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TradeTheNews.com Asian Market Update: Markets slip after EU bank liquidity measures are taken; Toyota guides global production

***Economic Data***
- (NZ) NEW ZEALAND Q3 GDP Q/Q: 0.8% V 0.6%E (4th quarter of expansion); Y/Y: 1.9% V 2.2%E
- (JP) Japan investors bought ¥26.2B in foreign bonds last week v ¥403B bought in prior week
- (JP) BANK OF JAPAN (BOJ) DEC MONTHLY ECONOMIC REPORT: PUBLIC WORKS SPENDING EXPECTED TO SHOW MILD INCREASE AS RECONSTRUCTION DEMAND MATERIALIZES

***Markets Snapshot (as of 04:30GMT)***
- Nikkei225 -0.6%
- S&P/ASX -1.2%
- Kospi -0.2%
- Taiwan Taiex -0.1%
- Singapore Straits Times -0.3%
- Shanghai Composite -0.4%
- Hang Seng -0.5%
- S&P Futures -0.2% at 1,234
- Feb Gold -0.2% at $1,610/oz
- March Crude +0.1% at $98.81

***Overview/Top Headlines***
- Asian markets were skeptical on the ECB's plan to provide cheap loans to EU banks in an effort to ease the debt crisis and fell as a result. The fact that so many banks took the ECB up on the offer so quickly just highlights the state of the EU crisis. EUR/USD eased a bit in the session to $1.3040. USD/JPY stayed in a tight range with little direction. A$ and NZD both lost about 20 pips in the session to $1.0080 and $0.7678.

- New Zealand Q3 GDP q/q showed its 4th expansion reading and beat expectations at 0.8% while y/y fell short of expectations at 1.9%. Residential building component fell for the 5th consecutive quarterly decline to -1.8% though up from the -7.2% prior. Private spending was up 1.5% and imports q/q rose 3.1% and exports +0.4% v -0.5% prior.

- PBoC released its Q4 Survey saying property controls have shown effect, not as many expect prices to increase more; CPI expectations look to fall in Q1. Noted there is less overall dissatisfaction with inflation. Entrepreneurs Confidence Index 68.4, felt need for loans is being met. 14.4% of bankers expect looser monetary policy in Q1. Shanghai municipal govt has joined those of Beijing, Guangzhou, Haikou, Shenzhen, Qingdao, Fuzhou, Changchun and Xiamen in announcing continued property investment restrictions in 2012.

***Speakers/Geopolitical/In the press***
- (CN) China top 4 banks issued loans worth CNY75B in early DEC - Chinese press
- (CN) Former PBoC member Fan Gang: Global double dip recession not likely; China should be able to achieve a soft landing - Chinese press
- (KS) According to Korea Chamber of Commerce and Industry (KCCI) poll, growth in South Korea retail market is expected to fall to 6.3% in 2012 from 7.3% in 2011 - Korean press

***Equities***
- TM: Sees 2012 global production at record 8.48M vehicles and global sales of 8.65M; Sees 2013 global production at 8.98M vehicles and global sales of 8.95M vehicles
- HMC: To shift large part of its manufacturing to N America in the next 2 years, increasing regional capacity by up to 40% - US financial press
- IIN.AU: To acquire Internode for A$105M; Deal to be accretive pre-synergies in FY13
- Inner Mongolia Baotou Steel Rare Earth, 600111.CH: Reports 11-month coal output 908M tons - Chinese press
- Tepco, 9501.JP: Will seek permission from the Govt to raise electricity prices for households; Will raise prices for businesses starting in April
- Komatsu, 6301.JP: Exec: Expects mining equipment sales to increase 10% in 2012; Expects sale to be especially strong in China

***FX/Fixed Income/Commodities***
- (CN) China 11-month rare earth exports -7.3% y/y to 49.1K tons - Chinese press
- (JP) Japan MoF sells ¥2.50T in 0.1% (0.2% prior) 2-yr JGBs, bid to cover 4.22X (5-month high) v 3.60X prior
- (CN) PBoC sells 3-Month bills at 3.1618% (unchanged for 16th consecutive week)
- FCG.NZ: Exec: Expects record levels of dairy exports in DEC close to 240K metric tons
- GLD: SPDR Gold Trust ETF daily holdings fall by 12.1 tons to 1,267.9 tons (lowest since 1,267.2 on Nov 16th)

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