Most Asian stocks rose, with investors heartened by surprisingly strong US jobs data but restrained by weaker-than-expected Chinese economic data. The MSCI Asia Pacific Index was 0.7% higher; the Nikkei rose by 0.5% but the Kospi fell 0.2%. The yen remained near a three-and-a-half-year low.(Financial Times)(Bloomberg)
Kuroda will consider buying derivatives: "We will carefully consider such a proposal," BoJ nominee Haruhiko Kuroda said in response to a lawmaker's question in his second parliamentary confirmation hearing today. However he noted opinions vary on buying assets such as swaps, and said bond buying would continue to be the key tool. (Bloomberg)
Bank commission says new UK rules too weak: The influential Parliamentary Commission on Banking Standards says in a new report that elements of the government's proposed new banking legislation are "extremely weak" and must be urgently toughened. The proposal on leverage ratios is particularly criticised. The report will be published today to coincide with the second reading of the banking reform bill in the House of Commons. (Financial Times)
Japan's machinery orders fell 13% in January from the previous month, far beyond survey median estimates of -1.4% to -1.7%, and suggesting that improved sentiment about Japan's economy has not translated into capital investment. (Bloomberg)(Wall Street Journal)
"Banks across Europe are racing to amend executive pay deals by the end of the month in an attempt to adhere to new EU bonus rules and secure shareholder approval at upcoming annual meetings." (Financial Times)
Europe's repo market is shrinking, with the size of the market falling 11.9% during the course of 2012, according to a survey by the European Repo Council of the International Capital Market Association. (Financial Times)
Private equity cash payouts hit new record: "Fund managers distributed $318bn to their limited partners as of June last year, and $330bn in 2011, through dividends and asset disposals, according to data compiled by pension fund adviser Hamilton Lane. This exceeded distributions in 2007 – $305bn – the peak of the leveraged buyout boom." (Financial Times)
"Thailand's credit rating was restored to BBB+ by Fitch Ratings four years after political turmoil prompted a cut, signaling confidence in Prime Minister Yingluck Shinawatra's ability to maintain social stability." (Bloomberg)
COMMENT AND CURIOS:
- Gavyn Davies: Government bonds look bubblier than equities. (Finanical Times)
- Editorial: Coalition should do more to boost growth. (Financial Times)
- John Kay: Why eurozone bond markets are unfazed by the bazooka question. (FTfm)
- Treasuries are now the 'world's worst performers'. (Bloomberg)
- Long-range averages don't support rosy view of earnings. (Wall Street Journal)
- Energy utilities risk becoming dinosaurs. (Reuters)
- Paul Krugman: The dwindling deficit disorder. (New York Times)
- The problem with pursuing ratings agencies. (Reuters)
- Ed Luce: The Fed is the only serious US economic actor. (Financial Times)
- Will the dollar's recent surge survive this week's data? (Wall Street Journal)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +56.57 (+0.46%) at 12,340
Topix up +14.88 (+1.46%) at 1,035
Hang Seng up +89.55 (+0.39%) at 23,182
US markets
S&P 500 up +6.92 (+0.45%) at 1,551
DJIA up +67.58 (+0.47%) at 14,397
Nasdaq up +12.28 (+0.38%) at 3,244
European markets
Eurofirst 300 up +10.03 (+0.85%) at 1,195
FTSE100 up +44.42 (+0.69%) at 6,484
CAC 40 up +46.37 (+1.22%) at 3,840
Dax up +46.70 (+0.59%) at 7,986
Currencies
€/$ 1.30 (1.30)
$/¥ 96.09 (95.99)
£/$ 1.49 (1.49)
Commodities ($)
Brent Crude (ICE) down -0.35 at 110.50
Light Crude (Nymex) down -0.24 at 91.71
100 Oz Gold (Comex) down -0.60 at 1,576
Copper (Comex) up +1.00 at 350.15
10-year government bond yields (%)
US 2.06%
UK 2.05%
Germany 1.52%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.01bps at 98.81bp
Markit iTraxx Europe -3.8bps at 104.15bp
Markit iTraxx Xover -13.68bps at 403.06bp
Markit CDX IG -1.98bps at 80.64bp
Sources: FT, Bloomberg, Markit
