Morning Coffee News (Asia)

Morning Coffee News (Asia)
25 June 2012
Top news*: Hong Kong’s LME Deal Spurs Industry’s Steepest Slump
Hong Kong Exchanges & Clearing Ltd.’s pursuit of the London Metal Exchange is
transforming the Asian bourse into the industry’s worst performer.
Hong Kong Exchanges’ $2.2 billion bid for the LME this month valued the
world’s largest trading venue for industrial metals at 181 times earnings, making
it the most expensive bourse acquisition exceeding $1 billion on record, accord-
ing to data compiled by Bloomberg. With the Asian company’s stock tumbling
since the first report of its interest in the LME, it has now retreated 33 percent in
the past year, the biggest decline among the world’s 20 largest exchanges, the
data show.
While the merger will give Hong Kong Exchanges control of about 80 percent of
global trade in industrial-metal futures as it grapples with falling profits and a
slump in initial public offerings, the New York Stock Exchange’s head said the
price would have been too rich for the biggest U.S. bourse operator. An increase
in trading by Chinese companies on the LME is vital to justify the deal, making
the takeover’s success dependent on China’s regulators who have so far resisted
granting the LME access to the mainland to protect its rival in Shanghai, accord-
ing to Core Pacific-Yamaichi International (H.K.) Ltd.
Market News APAC*
Asian stocks outside Japan fell amid concern from the Bank for International Set-
tlements that the world’s central banks are confronting the limits of their ability to
boost economic growth.
BHP Billiton Ltd., the world’s largest mining company, led materials companies
lower, sliding 1.8 percent as metal prices retreated. Samsung Electronics Co. fell 3.5
percent as the world’s top mobile-phone maker investigated a complaint one of its
smartphones overheated. Yahoo Japan Corp. lost 5.2 percent after a report that the
Japanese government will question the firm on e-mail privacy.
The MSCI Asia Pacific Index slid 0.4 percent to 113.73 as of 10:01 a.m. in Tokyo
before markets in China and Hong Kong opened. The gauge has erased its advance
for the year. Central banks are being “cornered into prolonging monetary stimulus,”
the Basel, Switzerland-based BIS said in its annual report, published yesterday. “Both
conventionally and unconventionally, accommodative monetary policies are palliatives
and have their limits.”
Indices Asia Last Change YTD
Nikkei225 8,803.53 0.06% 4.11%
KOSPI Comp 1,818.70 -1.55% -0.39%
S&P/ASX200 4,004.90 -1.07% -1.26%
Hang Seng 18,862.39 -0.70% 2.33%
Shanghai Comp. 2,248.45 -0.55% 2.19%
STI Singapore 2,810.52 -0.62% 6.22%
KLCI Malaysia 1,611.16 0.50% 5.25%
JCI Indonesia* 3,889.52 -0.31% 1.77%
SET Thailand* 1,152.91 -0.53% 12.44%
Sensex India* 16,972.51 -0.35% 9.82%
*as of yesterday
Indices USA Yesterday Change YTD
DJIA 12,640.78 0.53% 3.46%
S&P500 1,335.02 0.72% 6.16%
Nasdaq100 2,585.53 1.12% 13.51%
Indices Europe Yesterday Change YTD
EuroStoxx50 2,186.81 -0.57% -5.60%
SMI 5,989.33 -0.38% 0.89%
DAX 6,263.25 -1.26% 6.19%
FTSE100 5,513.69 -0.95% -1.05%
CAC40 3,090.90 -0.75% -2.18%
Currencies Last Change YTD
USD/CHF 0.9581 0.29% -2.09%
EUR/USD 1.2537 -0.26% -3.27%
GBP/USD 1.5583 -0.03% 0.26%
USD/JPY 80.3000 -0.16% -4.21%
AUD/USD 1.0031 -0.33% -1.74%
NZD/USD 0.7873 -0.42% 1.30%
USD/KRW 1,161.3500 0.37% -0.77%
USD/HKD 7.7606 0.01% 0.09%
USD/SGD 1.2812 0.34% 1.20%
USD/THB 31.8700 0.19% -1.00%
USD/MYR 3.1925 0.05% -0.77%
USD/IDR 9,502.50 0.09% -4.57%
USD/CNY 6.3785 0.22% -1.31%
Treasury Yield Change YTD
US10Y 1.52 0.20% 1.54%
JGP10Y 0.73 0.02% 0.90%
AUD10Y 2.89 0.50% 5.07%
NZD10Y 3.27 -0.04% 3.25%
Commodities Last Change YTD
Gold 1,574.30 0.12% 0.68%
Silver 26.79 -0.45% -3.78%
Brent Crude Oil 91.04 0.07% -13.55%
Singapore Time: 9:52:40 AM
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation. 1 of 4

