Economic Data
(JP) JAPAN SEPT PRELIM INDUSTRIAL PRODUCTION M/M: -4.0% V -2.1%E (first decline since post-quake March drop); Y/Y: -4.0% V -2.3%E
(JP) JAPAN OCT TOKYO CPI Y/Y: -0.5% V -0.5%E; CORE Y/Y: -0.4% V -0.4%E (8-month low); SEPT NATIONAL CPI Y/Y: 0.0% V 0.1%E; NATIONAL CPI CORE Y/Y: 0.2% V 0.2%E
(JP) JAPAN SEPT JOBLESS RATE: 4.1% V 4.5%E (matches Jan 2009 lows); JOB-TO-APPLICANT RATIO: 0.67 V 0.67E
(UK) UK OCT GFK CONSUMER CONFIDENCE SURVEY: -32 V -30E (lowest level since FEB 2009)
(JP) JAPAN SEPT OVERALL HOUSEHOLD SPENDING Y/Y: -1.9% V -3.5%E (4-month high)
(JP) JAPAN SEPT VEHICLE PRODUCTION Y/Y: -4.5% V +1.8% PRIOR
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.2%
S&P/ASX +0.1%
Kospi +0.5%
Taiwan Taiex +0.8%
Singapore Straits Times Index +1.4%
Shanghai Composite +1.1%
Hang Seng +1.9%
S&P Futures -0.4% at 1,277
Dec Gold -0.2% at $1,743/oz
Dec Crude -0.4% at $93.55
Overview/Top Headlines
Asian markets rallied today following yesterday's agreement on EU debt crisis and US Q3 GDP coming in better than expected, alleviating some fears about a double dip. The FT reported that China may contribute approx €70.5B ($100B) to the EFSF, Govt officials saying that any contribution would have strong guarantees and would depend on the participation from other nations. Later on, China Vice Finance Min Zhu said that China was still discussing whether to invest in EFSF fund; will maintain policy stability with focus on lowering inflation. In an Op Ed piece in the Chinese press, China NDRC Sec General Wang Jian said China needs to weigh any investment in the EU based on its own interests; Euro assets are less risky that dollar assets. China should also consider investing in other European assets, including companies, technologies, farmland and mines.
Emerging market currencies benefited from the return of risk appetite all gaining against the USD. Gold fluctuated in the session, Dec copper lost 0.6%, silver gained 0.9% while wheat and corn both declined.
PBoC set yuan mid-point at 6.3290 v 6.3595 prior close (New yuan high since the July 2005 revaluation) this is a sharply higher setting after mostly weaker setting recently. In response to comments from China Premier Wen yesterday saying "Govt to allow reasonable growth in bank lending and apply a steady hand to fine tune economic policies"; PBoC Gov Zhou had to cool market expectations by saying China's economic trend will not be changed significantly, and we should be well aware of the potentially worse-than- expected impact the weak global economy will have on China.
Qantas continues to struggle with industrial action. Today saying that H1 capacity will be +6-7% y/y. Also that strikes have cost A$68M to date, if labor action continues there will be an impact on jobs. Unable to give H1 guidance, outlook is too volatile. Also seeing a sharp decline in forward bookings due to labor action. Later on the Chairman said that he is not aware of any offers for the company.
Speakers/Geopolitical/In the press
USD/JPY: (JP) Japan Fin Min Azumi: Reiterates very concerned about speculative forex moves, closely watching the markets
(TH) Thailand Central Bank cuts 2011 GDP forecast to 2.6% from 4.1%; Prepared to call a special policy meeting if the flood impact gets to be too much
(PH) Philippines Central Bank: OCT CPI likely to be 4.5-5.4% y/y; Vegetable and food prices contributed to inflation
Equities
Kia Motors, 000270.KS: Reports Q3 Net KRW648B v KRW667B y/y; Op KRW828B v KRW421B y/y; Rev KRW9.99T v KRW5.7T y/y
Samsung Electronics, 005930.KS: Reports Q3 Net KRW3.4T v KRW3.4Te, Op profit KRW 4.25T v KRW4.2Te; Rev KRW41.3T v KRW41Te
MQG.AU: Reports H1 Net A$305M v A$322Me; Op profit A$3.24B; To buyback 10% of shares outstanding or A$800M
Tepco, 9501.JP: Planning to ask the govt for ¥900B in a sponsored bailout - financial press
PetroChina, 857.HK: In Q3 purchased 5.6M tons of diesel from outside sources, +51% y/y to address shortages
US Equities
CLF: Reports Q3 $4.07 (Adj) v $3.68e, R$2.14B v $2.2Be; +8.4% after hours
NEM: Reports Q3 $1.29 (adj) v $1.24e, R$2.74B v $2.7Be; +0.6% after hours
VRTX: Reports Q3 $1.02 v $0.80e, R $659.2M v $23.8M y/y; +1.3% after hours
BIDU: Reports Q3 $0.86 v $0.83e, R$655M v $619Me; +7.6% after hours
AMD: Reports Q3 $0.13 v $0.10e, R$1.69B v $1.7Be; +10.5% after hours