Economic Data
- (JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE UNCHANGED AT 0.0-0.1%, AS EXPECTED; ASSET PURCHASE PROGRAM UNCHANGED AT ¥80T; CUTS ECONOMIC ASSESSMENT
- (JP) JAPAN SEPT OFFICIAL RESERVE ASSETS: $1.277T V $1.273T PRIOR
- (AU) AUSTRALIA SEPT AIG PERFORMANCE OF CONSTRUCTION INDEX: 30.9 V 32.2 PRIOR (1-year low)
- (KR) SOUTH KOREA SEPT FOREIGN EXCHANGE RESERVE: $322.0B V $316.9B PRIOR (new record high
- (TW) TAIWAN SEPT CPI Y/Y: 3.0% V 2.8%E; WPI Y/Y: -2.2% V -2.0%E
- (PH) PHILIPPINES SEPT CONSUMER PRICE INDEX (CPI) M/M: -0.1% V +0.2%E; Y/Y: 3.6% V 3.8%E; CORE CPI Y/Y: 3.8% V 4.3% PRIOR
- Nikkei225 +0.4%
- S&P/ASX +0.8%
- Kospi +0.2%
- Shanghai Composite closed
- Hang Seng +0.4%
- Dec S&P500 +0.1% at 1,457
- Dec gold flat 1,796/oz
- Nov Crude oil -0.3% at $91.41/brl
Asian equity markets are trading modestly higher, taking cue from positive lead on Wall St and shrugging the non-farm payrolls event risk on Friday following stronger-than-expected ADP jobs report. Energy markets have reversed overnight losses in near entirety, with geopolitical concerns flaring up from Tehran to Syria/Turkey border. Precious metals remained firm as gold added to US session gains to trade within $2 shy of the key $1,800 mark. In currencies, risk-on AUD and NZD pairs retreated from the recent lows as traders covered some short going into the weekend, while EUR and GBP kept to narrow ranges against the dollar in the wake of abstension from more easing by the ECB and the BOE earlier in the day.
The Bank of Japan policy decision was the primary event of the session and did produce some currency market impact, though nowhere near the amount of volatility that followed last month's surprise ¥10T expansion of the BoJ asset program. USD/JPY sold off some 25pips below ¥78.30 after BoJ stood pat on its program and inflation target - the two levers that some of the more dovish analysts continue to fixate on for further easing. Notably, BoJ did cut its economic assessment for the second consecutive meeting to state that "activity leveling off more or less", reiterated CPI is likely to remain around 0% for time being, and also introduced more focus into currency markets and overseas economic deceleration into its statement. The next policy meeting set for late October is widely expected to produce more aggressive market response, particularly if there is no progress on dealing with yen strength going into the Japanese earnings season.
Fixed Income/Currencies/ Commodities
- (AU) Australia MoF (AOFM) sells A$500M in 4.75% Oct 2015 Notes; avg yield: 2.4786%; bid-to-cover: 6.14x
- (MX) Mexico President to announce new deep water oil discovery in Gulf of Mexico on Friday, Oct 5 - press
- GLD: SPDR Gold Trust ETF daily holdings rise by 9.0 tons to 1,333.4 tons (record high)
- (US) Weekly Fed Balance Sheet Assets Week ending Oct 3rd: $2.790T v $2.787T prior; M1: -$11.2B v -$43.8B prior; M2: +$0.1B v +$13.8B prior
- (US) Fed's Bullard (FOMC alternate, hawkish): Markets losing confidence in Fed's inflation credibility
- (KR) South Korea Finance Ministry: To establish long-term plan to attain AAA rating - Korean press
- (KR) According to South Korea's Financial Supervisory Service (FSS): Foreigners were net buyers of South Korea stocks for the 2nd consecutive month in Sept - Korean press
- (KR) South Korea Fin Min Bahk: Economy decelerating amid higher uncertainty - Korean press
- (JP) Japan Center for Economic Research (JCER) president Iwata: MoF to cut national spending by ¥5T if deficit covering bonds are not passed - Nikkei News
- (JP) Asahi News poll shows most prefer Abe as prime minister over Noda
- (JP) Japan Finance Ministry plans to buy ESM bonds - Yomiuri News
- Hyundai Motor 005380.KR: Reports Sept China sales +15% at 84.2k units v 73.3k y/y
- Samsung Electronics 005930.KR: Reports prelim Q3 Op profit KRW8.1T v KRW7.6Te; Rev KRW52T v KRW51.7Te
- CBA.AU: Cuts variable mortgage rate by 20bps following 25bp rate cut by RBA this week
- BOQ.AU: Estimates H2 net profit at A$70-75M - financial press
- NSANY: Exec: Plans to maintain China strategy; protests will weigh on China Sept sales - financial press
- TM: Reports China sales -50% m/m - Japan press
- TM: Prius vehicles topped domestic sales in Sept for the 16th consecutive month at 22.1K vehicles
- Dic Corp 4631.JP: May report H1 op profit around ¥19B, +6% y/y; Rev seen at just above ¥350B, -8% y/y - Nikkei News
- Mitsubishi Materials 5711.JP: May report H1 pretax profit just above ¥30B, -26% y/y; Rev seen just under ¥600B, -10% y/y - Nikkei News
- Aeon 8267.JP: To reopen its China stores following protests - Yomiuri News
- ZNGA: Reports prelim Q3 -$0.01 to $0.00 v $0.00e, Rev $300-305M v $277Me; Lowers FY12 guidance; -19% afterhours
- MRCY: Lowers Q1 guidance to -$0.28 to -$0.24 v -$0.02e; (-$0.08 to -$0.03 prior range), Rev lower to $48-50M v $58.4Me (prior guidance $55-61M); -12.3% afterhours
- DTLK: Guides Q3 lower $0.14-0.15 v $0.23e, R$105-106M v $120Me (EPS $0.20-0.25, R$117-122M prior); -14.3% afterhours
- HPQ: Moody's: Places rating under review for Downgrade; About $31B of securities affected; -0.3% afterhours
- ATK: Awarded $8.5B US Army contract; +2.3% afterhours