Economic Data
(TH) THAILAND Q4 GDP Q/Q: 3.6% V 0.2%E; Y/Y: 18.9% V 15.0%E; ANNUAL GDP: 6.4% V 5.5%E
(AU) AUSTRALIA JAN NEW MOTOR VEHICLE SALES M/M: -2.4% V +2.7% PRIOR; Y/Y: 10.8% V 17.8% PRIOR
(SG) SINGAPORE JAN ELECTRONIC EXPORTS Y/Y: -5.6% V -0.5%E; NON-OIL DOMESTIC EXPORTS M/M: -1.8% V +9.7%E; Y/Y: +0.5% V +2.7%E
(NZ) NEW ZEALAND JAN PERFORMANCE SERVICES INDEX: 52.6 V 51.5 PRIOR (4th consecutive month in expansion)
(KR) SOUTH KOREA JAN PRODUCER PRICE INDEX (PPI): -1.6% V -1.2% PRIOR (biggest decline since Oct 2009)
(UK) UK FEB RIGHTMOVE HOUSE PRICES M/M: 2.8% V 0.2% PRIOR (4-month high); Y/Y: 1.1% V 2.4% PRIOR
Markets Snapshot (as of 04:30 GMT)
Nikkei225 +2.4%
S&P/ASX +0.5%
Kospi -0.2%
Shanghai Composite flat
Hang Seng -0.4%
Mar S&P500 flat at 1,517
Apr gold +0.3% at $1,614/oz
Mar Crude Oil -0.2% at $95.65/brl
Notes/Observations
Yen falls through ¥94 handle as G20 communique brushes against competitive devaluation in broad strokes without mentioning Japan.
Nikkei225 up over 2%, tracking weak yen.
PM Abe keeps BOJ foreign bond buying among policy options; Would revise BOJ law if it cannot achieve 2% inflation.
Former BoJ Dep Gov Muto remains front runner to replace Shirakawa; Seen as the less aggressive candidate who would only undertake a "conventional" approach.
S&P affirms Japan at AA-; Would cut rating if BOJ fails in dealing with deflation or if real funding costs increased.
Thailand Q4 GDP tops estimates; Maintains 2013 GDP outlook at 4.5-5.5%; Lifts inflation forecast to 3.2% from 3.0% midpoint.
Cyprus right-leaning candidate wins first round; Runoff against Communist party candidate expected next week.
Troika mulling bankruptcy for Cyprus under pressure from Germany, who does not see its banks systemically critical.
Speakers/Political/In the Papers
(CN) China Centaline Property Agency chairman Lai Ming-kai: If property prices rise too fast - 10% or more in H1 - policymakers may considre more tightening measures - SCMP.
(CN) Beijing may invest CNY227B in 240 major projects - Chinese press.
(CN) Fitch: Chinese Money Marker Funds (MMFs) assets remain at high levels, even as risk appetite returns.
(CN) China State economist Fan Jianping: Sees China 2013 CPI at 3.5% - financial press.
(CN) A number of flights delayed at Beijing Capital International Airport related to heavy smog today - Shanghai Daily.
(CN) China PBoC Outgoing gov Zhou: Expresses committment to structural rebalancing and boosting domestic demand - G20 comments.
(CN) Former PBoC advisor Li Daokui: China economy has missed a hard landing; Still a "number of forces on supply and demand side to push the economy reasonably fast" - CNN interview.
(CN) China retail spending during the Lunar New Year rose 14.7% y/y v 16.2% in 2012; slowest rate in 4 years - financial press.
(JP) Japan Fin Min Aso: JPY decline, stock market gains are result of monetary easing - addressing parliament.
(JP) BOJ Dep Gov Nishimura: BoJ pushing for power easing to reach the 2% inflation target - addressing parliament.
(JP) Three China vessels enter waters near disputed Japan Senkaku Islands - Japanese press.
(JP) Former BoJ Dep Gov Muto said to be still in the lead as the next BoJ chief; PM Abe may announce a nominee as early as this week - financial press.
