Economic Data
(KR) SOUTH KOREA DEC CURRENT ACCOUNT: $4.0B V $4.6B PRIOR (3-month low); GOODS BALANCE: $3.9B V $4.0B PRIOR
(NZ) NEW ZEALAND DEC PERFORMANCE SERVICES INDEX: 50.6 V 56.2 PRIOR
(UK) UK JAN HOMETRACK HOUSING SURVEY M/M: 0.0% V -0.2% PRIOR (9-month high); Y/Y: -1.6% V -2.1% PRIOR (13-month high)
(PH) PHILIPPINES Q4 GDP Q/Q: 0.9% V 0.1%E; Y/Y: 3.7% V 3.8%E; 2011 GDP Y/Y: 3.7% V 3.7%E
(CN) Shanghai new home sales -89.2% w/w; Prices -40.9% w/w - UWIN
Markets Snapshot (as of 05:30GMT)
Nikkei225 -0.6%
S&P/ASX -0.4%
Kospi -1.3%
Taiwan Taiex +2.4%
Singapore Straits Times -0.8%
Shanghai Composite -0.6%
Hang Seng -0.6%
S&P Futures -0.5% at 1,305
Feb Gold unchanged at $1,732/oz
March Crude -0.5% at $99.11
Overview/Top Headlines
Markets were all negative with the exception of Taiwan rising nearly 3% in its first day back from New Year break. Strong earnings from Apple while the Taiex was closed pushed component maker Hon Hai to limit up. The remaining markets were all down 0.5% or more, tracking softer close from Wall Street on Friday with lower than expected US GDP data and the continued inability for a Greek solution to be reached. Markets are also cautious ahead of the EU summit, where it is expected that an agreement will be signed for the ESM. Over the weekend Greece rejected Germany's call to allow them to take over budget and economic planning for the country. EUR/USD fell over 50 pips testing $1.3165. The continued strong yen weighed on Japan, PM Noda warned that Japan would take appropriate action if needed in the forex markets, EUR/JPY was the big mover testing ¥100.97. AUD/USD fell over 90 pips to $1.0565. Shanghai and Hong Kong were weighed down back the lack of expected PBoC action on cutting the RRR over the Lunar New Year.
Speakers/Geopolitical/In the press
USD/CNY: (CN) China Premier Wen: Government will enhance elasticity of yuan exchange rare in both directions - Chinese press
(CN) According to Beijing Municipal Commission of Housing and Urban-Rural Development there were no housing deals in Beijing during the Lunar New Year, the first time in 3-years - HK press
(DE) German Fin Min Schaeuble: Steady policies are more likely to restore confidence in the EU than big bazookas - interview with financial press
(KR) South Korea delegation planning a meeting with S&P in order to avoid a possible sovereign downgrade - Korean press
(CN) Former China Lawmaker Siwei: China should adjust deposit rates; Sees 2012 CPI above 5%
(NZ) New Zealand PM Key: Sees significant demand for New Zealand bonds from China; Concerned over FX rates, difficult for exporters to compete above $0.75 - US financial press
(GR) Troika officials have increased their estimates for the 2nd bailout package for Greece by €15B to €145B due to deteriorating economic situation
(CN) PBoC new loans to property developers in 2011 fell 38% from 2010 to about CNY1.26T
(FR) France Pres Sarkozy: 2011 public deficit may be 5.3-5.4% of GDP; Confirms to propose a 1.6% increase in sales tax to 21.2% for finance relief on companies from rising social spending; Announces competitiveness accord
(FR) France President Sarkozy: Confirms plans to raise VAT by 1.6% to 21.2%; to introduce a 0.1% tax on financial transactions (tobin tax), effective Aug 1st - National TV speech
Equities
Cannon, 7751.JP: Reports FY11 Net ¥248.6B v ¥246Be, Op Profit ¥378.1B v ¥375Be, Rev ¥3.56T v ¥3.7Te
OST.AU: Govt to give A$64M under the Competitive Assistance Advance; To use funds to maximize productivity
004940.KR: As expected Hana Financial given approval to acquire Lone Star's stake in KEB - Korean press
ROC.AU: Reports Q4 Rev A$776.4M; Production 0.713 MMBOE, +7% q/q
Bank of China Hong Kong, 2388.HK: Has been assigned the handle the yuan clearing business of Malaysia - Chinese press