Japanese Yen remains extremely volatile

Asian Market Update: Yen hits new 15-month highs below 113 amid increased speculation about possibility of intervention; Korea, Hong Kong plunge after return from holiday break

Economic Data

- (AU) AUSTRALIA FEB CONSUMER INFLATION EXPECTATION: 3.6% V 3.6% PRIOR

- (NZ) New Zealand Jan Manufacturing PMI: 57.9 v 57.0 prior

- (NZ) New Zealand REINZ Jan median home price +5.2% y/y v +3.3% prior; Home sales 5,048, +4.3% y/y

- (UK) JAN RICS HOUSE PRICE BALANCE: 49% V 52%E

Index Snapshot (as of 04:30 GMT)

- Nikkei225 closed, S&P/ASX +0.8%, Kospi -2.9%, Shanghai Composite closed, Hang Seng -4.0%, Mar S&P500 -0.5% at 1,837

Commodities/Fixed Income

- Apr gold +1.0% at $1,208/oz, Mar crude oil -1.2% at $26.96/brl, Mar copper -0.2% at $2.01/lb

- GLD: Apr Gold rises over 1% above $1,210/oz; 9-month high

- World Gold Council: 2015 gold demand was flat

- SLV: iShares Silver Trust ETF daily holdings fall to 9,591 tonnes from 9,610 tonnes; multi-year low

Market Focal Points/FX

- Tokyo is closed for holiday but Japanese Yen remains extremely volatile, with the "elevator" thrust lower reminiscent of October 2008 - the last month that matched the magnitude of February's decline so far. Investors continue to digest semi-annual address from Fed Chair Yellen in Congress, with a round of dollar selling coming after she noted that the FOMC is not on a predetermined course. After falling 2 big figures toward 113 in the US hours, USD/JPY extended its declines below 112.60 in early Asia session, as macro traders pile into the long-Yen / short-Nikkei trade. High-beta AUD and NZD were also up over 0.7% on the dollar in early Asia trade as high as 0.7150 and 0.6730 respectively, but subsequently reversed those gains on risk-aversion. S&P500 futures also sank deeper to as low as 1,832, extending the final hours selloff in the US session.

- Hong Kong returned after 3 days of holidays with a 4% drop below 18,500 in the Hang Seng - the lowest level since 2012. Hong Kong Financial Services Sec KC Chan remarked that while the market remains volatile, there was little concern over the risk of outflows because HK has ample liquidity. Separately, HKEX chief Li noted 2016 will be challenging for the city.

- Korea's Kospi was also sharply lower with a 3% slide. Local finance ministry also said the financial system is stable amid external challenges, with currency levels remaining stable. Local press report citing a survey noted analysts are unanimous in expectation for BOK to leave rates on hold this month. Meanwhile, the escalation of tensions with the North has resulted in the closure of the joint Gaeseong plant on the border, with the South suspending supply of water and power and the North workers not reporting for duty.

- Down under, Australian Prudential Regulation Authority (APRA) noted that the rise in credit spreads is "manageable" and the financial system is fundamentally sound. A Moody's economist said New Zealand has fiscal and monetary policy room to move if needed, expressing comfort with AAA rating and stable outlook.

Equities

US equities/ADRs:

- HUBS: Reports Q4 -$0.12 adj v -$0.18e, R$53.1M v $50.3Me; +13.6% afterhours

- CSRA: Reports Q3 $0.48 v $0.39e, R$1.27B v $1.31Be; +11.9% afterhours

- EXPE: Reports Q4 $0.77 v $1.01e, R$1.70B v $1.72Be; Guides initial FY16 EBITDA +35-40% y/y - earnings call; +11.6% afterhours

- TSLA: Reports Q4 -$0.87* v +$0.07e, R$1.75B v $1.78Be; +9.6% afterhours

- SKX: SKX: Reports Q4 $0.19 v $0.20e, R$722.7M v $684Me; +9.3% afterhours

- HDP: Reports Q4 -$0.72 v -$0.80e, R$37.4M v $36.0Me; +8.6% afterhours

- CSCO: Reports Q2 $0.57 v $0.54e, R$11.9B v $11.8Be; increases dividend 24% to $0.26 (4.6% yield), approves $15B share buyback (13% of market cap); +7.9% afterhours

- CTL: Reports Q4 $0.62 (adj) v $0.65e, R$4.48B v $4.43Be; +6.3% afterhours

- ORLY: Reports Q4 $2.19 v $2.07e, R$1.95B v $1.91Be; to increase share repurchase program by $750M (3% of market cap); +5.2% afterhours

- WFM: Reports Q1 $0.46 v $0.40e, R$4.83B v $4.81Be; +3.1% afterhours

- AMZN: Approves $5B buyback program (2.1% of market cap) - filing; +0.9% afterhours

- PRU: Reports Q4 $1.94 v $2.27e, R$13.2B v $11.6Be; -0.9% afterhours

- PXD: Reports Q4 -$0.18 v -$0.38e, R$1.1B v $851Me; Announces reduction in drilling in 2016; -2.5% afterhours

- TWTR: Reports Q4 $0.16 v $0.12e, R$710.5M v $718Me; -3.0% afterhours

- IRBT: Reports Q4 $0.65 v $0.55e, R$206M v $203Me; -6.6% afterhours

- LOCK: Reports Q4 $0.30 v $0.30e, R$156.2M v $129.7M y/y; -8.4% afterhours

- MYL: Reports Q4 $1.22 adj v $1.25e, R$2.49B v $2.66Be; -9.1% afterhours

- ZNGA: Reports Q4 $0.00 (adj) v $0.00e, R$186M v $177Me; -10.8% afterhours

Notable movers by sector:

- Consumer discretionary: Cochlear COH.AU +12.3% (H1 result); Goodman Group GMG.AU +5.8% (H1 result)

- Financials: China Jinmao Holdings Group 817.HK -6.7% (Chairman under probe); Mirvac Group MGR.AU +2.2% (H1 result); Australian Stock Exchange ASX.AU +1.7% (H1 result)

- Industrials: Hyundai Merchant 011200.KR -18.8% (Gaeseong pulling out plan); Tianjin Port Development Holdings 3382.HK -3.8% (Chairperson to be dismissed); RUSAL PLC 486.HK -8.3% (Q4 result); Virgin Australia VAH.AU -6.1% (H1 result)

- Utilities: Transurban TCL.AU +1.2% (H1 result)