US Dollar stronger after OPEC decision today

Asian Market Update: Shanghai Composite rallied to 40-month high; US Dollar stronger after OPEC decision today

Economic Data

- (KR) South Korea Dec Business Survey Manufacturing: 75 v 74 Prior; Business Survey Non-Manufacturing: 70 v 67 Prior

- (KR) SOUTH KOREA OCT INDUSTRIAL PRODUCTION M/M: -1.6% V 1.0%E ; Y/Y: -3.2% V -0.3%E

- (KR) SOUTH KOREA OCT CYCLICAL LEADING INDEX CHANGE: 0.3 V 0.6 PRIOR

- (AU) AUSTRALIA OCT PRIVATE SECTOR CREDIT M/M: 0.6% V 0.5%E; Y/Y: 5.7% V 5.5%E

- (NZ) NEW ZEALAND NOV ANZ ACTIVITY OUTLOOK: 41.7 V 37.8 PRIOR; ANZ BUSINESS CONFIDENCE: 31.5 V 26.5 PRIOR; 4-month high

- (NZ) New Zealand Oct M3 Money Supply Y/Y: 5.5% v 5.3% Prior

- (NZ) New Zealand Oct Building Permits M/M: 8.8% (7-month high) v -11.9% Prior

- (JP) JAPAN OCT JOBLESS RATE: 3.5% V 3.6%E

- (JP) JAPAN OCT NATIONAL CPI Y/Y: 2.9% V 3.0%E; CORE CPI Y/Y: 2.9% (7-month low) V 2.9%E

- (JP) JAPAN NOV TOKYO CPI Y/Y: 2.1% V 2.3%E; CPI EX FRESH FOOD Y/Y: 2.4% (8-month low) V 2.4%E

- (JP) JAPAN OCT RETAIL SALES M/M: -1.4% V -0.5%E; Y/Y: 1.4% (4th month of increase) V 1.4%E

- (JP) JAPAN OCT PRELIMINARY INDUSTRIAL PRODUCTION M/M: +0.2% V -0.6%E ; Y/Y: -1.0% v -1.7%E

- (JP) JAPAN OCT VEHICLE PRODUCTION Y/Y: -6.3% V -2.6% PRIOR (4th straight decline)

- (SG) Singapore Oct Credit Card Bad Debts (SGD): 26.4M v 24.4M Prior; Credit Card Billings: 3.9B v 3.9B Prior

- (SG) Singapore Oct Money Supply M1 Y/Y: 4.0% v 1.6% Prior; M2 Y/Y: 2.0% v 1.9% Prior

- (TH) Thailand Oct Manufacturing Output y/y: -2.9% v -3.9% prior

Index Snapshot (as of 02:30 GMT)

- Nikkei225 +1.2%, S&P/ASX -1.6%, Kospi -0.2%, Shanghai Composite +0.7%, Hang Seng -0.1%, Dec S&P500 flat at 2,073

Commodities/Fixed Income

- Dec gold -1.0% at $1,185, Jan crude oil -6.5% at $68.91/brl, Dec copper flat at $2.93/lb

- (AU) Australia MoF (AOFM) sells 2017 Notes at avg yield of 2.5796%

- (CN) China loans prime rate (LPR) declined by 1bp to 5.51% v 5.52% prior

- OPEC MAINTAINS PRODUCTION QUOTA AT 30M BPD

- JGB: (JP) Japan MoF sells ¥2.51T in 0.1% 2-yr notes, Avg Yield: 0.005% v 0.012% prior; bid to cover: 5.86x v 4.80x prior

Market Focal Points/Key Themes/FX

- WTI Crude Oil traded at about $68 per barrel, hit fresh 4-yr lows, after OPEC maintained daily production at 30M barrels. Energy companies in Asia opened sharply lower on the crude move, while airliners in Japan, Australia, China posted nice rallies. The US Dollar traded generally higher, sending the Aussie below $0.85 and Dollar/Yen above the ¥118 handle.

- Shanghai Composite continued to be the leading index in Asia, reached fresh 40-month high. Banks and property firms led the gains, while Shanghai Pudong Development Bank traded higher by 7%, Bank of China higher by 7.5%, and Poly Real Estate higher by 4%. Chatter in China related to the deposit insurance system heated up, amid speculation of an official announcement in early 2015.

- Japan released Oct national CPI data, with nominal CPI missing the average consensus slightly, and core CPI in-line with expectations. Japan Economic Minister Amari reiterated views that lower oil prices were positive for domestic economy after CPI data.

Equities

US markets:

- GOOG: EU Parliament said to support draft wording of breakup plan related to the company; vote in favor of the measure was 458 to 173 - US financial press

Notable movers by sector:

- Consumer Discretionary: Air China 753.HK +6.1%, China Eastern Airlines 600115.CN +9.4%, China Southern Airlines 1055.HK +7.7% (WTI Crude lower on OPEC)

- Materials: Rio Tinto RIO.AU +1.9% (CEO comments on capex, operating updates); Shandong Gold 600547.CN +10.0% (plans to buy gold asset)

- Energy: Sundance Energy Australia SEA.AU -14.6%, Santos STO.AU -13.0%, Drillsearch Energy DLS.AU -13.3% (WTI Crude lower on OPEC); Petrochina 857.HK -3.0%, CNOOC 883.HK -5.3% (WTI Crude lower on OPEC)