Asian Market Update: February 17, 2012

(CN) China JAN Social Financing (CNY): 955.9B v 1.78T y/y

(KR) SOUTH KOREA DEC CONFERENCE BOARD LEADING ECONOMIC INDEX: 0.4% V -0.9% PRIOR

(SG) SINGAPORE JAN ELECTRONIC EXPORTS Y/Y: -10.9% V -7.0%E; NON-OIL DOMESTIC EXPORTS M/M: +0.9% V -9.0%E; Y/Y: -2.1% V -1.6%E

(JP) BANK OF JAPAN (BOJ) JANUARY 23-24TH MEETING MINUTES: SOME SAID YEN STRENGTH PERSISTING DUE TO EUROPE DEBT WOES, MONETARY EASING IN VARIOUS ECONOMIES

(CO) Colombia Dec Trade Balance: $1.2B v $110Me; Exports: $5.5B v $4.9B prior

Markets Snapshot (as of 05:30GMT)

Nikkei225 +1.6%

S&P/ASX +0.3%

Kospi +1.5%

Taiwan Taiex +0.3%

Singapore Straits Times +0.6%

Shanghai Composite +0.2%

Hang Seng +0.9%

S&P Futures unchanged at 1,354

April gold +0.4% at $1,734/oz

March Crude +0.2% at $102.53

Overview/Top Headlines

A four year low in US jobless claims and better than expected housing starts in additional to renewed optimism on a Greece bailout deal lifted the markets heading into the weekend. There was a renewed report saying the EU govts are considering cutting interest rates on emergency loans to Greece and using contributions from the ECB to plug new financing gaps in the second bailout. The improved risk appetite boosted metals, silver gained to $33.60, Copper to $3.83, for the first gain in over a week. USD/JPY hit a 3-month high at ¥79.18, The euro, pound, loonie and Swissie were all unchanged. A$ tried to breech the $1.08 level unsuccessfully while the NZ$ pulled up an additional 40 pips in the session to $0.8386. Bank of Japan (BoJ) Gov Shirakawa said that Japan is moving towards the end of deflation but still a long way to 1% inflation; There is not a lack of money in Japan just a lack of opportunities to invest. BoJ has clarified conditions for ending easing rather than a specific timing for exit. This is better than a specific time when price outlook is uncertain. In the past QE didn't have much impact on the economy.

Speakers/Geopolitical/In the press

(CN) China may allow local govt debt to be securitized under a pilot program - Chinese press

(JP) Japan Fin Min Azumi: Cabinet has approved plans to raise the sales tax; Will be submitted to the Diet in March

(NZ) RBNZ Gov Bollard: "Conservative statistical interpretations and particular characteristics of our economy have resulted in the understatement of New Zealand's economic performance"

Equities

ANZ.AU: Reports Q1 Net A$1.7B v A$1.4B y/y

STO.AU: Reports FY11 Net A$753M v A$762Me; Rev A$2.53B, +13.6% y/y

SGM.AU: Reports H1 Net loss A$557M v profit A$49.3M y/y; Rev A$4.59B v A$3.9B y/y; Chairperson Paul Varello to retire; effective March 1

Henderson, 12.HK: Chairman Lee: There is no evidence recently to suggest the residential property market is set for a sustainable rebound - HK press

Standard Chartered, 2888.HK: Yuan deposits in Hong Kong will grow at a slower rate in 2012 to CNY700-800B, +20-35% y/y - HK press

BBG.AU: Reports H1 Net A$16.1M; Rev A$849.8M; Confirms non-binding offer of A$3/shr from TPG vales company at A$766M

US Equities

AMAT: Reports Q1 $0.18 v $0.12e, R$2.19B v $2.0Be; +5.6% afterhours

BIDU: Reports Q4 $0.95 v $0.91e, R$710.9M v $709Me; +1.0% afterhours

JWN: Reports Q4 $1.11 v $1.09e, R$3.17B v $3.2Be; -0.9% afterhours

SPWR: Reports Q4 $0.16 v -$0.05e, R$749M (adj) v $668Me; +11.9% afterhours