new lending estimates stand at 7.5%, 4%, and CNY8T respectively.
Japan is headed to the polls on Sunday with a starkly more onerous backdrop. After the cabinet office confirmed a technical recession earlier this week, BoJ's Q4 Tankan survey revealed a near three-year low in manufacturing sentiment. Despite continued weakness in the yen that saw fresh multi-month highs in USD/JPY and yen crosses, Nikkei225 barely budged higher. LDP appears to be solidifying its pole position ahead of the Sunday elections. Earlier in the day, Nikkei News reported the LDP party has extended its lead in battleground areas and would likely top 300 seats along with its likely coalition partner New Komeito. Report further noted 320 is the key threshold in the 480-seat lower house body, giving the LDP a 2/3rd supermajority that allows them to vote down bills passed by DPJ-controlled upper house.
Currencies/Fixed Income/Commodities
- (AU) Australia MoF (AOFM) sells A$600M in 4.25% 2017 Bonds; avg yield: 2.8407%; bid-to-cover: 4.68x
- SLV: iShares Silver Trust ETF daily holdings rise to 9,871 tons from 9,829 tons (highest level 9,879 on Nov 20th)
- (CN) Stifel: China iron ore inventories now at 75.6M tonnes, -21.9% y/y and -25.1% from 2012 high in Feb (levels now at 2010 levels)
- (CN) Moody's: China banking sector outlook stable; Bad debt situation may worsen in 2013
- (US) Weekly Fed Balance Sheet Assets Week ending Dec 12th: $2.899T v $2.842T prior; M1: +$101.8B v -$40.3B prior; M2: +$36.2B v +$13.8B prior
(CN) China Academy of Social Sciences (CASS) researcher: Warns China property market may collapse in certain areas; housing prices in most of Chinese cities will continue rapid increases in Q4 and into 2013 -- Chinese press.
- (CN) China Stats Bureau: Pork prices in early Dec rose 2.8% - financial press
- (CN) China Securities Regulatory Commission (CSRC): Said to look to simplify approval process for funds - Chinese press
- (AU) Australia Treasurer Swan: OECD report suggesting Australian economy a standout - financial press
- (AU) OECD: Australia govt should postpone return to budget surplus if necessary; Australian dollar resulting from the mining boom is imposing considerable structural changes on the economy... The conduct of monetary policy needs to cope with the conflicting pressures on the currency
- (EU) German Chancellor Merkel: Agreement has been reached on the timing of monetary union development; Deal was "very important"
- (EU) France Pres Hollande: Under certain conditions, direct bank recapitalization may take place starting in H1 - financial press
- (UK) BoE's Weale said concerns about credit availability may be slowing the UK's recovery - update
- (IT) Italy Fin Min Grilli: Borrowing costs for public sector are still disappointing - financial press
- QAN.AU: ACCC approves Qantas plans to integrate operations with Jetstar - AFR
- ANZ.AU: Lowers variable mortgage rates by 20bps (RBA cut 25bps) to 6.40% after monthly review
- CTX.AU: Provides FY12 profit outlook; sees FY12 marketing EBIT at A$730-740M
- Sharp 6753.JP: Japan Securities may set a limit on margin trades - financial press
- Hitachi 6501.JP: To invest approx ¥70B in India through FY15 - Nikkei News
- China Airlines 2610.TW: To lease 10 Boeing aircraft for China, Asia - Chinese press
- ADBE: Reports Q4 $0.61 v $0.57e, R$1.15B v $1.11Be; +6.0% afterhours
- UTX: Guides initial FY13 $5.85-6.15 v $6.12e; R$64-65B v $66Be - investor day comments; -1.2% afterhours