Economic Data
(JP) JAPAN NOV MERCHANDISE TRADE BALANCE TOTAL: -¥953.4B V -¥1.04TE; ADJUSTED MERCHANDISE TRADE BALANCE: -¥868.5B V -¥848.2BE (20th consecutive deficit); Exports y/y: -4.1% v -5.5%e; Imports y/y +0.8% v -1.5%e
(JP) JAPAN OCT ALL INDUSTRY ACTIVITY INDEX M/M: 0.2% V 0.2%E
(JP) Japan Oct Final Leading Index CI: 92.8 v 91.8 prelim; Coincident Index CI: 90.7 v 91.3 prelim
(US) North America NOV SEMI book to bill ratio: 0.79 v 0.75 prior (8th straight reading below parity, 1st m/m rise since March)
(US) API PETROLEUM INVENTORIES CRUDE: -4.10M V -1.0ME (largest draw since early Sept); GASOLINE: +4.18M V +1.5ME; DISTILLATE: -1.88M V +1ME; UTILIZATION: 91.6% V 90.5% W/W
(AU) AUSTRALIA NOV DEWR INTERNET SKILLED VACANCIES M/M: -3.5% (eight straight monthly decline) V -3.1% PRIOR
(AU) AUSTRALIA OCT WESTPAC LEADING INDEX M/M: 0.1% V 0.7% PRIOR (8-month low)
(NZ) NEW ZEALAND NOV SKILLED JOB VACANCIES M/M: -4.1%; TOTAL JOB VACANCIES M/M -2.7%
(NZ) NEW ZEALAND Q3 CURRENT ACCOUNT BALANCE (NZ$): -4.42B V -4.40BE (1-year high deficit); CURRENT ACCOUNT TO GDP RATIO YTD: -4.7% V -4.8%E
Markets Snapshot (as of 06:00 GMT)
Nikkei225 +2.1%
S&P/ASX +0.5%
Kospi closed
Shanghai Composite -0.3%
Hang Seng +0.7%
Mar S&P500 +1.2% at 1,447
Feb gold +0.3% at $1,676/oz
Jan Crude Oil -0.1% at $87.86/brl
Notes/Observations
Asian markets mostly ended the session in positive territory on renewed optimism that government officials in the US will reach a budget deal abating concerns related to the fiscal cliff. In particular the Nikkei225 rose by more than 2.0% bringing it over the 10,000 mark as speculation mounts that the Bank of Japan (BoJ) will add more easing at Thursday's rate decision. The newly elected Japanese government will try and push for more bond purchases and a higher inflation target by the central bank.
The USD extended its strong stance against the JPY as Japan reported a deficit for the fifth consecutive month, posting a record trade deficit with the EU.
The Korean financial markets were closed today due to the presidential elections with both candidates, the main opposition rival Moon Jea-in and ruling Saenuri candidate Park Geun-hye, in a dead heat. Regardless of the outcome, the election is expected to have minimal impact on the markets. Exit polls are expected to be released when voting ends at 09:00 GMT, with formal results expected early on Thursday.
Currencies/Fixed Income/Commodities
(AU) Australia MoF (AOFM) official Nicholl: European interest is growing in Australia govt bonds, incl pension, mutual funds - financial press interview
(JP) Japan MoF to sell ¥2.7T in 2-yr Notes on 26th Dec - financial press
(JP) Japan Iron and Steel Federation: Reports Japan Nov crude steel production m/m: 8.50M v 8.84M tons prior; -2.3% y/y
Speakers/Political/In the Papers
(JP) Japan LDP senior official: A supplementary budget of ¥10T is needed - financial press
(JP) Japan govt panel approves Japan Post housing loans with conditions - Yomiuri News
(CN) China top-4 banks' new yuan loans in H1 of Dec seen at nearly CNY79B; 2012 loans seen around CNY8.2T v CNY8.0T official target - Chinese press
(CN) China expected to allow Qualified Foreign Institutional Investors (QFII) to trade index futures by end of next month - financial press
(CN) China to pay approx CNY8.6B subsidies to renewable energy projects - Chinese press
(NZ) Moody's: Outlook for the New Zealand banking system is Stable
(PH) Philippines Budget Sec Abad: To release main portion of the 2013 budget in H1; May frontload the budget by PHP20B in Q1 - financial press
Equities
Adv Semiconductor 2311.TW: May report Dec rev of about NT$11.6-11.7B, down from NT$11.8B in Nov - DigiTimes
Billabong BBG.AU: Confirms proposal from consortium to acquire all shares at $1.10/shr; Cuts FY12 earnings forecast - financial press
Cathay Pacific 293.HK: Follow up: Union to start industrial action as early as tomorrow if there is no resolution at today's meeting - financial press
Nissan 7201.JP: Infiniti unit to invest approx £250M in the UK; to begin production at the Sunderland facility in 2015 - financial press
Alesco ALS.AU: Announces Duluxgroup acquires relevant interest in more than 90% of its shares - financial press
Virgin VAH.AU: Reports prelim Nov load factor 78.6% v 81.3% y/y
Sky City SKC.NZ: To spend over A$300M on upgrades following agreement with govt - New Zealand press
Air New Zealand AIR.NZ: Reports Nov Passengers +0.1% y/y
Fonterra FCG.NZ: S&P affirms rating at A+; Outlook Stable
HEICO [HEI]: Reports Q4 $0.45 v $0.43e, R$242.4M v $237Me
Apogee Enterprises [APOG]: Reports Q3 $0.28 v $0.24e, R$190.4M v $184Me
AIR: Reports Q2 $0.44 (adj) v $0.42e, R$513M v $550Me
LTRE: Reports Q4 -$0.37 v +$0.12 y/y, R$32.1M v $34.3M y/y
ORCL: Reports Q2 $0.64 v $0.61e, R$9.11B v $9.03Be; Guides Q3 Non-GAAP EPS $0.64-0.68 v $0.66e, Non-GAAP Rev +2-6% y/y v +4.6%e (implies $9.22-9.58B v $9.46Be)
KCG: Board said to have voted to pursue merger with Getco; rejected competing proposal from Virtu Financial - financial press
PFE: Said to be planning to lay off about 600 jobs in primary-care sales force in order to cut costs (less than 1% of workforce) - financial press
Tokyu Corp 9005.JP: Planning its first ever share buyback to take place sometime in FY14/15 when FCF is expected to turn positive - Nikkei News