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Asia Market Update

Shares of Toyota rebound following confirmation of Prius recall

Tue, Feb 9 2010, 06:37 GMT
by Trade The News Staff

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Asian Market Update: Shares of Toyota rebound following confirmation of Prius recall, while Australia's Macquarie sinks after trading update

ECONOMIC DATA:

- (KS) South Korea Jan Producer Price Index Y/Y: 2.8% v 1.8% prior (highest level since March 2009)

SPEAKERS/PRESS:

- Ahead of the later this week release of China's new loans figures for Jan, a press report in the Shanghai Securities News disclosed that Jan new loans may total more than CNY1.3T (CNY1.38Te) and Feb's new loans might decline to less than CNY1T. According to the report, China's Lunar New Year Holiday is seen as the reason for the expected slowdown in Feb lending.

- In terms of Chinese interest rates, on today's session the Peoples Bank of China auctioned CNY24B in 1-yr bills at a yield of 1.9264%, which was in line with the prior week's yield.

- In Europe, an earlier report disclosed that the ECB's Trichet was expected to leave an Australian RBA central bankers meeting early to attend an ECB council meeting. A ECB spokesperson later said that Trichet left Australia early to attend an EU meeting and that there was no emergency ECB meeting planned.

- South Korea's Finance Ministry reaffirmed that it would maintain its accommodative policy stance. Also, the ministry said it would increase its monitoring of the credit risks in Europe.

- In the US, Fed member Dudley was cautious on the outlook for small banks in the US, noting that they would be pressured by loan losses for some time. Additionally, the Fed's Bullard said that he saw the discount rate rising fairly soon and in steps.

EQUITIES:

- Asian equities are overall trading mixed. The Nikkei 225 is in negative territory and trading below 10,000. However, shares of Toyota are higher as of the timing of writing as the company confirmed that it would recall 200K Prius models in Japan due to problems with the vehicle's braking system. Australia's S&P ASX 200 is lower by more than 0.20%, on losses in the resource sector. Additionally, shares of investment bank Macquarie have declined by more than 4%, following the company's trading update. Taiwan's Taiex is gaining by over 1.5% on advances in the technology sector. South Korea's Kospi is higher as of the time of writing on gains in shares of financials. Hong Kong's Hang Seng and China's Shanghai Composite both ended the morning break higher by 0.2%.

CURRENCIES/FIXED INCOME/COMMODITIES:

- The commodity currencies are broadly firmer against the USD and Yen, tracking the rebound in commodity prices and on short covering. The European major currencies are also higher, tracking the slight gains in the S&P 500 Futures contract.

- Spot Gold has risen by over 0.20% and is trading above $1,065/oz, supported by the weaker dollar and possible bargain hunting. Crude oil is lower and trading above $71.50/bbl, but has pared most of its opening losses. Shanghai Copper prices have swung between gains and losses as markets await various pieces of Chinese data, which are due later this week. These data points include, monthly bank lending, imports and CPI.

Published on  Tue, Feb 9 2010, 06:42 GMT

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