Economic Data
(AU) AUSTRALIA Q2 WAGE COST INDEX Q/Q: 1.0% V 0.9%E; Y/Y: 3.7% V 3.5%E
(AU) AUSTRALIA AUG WESTPAC CONSUMER CONFIDENCE INDEX: 96.6 V 99.1 PRIOR; M/M: -2.5% V +3.7% PRIOR (5-month low)
(SG) SINGAPORE JUN RETAIL SALES M/M: -0.4% V -0.9%E; Y/Y: -0.9% V +0.1%E; EX-AUTO Y/Y: 2.3% V 0.7% PRIOR
(JP) Japan Jun Conference Board Leading Economic Index m/m: 95.1 v 96.4 prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 -0.6%
S&P/ASX -0.4%
Kospi closed
Shanghai Composite -0.8%
Hang Seng -1.3%
Taiwan Taiex -0.3%
Straits Times Index -0.9%
Sept S&P500 -0.3%% at 1,398
Dec gold +0.1% at $1,603/oz
Sept Crude oil -0.5% at $93.01/brl
Overview/Top Headlines
With little direction from the markets and some profit taking, Asian equities traded lower after a mixed opening. S&P ASX was given an early boost after two of its largest banks reported stronger results this week. Shares of Paladin rose over 10% after being awarded a contract. However after Australia August Consumer Confidence Index came in with a decline of 2.5%, a five month low, mostly attributed to lack of RBA action at the most recent meeting. AUD/USD declined slightly to $1.0475 at the mid-point.
USD/JPY was again a bit stronger trading in a 20 pip range, high of ¥78.90, EUR/JPY rose to ¥97.2330, the weaken yen gave strength to Japan exporters including Toyota and Komatsu. However a report out of Nikkei News put a damper on some of the major electronics companies saying that most had cut their projections for sales of LCD TVs and digital cameras. In Hong Kong shares of Standard Charter opened over 7% higher after reaching a deal with NY regulators
Chatter remains strong that China's PBoC will cut the RRR towards the end of the month, and hope continues to linger for fresh easing in both the US and Europe. Shortly European leaders will come back from their August sojourn and attention will refocus on Greece and Spain.
Corn, soybeans and wheat contracts rose over 0.5%, today China cut its corn production outlook for 2012 modestly . Copper was slightly weaker as the appetite for risk waned, silver was mostly unchanged.
Speakers/Geopolitical/In the press
(CN) Chinese think tank (CCIEE) said the 7.5% growth target for 2012 could be at risk if stimulus measures are not launched - financial press
(NZ) New Zealand Fin Min English: Affirms target to grow exports to 40% of GDP by 2025 - financial press
Asia Development Bank (ADB): 2011 money supply in Asia was down to 14.6% from 15.4% in 2010 as share of the global GDP grew to 36%
(CN) China banks' Q2-end non-performing loans (NPL) ratio: 0.9% v 0.9% q/q
(IN) India PM Singh: India needs to increase its growth, impact being seen from global slowdown
Equities
CBA.AU: Reports FY12 Net A$7.09B v A$7.12Be, Rev A$47.2B, +2% y/y
SouthGobi Resources, 1878.HK: Exec: Doubtful that Chalco will be able to go ahead with takeover bid; Chalco has not been in contact for over 1-month - financial press
WLIL.SG: Reports Q2 Net $117.1M v $328Me; Rev $1.02B, +4.3% y/y
OZL.AU: Reports H1 Net A$119.5M v A$114Me; Rev A$514.8M v A$527Me; CEO: Costs have been higher than expected; Copper prices will remain relatively buoyant - conf call comments
EGP.AU: Reports FY12 Net A$42.2M v A$226M y/y; Rev A$1.62B, +0.2% y/
2.HK: Postponed A$3.0B IPO for TRUenergy due to low investor confidence and uncertain equity markets - AFR