Economic Data
(AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 4.25%, NOT EXPECTED
(NZ) NEW ZEALAND Q4 AVERAGE HOURLY EARNINGS Q/Q: 0.0% V 0.5%E; PRIVATE WAGES EX-OVERTIME Q/Q: 0.7% V 0.5%E (3-year high); INCLUDING OVERTIME Q/Q: 0.7% V 0.5%E
AU) AUSTRALIA JAN AIG PERFORMANCE OF CONSTRUCTION INDEX: 39.8 V 41.0 PRIOR (first decline in 4 months; 20th month of contraction)
(IN) INDIA Q1 ADVANCED GDP ANNUALIZED Y/Y: 6.9% V 7.0%E
(JP) JAPAN DEC PRELIMINARY LEADING INDEX: 93.8 V 93.8E; COINCIDENT: 93.2 V 93.1E
(UK) UK JAN BRC SALES LFL Y/Y: -0.3% V -0.8%E
(PH) PHILIPPINES JAN CONSUMER PRICE INDEX (CPI) M/M: 0.4% V 0.5%E; Y/Y: 3.9% V 4.0%E
(KR) SOUTH KOREA JAN DEPARTMENT STORE SALES Y/Y: -4.2% V +11.0% PRIOR
(JP) JAPAN JAN OFFICIAL RESERVE ASSETS: $1.31T V $1.30T PRIOR
(PH) PHILIPPINES JAN FOREIGN RESERVES: $77.0B V $75.1B PRIOR
(RU) RUSSIA JAN OFFICIAL RESERVE ASSETS: $505.4B V $505.0BE
(ID) Indonesia Jan Foreign Reserves: $112.0B v $110.1B prior
(ID) Indonesia Jan Net Foreign Assets (IDR): 980.8T v 965.9T prior
(ZA) South Africa Jan Foreign Reserves: $41.7B v $39.9B prior
Markets Snapshot (as of 05:30GMT)
Nikkei225 -0.4%
S&P/ASX -0.5%
Kospi +0.3%
Taiwan Taiex +0.2%
Singapore Straits Times +0.3%
Shanghai Composite -1.9%
Hang Seng -0.2%
S&P Futures unchanged at 1,339
April gold -0.1% at $1,723/oz
March Crude -0.1% at $96.86
Overview/Top Headlines
Markets were subdued across the region ahead of the key Reserve Bank of Australia rate decision. However after the RBA, in a surprise move, kept rates unchanged at 4.25% the markets tumbled, with the ASX falling 0.4%, key trading partner China saw the Shanghai Composite fall nearly 2%. The AUD/USD rose over 90 pips testing $1.08, a 6-month high. The RBA said there were reduced risks from Europe and borrowing rates had declined to levels close to medium term average. RBA also thought that the inflation outlook provided for easier policy. Markets also remained under pressure from the thorn in the side of Europe, Greece, and its inability to come to a solution; this is also counteracting stronger economic data out of the US.
Adding insult to injury Greek PM Papademos and other politicians delayed a key meeting on reforms required by creditors adding more frustration to the situation ahead of a 24 hour strike in Greece today. Mixed earnings out of Asia-Pacific are also muddling any strong move to the upside.
EUR/USD remained slightly weaker awaiting the outcome in Greece. USD/JPY bounced around in a tight range after the Japan MoF released Q4 intervention data which showed 5 days of intervention in Nov, spending ¥1.02T on stealth intervention with yen selling in the period. Also weighing on China shares were cautious comments from China's MIIT and IMF's projection that China GDP could be cut in half from 8.2% if the European situation got worse. Commodities were weaker across the board with heavy pressure on copper and silver.
Speakers/Geopolitical/In the press
(CN) CBRC: China is not likely to liberalize 1-year deposit rates this year - China Daily
(KR) Bank of Korea (BoK): Economy will return to a modest pace of accelerating growth in H2; Jan inflation fall mainly due to high 2011 figures
(NZ) New Zealand Treasury: Outlook is weaker than in pre-election update; Q4 GDP likely to be 0.6% q/q vs 0.8% in Q3
(JP) Japan Fin Min Azumi: Cannot rule out any currency options; Concerned about Greece's problems; Japan needs to strengthen its cooperation with China
(CN) According to China Real Estate Index System 37 mainland developers each booked property sales exceeding CNY10B in 2011 v 35 companies in 2010 - HK press
(JP) Bank of Japan (BoJ) Gov Shirakawa: Reiterates will make strong effort to combat deflation; BoJ has been supplying plenty of liquidity to the market
(CN) China Industry Ministry: Steel industry profits in China to narrow because weaker demand and higher input costs; Still expects relatively rapid industrial output growth in 2012, but modest slowing possible
Equities
Advanced Semiconductor Engineering, 2311.TW: Reports Jan consolidated Rev NT$13.6B v NT$14.9B m/m, -13.1% y/y
KUB: Reports 9-month Net ¥42.8B v ¥44.1B y/y, Op Profit ¥76.8B v ¥69.0B y/y, Rev ¥730.6B v ¥680.0B y/y
TM: Reports Q3 Net ¥80.9B v ¥61Be, Op Profit ¥149.7B v ¥96Be, Rev ¥4.86T v ¥4.9Te; Raises FY11/12 guidance and production targets
Korean Air, 003490.KR: Exec: Was a difficult year for the freight market; Saw no drop in bookings after wing cracks on A380
TCL.AU: Reports H1 Net profit A$93.2M, +24.8% y/y; Rev A$571M, +23.1% y/y
COH.AU: Reports H1 Net loss A$20.4M (ex-recall costs A$80.2M) v profit A$87.2M y/y; Rev A$387.5M v A$377M y/y
MQG.AU: Guides FY12 Net profit 25% lower than FY11 (implies A$717M); Announces plans to start 10% share buyback program in H1 FY13
US Equities
YUM: Reports Q4 $0.75 v $0.74e, R$4.11B v $4.0Be; +2.2% afterhours
APC: Reports Q4 adj $0.85 v $0.62e, R$3.84B v $3.3Be; +1.4% afterhours
CSTR: Reports Q4 $1.00 v $0.64e, R$520.5M v $498Me; Redbox to acquire the assets of NCR's Entertainment Line of Business for up to $100M; +16.9% afterhours