Asian Market Update: February 2, 2012

(AU) AUSTRALIA DEC TRADE BALANCE (A$): 1.70B V 1.20BE (1st increase in 4-months, 3-month high)

(AU) AUSTRALIA DEC BUILDING APPROVALS M/M: -1.0% V 2.0%E; Y/Y: -24.5% V -22.1%E

(NZ) NEW ZEALAND JAN ANZ COMMODITY PRICE: +1.2% V -0.8% PRIOR (9-month high)

(JP) JAPAN JAN MONETARY BASE Y/Y: 15.0% V 13.5% PRIOR

(KR) SOUTH KOREA JAN FOREIGN EXCHANGE RESERVE: $311.3B V $306.4B PRIOR (5-month high)

(VN) Vietnam Jan Trade Balance: -$100M v -$270M prior

(AR) Argentina Jan Tax Rev ARS52.8B v ARS48.9B prior

Markets Snapshot (as of 05:30GMT)

Nikkei225 +0.7%

S&P/ASX +1.0%

Kospi +1.2%

Taiwan Taiex +1.4%

Singapore Straits Times +0.4%

Shanghai Composite +0.6%

Hang Seng +1.5%

S&P Futures +0.2% at 1,322

April gold unchanged at $1,749/oz

March Crude -0.2% at $97.43

Overview/Top Headlines

Markets were well into positive territory today on the back of stronger manufacturing numbers out of Europe and the US overnight, giving some confidence to the markets that the global economy is on an upward trend. Talks in Greece soldiered on with no solution announced, though EU speakers reiterated that Greece is "very close" to reaching a deal with private bond holders. With the return of some risk appetite silver and copper futures both fell, S$ hit a 3-month high against the USD, Taiwan dollar and the Philippines peso also gained against the greenback. The euro and pound both firmed up, the yen continued its gains testing ¥76.12 against the dollar and ¥100.21 against the euro. Increased rhetoric out of Japan Fin Min Azumi, for the 4th consecutive day, said that he would take steps to deal with speculative moves. A$ tested $1.0756 against the dollar, a 5-month high.

Notable equities names include Australia's Lynas Corp, the rare earth company, was awarded their long awaited approval in Malaysia to start their new facility, shares jumped over 19%. Glencore in Hong Kong bounced over 4.5% on news that it was close to an agreement with UK's Xstrata to combine operations. Japan auto makers also saw some gains on the back of US car data showing increased deliveries. Several of China's mining companies have issued profit warnings, citing trade policies and global slowdown, this will be worth keeping an eye on as the Hong Kong and Shanghai earnings season ramps up. In Japan the Tokyo Stock Exchange was forced to suspend trading on 241 names until 12:30 local time due to a technical glitch.

Speakers/Geopolitical/In the press

(CN) Some banks have lowered mortgage rates for 1st home buyers in Shanghai and Shenzhen; Second home buyers saw rates go up - Chinese press

(JP) Bank of Japan (BoJ) Deputy Gov Yamaguchi: Japan economy has been more or less flat; EU debt problems remain the largest risk to Japan

(CN) China Investment Corp (CIC) has given permission to major China banks in which it owns stakes to cut dividend ratios by 5% this year - Chinese press

(CN) China Premier Wen: Committing CNY15B to a new fund that will support small business, will also offer tax breaks and more lending for entrepreneurs - Chinese press

Equities

SNE: Reports Q3 Net loss ¥159B v loss ¥43Be, Op loss ¥91.7B v profit ¥7.3Be, Rev ¥1.82T v ¥1.9Te

QAN.AU: To raise domestic and international ticket price surcharges by A$20-60, effective from Feb 15th

SKM: Reports Q4 Net profit KRW196B v KRW361B y/y; Op profit KRW329B v KRW453B y/y; Rev KRW3.93T v KRW3.2T y/y

NCM.AU: CEO: Expects gold prices to remain strong; Sees gold prices in $1,500-2,500 range in years ahead - financial press

Hynix, 000660.KR: Reports Q4 Net loss KRW240B v loss KRW152Be; Op loss KRW168B v loss KRW174Be; Rev KRW2.55T v KRW2.4Te

US Equities

LVS: Reports Q4 $0.57 v $0.57e, R$2.54B v $2.5Be; -1.8% afterhours

CMG: Reports Q4 $1.81 v $1.83e, R$596.7M v $591Me; -1.9% afterhours

HOTT: Raises Q4 EPS $0.19-0.20 v $0.18e (guided $0.17-0.19 prior on Jan 4th); Q4 SSS +1.3%; +0.4% afterhours

QCOM: Reports Q1 $0.97 v $0.90e, R$4.68B v $4.6Be; +5.0% afterhours

JDSU: Reports Q2 $0.15 v $0.10e, R$413M v $391Me; +6.1% afterhours

CACI: Reports Q2 $1.51 v $1.30e, R$973.2M v $953Me; +3.5% afterhours

ALL: Reports Q4 $1.43 v $0.95e, R$6.61B v $6.4Be; +4.4% afterhours

EA: Reports Q3 $0.99 v $0.93e, R$1.65B v $1.6Be; +6.0% afterhours

Facebook: Files S-1 for IPO for up to $5B in common stock ($5B offering as speculated); IPO may take place in Q2.