Asia Market Update

Australia's ANZ Bank warns that higher provisions may hurt its profits

Economic Data: Japan's December Tertiary Industry Index fell by 0.6 m/m versus expectations for a 0.2% drop due to weaker consumer spending. However, the yen's trading was not impacted by this release. In the UK, the February Rightmove House Price Index rose by 3.2% m/m and 5.8% y/y (prior m/m -0.8%, prior y/y 3.4%). In January, China's PPI rose by 6.1% y/y against expectations for a 5.7% rise. The data shows the continued presence of inflationary pressures in China.

Forex: The JPY is marginally weaker against the USD (USD/JPY below 108.00) on gains in the Nikkei. The EUR is weaker on comments out of the ECB's Noyer conveying that Euro-zone growth may be weaker than expected. The GBP is lower on reports that lender Northern Rock will be temporarily nationalized, but has recovered most of its losses as some analysts noted that the Northern Rock news was largely priced in. The CHF is weaker against the USD, on broad gains by the USD against the European majors. The NZD is higher against the USD (above $0.7900) and the JPY on a combination of risk appetite and yield differentials. The AUD is also gaining against both the JPY and USD on rate differentials, as AUD/USD is currently indicated well above $0.9100.

Asian Equities: The Nikkei 225 is higher by more than 0.75% on a WSJ report that US monoline insurer Ambac is in talks to pursue a break-up. The leading gainers in Tokyo include shares of Sony, Toshiba (various broker upgrades), steelmakers (finalized iron-ore price negotiations) and financials. The S&P ASX 200 is lower by more than 0.50% on losses in shares of ANZ Bank (trading update). Despite broad losses in Sydney, shares of Centro Properties are sharply higher on reports that the company was granted an extension regarding a $3.4B debt repayment. The Kospi is higher by more than 0.25% on gains in shares of shipbuilders. Chinese equities are higher by more than 1% on gains in shares of telecoms. The Hang Seng has reversed its earlier gains and is currently lower on losses in shares of HSBC.

Commodities: Crude oil prices are marginally higher and trading around $95.50 per barrel. Over the weekend, Venezuela President Chavez said that he is not planning to halt oil shipments to the US after threatening on 2/14 to suspend oil spot sales to Exxon. Spot Gold is higher by more than 0.10% (trading around $907.50/oz), tracking gains in oil prices.

Trade The News Staff
Trade The News, Inc.

Posted in: Forex