Asian Market Update: Asian markets trade weaker; Japan core inflation hit five-year highs
***Observations/Insights*** - With the US markets closed for Holiday Asian bourses were mostly trading weaker on thin volumes. Japan's key inflation figure increased at the fastest pace in five years and reinforcing the positive effects from Abenomics. The yen declined to a five-year low versus the euro after Japanese inflation data. The core inflation data rose 0.9% marking the fifth consecutive gain in the index highest ever recorded since November 2008.
- The Australian benchmark S&P/ASX 200 was trading in negative territory with GrainCorp trading by lower than 25% following earlier news that the Australian Treasurer Hockey blocked American food giant Archer Daniels Midland takeover bid. - Australia private sector credit for the month October increased at the same pace as it did in September, with the annual rate increasing the most since January reflecting the impact of higher home prices last year, but much slower than late 2008.
***Economic Data*** - (AU) AUSTRALIA OCT PRIVATE SECTOR CREDIT M/M: 0.3% V 0.4%E; Y/Y: 3.5% V 3.5%E >- (JP) JAPAN OCT PRELIM INDUSTRIAL PRODUCTION M/M: 0.5% V 2.0%E (2nd straight rise); Y/Y: 4.7% V 6.3%E - (JP) JAPAN NOV MARKIT/JMMA MANUFACTURING PMI: 55.1 V 54.2 PRIOR (highest reading in over 7 years) - (JP) JAPAN OCT NATIONAL CPI Y/Y: 1.1% V 1.1%E; NATIONAL CPI EX-FRESH FOOD Y/Y: 0.9% V 0.9%E (5-YEAR HIGH) - (JP) JAPAN NOV TOKYO CPI Y/Y: 0.9% V 0.7%E; TOKYO CPI EX-FRESH FOOD Y/Y: 0.6% V 0.4%E - JP) JAPAN OCT JOB-TO-APPLICANT RATIO: 0.98 V 0.96E (highest reading since Dec 2007); JOBLESS RATE: 4.0% V 3.9%E - (KR) SOUTH KOREA OCT INDUSTRIAL PRODUCTION M/M: +1.8% V 0.8%E; Y/Y: 3.0% V 0.9%E - (NZ) NEW ZEALAND OCT BUILDING PERMITS M/M: -0.6% V +1.7%E - (NZ) NEW ZEALAND OCT MONEY SUPPLY M3 Y/Y: 6.6% V 7.3% PRIOR - (JP) JAPAN OCT VEHICLE PRODUCTION Y/Y: 10.1% V 13.0% PRIOR - (KR) SOUTH KOREA OCT CYCLICAL LEADING INDEX CHANGE Y/Y: +0.4% V -0.2% PRIOR - (SG) SINGAPORE OCT BANK LOANS AND ADVANCES: 15.6% V 15.7% PRIOR - (SG) SINGAPORE OCT CREDIT CARD BAD DEBTS (SGD): 20.6M V 19.8M PRIOR; CREDIT CARD BILLINGS: 3.6B V 3.4B PRIOR - (UK) UK NOV GFK CONSUMER CONFIDENCE: -12 V -10E
***Fixed Income/Commodities/Currencies*** - (AU) Australia MoF (AOFM) sells A$800M in 2019 Bonds; avg yield: 3.5060%; bid-to-cover: 4.15x - (TW) Taiwan govt sells NT$35B in 10-yr bonds, bid-to-cover 1.86x, Avg yield 1.673% v 1.799% prior
***Speakers/Political/In the Papers*** - (JP) Japan Chief Cabinet Sec Suga: Not aware at time China planes through air defense zone - (JP) Japan Fin Min Aso: Japan economy not out of deflation yet - (JP) Japan BOJ Gov Kuroda: Easing putting strong downward pressure on yields; Prepared to further ease policy if risks to economy threaten 2% inflation target - addressing parliament - (JP) Japan, US to increase surveillance operations in the East China Sea - Japanese press - (JP) Japan Econ Min Amari: Will meet US Trade Rep (USTR) head about TPP on Dec 1st - (JP) Japan said to be planning the FY13 supplementary budget of ¥7T - Japanese press
- (CN) China City of Taiyuan, Xi'an tighten property curbs - Chinese press - (CN) China National Development and Reform Commission (NDRC) researcher Wang: China may maintain economy growth at 7.5% in 2014 - Chinese press
***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -0.9%, S&P/ASX -0.3%, Kospi -0.2%, Shanghai Composite flat, Hang Seng +0.3%, Dec S&P500 +0.2% at 1,807, Feb gold +0.3% at $1,242, Jan crude oil flat at $92.27/brl
Notable movers by sector: - Consumer discretionary: Panasonic Corporation 6752.JP -2.5% (to end circuit board business); Get Nice Holdings Ltd 64.HK +2.8% (H1 results) - Industrials: China International Marine Containers Group Co Ltd 000039.CN +1.8%; Honda Motor Co Ltd 7267.JP -0.6% (to invest in Brazil); Zhong Wang Group 1333.HK -3.1% (plans shares offering); GrainCorp GNC.AU -21.9% (Australia rejects ADM's acquisition plan); Jiangxi Hongdu Aviation 600316.CN +10.0%, Xi'an Aero-Engine 600893.CN +7.5%, Sichuan Chengfa Aero-Science 600391.CN +5.3%, China Spacesat 600118.CN +5.3% (China defense companies gain on air zone tensions) - Materials: Rio Tinto Ltd RIO.AU +2.6% (production plans) - Technology: Fujitsu Ltd 6702.JP +1.5% (liquidate subsidiary); NetDragon Websoft Inc 777.HK -7.3% (Q3 results) - Healthcare: Jointown Pharmaceutical Group Co Ltd 600998.CN +2.2% (to set up private bank); Ain Pharmaciez Inc 9627.JP +2.7% (H1 results) - Source TradeTheNews.com