News Headline Summary

ASIA-PACIFIC MID-SESSION UPDATE - 07/01/13

Heading into the mid-point of today’s session, a negative tone has spread across Asian asset classes as mild risk-off sentiment has been observed with minor strength in the USD-index. We have had paring of opening gains in the Nikkei 225, weighed by Technology and Telecommunications with Softbank suffering most, closing the morning down by 2.56%, which is due to reports that Cleanwire plans to ask the Federal Communications Commission to block Sprint Nextel's takeover of the Co. and the merger between Softbank and Sprint.

Shanghai Composite and Hang Seng are outperformers in the Asian equity space, trading in minor positive territory amid expectations that China’s new generation of leaders headed by Xi will push ahead reforms as newswires reported that China is to release an urbanization plan around March, which will cover more than twenty urban agglomeration, 180 prefecture-level cities and over 10,000 towns across China.

In the FX market, USD and JPY have benefited by the safe-haven flows in early trade. USD/JPY gave up its early gains and traded lower to test the 88.00 level ahead of the BoJ's 21st/22nd meeting, where the central bank has agreed to evaluate its inflation goal. Meanwhile, USD/KRW trades higher throughout the session, with gains being attributed to market talk that the Bank of Korea used agent banks to intervene in KRW.

Looking forward, the calendar remains quiet while Japanese vehicle sales for December is scheduled to be released at 0500GMT/2300CST.

As of 0253 GMT:
ASX200 (-0.13%), Nikkei 225 (-0.20%), Shanghai Comp. (+0.62%), Hang Seng (+0.29%), KOSPI (-0.52%)

07 Jan 2013 - 02:54 - - Source: RANsquawk

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