Economic Data
(JP) JAPAN OCT TERTIARY INDUSTRY INDEX M/M: -0.1% V -0.4%E (first decline in 3 months)
(JP) Japan Oct Conference Board Leading Economic Index m/m: 92.7 v 93.2 prior
(JP) JAPAN NOV DOMESTIC CGPI M/M: 0.0% V 0.0%E; Y/Y: -0.9% V -0.9%E (smallest decline in 6 months)
(JP) JAPAN OCT MACHINE ORDERS M/M: 2.6% V 3.0%E; Y/Y: +1.2% V -5.0%E (first rise in 3 months); Japan govt cut machine orders assessment
(AU) AUSTRALIA OCT RBA CREDIT CARD BALANCES: A$49.0B V A$49.1B PRIOR; RBA CREDIT CARD PURCHASES: A$22.5B V A$19.5B PRIOR
(AU) AUSTRALIA DEC WESTPAC CONSUMER CONFIDENCE INDEX: 100.0 V 104.3 PRIOR; M/M: -4.1% V +5.2% PRIOR (first decline in 4 months)
(IN) INDIA OCT INDUSTRIAL PRODUCTION Y/Y: +8.2% V +5.1%E
(IN) INDIA NOV CPI Y/Y: 9.9% V 9.8% PRIOR
(KR) SOUTH KOREA NOV UNEMPLOYMENT RATE: 3.0% V 3.1%E
(KR) SOUTH KOREA OCT L MONEY SUPPLY Y/Y: 0.1% V 0.3% PRIOR; M2 Y/Y: 0.2% V 0.1% PRIOR
(KR) SOUTH KOREA NOV BANK LENDING TO HOUSEHOLDS (KRW): 461.6T V 460.5T PRIOR (2nd consecutive rise)
(SL) SRI LANKA CUTS REVERSE REPO RATE BY 25BPS TO 9.500% (NOT EXPECTED); CUTS REPURCHASE RATE BY 25 BPS TO 7.500%
Markets Snapshot (as of 05:00 GMT)
Nikkei225 +0.8%
S&P/ASX +0.2%
Kospi +0.3%
Shanghai Composite -0.1%
Hang Seng +0.2%
Dec S&P500 -0.1% at 1,429
Feb gold +0.1% at $1,711/oz
Jan Crude Oil flat at $85.80/brl
Notes/Observations
Asian equity markets are tracking higher after a pre-FOMC rally on Wall Street, shrugging the elevated geopolitical tensions following what appears to be a successful satellite launch by North Korea. After earlier reports indicated the North may be dismantling the rocket under pressure from China, Japanese media alerted the region of a launch sometime around 1am GMT, and Japan made no effort to intercept the missile as it said it may do.
The Japanese yen and Korean won briefly fell before paring those initial declines. Subsequently, North Korea confirmed other press reports that the satellite has been placed in orbit. In response, South Korea has called for an emergency meeting of the UN Security Council, while other nations, including China, condemned the launch.
Outside of the North Korean wrinkle, markets are fairly quiet ahead of FOMC meeting. Stateside, investors were once again disappointed by virtually no progress in the fiscal cliff negotiations. Late in the US hours, both parties were said to have made a counterproposal to the other to no avail.
Subsequently, House Speaker Boehner was said to have rejected the reduced $1.4T White House tax increase offer, as GOP scheduled another press briefing for 10am ET. In currencies, EUR/USD retreated below $1.30, USD/JPY edged higher above ¥82.60, while AUD/USD traded in a 20-pip range around $1.0530.
Currencies/Fixed Income/Commodities
USD/JPY: Rises to session highs above ¥82.60 after reports of a rocket launch; AUD/JPY: Extending gains above ¥87 handle, 8-month highs
(CN) China MoF sells 10-year Bonds; avg yield 3.5490%
(JP) BoJ operation to supply 6-month funds fails for the first time since Oct
(AU) Australia MoF (AOFM) sells A$800M in 2.75% 2024 Bonds; avg yield: 3.2905%; bid-to-cover: 3.34x
(AU) Australia Bureau of Resources and Energy Economics (BREE): Raises FY12/13 iron ore production forecast to 529M tons from 526M tons prior in Sept
GLD: SPDR Gold Trust ETF daily holdings fall by 1.9 tons to 1,351.4 tons (first decline since Nov 14th)
(US) API PETROLEUM INVENTORIES CRUDE: +4.27M V -1.5ME (largest build since late Aug); GASOLINE: +2.76M V +2.5ME; DISTILLATE: +2.24M V +1.5ME; UTILIZATION: 90.5% V 89.6% W/W
Speakers/Political/In the Papers
(CN) China state researcher forecasts 2013 Foreign Direct Investment (FDI) to rise 3% - financial press
(CN) China to highlight urbanization at upcoming central economic meeting; Economic policy to remain unchanged - financial press
(CN) China Railway Ministry reports fixed asset investment in railway construction to Nov +3.1% y/y - Chinese press
(CN) According to NEA, China power consumption in Nov rose about 9% y/y to 420B KWH - China Daily
(SG) Singapore Central Bank survey of economists: Sees Singapore 2012 GDP to grow by 1.5%, 2013 by 2.7% - financial press
(HK) IMF releases report on Hong Kong: Sharp rise in house prices raises risk of abrupt correction
(JP) Japan LDP-New Komeito expected to win 300+ seats in the Lower House - Mainichi News
Equities
BHP: To sell stake in Browse LNG for approx $1.63B in cash - financial press
RIO: Rio Tinto and Anglo American sell their combined stake of 74.5% in South Africa's copper producer Palabora Mining to Chinese investors for A$446M - The Australian
BLD.AU: To raise prices for concrete by $14/cm and premium aggregates by $5/ton - AFR
MAH.AU: Looking to raise A$80.7M; Guides FY13 Net profit nil-A$25M; mining Rev A$1.2B; FY14 Rev A$1.4B
TM: Pres Toyoda: Autos are still a growth industry; Global production is growting 4% annually - Nikkei News interview
Canon CAJ: Planning to cut ¥70-80B in costs in FY13; About 20% cost reduction at ¥60B expected in FY12, down from ¥100B prior target - Nikkei News
Mitsubishi Motors 7211.JP: Withdrawing from Europe operations will add ¥15B to profit - Japanese press
Panasonic PC: Will sell the Sanyo electric digital camera business to Advantage Partners LLP in March - Japan press
Obayashi 1802.JP: Develops new soil remediation technique requiring 30% less time and funding than current methods - Nikkei News
DD: Guides FY12 "in the high range of $3.25-3.30 v $3.30e"; Approves $1B share buyback program (approx 2.5% of market cap); +2.4% afterhours
WMB: Agrees to Invest up to $2.4B in Access Midstream Partners GP and LP; Affirms Guidance for 20% Annual Dividend Growth; -3.5% afterhours
CMI: Announces New $1B Stock Repurchase Program (5% of market cap); +0.7% afterhours