ECONOMIC DATA - (AU) AUSTRALIA NOV PRIVATE SECTOR CREDIT M/M: 0.1% V 0.0% PRIOR (3-month high), Y/Y: 0.8% V 1.1% PRIOR (multi-year low) - (MA) MALAYSIA Q3 UNEMPLOYMENT RATE: 3.6% V 3.6% PRIOR - (SI) Singapore Nov M1 Money Supply y/y: 25.4% v 22.1% prior (Highest since Apr 2008); M2 y/y: 10.1% v 9.2% prior - (KS) SOUTH KOREA DEC CPI M/M: 0.4% V 0.2%E; Y/Y: 2.8% V 2.6%E SPEAKERS/PRESS - In China, PBoC Gov Zhou reaffirmed that the central bank planned to keep moderately loose monetary policy and improve the flexibility of policy. Zhou added that the central bank would use credit policy to support economic restructuring. China's foreign exchange regulator, SAFE, reiterated the government would gradually proceed with the reforms to the yuan exchange rate and maintain the basic stability of the exchange rate. Also, SAFE said China's foreign exchange reserves include the US dollar, euro, yen and "other currencies", while noting that the US dollar remains the main foreign reserve asset. - Bank of Korea Gov Lee, in his New Year's speech, said the central bank would adjust its eased monetary policy at the appropriate pace in 2010, but plans to manage the base rate with the aim of helping sustain the economic recovery for the time being. EQUITIES - Australia's S&P ASX 200 closed the session higher by more than 0.75% and ended the year higher by over 30%. Hong Kong's Hang Seng gained by 1.8% and closed 2009 up by 52%. In China, the Shanghai Composite is gaining by more than 0.20% and the index is on pace to close the year with a more than 75% gain on an annual basis. Taiwan's Taiex has gained more than 0.50% on the session. On an annual basis, the Taiex has gained more than 77%. Equities in Japan and South Korea are closed in observance of the New Year's holiday. CURRENCIES/FIXED INCOME/COMMODITIES - In currencies, the USD is weaker against most currencies on the gains in Asian equities. The Japanese yen is firmer against both the USD and pound, but weaker against the commodity currencies. Additionally, the British pound has seen broad-based selling, after the currency rose sharply on yesterday's session on a rumor that Hershey might substantially raise its offer for the UK's Cadbury. - Most commodities are gaining on today's session on the early weakness in the US dollar and better than expected US Chicago PMI data for Dec. Crude oil prices are trading near $79.50/bbl and have gained more than 0.20% on the session. During yesterday's US session, the US Department of Energy disclosed that weekly crude inventories declined less than expectations, while gasoline stockpiles unexpectedly dropped (DOE CRUDE: -1.5M V -2ME; GASOLINE: -365K V +1ME; DISTILLATE: -2.1M V -2ME; CAPACITY UTILIZATION: 80.27% V 80.2%E). On an annual basis, oil prices are on track to gain over 75%. In geopolitical news, on yesterday's session pro-government protests were reported in Iran, after on Sunday it was reported that more than 5 supporters of Iranian opposition leader Moussavi were killed in anti-government demonstrations. In Yemen, the New York Times reported that local forces raided a hide-out of a local branch of Al-Qaeda. Yesterday it was reported that US and Yemeni officials were examining potential strikes in Yemen, following reports that a branch of Al-Qaeda located in the country claimed responsibility for last week's attempted bombing on a Northwest Airlines jet on Dec 25th. Spot Gold prices are gaining by more than 0.30% and trading above $1,095/oz, as the metal is on track to end the year higher by more than 20%. In other commodities, Shanghai Copper prices are higher and have moved to a fresh 2009 high, on gains in equities and supply concerns related to Chile.

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