Economic Data
(CN) CHINA JAN HSBC FLASH MANUFACTURING PMI: 48.8 V 49.0 PRIOR (3rd consecutive contraction)
(AU) AUSTRALIA Q4 EXPORT PRICE INDEX Q/Q: -1.5% V -2.0%E (first decline since Q4 of 2010); IMPORT PRICE INDEX Q/Q: 2.5% V 0.6%E (highest since Q3 of 2010)
(JP) JAPAN DEC CONVENIENCE STORE SALES Y/Y: 4.1% V 7.5% PRIOR
(JP) JAPAN NOV ALL INDUSTRY ACTIVITY INDEX Y/Y: -1.1% V -0.9%E
(JP) JAPAN NOV FINAL LEADING INDEX: 93.2 V 92.9 PRELIM; COINCIDENT INDEX: 90.3 V 90.3 PRELIM
(CO) COLOMBIA NOV INDUSTRIAL PRODUCTION Y/Y: 6.5% V 5.2%E; RETAIL SALES Y/Y: 1.3% V 5.9%E
Markets Snapshot (as of 06:00GMT)
Nikkei225 +1.5%
S&P/ASX +0.6%
Kospi +1.8%
Taiwan Taiex closed
Singapore Straits Times Index +1.0%
Shanghai Composite +1.0%
Hang Seng +0.5%
S&P Futures unchanged at 1,310
Feb Gold +0.1% at $1,655/oz
March Crude +0.2% at $100.78
Overview/Top Headlines
Asian equity markets traded positively due positive news around the world. In the last trading day ahead of Chinese New Year, on the back of stronger US earnings from the major tech and financial names and strong bond auctions out of the EU, markets found their footing. This second day of positive news from the US gave some additional affirmation that the US may be pulling out of its economic slump. Both Bank of America and Morgan Stanley beat analysts' estimates causing the major Japanese banks, Mizuho, Mitsubishi UFJ and Nomura to gain over 5%. Currencies stayed little changed in the session with some brief limited dollar strength around mid-session, then heading into the European open the dollar weakened. Some of the strength in China is being attributed to reverse repo action this week alleviating cash shortages heading into the holiday. PBoC actions allowed companies to pay out new year bonuses, analysts warn that there could be a slump when the festivities are over. Press reported that China Q1 bank lending may surpass CNY2.26T.
Commodities continued to gain as well, not weighed down over the little change in HSBC flash manufacturing PMI of 48.8 v 48.7 in December. The contraction reading indicates that China should continue to policies that will encourage growth. Noticeably there was no fresh chatter about the PBoC cutting the RRR ahead of the holiday.
Speakers/Geopolitical/In the press
(CN) China State Council proposal indicates that local Govts could gradually invest 10-20% (estimated to be CNY180-360B) of provincial and large city pension fund assets into the local stock markets HK press
(JP) Japan Econ Min Furukawa: Raising electricity prices will take off 0.1-0.2% from GDP
(CN) China 2011 urban unemployment rate 4.1%; Unchanged from 2010 and below 5% target from 2011-2015 - Chinese press
(KR) South Korea ruling party looking to ease mortgage debt by 1M 'jeonse' and 'wolse' tenants to help lower income households - Korean press
USD/CNY: Hong Kong banks have tripled deposit rates in CNY on strong demand for yuan-denominated loans - SCMP
(NZ) Stats New Zealand: Decline in Q4 CPI attributed to larger than normal decline in vegetable prices; To keep RNBZ from tightening policy for the rest of 2012 - NZ Herald
Equities
Industrial and Commercial Bank of China, 1398.HK: Investment banking unit may lay off more than 20% of its staff in the near term - HK press
BCI.AU: Reports Q2 production 681.1K tons; Shipments 683.7K tons
US Equities
GOOG: Reports Q4 $9.50 v $10.49e, R$8.13B v $8.4Bep; -9.0% after hours
INTC: Reports Q4 $0.68 v $0.61e, R$13.89B v $13.7Be; +0.7% after hours
AXP: Reports Q4 $1.01 v $0.98e, R$7.74B v $7.9Be; -2.1% after hours
IBM: Reports Q4 $4.71 (adj) v $4.62e, R$29.5B v $29.7Be; +2.7% after hours
MSFT: Reports Q2 $0.78 v $0.76e, R$20.9B v $20.9Be; +2.4% after hours