Asian Equities Are Mixed With Focus On Outsized Gains In Japan

(JP) JAPAN JAN TOKYO CPI Y/Y: -0.6% V -0.6%E; TOKYO CPI EX-FRESH FOOD: -0.5% V -0.5%E

(JP) JAPAN DEC NATIONAL CPI Y/Y: -0.1% V -0.2%E; NATIONAL CPI EX-FRESH FOOD: -0.2% V -0.2%E (4-month low)

(PH) PHILIPPINES NOV TRADE BALANCE: -$1.59B V -$832M PRIOR; TOTAL IMPORTS: 2.2% v 4.3% PRIOR; TOTAL MONTHLY IMPORTS: $5.14B V $5.24B PRIOR (update)

(SG) Singapore Q4 private home prices +1.8% y/y; 2012 prices +2.8% y/y - financial press

(US) NORTH AMERICA DEC SEMI BOOK TO BILL RATIO: 0.92 V 0.79 PRIOR (9th consecutive reading below parity, 2nd m/m rise)

Markets Snapshot (as of 05:00 GMT)
Nikkei225 +2.1%

S&P/ASX +0.4%

Kospi -1.2%

Shanghai Composite -0.3%

Hang Seng -0.4%

Mar S&P500 -0.3% at 1,488

Feb gold -0.1% at $1,667/oz

Mar Crude Oil -0.1% at $95.83/brl

Notes/Observations
Asian equity markets are mixed, with much of the focus falling on outsized gains in Japan and steep declines in Korea. Traders squaring their USD/JPY longs in the wake of an underwhelming BOJ statement this week scrambled to get back in after more Japan cabinet officials gave the green light to the parity assault on ¥100, sending Nikkei225 back above 10,850. A fairly dovish "prequel" in the BOJ December meeting minutes that saw a voice in support of eliminating 0.1% paid on excess reserves, weak inflation figures, more comments defending the joint statement from Fin Min Aso, and ongoing expectations of better earnings from Japanese corporates on softer than anticipated yen have given equities plenty of tailwind to challenge 11,000 resistance, which would mark the highest level for the Nikkei since early 2010.

The Kospi appears to be on the opposite side of the coin, as currency strength and the impact of the FTA's reminded traders of the headwinds faced by Korean stocks. After a disappointing earnings report from Hyundai Motor overnight that saw shares fall over 2%, Samsung Electronics released a somewhat disappointing final Q4 report. Samsung guidance matched the caution from Apple earlier in the week, warning of slowing global smartphone markets while the outlook for PCs remained dim. Shares of Samsung Electronics are down nearly 3% late in the day.

Currencies/Fixed Income/Commodities
USD/CNY: (CN) PBoC sets yuan mid point at 6.2805 v 6.2181 prior close (weakest CNY setting since Jan 8th)

USD/JPY: Extending gains above ¥90.60; fresh 31-month high

EUR/JPY: Extending gains above ¥121 handle; 26-month high

SLV: iShares Silver Trust ETF daily holdings fall to 10,497 tons from 10,689 tons prior (lowest since Jan 15th)

GLD: SPDR Gold Trust ETF daily holdings fall by 2.4 tons to 1,331.7 tons (lowest since Oct 3rd)

(US) Weekly Fed Balance Sheet Assets Week ending Jan 23rd: $2.993T v $2.946T prior; M1: +$35.5B v -$17.3B prior; M2: -$26.6B v +$8.8B prior

(EU) George Soros: Euro is here to stay and likely to appreciate; yen depreciation from BOJ policy is "real" - Davos comments

Speakers/Political/In the Papers
(CN) PBoC: Q4 loans to the property sector rose 12.8% y/y and 0.6% q/q to CNY12.1T - China Daily

(CN) China's Jan new yuan loans may total CNY1-1.2T - Chinese Press

(CN) China incoming Pres Xi: Visit by Japan's New Komeito party leader Yamaguchi is important

(CN) China Labor Ministry: Dec urban registered jobless rate 4.1% vs. 4.1% in Sept

(CN) China's SAFE: May see large amount of FX flows in 2013 - financial press

(CN) Reports Dec China banks bought $169.6B in forex from clients; Sold $115.6B to clients; Net purchase of $54B

(CN) China Insurance Regulatory Commission (CIRC) prioritizing risk controls and consumer protection due to slowdown in insurance industry - Shanghai Daily

(CN) China Qualified Foreign Institutional Investors (QFII) given permission to trade index futures - Chinese press

(JP) Japan Fin Min Aso: BoJ move should not be criticized for currency manipulation

(JP) Japan govt may sell ¥43T in FY13/14, down from ¥44.2T in FY12/13 - Japan press

(JP) Japan could forecast 2.7% nominal GDP in FY13 - Japan press

(JP) Japan PM Abe seeking to accelerate debate on trade deals including TPP talks - Nikkei News

Equities
Samsung Electronics 005930.KR: Reports Q4 final Net KRW7.0T v KRW7.1Te, Op profit KRW8.84T v KRW8.80Te, Rev KRW56.1T v KRW56.2Te; -2.6%

Hyundai Motor 005380.KR: CFO Lee: Higher KRW hurting net profit, Japanese autos continue to benefit from weaker yen, aims to increas US sales by 4.4% in 2013

Kia Motor000270.KR: Reports Q4 Net KRW738B v KRW838Be; Op KRW404B v KRW621Be; Rev KRW11.3T v KRW11.4Te

KDDI 9433.JP: May report Q3 op profit around ¥155B, +32% y/y; Rev seen up slightly at ¥910B - Nikkei News

Nippon Steel 5401.JP: Toyota, Sumitomo Metal and Nippon Steel agree to cut sheet steel prices 4% - Nikkei News

Leighton LEI.AU: Thiess unit awarded 5-year A$175M water contract in Sydney

Alibaba 1688.HK: Partnering domestic retailers to build a nationwide logistics network to take advantage of online shopping growth - Shanghai Daily

FLEX: Reports Q3 $0.22 v $0.20e, R$6.12B v $5.99Be; -7.9% afterhours

MSFT: Reports Q2 $0.81(adj) v $0.75e, R$21.46B v $21.7Be; -1.5% afterhours

T: Reports Q4 $0.44 v $0.47e, R$32.6B v $32.2Be; -0.1% afterhours

JNPR: Reports Q4 $0.28 v $0.22e, R$1.14B v $1.13Be; +0.7% afterhours

CRUS: Reports Q3 $1.64 v $1.41e, R$310M v $282Me; +1.4% afterhours

SBUX: Reports Q1 $0.57 v $0.57e, R$3.8B v $3.83Be; +2.2% afterhours

KLAC: Reports Q2 $0.63 v $0.56e, R$673M v $633Me; +2.4% afterhours