Economic Data
(NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) LEAVES OFFICIAL CASH RATE UNCHANGED AT 2.50% (AS EXPECTED)
(AU) AUSTRALIA NOV EMPLOYMENT CHANGE: 13.9K V 0.0KE; UNEMPLOYMENT RATE: 5.2% V 5.5%E (3-month low); PARTICIPATION RATE: 65.1% V 65.1%E
(KR) SOUTH KOREA Q3 FINAL GDP Q/Q: 0.1% V 0.2% PRELIM (lowest since Q1 of 2009); Y/Y: 1.5% V 1.6% PRELIM
(ID) INDONESIA OCT MONEY SUPPLY Y/Y: 18.3% V 18.2% PRIOR
(JP) JAPAN NOV TOKYO AVERAGE OFFICE VACANCIES M/M: 8.8% V 8.7% PRIOR
(CO) COLOMBIA NOV CPI M/M: -0.1% V +0.2%E; Y/Y: 2.8% V 3.1%E
Markets Snapshot (as of 05:00 GMT)
Nikkei225 +0.8%
S&P/ASX -0.3%
Kospi +0.1%
Shanghai Composite -0.3%
Hang Seng flat
Dec S&P500 -0.3% at 1,404
Feb gold -0.1% at $1,692/oz
Jan Crude Oil -0.2% at $87.72/brl
Notes/Observations
Asian equity markets are trading mixed late in the day, as mainland traders are unable to sustain outsized gains in the A-shares overnight. Instead the focus shifts away from speculation of infrastructure-spend inducing urbanization in China to more immediate matters, namely continued bickering over the fiscal cliff in Washington, concerns over US jobs picture following disappointing ADP report, and more uncertainty in the euro zone.
Late in the US session, S&P cut Greek sovereign debt rating 4 notches to SD (selective default) from CCC, noting the buyback of bonds at discount value "constitutes the launch of what we consider to be a distressed debt restructuring..." S&P did suggest it could raise Greek rating to CCC once the buyback was complete, however the euro still underperformed in the wake of the downgrade, falling below $1.3050 later in the day.
Asia-Pacific commodity FX remained bid higher despite the more cautious tone in equities. In Australia, November unemployment surprisingly fell to a 3-month low of 5.2% and labor participation was unchanged, albeit the job growth was primarily attributed to a strong rise in the part-time sector. HSBC economists noted this jobs data could conceivably keep a lid on future RBA easing.
In New Zealand, the RBNZ left rates unchanged as expected but also forecasted growth accelerating to 2.5-3.0% in the next two years. Moreover, Gov Wheeler said global outlook is less threatening and China data is tracking stronger. In the absence of the dovish tone leaving the door open to more rate cuts, markets sent NZD up by about 50pips against the dollar to test a 4-week high above $0.83.
Elsewhere, Japanese yen remained under pressure across the board, most notably hitting an 8-month low against AUD, after Nikkei News earlier reported the LDP opposition party is expected to win more than half of the lower house's 480 seats in the December 16th elections. USD/JPY rose as high as ¥82.60 while EUR/JPY remained within an earshot of ¥108.
Currencies/Fixed Income/Commodities
JGB: (JP) Japan MoF sells ¥641B in 1.9% 30-yr JGBs; Avg yield: 1.931% v 1.934% prior, bid to cover: 4.08x v 5.10x prior
SLV: iShares Silver Trust ETF daily holdings rise to 9,829 tons from 9,790 tons (highest level since Nov 20th)
GLD: SPDR Gold Trust ETF daily holdings rise by 0.3 tons to 1,341.5 tons (record high)
AUD/JPY: Rises above ¥86.45; 8-month high
USD/CNY: (CN) China's CNY currency (Yuan) hits the upper limit of its daily 1.0% range on OTC market at 6.2282
(AU) Australia Nov Port Hedland iron ore exports m/m: 21.69M tons v 21.75M tons
Speakers/Political/In the Papers
(AU) HSBC chief economist Bloxham: Australia looks as though it is still close to full employment; May not see any more RBA rate cuts - SMH
(AU) Australia Fin Min Wong: Australia GDP growth demonstrates solid performance
(NZ) UBS economist: Market was looking for a more dovish statement from RBNZ, but had to conclude the statement was balanced - NZ press
(NZ) According to TD Securities, RBNZ will raise rates at its June 2013 meeting (previously forecasted Mar 2013) - financial press
(CN) China state economist Fan Jianping: China economy stabilizing; there is no 'V-shape' rebound - Chinese press
(CN) According to Shanghai Deovolente Realty Co, sales of pre-owned homes in Shanghai rose 21.6% m/m in Nov to 19.7K units - Shanghai Daily
(CN) China Academy of Social Sciences (CASS) analyst Yi Xianrong: China likely to set a lower 2013 GDP target to help minimize future risks amid rising global uncertainty - China Daily
(ID) Indonesia Fin Min: Sees Q4 GDP at 6.3% vs 5.9-6.3% prior forecast
(KR) South Korea Ministry of Land, Transport and Maritime Affairs: Nov cargo handling at local seaports rose 2.3% y/y to 1.87M TEUs - Korean press
(KR) Bank of Korea (BOK)'s Jung: Facility investment worse than expected in Q3
(KR) North Korea said to have increased security at Kim Jong-Un's residence - Korean press
Equities
CSL.AU: Exec: Affirms R&D spending increase of 15% in 2012 to over $400M - AFR
NSANY: To recall nearly 500k units in Japan - financial press
BRCM: Narrows Q4 Rev guidance to $2.0-2.1B v $2.05Be ($1.95-2.1B prior guidance); +1.0% afterhours
MW: Reports Q3 $0.95 v $0.97e, R$631.0M v $631Me; -9.7% afterhours
SAI: Reports Q3 $0.33 v $0.35e, R$2.87B v $2.85Be; -2.3% afterhours
ZNGA: Files for preliminary findings of suitability for a gaming license in Nevada - US financial press
GRMN: To replace RR Donnely in S&P500; +4.5% afterhours
DB: Deutsche Bank data said to have hidden some $12B in "mark-to-market" paper losses during financial crisis in 2007-09 - FT; -2.4% afterhours
DB: Responds to allegations in FT report; Finds material to be "wholly unfounded"