The focal point of today's Asia-Pac session...>

CHINA: The focal point of today's Asia-Pac session will be the PBoC's LPR

fixing, due at 01:30 GMT. Most analysts look for the 1- & 5-Year fixings to fall

by 5bp (with a tilt towards the potential for slightly deeper reductions in the

1-Year fix), although some look for no change in the 5-Year fix. The 1-Year LPR

fixed at 4.20% in Oct, with the 5-Year variant fixing at 4.85%, both were unch.

The recent 5bp cuts to both the rate applied to the PBoC's 1-Year MLF & 7-Day

Reverse Repo ops should facilitate lower LPR fixings today.

- Policymakers want to avoid the stigma of flood like stimulus, especially given

the sharp move higher in headline CPI, through the ceiling of 3.0% Y/Y. Pork

prices have been the driver of headline CP, with wholesale pork prices edging

back from peaks in recent days & policymakers pledging commitment re: dealing

with the issue. Credit flows are likely limiting the follow through of the

PBoC's targeted easing & Tuesday saw the PBoC stress that it will step up

counter-cyclical adj & continue prudent MonPol as the downward pressure on the

econ continues to increase. The PBoC also noted that it will boost bank's

abilities to provide credit & cont. to push real lending rates lower.