Asia Morning Analytics: 150110 Asia Morning Wrap

Morning all,

A bit of a delay today with our views, but with Intel's earnings beating cosensus, we saw overnight market to be up a notch. However, note must be taken to the fact that retail sales data slowed and initial jobless claim was hitting walls to point to the fact that the recovery over in US might be slowing. Thus, this may provide more room for the rates to remain low in the states, whilst dollar to resume its fall.

Taking cues from overseas market, we may anticipate today to have a overall flat day. Again, sector rotation will be the main theme, with utilities and consumer staples to outperform the market. We may also see the commodities stabilising after sharp falls the past two session, with technical buyings coming in.

Again, we reiterate banking and properties sector remain to be uncertain with government actions pounding the sector hard. We remain to be seller in the short term, and looking for dips on consumers and utilities.

Despite ports been the star since the year started, we may see some profit-taking after the poor US data which may hint export recovery may not be as rapid as one would think.

We may also look at buying commodities on the dip because of a dollar correlation hedge buying, and the fact that inflation issues are beginning to float across the globe.

Would also like to point out a further note should be examined over the Greek issues, as sovereign credit rating is, again, on its hind legs, which may result in echo credit collapses.

ongy out.