ActionForex.com
Nov 01 13:09 GMT

Sponsors

Forex Expos

Asian Market Update Print E-mail
Daily Forex Fundamentals | Written by Trade The News | Jan 22 13 06:19 GMT

Asian Market Update

BOJ announces 2% inflation target and open ended asset purchase program starting in 2014, USD/JPY sold on the news below ¥89

Economic Data

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1%, AS EXPECTED; INTRODUCES OPEN-ENDED ASSET PURCHASES; SETS 2% INFLATION TARGET IN JOINT STATEMENT

(JP) JAPAN DEC SUPERMARKET SALES Y/Y-1.5% V -2.6% PRIOR

(JP) JAPAN NOV ALL INDUSTRY ACTIVITY INDEX M/M: -0.3% V -0.5%E

(JP) JAPAN NOV FINAL LEADING INDEX CI: 92.1 V 91.9 PRELIM; COINCIDENT INDEX CI: 90.2 V 90.1 PRELIM

(TW) TAIWAN DEC UNEMPLOYMENT RATE: 4.2% V 4.3%E

Markets Snapshot (as of 05:00 GMT)

Nikkei225 -0.6%

S&P/ASX flat

Kospi +0.3%

Shanghai Composite flat

Hang Seng +0.2%

Mar S&P500 -0.2% at 1,481

Feb gold +0.2% at $1,693/oz

Mar Crude Oil +0.2% at $96.10/brl

Notes/Observations

A historic policy decision from the Bank of Japan yielding to pressure from the new PM Abe cabinet was at the forefront of market focus and largely delivered a heavy dose of policy easing in line with expectations. BOJ left target rate unchanged at 0.0-0.1%, set a 2% inflation target in a joint statement to be achieved "at the earliest possible time", and also introduced an open-ended asset purchase program a-la Federal Reserve. USD/JPY initially spiked above the ¥90 handle but quickly reversed direction to test below ¥89 as traders observed several key caveats in the BOJ statement: 1) the 2% inflation target was not unanimous, with 2 members voting against the change; 2) the open ended program in the monthly purchase amount of ¥13T would not begin until 2014 when the current ¥101T program is set to expire; 3) the ¥13T in purchases is skewed heavily in favor of short-term T-Bills; 4) board member Miyao was the only voter in favor of a more drastic measure in support of "virtually zero interest rate policy until 2% y/y CPI is in sight"; 5) BOJ outlook section forecasted y/y change in CPI to turn negative in the short term vs prior expectation of remaining flat. Moreover, BOJ lowered its FY12 GDP target to 1.0% from 1.5% and raised FY13 GDP to 2.3% from 1.4%. FY14 was expected to slow to +0.8% from 0.5% prior target. BOJ also did not unveil plans to step up purchases of foreign bonds, as has been speculated by some of the more dovish economists.

Currencies/Fixed Income/Commodities

(AU) Australia port of Hedland said to preparing to halt operations due to approaching cyclone

(CN) China Iron and Steel Association (CISA): 2013 global steel consumption to rise 3.2%; China demand to increase by 3.1% - Chinese press

(JP) Former MoF official Sakakibara ('Mr Yen'): USD/JPY may turn around and return to ¥85 - CNBC interview

(JP) According to data from Japan Securities Dealers Association, foreigners were net sellers of Japan govts bonds (JGBs) in Dec for the first time in 9 months - Nikkei News

(PT) S&P affirms Portugal sovereign ratings at BB; Outlook remains Negative

Speakers/Political/In the Papers

(CN) Dagong Global Credit Rating: Evaluating debt-paying capacity of local govts - China Daily

(CN) China to set 2013 new yuan loan target at CNY9T vs CNY8T target in 2012 - Chinese press

(CN) According to a survey of over 100 economists conducted by China Securities Research & Design Center, 2013 China GDP seen at 7.8% and CPI at around 2.8% - China Daily

(CN) China Securities Regulatory Commission (CSRC) Chairman Guo: Will reduce administrative interventions in stock market - Chinese press

(CN) According to Credit Suisse Chinese Whispers Property Sentiment Index, China property market investors sentiment in Dec rose to record high 75 from 65 in Nov - Korean press

(KR) South Korea Financial Supervisory Service (FSS): Korean Banks target 1.9% growth in 2013 household lending - financial press

(KR) South Korea Fin Min Bahk: Markets are stabilizing as uncertainty in export market eases - financial press

(JP) Leader of Japan's coalition New Komeito party Yamaguchi: To visit China and propose that military planes from both countries do not fly over the disputed Senkaku islands - SCMP

(AU) Survey of economists see Australia Q4 CPI at 0.5% q/q and underlying CPI at 0.7% q/q; Does not justify another RBA easing - Australian press

(IE) Ireland Fin Min Noonan: To request maturity extension for EFSF, EFSM with Portugal; sees cost savings in the billions - financial press

(EU) ESM's Regling: EFSF board to formally approve aid for Greece in a week; Spain second disbursement to be much lower than initially expected - financial press

Equities

RIO: Launched a review into its Mozambique coal business - AFR

BHP: Some analysts expect tomorrow's Q2 quarterly production to show flat output of iron ore - SMH

MAH.AU: Awarded A$1.8B 5-yr services contract from Fortescue - financial press

Samsung Electronics 005930.KR: Follow-up: Galaxy S4 to be launched in US in March - Korean press

Hyundai Motor 005380.KR: US financial press profiles Hyundai underperforming in the local markets due to South Korea's free trade deals and growth of foreign brands

FRNM.SG: OUE will not match Thai billionaire's offer of S$9.55/shr

Itochu 8001.JP: May report 9-month net profit around ¥200B, -8% y/y; May maintain FY12/13 ¥280B net income forecast - Japanese press

Denso 6902.JP: To invest about $1B in North America R&D and production through FY15 - Nikkei News

 

About the Author

Trade The News Staff
Trade The News, Inc.

Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Facebook MySpace Twitter Digg Delicious Google Bookmarks 

Analysis Reports

Central Bank Analysis
Economic Data Reviews
Technical Analysis

Forex Brokers

ActionForex.com © 2014 All rights reserved.