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Asian Market Update

Published 02/08/2013, 06:54 AM
Updated 01/01/2017, 02:20 AM
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RBA Quarterly Statement lowers 2013 GDP targets; China Jan. trade figures better than expected, inflation data in line.

Economic Data
  • (CN) CHINA JAN TRADE BALANCE: $29.2B V $24.7BE
  • (CN) CHINA JAN PRODUCER PRICE INDEX (PPI) Y/Y: -1.6% V -1.6%E (smallest y/y decline in 8 months)
  • (CN) CHINA JAN CONSUMER PRICE INDEX (CPI) Y/Y: 2.0% V 2.0%E (first sequential y/y decline in 3 months)
  • (JP) JAPAN DEC CURRENT ACCOUNT TOTAL: -¥264.1B V -¥144.2BE; ADJUSTED CURRENT ACCOUNT TOTAL: ¥98.1B V ¥230.8BE (3-month low)
  • (JP) JAPAN DEC TRADE BALANCE - BOP BASIS: -¥567.6B V -¥560.6BE; CURRENT ACCOUNT BALANCE: -199.4% V -154.3%E
  • (JP) JAPAN JAN BANK LENDING EX-TRUSTS: 1.6% V 1.1%E; BANK LENDING INCL TRUSTS: 1.3% V 1.2% PRIOR
  • (JP) JAPAN Q4 HOUSING LOANS Y/Y: 3.1% V 3.0% PRIOR
  • (JP) JAPAN JAN BANKRUPTCIES Y/Y: -10.2% V -13.8% PRIOR
  • (JP) JAPAN JAN ECO WATCHERS CURRENT SURVEY: 49.5 V 45.8 PRIOR (third straight rise); OUTLOOK SURVEY: 56.5 V 51.0 PRIOR (third straight rise)
  • (MA) MALAYSIA DEC TRADE BALANCE (MYR): 8.2B V 8.6BE
  • (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.25%, AS EXPECTED

Markets Snapshot (as of 06:00 GMT)

  • Nikkei225 -1.8%; ends longest weekly winning streak since 1959
  • S&P/ASX +0.7%
  • Kospi +1.0%
  • Shanghai Composite +1.0%
  • Hang Seng +0.2%
  • Mar S&P500 +0.1% at 1,507
  • Apr gold +0.1%at $1,672/oz
  • Mar Crude Oil +0.3% at $96.10/brl
Notes/Observations
  • RBA quarterly policy statement lowers H1 2013 and FY 2013 GDP to 2.5% from 2.75%; Lowers H1 2013 headline and core inflation by 0.25pts to 3.0% and 2.5% respectively; AUD/USD falls to fresh multi-month low below $1.0260.China Jan trade much better than expected despite the seasonal distortions around Lunar New Year; Exports +25.0% v 17.5%e; Imports +28.8% v 23.5%e; iron ore imports +11, coal imports +56% y/y; AUD/USD regains $1.0290.
  • China Jan CPI in line with consensus at 2%; Food prices y/y: +2.9% v 4.2% prior.
  • Japan 2012 trade deficit largest in nearly 30 years.
Currencies
  • USD/JPY - reached 93.74 high before Nikkei open, JPY pared losses against the USD mid session before consolidating at 93.50 levels.
  • AUD/USD - fell sharply from 1.0320 levels before release of RBA minutes, dropped to session lows of 1.0255 following the statement, before rebounding on the back of positive China trade data
  • USD/SGD - reached 1.2416 high before falling below the 1.24 handle after the release of positive China trade data.
  • USD/CNY: According to Standard Chartered data, global use of yuan rose to record high as of December, rising 2.8% amid a sharp rebound in yuan deposits in Hong Kong - Shanghai Daily
Fixed Income/Commodities
  • (US) Weekly Fed Balance Sheet Assets Week ending Feb 6th: $2.996T v $2.991T prior; M1: +$10.2B v +$15.0B prior; M2: +$9.8B v -$55B prior
  • SLV: iShares Silver Trust ETF daily holdings rise to 10,446 tons from 10,420 tons prior
  • GLD: SPDR Gold Trust ETF daily holdings rise by 1.8 tons to 1,329.9 tons (first rise since Dec 21st)
  • (AU) Australia MoF (AOFM) sells A$600M in 4.25% 5-yr Bonds; avg yield: 2.9039%; bid-to-cover: 4.27x
Speakers/Political/In The Papers
  • (AU) AMP chief economist: "Downwards revision to growth numbers, combined with pretty benign inflation projections, suggest to me the inclination to ease on the part of the Reserve Bank remains fairly strong" - The Autralian
  • (AU) Australia Treasurer Swan: Mining tax (MRRT) rev for first two quarters at A$126M (vs budget forecast of A$2B); rev from resource rent tax have taken hit - financial press
  • (NZ) ANZ economists: Despite some scepticism over Q4 employment data, the message of weak labor markets is clear; Confirms RBNZ will not raise rates for a while despite strong housing and rising credit growth - NZ press
  • (CN) China Customs: To begin reporting trade data in yuan - financial press
  • (CN) China may adjust property policy before or after the National People's Congress (NPC) - financial press
  • (CN) China foreign ministry spokeswoman Hua Chunying: Japan was the side that provoked tensions when China frigate locked its radar - Shanghai Daily
Equities
  • NCM.AU: Reports H1 Net A$320M v $292Me, Rev A$1.81B v A$2.34B y/y
  • AIR.NZ: New Zealand Commerce Commission: Landing fees imposed by Wellington International Airport are excessive - NZ Herald
  • Renesas 6723.JP: Reports 9-month Net loss ¥161.7B v loss ¥44.4B y/y, Op Profit loss ¥31.2B v loss ¥33.2B y/y, Rev ¥600.4B v ¥673.4B y/y
  • Isuzu 7202.JP: Reports 9-month Net ¥64.7B v ¥48.7B y/y, Op Profit ¥90.3B v ¥64.2B y/y, Rev ¥1.19T v ¥965B y/y
  • BA: FAA to permit test flights on 787 unit subject to restrictions; tests to collect data on battery, electrical system; +0.1% afterhours
  • PVH: To replace BIG in S&P500; BIG moved to mi-cap400 index; +2.0% afterhours
  • LNKD: Reports Q4 $0.35 v $0.19e, R$303M v $280Me; +9.5% afterhours
  • ATVI: Reports Q4 $0.78 v $0.71e, R$2.59B v $2.44Be; increases dividend 5% to $0.19 from $0.18; +5.2% afterhours
  • CSTR: Reports Q4 $0.93 v $0.73e, R$564M v $581Me; -8.7% afterhours
  • COLM: Reports Q4 $1.15 v $1.20e, R$501M v $518Me; -2.6% afterhours
  • INTU: Guides Q2 R$960-965M v $1.03Be; Cites late start to tax season; -0.1% afterhours
  • MOH: Reports Q4 $0.54 v $0.21e, R$1.58B v $1.57Be; +7.4% afterhours

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