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13/12/2007 | Asia Regional Markets - Midday Update | | | | |

04:34 GMT | | | | | |

| High | Low | Last | 13-Dec | %Change |

USD/SGD | 1.4433 | 1.4403 | 1.4427 | STI | -0.3 |

USD/THB | 33.61 | 33.6 | 33.6 | SETI | 0.17 |

USD/KRW | 925.5 | 923 | 924 | KOSPI | 0.13 |

USD/CNY | 7.3739 | 7.3609 | 7.3696 | SSE.A | -0.91 |

USD/MYR | 3.314 | 3.3105 | 3.312 | KLCI | -0.32 |

USD/IDR | 9310 | 9297 | 9310 | JKSE | -0.71 |

USD/PHP | 41.21 | 41.1 | 41.1 | PSE | 0.57 |

USD/TWD | 32.379 | 32.348 | 32.355 | TWII | -2.14 |

USD/HKD | 7.7995 | 7.7975 | 7.7978 | HSI | -0.84 |

USD/INR | 39.372 | 39.36 | 39.367 | BSESN | 0.23 |

13 Dec 2007

Asia Mid-Day Highlights

WSJ Fed Watcher Greg Ip + Joellen Perry: In the biggest coordinated show of international financial force since Sept. 11, 2001, the Fed yesterday joined 4 other central banks in a plan aimed at coaxing banks to lend more readily at a time when fear has seized up world credit markets. Just a day after it cut its key rate for the third time this year, the Fed said it will extend up to $40b in loans in the next eight days to banks. To ease banks' concerns about their own ability to borrow, the Fed said it would lend at a lower rate than it typically charges on such loans while accepting a broad range of collateral.

FT: Australia's Babcock & Brown is to push deeper into the US after agreeing to take over MidCon, owner of the Natural Gas Pipeline Company of America, in a deal valuing the business at AUD7.6bn ($6.7bn), including debt. Babcock & Brown Infrastructure and Babcock & Brown, two listed Australian investment groups, lead the consortium that will buy 80% of MidCon. Apart from the Babcock & Brown businesses, the consortium also includes Canadian and Dutch pension groups.

UAE Governor Sultan Nasser a-Suweidi says Gulf states must act together on revaluation or de-peg. UAE cannot act alone on currency revaluation. Gulf monetary union unlikely to be achieved by 2010, likely to be delayed. Gulf states are studying the source of inflation. Reval may bot be solution for inflation. - BBG.

NZ diary giant and world's largest diary exporter Fonterra has raised its forecast payout by nearly 8% to NZD6.90 per kg from its August forecast of NZD6.40, and 64% higher than its 06/07 season final payout of NZD4.10 per kg.

US Treasury Secretary Paulson says US, China agree to fight economic nationalism, protectionism. Talks substantive, robust and engaging.

BoJ statement says Japanese money markets are calm and the BoJ will take appropriate action as necessary for year end funding. There is no need for special measures and the existing framework is adequate.

USD index edges down slightly. Euro firm amidst quiet markets. Cable falls on back of UK RICS fall to -40.6 and amidst expectations of further BoE MPC rate cuts before seeing support from rhetoric of revaluation or de-peg from UAE Governor Sultan Nasser a-Suweidi. Aussie hops on jobs rise, then dips on unemployment rate rise, in choppy trading. Kiwi "let down" by the fall in NZ retail sales for October, which came in at -0.7%m/m vs expectation of 0.0% earlier.

USD/JPY steady with Japanese exporters, corporates selling on rallies, while Japanese investors' toushin demand supports on dips. GBP/JPY hit by "double whammy" of Japanese exporters sales and also sharp fall in UK RICS house price balance.

USD/Asians mostly fell although most were still contained inside tight ranges. Regional stock indices lingered in negative territory with investors still wary of further subprime fall out despite Fed and other central banks moves to inject liquidity.

Oil prices softer on profit taking after jumping on Fed's plan to inject liquidity. US crude traded $94.16 per bbl.

Gold dropped on stock market declines. Spot gold traded $810.10/$810.90 per oz.

NORTH ASIA:

USD/KRW fell to 923.5 low, tracking USD/JPY and Cross/JPY which were under some selling interest. Dollar sales by exporters added to the momentum.

USD/HKD trapped in narrow range on fall in USD/JPY and IPO demands. HKMA Chief Joseph Yam says HK banks may face losses in the short-term on subprime related losses, calling it a "significant problem", adding that the worst is not over yet, and should be prepared to see bank profit drop or even losses. HKMA Chief Joseph Yam says he wants through train smoothed out as soon as possible and that China should boost cross border securities transactions. No timetable for the direct HK investment plan and investment plan risks can be managed effectively.

USD/TWD consolidated inside narrow range with early strength on stocks weakness retarded by exporters' sales and central bank intervention.

USD/CNY firmed after gapping lower on the post reval low midpoint fix of 7.3568. Jan-Nov FDI up 13.66% y/y. Nov Industrial output up 17.3% y/y vs +17.7% y/y a year ago.

SOUTH ASIA:

USD/SGD cut down early towards 1.44 by local bank sales before popping back up on central bank fears. Three Indian companies, Tata Power Company (TPC), Reliance Energy and GMR Infrastructure have tabled non binding bids for Tuas Power of Singapore, one of the three power firms owned by Temasek Holdings. The sale is likely to fetch around $2 bln.

USD/MYR, tracking USD/SGD, trades were biased to downside and fell to a striking distance from 3.31. Fear of central bank intervention capped losses.

USD/IDR remained supported above the 9300 handle. Fixing demand was cited in early sessions. Underlying credit mkt concerns and oil hitting above $90/barrel have also supported dips. In related news, Indonesia will cut oil imports by 20% in Jan compared to Dec as oil prices bite in.

USD/PHP bears were out n full force as support at 41.20 gave way at the open. Holiday remittances, rise in stocks and liquidity easing measures elsewhere weigh on the pairing. Break of 41.09 to expose the 41-figure.

USD/THB came under pressure in the onshore market, weighed by selling interest in USD/JPY and JPY crosses in the global arena. Fear of BOT support kept the pairing above the 33.60 level.

USD/INR in familiar sub 39.40 ranges. Levels below 39.35 are seen being eyed, but RBI and oil importers lurking below is seen making retreats a long drawn affair.

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