Asian regional markets are lower amid continued uncertainty over the European sovereign-debt situation; the Nikkei falls 0.8%, the S&P/ASX declines 0.7%, the HSI slips 0.6%, the Kospi falls 0.2%, the Sensex declines 0.7%, the Shanghai Composite loses 1.2% and the NZX-50 slips 0.5%. In FX markets the EUR is steady against the USD and JPY in thin pre-holiday trade following Wednesday’s decline. The EUR/USD is at 1.3044 from 1.3048 late Wednesday in New York, the EUR/JPY is at 101.78 from 101.88, and the USD/JPY is at 78.04 from 78.07. According to a PBOC survey, inflation expectations among urban depositors in China have fallen in the latest sign that Beijing is making progress in its battle against inflation. The RBI says it aims to manage the rupee’s volatility and ensure that there is no impact on economic stability, noting that the rupee’s decline has an inflationary effect and raises import costs. China’s GDP is likely to grow 8.5%-8.7% in 2012, the China Securities Journal reports, citing Fan Gang, a former adviser to China’s central bank. The BOJ says in its monthly report that corporate capital spending is expected to stay on a mild uptrend due to reconstruction demand, even though it will be pressured by a slowdown in overseas economies for a while. New Zealand 3Q GDP grows 0.8% on-quarter vs 0.1% growth in 2Q, a 0.6% expansion expected. Thailand November industries sentiment index falls to a 29-month low of 87.5 from 89.0 in October. Spot gold is at $1,604.20, down $10.80 from the NY close. February Nymex crude oil futures fall 4 cents to $98.63/bbl.
EasyForexNews Research Team