Less than impressive macro-economic data during the Asian session failed to dampen investor sentiment today. The major indices currently trade green, which is a continuation from the US and the European trading sessions, where we saw the German ZEW survey turn positive for the first time since May 2012, printing a much stronger than previous reading. Expectations of an announcement of USD 45bln treasury purchases per month by the Fed at the FOMC meeting tomorrow have also supported the positive mood.
The ASX 200 is one of the outperformers so far, hitting16-month highs, as it was reported that the Australia government forecasts 4% decline in value of resource and energy exports in 2012/13 as volume increase more than offset the price falls. Moreover, the Australia government added that Iron ore and coal exports are to rise substantially. Note, China’s trade data also remain bullish for Australian markets, given that imports from Australia rose to a six month high as a result of increased demand for iron ore.
Over in the Nikkei 225, sectors that have been biggest gainers are Technology (+1.51%) and Telecommunications (+0.86%). One of the stocks gaining most is Mitsubishi Motors who reported pre-market that Co.’s Europe withdrawal is to add JPY 15bln to annual operational profit, trading up 8.68% on the day. Meanwhile, USD/JPY is finely balanced, as central bank policy is constraining the potential movement, given expectations of easing from the Federal Reserve tomorrow and the Bank of Japan next week, although we did see a 6 pips rise after the North Korea launched its satellite rocket.
Looking forward, we see South Korean Money Supply due to be released at 0300GMT/2100CST.
As of 0250 GMT:
ASX200 (+0.33 %), Nikkei 225 (+0.47%), Shanghai Comp. (+0.01%), Hang Seng (+0.57%), KOSPI (+0.26%)
12 Dec 2012 - 02:51 - Fixed Income Data - Source: RANsquawk
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