Economic Data
(IN) RBI LEAVES CASH RESERVE RATIO (CRR) UNCHANGED AT 4.25%; NOT EXPECTED
(IN) INDIA CENTRAL BANK (RBI) LEAVES REPO RATE UNCHANGED AT 8.00%; AS EXPECTED
(CN) CHINA NOV ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: -5.4% V -3.1%E; YTD: -3.6% V -3.5% PRIOR (11th consecutive month of decline)
(CN) CHINA NOV NEW HOME PRICES M/M: FELL 10 OF 70 CITIES V 17 PRIOR; Y/Y: FELL 41 OF 70 CITIES V 55 PRIOR; M/m home prices rose in 53 of 70 cities, higher than 35 cities that recorded an increase in October
(AU) AUSTRALIA OCT CONFERENCE BOARD LEADING INDEX: +0.2% V -0.4% PRIOR (first rise in 3 months)
(JP) JAPAN NOV NATIONWIDE DEPT SALES Y/Y: +2.2% V -2.4% PRIOR; TOKYO DEPT STORE SALES Y/Y: +3.1% V -1.5% PRIOR
(PH) PHILIPPINES OCT UNEMPLOYMENT RATE: 6.8% V 7.0% PRIOR
Markets Snapshot (as of 05:30 GMT)
Nikkei225 +1.2%
S&P/ASX +0.5%
Kospi +0.3%
Shanghai Composite +0.6%
Hang Seng +0.2%
Mar S&P500 +0.3% at 1,431
Feb gold +0.3% at $1,704/oz
Jan Crude Oil +0.7% at $87.79/brl
Notes/Observations
Asian equity indices are in the green across the board, as risk appetite spanned global markets on the nudge ever-closer to a budget deal in Washington. US President Obama has lowered his threshold for additional tax revenues once again from $1.4T to $1.2T and also raised the annual income threshold for higher marginal tax rates for earners above $400K from prior $250K bracket. Recall House Speaker Boehner said he would agree to higher taxes on earners with over $1M in annual income, but the White House suggested this tax base would do little in tackling the budget imbalances.
The response of the former to this latest offer was lukewarm, as Boehner aide said the proposal was still unbalanced. However, analysts note that the back-and-forth is now more about the numbers than ideology, boosting expectations of a deal before the dreaded fiscal cliff is triggered at the start of the new year.
Reserve Bank of Australia released the minutes of its December meeting when it matched expectations of a 25bp rate cut. After the initial drop, AUD was bid higher above $1.0550 as traders took note of a neutral statement acknowledging more positive global conditions and signs of stability in China. RBA does remain concerned on the domestic front, citing soft labor market and downbeat mining investment, but also reiterated the recent easing steps may not be fully reflected in the economy.
Shanghai Composite see-sawed throughout the session, opening lower, trading up on US fiscal cliff resolution optimism, and then returning to unchanged territory amid some weakness in the housing sector. China November homes data was impressive, as prices rose in 53 of 70 major cities, well above 35 that saw an increase in the prior month. The data will confirm close oversight of housing space by the new govt and should keep the 2012 property market curbs effectively in place for an extended period.
USD/JPY pair briefly rose above ¥84 handle on reports that BOJ Gov Shirakawa would visit with PM-elect Abe, but pared those gains after the former said the two did not discuss monetary policy. BOJ starts its 2-day meeting tomorrow and is widely expected to discuss the 2% inflation target proposed by the incoming administration.
Currencies/Fixed Income/Commodities
(JP) Japan's MoF sells ¥1.10T 20-yr 1.7% JGBs; Avg yield: 1.737% v 1.681% prior; bid-to-cover: 3.11x v 3.67x prior
(JP) Japan Iron and Steel Federation: Sees steel production to decline in FY13
(JP) Fitch: Fiscal consolidation delay would weigh on Japan sovereign rating; delay in sales tax hike would be credit negative
GLD: SPDR Gold Trust ETF daily holdings fall by 0.9 tons to 1,350.5 tons (2-week low)
Speakers/Political/In the Papers
(CN) China PBoC survey: 58.5% of households consider consumer prices high, inflation expectations are rising; 66.6% of households consider property prices too high; 29.2% expected it to rise - financial press
(CN) China Commerce Ministry's (MOFCOM) Shen: China economy likely to rebound further in 2013, FDI to remain stable
(CN) China said to have set 2013 inflation (CPI) target at 3.5% v 4.0% target in 2012 - financial press
(CN) China 2013 new loans target may be set at CNY9T vs CNY8T for 2012 - Chinese press
(CN) Shanghai outstanding loans in Nov rose 10.3% y/y to CNY4.1T across all currencies, up from 9.5% rise in Oct - Shanghai Daily
(CN) Shanghai Stats Bureau: Nov CPI remained at 2.0% y/y; Industrial Production fell 4% y/y to CNY 264.6B - Shanghai Daily
(CN) According to Shanghai Deovolente Realty Co, Shanghai new home sales last week rose 26.1% to 237.5K sqm; Avg price sold rose 4.7% to CNY22.2K/sqm - Shanghai Daily
(CN) UBS: China govt to set 7.0-7.5% 2013 GDP target, down from 8.0% target in 2012 - China Daily
(CN) According to the 2012 Annual Report on Chinese International Migration, China business owners are increasingly looking at investing overseas - China Daily
(CN) China Land and Resources Ministry official: To maintain property curbs
(NZ) New Zealand Fin Min English: Lowers growth outlook to avg 2.5% over five years; To return to budget surplus of NZ$66M in 2014/15 - press conf
FCG.NZ: Follow-up: Trading Among Farmers (TAF) share trading scheme received 89.5% of support in yesterday's shareholder meeting, well above the 75% support needed to make constitutional changes - NZ press
(NZ) New Zealand think tank NZIER sees gradual recovery - Dominion Post
(AU) HSBC chief economist Bloxham: RBA meeting minutes suggest the decision to cut was close; RBA considered holding rates steady - SMH
(JP) According to a Nikkei survey, 35% of corporate business leaders are concerned LDP may provoke China by pushing ahead with plans to create a full-fledged military force - Nikkei News
(JP) DPJ policy chief Hosono seen as the most likely prospect to replace outgoing PM Noda as the head of the DPJ - Nikkei News
(US) US Senator Daniel Inouye (D-HI) passed away following respiratory complications - financial press
Equities
1299.HK: Confirms AIG sold its remaining 1.65B share stake in AIA at HK$30.30/shr for gross proceeds of about $6.45B
Takashimaya 8233.JP: May report 9-month op profit up 17% y/y to ¥14.5B; Rev seen +2% y/y at ¥630B - Nikkei News
TM: Global vehicle sales expected to reach 9.7M units in 2012 - Japan press (NOTE Oct 22nd: Global output in calendar 2012 now estimated at 9.8-9.9M units, below 10.05M prior target)
STLD: Guides Q4 $0.12-0.16 ex items v $0.11e
BA: Raises quarterly dividend by 10% to $0.485 from $0.44 (yield 2.6%); Resumes $3.6B share repurchase program (6.4% of market cap)