(JP) Japan opposition parties object to upper house vote on extra budget - Japanese press.
(KR) Bank of Korea (BoK) bi-annual survey says Household Debt biggest risk to financial system.
(KR) South Korea sells 10-yr govt Bonds; avg yield 3.05%
(NZ) Real Estate Institute of New Zealand (REINZ): Rural property prices seeing median price per hectare of rural land rose 18% q/q in Oct-Dec quarter - financial press.
(AU) Revenue shortfall under Labor could turn surplus into A$10B deficit - Australia press.
(AU) Latest polling shows PM Gillard with 35% support vs Rudd, 45% support vs Abbott ahead of Sept elections - Australia press.
(IN) India Central Banker Subbarao: Inflation risks do not give much scope for monetary easing - G20 comments.
(CY) Troika officials (EC, IMF, ECB) said to be considering consequences of allowing Cyprus to go bankrupt - German press.
(CY) Cyprus right-wing leader Anastasiades (main opposition Disy party) secures 45.4% of first-round presidential election vote; to face left-wing candidate Malas (Communist party) in Feb 24th run-off.
(DE) Bundesbank calling for full supervisory powers over German banks - German press.
Currencies
USD/JPY rose above 93.80 early in Asian session as the G20 did not single out Japan regarding FX. The G20 draft does not include G7 statement language regarding the need to use fiscal and monetary policies only for domestic objectives.It doesn't include a commitment to avoid targeting FX rates, or mention fiscal targets, directly. USD/JPY continued it's upward trend throughout the session before breaking through the 94.00 level to a high of 94.10, it's highest level since Feb 12.
The AUD/JPY and NZD/JPY pairs are also above their Friday highs on the back of JPY weakness, this despite Australia showing poor New Motor Vehicle sales in the month of January. PM Key was sanguine about recent NZD strength, saying the high NZD was good for low inlfation and that it helped consumers. AUD/JPY and NZD/JPY also rose higher on the back of PM Abe's comments that the yen strength prolongs deflation, and still aware of the possibility of the BOJ buying foreign bonds.
Fixed Income/Commodities
(JP) S&P AFFIRMS JAPAN SOVEREIGN RATING AT AA-; OUTLOOK REMAINS NEGATIVE
(JP) Japan retail investors cut Australia bond holdings by $7B in Nov and Dec - financial press.
RUSAL: To shift to monthly settings of aluminum premiums instead of annual to track payments closer to market prices - SCMP.
ROSN.RU: CEO Sechin and China Vice Premier Wang Qishan said to have held talks on boosting oil deliveries from Russia to China.
(CN) According to C1 Energy, China NDRC may raise fuel prices by CNY360/ton after Feb 24th - financial press.
E&Y comments on global mining, metals in 2012: M&A activity declined, -7% in volume and -36% in value; Sees M&A pickup in 2013 given low valuations - financial press.
(IR) Iran Supreme Leader Khamenei: Iran has no intention to build nuclear weapons, but if it wanted to, US has cannot prevent it - financial press.
(SA) Saudi Arabia output for December said to have fallen 4.8% m/m to 9.03M b/d; exports fell 1.3% m/m to 7.06M b/d - financial press.
Equities
AUO: Reaches settlement with AT&T on anti-trust case - financial press.
Komatsu 6301.JP: CEO: Sees rebound in China construction in next fiscal year - financial press.
BA: Short term 787 fix could come this week - U.S. financial press.
LLC.AU: Reports H1 Net A$302.3M v A$217.8M y/y, Rev A$6.25B v A$5.79B y/y
BEN.AU: Reports H1 Net A$189.4M v A$57.9M y/y , Rev A$677.9M v A$602M y/y
BLY.AU: Reports FY12 Net A$68.2M v A$160M y/y, Rev A$2.01B v A$2.02B y/y
AMC.AU: Reports H1 Net A$238.3M v A$205M y/y, Rev A$6.03B v A$6.09B y/y
BSL.AU: Reports H1 Net loss A$12M v loss A$530M y/y, Rev A$3.7B v A$4.5B y/y