Asia equity markets trading higher following PBoC's rate cut over the weekend

Economic Data

- (NZ) NEW ZEALAND OCT NET MIGRATION: 5.3K V 4.7K PRIOR (record high)

- (TW) TAIWAN OCT UNEMPLOYMENT RATE: 3.9% V 3.9%E

- (VN) Vietnam Nov Consumer Price Index (CPI) Y/Y: 2.6% v 3.0%e

- (TH) Thailand Q3 Unemployment Y/Y: 0.8% v 0.8% prior

Index Snapshot (as of 02:30 GMT)

- Nikkei225 closes, S&P/ASX +1.0%, Kospi +0.6%, Shanghai Composite +2.0%, Hang Seng +1.9%, Dec S&P500 flat at 2,062

Commodities/Fixed Income

- Dec gold +0.2% at $1,201, Jan crude oil +0.3% at $76.77/brl, Dec copper +0.2% $3.04/lb

- USD/CNY: (CN) PBoC sets yuan mid point at 6.1420 v 6.1387 prior setting (biggest cut since Nov 11th)

- (CN) China loan prime rate (LPR) declined by 20bps to 5.56% v 5.76% prior

Market Focal Points/Key Themes/FX

- Asia equity markets generally traded higher today, after China central bank PBoC cut interest rates over the weekend. Australian miners performed well, including BHP Billiton moved higher by 3.8%, Rio Tinto higher by 3.6%, and Fortescue Metals higher by 9.5%. Shanghai Composite ended morning session at fresh 3-year high. China brokers, insurers, as well as property developers also traded sharply higher on central bank's move. Other sectors such as China railway construction companies traded higher during the morning session, with China Railway Construction Group higher by 8.5%, China Railway Group higher by 7.5% in Shanghai, after Russian Railways announced plan on Moscow-Beijing high-speed railways. During the morning trading session, Shanghai total trading volume was above CNY206B, higher than last trading day's full day volume.

- From Hong Kong equity market today, China's largest nuclear plant operator CGN Power announced to raise up to $3.2B in IPO in Hong Kong, also to mark the first nuclear plant operator to list in China. Three co-founders of Occupy Central movement in Hong Kong also planned to surrender to Hong Kong police next week, as Hong Kong continues to see cool down in the movement.

- Survey showed 37% of population to vote for Japan Prime Minister Abe's LDP party during Parliament (lower house) election, and 11% to support DPJ, 5% to support Komeito coalition party. Meanwhile, Abenomics disapproval rate at 43%, exceeded approval rate of 38%. USD/JPY little changed during today's early trading session. Japan equity markets closed on holidays.

- In US over the weekend, President Obama said to authorize expanded US role in Afghanistan next year. US currently has 9.8K troops remaining in Afghanistan hunting down Al Qaeda.

Equities

US markets:

- LGF: "Hunger Games: Mockingjay, Part 1" was the top earning film in weekend box office with $123M in US sales, $275M worldwide

- STRZA: Acquisition talks for the pay-TV channel controlled by John Malone are heating up, with the company said to be seeking $5B from suitors such as CBS and LGF - NY Post

- AMT: Confirms agreement to acquire TIM tower portfolio in Brazil for $1.2B

Notable movers by sector:

- Consumer discretionary: Halla Visteon Climate Control 018880.KR

-10.5% (shareholder to sell stake)

- Financials: Fosun International 656.HK +3.4% (proposes spin-off of subsidiary); Haitong Securities 600837.CN +7.7%, CITIC Securities 600030.CN +6.4%, China Vanke 000002.CN +8.0%, Poly Real Estate 600048.CN +10.0%, Ping An Insurance 2318.HK +5.9% (PBoC cuts rates)

- Materials: Fortescue Metals FMG.AU +9.5%, BHP Billiton BHP.AU +3.8%, Rio Tinto RIO.AU +3.6% (China cuts interest rates over the weekend); Arrium ARI.AU +9.4% (issues outlook on mines)

- Industrials: Hyundai Motor 005380.KR +4.2% (2014 sales forecast)