What to Watch*
News Corp.’s AUD 2 billion bid for ConsMedia faces challenge from No. 2 stakeholder Seven Group, which says it too may
make offer
Samsung is investigating customer complaint that its newest Galaxy phone overheated & caught fire; co. briefing at 8 am HKT
India’s govt & central bank will today outline steps to support falling rupee, finance minister says; note PTI reports govt may
fund public projects, helping to cut deficit
drop
BHP & Rio’s FY13 profit estimates were cut at UBS, which sees Australia levying heavier mining taxes as commodity prices
Hon Hai says it will take USD 214 million loss on its purchase of stake in Sharp
Chinese officials may be falsifying economic data to hide true degree of slowdown, NYT says, citing corporate execs
Qatar wants to invest up to $5b, mainly in A-shrs, through newly China’s newly expanded QFII program, CSJ reports
Aeon may create REIT that would raise up to 200 billion yen (USD 2.5 billion) through IPO this yr, Nikkei reports, without
citing anyone
Investment banks, brokers are said top have launched round of job cuts across Asia, mostly in equities, with more layoffs
coming, Reuters reports
PepsiCo is exploring loosened restrictions on investing in Myanmar as Coca-Cola plans its return to Asian nation
Oil & gas cos. are curtailing output in Gulf of Mexico today as Tropical Storm Debby approaches
Bank for Intl Settlements says central banks are approaching limit of what monetary stimulus can do to help economies
Greece’s new leaders want EU to relent on demands for govt-job cuts, higher tax collections; troika has canceled visit planned
for today
Key Economic Event for this week (Last update on 25/06/12)
Country Event/Data For Bloomberg Consensus Previous
Monday, 25 June 2012
Singapore CPI yoy % Jun 7.5 8.3
Taiwan Commercial Sales yoy % May 5.1 5.4
Taiwan Industrial Production yoy % May n.a. -2.4
Tuesday, 26 June 2012
Philippines Trade balance USD bn Apr n.a. -1.1
Singapore Industrial production yoy % May 6.1 -0.3
Hong Kong Trade balance HKD bn May n.a. -42.9
Wednesday, 27 June 2012
New Zealand Trade balance NZD mn May 300 355
Thursday, 28 June 2012
Japan Manufacturing PMI Jun n.a. 50.7
Japan Retail Trade yoy % May 3.0 5.7
Thailand Manufacturing Production Index May 2.5 0.5
Friday, 29 June 2012
Korea Industrial production yoy % May 0.5 0
Japan Jobless rate % May 4.5 4.6
Japan CPI yoy % May 0.2 0.4
Japan Industrial production –prelim yoy % May 6.6 12.9
China HSBC Manufacturing PMI Jun n.a. 48
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation. 2 of 4

Earnings Releases (Singapore Time)
• Aeon Credit Serv (8570 JP) 1Q
• Aeon Mall Co Ltd (8905 JP) 1Q
• J Front Retailing (3086 JP) 1Q 11:30am
• Takashimaya Co (8233 JP) 1Q 12:30pm
IPO Notice
• No major IPOs scheduled
New Bond Issues
• Lippo Malls Indonesia has set up a S$ EMTN.
• Yieh Phui Enterprise Co Ltd is planning CNH Issue
• Swire Holding Ltd to issued S$ 4year bonds around 7%.
Recent Asian Bond Issues
Date Issuer
Ratings
S&P/Moody’s/Fitch Size
Tenor
(Years) Pricing
22-Jun-12 Veoila Environment SA BBB+/Baa1/BBB+ RMB 500mn 5yr 4.7%
22-Jun-12 First Pacific Co Ltd NR/NR/NR USD 400mn 7yr 6%
22-Jun-12 Housing and Development
Board
NR/NR/NR SGD 585mn 12yr 2.505%
21-Jun-12 IOI Corporation Bhd BBB+/Baa1/BBB+ USD 600mn 10yr 4.464%
19-Jun-12 Frasers Centrepoint Ltd NR/NR/NR SGD 50mn 10yr 3.8%
19-Jun-12 Korea Exchange Bank A-/A2/A- USD 700mn 5yr CT5 + 255bp
19-Jun-12 Hang Lung Properties Ltd NR/NR/NR USD 500mn 10yr CT10 + 335bp
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation. 3 of 4

Contacts
VP Bank (Singapore) Ltd.
Thomas Rupf, CFA, FRM, CAIA Tom Chen, CFP
Head of Investment & Trading Asia Investment Advisor
Tel +65 6305 0072, Fax +65 6305 0052 Tel +65 6305 0070, Fax +65 6305 0052
thomas.rupf @vpbank.com tom.chen@vpbank.com
Source: Bloomberg, unless otherwise stated
VP Bank (Singapore) Ltd.
9 Raffles Place
#49-01 Republic Plaza
Singapore 048919
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Important: Please take note of the legal information on the last page of this documentation. 4 of 4