Asian Market Update

Soft Australia housing data supports dovish RBA stance ahead of tomorrow's decision; China non-manuf PMI nudged higher
Economic Data

(CN) CHINA JAN NON-MANUFACTURING PMI: 56.2 V 56.1 PRIOR (11TH STRAIGHT MONTH OF EXPANSION, 5-MONTH HIGH) - UPDATE

(AU) AUSTRALIA DEC BUILDING APPROVALS M/M: -4.4% V +1.0%E; Y/Y: 9.3% V 14.9%E

(AU) AUSTRALIA JAN ANZ JOB ADS M/M: -0.9% V -2.8% PRIOR (10th consecutive decline)

(AU) AUSTRALIA JAN TD SECURITIES INFLATION M/M: 0.3% V 0.4% PRIOR; Y/Y: 2.5% V 2.4% PRIOR

(JP) JAPAN JAN MONETARY BASE Y/Y: 10.9% V 11.8% PRIOR

(UK) UK JAN LLOYDS BUSINESS BAROMETER: 15 V 20 PRIOR (4-month low)

Markets Snapshot (as of 05:30 GMT)

Nikkei225 +0.5%

S&P/ASX -0.2%

Kospi flat

Shanghai Composite +0.6%

Hang Seng +0.5%

Mar S&P500 flat at 1,506

Apr gold +0.1% at $1,672/oz

Mar Crude Oil -0.3% at $97.47/brl

Notes/Observations

China non-manufacturing PMI hits 5-month high.

Australia TD inflation data little changed as expectations build for RBA to stay neutral tomorrow.

Shanghai and S&P/ASX open to multi-month highs before reversing course later in the day.

France Fin Min warns over euro strength.

Japan Fin Min defends weak yen policy; Japanese press sees new cabinet modeling depression-era debt monetisation.

Opposition prodding Spain's Rajoy and Egypt's Morsi to step down.

AUD/USD slides after disappointing building approvals, remains supported by $1.04; USD/JPY consolidating in ¥92.50-93 range.

Currencies/Fixed Income

(AU) Reserve Bank of Australia (RBA) will weigh impact of high A$ - Australian press

EUR/USD: (EU) France Fin Min Moscovici: Euro may be 'possibly becoming too strong' - French press

(JP) Japan's Government Pension Investment Fund (GPIF), worth $1.16T, will rethink allocation of assets on back of PM Abe policies - financial press

Commodities

(CN) According to MySteel.com, inventory of iron ore in China's 30 ports totaled 67.8M tons, -2.33M tons w/w, -33.7M tons y/y - financial press

(CN) China Stats Bureau: Pork prices +0.5% in late-Jan vs +2.6% in mid-Jan - financial press

SLV: iShares Silver Trust ETF daily holdings rise to 10,425 tons from 10,378 tons (first rise since Jan 16th

Speakers/Political/In the Papers

China

(CN) China Index Academy: Average price of new residential properties across 100 major cities rose 1% m/m to CNY9.8K - Shanghai Daily

Japan

(JP) Japan Fin Min Aso: Govt modeling policy after measures adopted during 1930s Depression by Fin Min Takahashi, who told BOJ to underwrite govt debt to fund spending - financial press

(JP) Japan Fin Min Aso: Reiterates Japan is not manipulating JPY; Recent decline is the result of efforts to beat deflation - Nikkei News

(JP) Japan releases Chinese fishermen detained near Okinawa, fishing boat and all crew have departed for China - China press

(JP) Nikkei News comments on Japan megabanks; domestic operations remain sluggish

(JP) Japan MoF: Japan govt purchased about €400M in ESM bonds in Jan, about 10% of the total - Nikkei News

(JP) Japan Center for Economic Research (JCER): Japan's Real DEC GDP estimated at +0.8% m/m; 3rd consecutive increase - Nikkei News

Korea

(KR) South Korea and the United States to conduct joint naval exercises this week, intended as deterrent to North Korea plans for another nuclear test - financial press

(KR) North Korea's Kim Jong-Un said to have made a 'historic' speech at the ruling party's Central Military Commission meeting this weekend, raising expectations of a nuclear test - financial press

(KR) Korea Trade-Investment Promotion Agency: South Korea and Japan competitive exports converging over the past decade - financial press

Australia

(AU) West Australia Treasurer: Rejects proposed changes to the mining tax because it would give greater authority to the federal govt - AFR

US

(US) Sen Majority Leader Reid (D-NV): Democrats will insist on additional revenue in any deal altering 'sequestration' spending cuts - US financial press

Europe

(ES) Spain's opposition Socialist Party calling for resignation of PM Rajoy amid corruption allegations - financial press

(EU) German Chancellor Merkel: Negotiations over EU's next 7-yr budget to be 'very difficult' - financial press

(UK) Chancellor Osborne in last-minute discussions for power to split up banks - British press

(CY) Cyprus central bank: Study into the extent of exposure to Greek banking system has been submitted as part of EU bailout request; Will only publicly disclose details 'when the memorandum of understanding is signed between Cyprus and international creditors.'

Equities

DML.AU: Cathay Fortune will not proceed with A$830M takeover bid

RIO: West Australia grants A$3B Pilbara iron ore investment plan - financial press

Teijin 3401.JP: Reports 9-month Net ¥0.9B v ¥15.1B y/y, Op Profit ¥10.2B v ¥30.4B y/y, Rev ¥543.1B v ¥595.5B y/y

ANA 9202.JP: In discussions with Boeing to speed up delivery of three B777 units, has not yet received reply from Boeing - financial press

Disco 6146.JP: May report 9-month op profit around ¥2B, -60% y/y - Nikkei News

Tokyo Electron 8035.JP: May report 9-month op loss around ¥8B v profit ¥2.9B - Nikkei News

Hyundai 005380.KR: Hyundai Motor/Kia Motors group reports Jan vehicle sales in China rising 66.4% y/y to 163K units - Korean press

Samsung Electronics 005930.KR: Forecasts $100B in sales from Chinese unit within 2-3 years vs $50B in 2012 - Korean press

by Trade The News, Inc.