Economic Data
(CN) CHINA OCT INDUSTRIAL PROFITS YTD Y/Y: +0.5% V -1.8% PRIOR (first rise in nine months); OCT Y/Y: +20.5% v +7.8% prior (2nd consecutive rise)
(NZ) NEW ZEALAND OCT TRADE BALANCE (NZ$): -718M V -450ME (3rd consecutive deficit); EXPORTS: 3.5B V 3.7BE; IMPORTS: 4.2B V 4.2BE
(NZ) NEW ZEALAND Q4 RBNZ 2-YEAR INFLATION EXPECTATION Q/Q: 2.3% V 2.3% PRIOR
(AU) AUSTRALIA PRELIM Q3 ADJ CURRENT ACCOUNT DEFICIT A$4.65B, -0.2% y/y
(AU) AUSTRALIA Q3 CBAHIA HOUSE AFFORDABILITY Q/Q: 65.8 V 62.5 PRIOR (7th consecutive quarter of increase)
(JP) JAPAN OCT CORPORATE SERVICE PRICE INDEX Y/Y: -0.7% V -0.6%E (5th consecutive and largest decline since June 2011)
(PH) PHILIPPINES SEPT TRADE BALANCE: -$483M V -$1.26B; TOTAL IMPORTS: +3.6% V -0.4% PRIOR; TOTAL MONTHLY IMPORTS: $5.3B V $5.1B PRIOR
(TH) THAILAND OCT MANUFACTURING PRODUCTION INDEX Y/Y: 36.1% V 29.3%E
Markets Snapshot (as of 04:30 GMT)
Nikkei225 +0.3%
S&P/ASX +0.6%
Kospi +0.9%
Shanghai Composite -1.0%
Hang Seng +0.1%
Dec S&P500 -0.2% at 1,406
Dec gold +0.1% at $1,750/oz
Jan Crude Oil +0.3% at $88.02/brl
Notes/Observations
Modest risk-on sentiment persisted for much of the Asia session after eurozone fin mins and IMF ironed out their differences on Greek debt sustainability, thus unfreezing some 34.4B euro tranche to be paid to Athens some time next month. The program is forecasted to reduce Greece debt by about €40B to 124% of GDP by 2020 and below 110% by 2022.
100bps loan interest rate reductions and EFSF debt payment extensions were the primary components of the deal announced by EU's Juncker, briefly sending AUD/USD above $1.0480 (2-month highs) and EUR/USD above $1.30 (4-week highs). Traders quickly squared the euro longs after indication that lenders would not see any haircuts, sparking concerns over the sustainability of the indebted Greek state.
Japanese yen weakened across the board late in the day after LDP opposition leader Abe mounted a defense against his position for more aggressive measures by the BOJ. Abe said that the current 1% inflation target is not enough and also cited closer government-central bank cooperation in other countries to achieve price targets.
Earlier in the day, the head of Japan's major business lobby (Keidanren) attacked Abe and his suggestion for BOJ to buy govt bonds as "reckless." Abe and PM Noda are still expected to face off in a pre-election debate later this week. USD/JPY gained over 20pips above ¥82.20 following Abe comments.
Currencies/Fixed Income/Commodities
(CN) China's CNY currency (Yuan) hits the upper limit of its daily 1.0% range on OTC market at 6.2223 (new record high for CNY)
(CN) China Ministry of Industry and Information Technology (MIIT): China gold output may rise to 420-450 tons by 2015, up 25% from 2011 - financial press (update)
(IN) Moody's: India rating outlook Stable
(KR) South Korea Fin Min official: To inject more liquidity to fx market if required; to announce regulations regarding bank fx forwards soon - financial press
JGB: (JP) Japan MoF sells ¥2.49T in 0.1% 2-yr bonds, Avg Yield: 0.096% v 0.098% prior; bid to cover: 13.87x v 14.94x prior
FCG.NZ: Sets pricing ahead of the launch of trading among farmers at NZD 5.50/unit
Speakers/Political/In the Papers
(JP) Japan LDP (opposition) leader Abe: Reiterates BoJ needs to pursue bold monetary easing; govt, BoJ can talk about new inflation target
(JP) Japan Fin Min Jojima: Reiterates that size cannot be stated at this time
(JP) Japan considering 2nd economic stimulus of ¥880B - financial press
(JP) Japan business lobby (Keidanren) head Yonekura: LDP Abe's call for BOJ to buy govt bonds is "reckless" - financial press
(CN) China state researcher Fan Jianping: Forecasts 2013 GDP at around 8% - Chinese press
Asia Equities
CSL.AU: Raises FY13 net profit guidance to +20% y/y from +12% prior
MGR.AU: May sell at least A$100M in 5-year AUD-denominated bonds - financial press
FMG.AU: All postponed ventures could be revived in 2013 - The Australian
023530.KR: Lotte Mart to open 2 more stores in Vietnam this year - Korean press
Mitsubishi Heavy 7011.JP: Receives Full-turnkey Order to Build Coal-fired Power Plant in Chile - Fifth Plant Ordered by Empresa Elctrica Guacolda; no terms disclosed
Tepco 9501.JP: Received ¥93.2B from govt compensation fund - financial press
AUO: Apple said to have requested the halt of panel production for iPad Mini - financial press
Wuhan Iron 600005.CN: Plans to raise $2.4B through private placement - Chinese press
DG: To be added to S&P500 after the close of trading on Friday, November 30