Economic Data
- (SG) SINGAPORE OCT CPI M/M: -0.2% V +0.2%E; Y/Y: 4.0% V 4.5%E
- Nikkei225 closed for holiday
- S&P/ASX flat
- Kospi +0.6%
- Shanghai Composite +0.9%
- Hang Seng +0.5%
- Dec S&P500 +0.2% at 1,391
- Dec gold +0.1% at $1,729/oz
- Jan Crude Oil -0.2% at $87.18/brl
Overall trading activity across the financial markets was passive due to the federal holidays in Japan and the U.S. Despite the mediocre performance in the Australia ASX, most Asian equities performed to the upside. The Taiwan Taiex came out top gaining over 3% following comments on new stock market measures made by the Taiwan cabinet that implied that the National Stabilization Fund was prepared to buy local equities. Best performance in a year for the index
The Japanese yen strengthened against the dollar and most major currencies following weeks of decline by expectations the new Japanese govt will push for more dramatic stimulus. The JPY currency retraced its recent weakness after LDP party leader Abe, and next likely prime minister, hinted that he would be more unwilling to intervene in the currency markets according to Japanese press reports.
Currencies/Fixed Income/Commodities
- (MA) Malaysia Central Bank plans to sell MYR2.5B in 5-yr govt bonds on Thursday, 29th Nov.
- (JP) Japan LDP (opposition) leader Abe: Fx intervention ineffective, sees it is difficult to win international cooperation over fx intervention.
- (JP) Japan LDP (opposition) leader Abe: It is not necessary to revise BoJ law if it adopts the 2% inflation target.
- (GR) Greece creditors may compromise on 124% debt-to-GDP ratio by 2020. Bailout-loan rates are key obstacle to a deal; Greek debt repurchase funded by EFSF is an option; Greece Fin Min later added that €10B separated Greece from an agreement.
- (CY) Cyprus reached an agreement on bailout with EU/IMF/ECB troika - financial press
- Follow up: Greece Fin Min: €10B separate Greece from Agreement.
- (CN) China yuan trading band expected in Q1 - Chinese press
- (CN) China International Capital Corp (CICC) economist sees yuan appreciation not likely to persist - Chinese press
- (KR) US detects North Korea missile launch preparations; rockets could be fired this month. South Korea officials later said they were unable to confirm earlier reports; alert level remains unchanged.
- (AU) The IMF agreed with the Australian Securities and Investments Commission (ASIC) corporate regulator required additional funding to aid oversee markets and financial advisers, while stopping market collapses and hunting down criminals.
- (NZ) RBNZ released notes on manufacturing: Domestic manufacturing sales have been weak, curbed by weak construction industry.
- (IN) India Econ Affairs Secy Mayaram: Maintain deficit target of 5.3%. No decision yet on additional borrowing; to review FY13 borrowing plan in Jan-Feb if needed.
- (IN) India govt approves new drug policy; to cap prices on nearly 350 drugs - financial press
- OJI Paper 3861.JP per restructuring plans the firm plans to cut approx 2k jobs (approx 10% of workforce); also paper facilities may be shutdown - Nikkei News
- Japan regulator FTC fined four auto-parts makers for price fixing totaling ¥3.39B. Firms included Mitsubishi Electric and Mitsuba, Hitachi and Denso, an affiliate of Toyota.
- The top six Japan digital camera makers downgraded their FY12 global sales forecasts from three months ago with total cuts representing a 10% drop of 10.5M units; cites European crisis, Japan- Sino relations and smartphones.
- Warehouse Group WHS.NZ sees FY13 adj earnings likely to be higher than prior year; maintain dividend payout ratio at 90%; expects to provide update in March.
- Nikkei News survey finds Apple to win sales for winter season in Japan - Nikkei News
- Posco PKX: Denied report that it may sell stake in Roy Hill project - financial press
- Rio Tinto RIO.AU: Western Australia govt approves A$1.8 extension at Yandicoogina - financial press
- Nissan NSANY: China orders at approx 80% of prior year's orders, as effects from anti-Japan sentiment are abating; planning to expand into small cities in China.