Economic Data
(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1%, AS EXPECTED; EXPANDS ASSET PURCHASES BY ¥10T TO ¥101T; CUTS ECONOMIC ASSESSMENT
(NZ) NEW ZEALAND Q3 GDP Q/Q: 0.2% V 0.4%E (5-quarter low); Y/Y: 2.0% V 2.5%E
(NZ) NEW ZEALAND DEC ANZ BUSINESS CONFIDENCE: 22.7 V 26.4 PRIOR; ACTIVITY OUTLOOK: 31.4 V 31.6 PRIOR
(AU) AUSTRALIA NOV RBA FOREIGN EXCHANGE TRANSACTIONS (A$): 414M V 275M PRIOR
(CN) CHINA NOV CONFERENCE BOARD LEADING ECONOMIC INDEX: 1.1% V 1.6% PRIOR
(JP) Japan investors bought net ¥918.0B in Foreign Bonds last week vs sold net ¥591.7B prior week; Foreign Investors bought net ¥389.6B in Japan stocks last week vs bought net ¥116.5B in prior week
Markets Snapshot (as of 05:00 GMT)
Nikkei225 -0.6%
S&P/ASX +0.3%
Kospi +0.3%
Shanghai Composite -0.5%
Hang Seng -0.3%
Mar S&P500 -0.4% at 1,427
Feb gold flat at $1,668/oz
Jan Crude Oil -0.4% at $89.60/brl
Notes/Observations
Asian equity markets are trading mixed, with late-session cautious sentiment from US trading on further fiscal cliff consternation echoed in the far east. President Obama said he was willing to compromise and has gone "at least half way" in meeting some of the Republican concerns. House Speaker Boehner meanwhile reiterated the White House plan is not balanced and that he needs to "get serious soon," proceeding with plans to hold a vote on "Plan B" in the House tomorrow. S&P500 futures extended its decline afterhours below 1,428, down over 5 handles.
Bank of Japan heeded analysts' expectations to ease monetary policy further, pumping in another ¥10T in asset purchases for a total of ¥101T program. The increase was evenly split between short-term T-bills and JGBs. BOJ further indicated it would "discuss the medium-long term price stability" (2% inflation target proposed by Abe) at its next meeting.
One member called on BOJ to lower interest rate applied under Complementary Deposit Facility to 0.0% from 0.1%, but that suggestion was voted down by the other 8 members. BOJ also cut its economic assessment, citing decrease in exports and industrial production, risks of spillover into domestic demand and business fixed investment as sentiment turns increasingly cautious.
Moreover, BOJ included the risk of tensions with China in its list of warnings, a veiled rebuttal to the more nationalist rhetoric from the incoming administration. USD/JPY saw some profit-taking after the decision, falling some 30 pips below ¥83.90.
Australia Treasurer Swan has finally acknowledged that achieving a budget surplus in the current year would not be realistic. Specifically, Swan noted tax receipts are below forecasts, high AUD is weighing on exports, and mining revenues have fallen substantially.
Speakers/Political/In the Papers
(CN) China state researcher forecasts China GDP at 7.5%, exports growth at approx 10% in 2013 - financial press
(CN) China Academy of Social Sciences (CASS): China still at risk of social conflicts; Land expropriation and housing demolitions, environmental pollution and labor disputes seen as top three causes of conflict - Shanghai Daily
(HK) HKMA: Home prices moderated following introduction of 15% duty; Concerned over risks to economy from rising property prices - financial press
(JP) Japan Automakers Group repeats call for action to weaken the JPY - financial press
(JP) Japan govt expected to maintain its economic outlook in its December report amid signs of improvement in industrial production and housing starts - Nikkei
(KR) Bank of Korea (BOK): South Korea bankruptcies in Nov fell to 93 from 116 in Oct; 8-month low - Korean press
(KR) Samsung Economic Research Institute (SERI): South Korea exports disproportionately focused on China - Korean press
(NZ) New Zealand Fin Min English: Economy still on track for 2% annual growth over next few years; Seeing signs growth is recovering
(NZ) New Zealand Stats: Q3 and Q4 GDP for 2010 were revised down to -0.3%, indicating technical recession - NZ press
(GR) Greece Fin Min Stournaras: 2013 to be the "make-or-break" year for Greece; Exit from euro zone still possible - FT
Equities
Takashimaya 8233.JP: Opens first department store in China - Japanese press
TM: Pres Toyoda: Japan auto demand likely to decline due to the end of subsidies - financial press
Mitsubishi Heavy 7011.JP: Awarded contract to build power facility in Thailand - financial press
Mazda 7261.JP: Plans to invest more than ¥20B for new facility in Thailand - Japanese press
Mitsubishi Electric 6503.JP: To pay about ¥60B to defense ministry for overcharging for equipment - Nikkei News
ORG.AU: Secures long-term deal to supply LNG to China-controllled MMG Group for its Century zinc mine; Deliveries to start in 2013 - AFR
TLS.AU: ACCC regulator opposes the sale of Telstra's Trading Post assets - Australian press
ORI.AU: Sees 2013 Net profit higher than 2012; maintains guidance - financial press
ELD.AU: Saw high levels of interest from potential bidders; Sees YTD earnings and rev behind those of y/y levels - financial press
LEI.AU: Confirms $456M contract for Thiess MacMahon JV - financial press
OZL.AU: Guides 2013 Copper production of less 100k tons - financial press
QAN.AU: Australia regulator (ACCC) proposed to grant conditional authorization on alliance with Emirates
China Mobile 941.HK: Reports Nov Total customers 707M v 703.5M m/m; 3G customers at 84.2M
OLAM.SG: Singapore Sovereign Wealth Fund Temasek has raised its stake to 18% from 17% - financial press
ACN: Reports Q1 $1.06 v $1.04e, R$7.22B v $7.28Be; -5.5% afterhours
BBBY: Reports Q3 $1.03 v $1.02e, R$2.70B v $2.74Be; Authorizes a New $2.5B Share Repurchase Program (18% of market cap); -3.9% afterhours
PAYX: Reports Q2 $0.41 v $0.41e, R$559.4M v $574Me; -1.8% afterhours
JBL: Reports Q1 $0.61 v $0.57e, R$4.64B v $4.41Be; +5.6% afterhours
ARRS: Halted; To acquire Motorola Home business for $2.35B in cash, stock; to be significantly accretive to non-GAAP earnings; +16.9% afterhours
NYX: Said to be in talks with ICE on potential combination; ICE bid for NYSE Euronext may be announced on Thur - US financial press; +21.4% afterhours
AUO: May see 10% increase in 2013 TV panel shipments amid rising orders from Samsung Electronics and Sony - DigiTimes