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Asian Market Update: February 14

Published 02/14/2013, 06:23 AM
Updated 01/01/2017, 02:20 AM
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BoJ refrains from more easing, raises economic assessment despite another GDP contraction; BOK on hold in a split decision

Economic Data

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1%, AS EXPECTED; NO NEW EASING MEASURES; RAISES ECONOMIC ASSESSMENT

(JP) JAPAN Q4 PRELIM GDP: -0.1% V +0.1%E (third straight contraction); GDP ANNUALIZED: -0.4% V +0.4%E; NOMINAL GDP Q/Q: -0.4% V 0.0%E

(JP) JAPAN JAN TOKYO CONDOMINIUM SALES: -5.4% V -3.0% PRIOR

(KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 2.75%, AS EXPECTED; Split decision

(AU) AUSTRALIA FEB CONSUMER INFLATION EXPECTATION: 2.2% V 2.0% PRIOR (3-month high)

(NZ) NEW ZEALAND JAN BUSINESS NZ PMI: 55.2 V 50.4 PRIOR (8-month high)

(NZ) NEW ZEALAND FEB ANZ CONSUMER CONFIDENCE INDEX: 121.0 V 118.3 PRIOR; ANZ CONSUMER CONFIDENCE: 2.3% V 3.1% PRIOR

(NZ) NEW ZEALAND JAN FOOD PRICES M/M: +1.9% V -0.2% PRIOR (first rise in 5 months)

Markets Snapshot (as of 05:00 GMT)

Nikkei225 +0.4%

S&P/ASX +0.8%

Kospi -0.1%

Shanghai Composite closed

Hang Seng +0.9%

Mar S&P500 flat at 1,518

Apr gold flat at $1,645/oz

Mar Crude Oil +0.1% at $97.13/brl

Notes/Observations

8-month high in New Zealand BNZ business PMI sends NZD to multi-month highs vs USD and AUD.

Japan Q4 prelim GDP in contraction for the 3rd consecutive quarter, remains in recession, spoiling expectations of a rebound.

Despite the recession, BOJ upgrades economic assessment (to economy appears to stop weakening) for 2nd consecutive meeting; Miyao still the lone ultra-dove voting for ZIRP until 2% CPI in sight.

JCER Pres / BOJ Gov candidate Iwata sees ¥95 vs USD as equilibrium, sends USD/JPY up over 30pips above ¥93.60.

Bank of Korea on hold in a split decision (minority presumably in favor of a cut); Gov Kim steers statement to neutral, suggesting policy already accommodative.

Currencies/Fixed Income/Commodities

NZD/USD: Rises above $0.8480 following ; highest level since Aug 2011

AUD/NZD: Falls below NZ$1.22; lowest since Jul 2010

USD/JPY: Rises over 30 pips over ¥93.60 following comments from Iwata

USD/SGD: Falls below S$1.2345; 2-week low

(JP) George Soros has made $1B betting against the JPY, increased bet in November; Einhorn: Sees JPY decline to continue - financial press

GLD: SPDR Gold Trust ETF daily holdings fall by 0.9 tons to 1,326.0 tons (lowest since 1,324.4 on Oct 4th)

Speakers/Political/In the Papers

(JP) Japan BoJ-gov candidate Iwata: JPY-USD rate of ¥90-100 is return to equilibrium - financial press

(JP) Japan House of Representatives (lower house) passes FY12 supplementary budget, as expected - financial press

(JP) Japan JAN power output 85.9B KWh, -1.7% y/y (+2% prior) - Nikkei News (update)

(JP) Japan Econ Min Amari: Japanese economy remains weak; growth will gradually recover, helped by BOJ easing

(JP) Japan Chief Cabinet Secy Suga: Japan economy to gradually recover - financial press

(JP) US President Obama informs Japan PM Abe US is committed to defending Japan; Promises to protect Japan with nuclear umbrella - US press

Equities

NSANY: Seeks to revive Datsun model in Indonesia market - financial press

Yamaha 7272.JP: Reports FY12 Net ¥7.49B v ¥26.96B y/y, Op Profit ¥18.6B v ¥53.41B y/y, Rev ¥1.21T v ¥1.28T y/y

Nippon Steel 5401.JP Reports 9-month Net loss ¥152.0B v loss ¥1.3B y/y, Op loss ¥6.0B v ¥82.2B y/y, Rev ¥3.07T v ¥3.07T y/y

WES.AU: Reports H1 net A$1.29B v A$1.18B y/y, Rev A$30.6B v A$29.65B y/y; +1.2%

DOW.AU: Reports H1 net A$181M, +12.7% y/y, Rev A$4.7B, +20% y/y; +7.8%

DJS.AU: Reports Q2 Rev A$590.1M v A$598Me; SSS -1.4%; -0.4%

RIO.AU: Appoints Execs to manage A$2B listing of aluminum assets in New Zealand and Australia - Australia Press

WOR.AU: CEO Wood: Change of wording in guidance statement not a downgrade; confirms 300 job cuts in South Africa and W. Australia - Australia press

LEI.AU: CEO Tyrwhit: Growth strategy is to export core competencies to markets where they add value - Australian press

WTW: Reports Q4 $1.03 v $0.88e, R$408M v $402Me; -15.0% afterhours

WFM: Reports Q1 $0.78 v $0.77e, R$3.86B v $3.87Be; -6.2% afterhours

CSCO: Reports Q2 $0.51 v $0.48e, R$12.1B v $12.1Be; -1.9% afterhours

NTAP: Reports Q3 $0.67 v $0.56e, R$1.63B v $1.62Be; -1.7% afterhours

NVDA: Reports Q4 $0.35 v $0.23e, R$1.11B v $1.10Be; -1.4% afterhours

MET: Reports Q4 $1.25 v $1.18e, R$18.4B v $17.2Be; -1.1% afterhours

AMAT: Reports Q1 $0.06 adj v $0.03e, R$1.57B v $1.55Be; +2.8% afterhours

IM: Reports Q4 $0.66 v $0.58e, R$11.38B v $10.9Be; +2.9% afterhours

LCC: AMR, US Airways Boards separately approve $11B merger deal

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