Asian markets again headed lower with continued concerns on the EU debt crisis, euro fell over a 1 month low below $1.3440 as bond yields continue to rise. Appetite for risk continues to be limited as markets worry that the crisis will continue to spread across the union with bonds yields going mostly unchecked and a weak Spanish bond auction yesterday.
USD/JPY remained unchanged after the Bank of Japan left interest rates unchanged. Even the cut in economic assessment did little to budge the persistently strong USD/JPY which kept a 15 pip range for the session. BOJ's outlook was about as expected, the economy will face adverse effect from slowdown overseas, appreciation of JPY, and flooding in Thailand. After that, economy will return to moderate recovery path as pace of recovery overseas picks up and reconstruction related demand after earthquake materializes.
PBoC advisor Li Daokui commented in the Chinese press that inflation will ease significantly to 2.8% in 2012, but govt is unlikely to loosen policy controls. Says 10% drop in housing would create more social problems than a 30% rise. Sees maximum 15% drop in China home prices. His views on inflation are similar to those of NDRC's Liu Gang. In a separate report China's Vanke said it may cut Shanghai home price listings by as much as 20%.
Speakers/Geopolitical/In the press
(US) New York Fed considering an increase in mortgage backed securities (MBS) collateral from primary dealers
(CH) China Commerce Ministry (MOFCOM) spokesperson: Not optimistic about early 2012 exports, facing increasing protectionism; Demand from Western economies is cooling
(JP) Japan Fin Min Azumi: Europe's stance will decide how much aid Japan will contribute; Considering support through the IMF
(HK) IMF: Sees Hong Kong 2012 CPI at 4-5% and GDP at 4% v 5.75% in 2011
Equities
Elpida Memory, 6665.JP: Exec: Confirms press speculation may implement further reduction of DRAM production due to falling prices
China Construction Bank, 939.HK: Singapore Sovereign Wealth Fund, Temasek, said to be interested in buying CCB shares that Bank of America is selling - HK Standard
DELL: Reports Q3 $0.54 v $0.47e, R$15.37B v $15.6Be; -0.5% after hours
A: Reports Q4 $0.82 v $0.81e, R$1.73B v $1.8Be; -3.1% after hours
C: Preparing to lay off 3K jobs (approx 1% of workforce) - US financial press
USD/JPY remained unchanged after the Bank of Japan left interest rates unchanged. Even the cut in economic assessment did little to budge the persistently strong USD/JPY which kept a 15 pip range for the session. BOJ's outlook was about as expected, the economy will face adverse effect from slowdown overseas, appreciation of JPY, and flooding in Thailand. After that, economy will return to moderate recovery path as pace of recovery overseas picks up and reconstruction related demand after earthquake materializes.
PBoC advisor Li Daokui commented in the Chinese press that inflation will ease significantly to 2.8% in 2012, but govt is unlikely to loosen policy controls. Says 10% drop in housing would create more social problems than a 30% rise. Sees maximum 15% drop in China home prices. His views on inflation are similar to those of NDRC's Liu Gang. In a separate report China's Vanke said it may cut Shanghai home price listings by as much as 20%.
Speakers/Geopolitical/In the press
(US) New York Fed considering an increase in mortgage backed securities (MBS) collateral from primary dealers
(CH) China Commerce Ministry (MOFCOM) spokesperson: Not optimistic about early 2012 exports, facing increasing protectionism; Demand from Western economies is cooling
(JP) Japan Fin Min Azumi: Europe's stance will decide how much aid Japan will contribute; Considering support through the IMF
(HK) IMF: Sees Hong Kong 2012 CPI at 4-5% and GDP at 4% v 5.75% in 2011
Equities
Elpida Memory, 6665.JP: Exec: Confirms press speculation may implement further reduction of DRAM production due to falling prices
China Construction Bank, 939.HK: Singapore Sovereign Wealth Fund, Temasek, said to be interested in buying CCB shares that Bank of America is selling - HK Standard
DELL: Reports Q3 $0.54 v $0.47e, R$15.37B v $15.6Be; -0.5% after hours
A: Reports Q4 $0.82 v $0.81e, R$1.73B v $1.8Be; -3.1% after hours
C: Preparing to lay off 3K jobs (approx 1% of workforce) - US financial press
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