Economic Data
- (SG) SINGAPORES Q3 GDP Q/Q: -1.5% V -1.6%E; Y/Y: 1.3% V 1.1%E
- (JP) JAPAN AUG TERTIARY INDUSTRY INDEX M/M: 0.4% V 0.4%E (3-month high)
- (JP) JAPAN SEPT DOMESTIC CGPI M/M: 0.3% V 0.2%E; Y/Y: -1.4% V -1.4%E (6th consecutive decline; smallest decline in 3 months)
- (JP) JAPAN SEPT MONEY STOCK M2 Y/Y: 2.4% V 2.4%E; M3 Y/Y: 2.0% V 2.0%E
- (PE) Peru Central Bank leaves Reference Rate unchanged at 4.25%; as expected
- (JP) Japan investors Bought net ¥262.8B in Foreign Bonds last week vs Bought ¥1.54T prior week; Foreign Investors Bought net ¥118.6B in Japan stocks last week vs Sold ¥239.6B in prior week
- Nikkei225 -0.2%
- S&P/ASX +0.1%
- Kospi -0.1%
- Shanghai Composite -0.3%
- Hang Seng +0.5%
- Dec S&P500 +0.1% at 1,430
- Dec gold flat 1,771/oz
- Nov Crude Oil +0.2% at $92.24/brl
Asian equity markets are mixed headed into the weekend as bearish momentum from US indices over the past few days was stalled by better than expected weekly jobless claims data. Investors turn to economic data out of China, namely trade tomorrow and inflation figures early next week for more signs over the extent of its slowdown ahead of next month's political transition. September lending figures may also be released over the weekend or overnight, just as PBoC Vice Gov Liu expressed concern over low level of corporate appetite for loans.
Major currency pairs stuck to narrow ranges with the exception of Singapore dollar. Singapore Q3 GDP came in better than expected, while Q2 was revised from contraction to expansion, keeping its economy out of technical recession. Counter to expectations of more focus on rising SGD, MAS instead chose to maintain its policy of gradual appreciation of SGD with no change to width or midpoint. USD/SGD fell sharply by over 80 pips on broad SGD strength, briefly falling to a 1-month low below S$1.22 handle. Singapore also affirmed 2012 GDP remaining on track to grow 1.5-2.5% and forecasted 2013 CPI at 3.4-4.5%.
IMF unveiled its Asia-Pacific Regional Economic Outlook that pinned the chance of Asia 2013 growth remaining below 4% at just over 10%. IMF also called for more action from Japan to achieve its 1% inflation target, while also noting that risks to Asia remain considerable.
Japan Cabinet Office lowered its monthly economic assessment for the 3rd consecutive month, noting industrial production is decreasing and recovery was weak due to the global slowdown. Corporate sentiment assessment was also cut for the first time since Dec 2011, as manufacturers voiced increasing concern amid the recent Sino-Japanese tensions. Japanese Yen firmed late in the day, falling over 20 pips from session high to ¥78.30.
Fixed Income/Currencies/Commodities
- (CN) China National Energy Administration (NEA) dep commissioner Wu Yin said the govt will address coal prices - China Securities Journal
- (US) National Hurricane Center (NHC): Tropical Storm Patty forms in the Atlantic
- USD/SGD: Falls over 70 pips below S$1.2210 after better than expected Singapore GDP data and statement on SGD
- SLV: iShares Silver Trust ETF daily holdings fall to 9,894 tons from 9,920 tons (lowest level since Sept 19th)
- (US) Weekly Fed Balance Sheet Assets Week ending Oct 10th: $2.793T v $2.790T prior; M1: +$1.4B v -$11.2B prior; M2: +$74B v +$0.1B prior
- (CN) PBoC Vice Gov Liu: Concerned about rebound in bad loans - financial press
- (CN) China lending by major banks in Q4 unlikely to rise amid low corporate demand - Chinese press
- (CN) China exports may be under pressure due to weak holiday season orders - Chinese press
- (CN) China Ministry of Land: Transactions still not as active as in the past; Market unlikely to turn around - Shanghai Daily
- (JP) Moody's: Japan political stalement is a concern for the Japan debt outlook
- (JP) Japan Econ Min Maehara: Economy will continue to be weak for the time being; Strong Yen is the biggest problem
- (NZ) New Zealand Fin Min English: Strong currency is a 'headwind' for exporters
- (AU) Australia Treasurer Swan: On track to achieve budget surplus in FY12/13 - financial press
- (AU) Australia RBA rejects cap on home loans - SMH
- (KR) South Korea Fin Min Bahk: Emerging markets need to curb capital flow volatility
- (EU) German Fin Min Schaeuble: Mood of partners regarding Europe is much more positive; High support within G7 to reduce public debt
- (EU) ECB's Weidmann: Bundesbank and 10 other countries to sign bilateral credit line deal; Global economy in difficult state but no reason to be too pessimistic
- BBG.AU: TPG withdraws its takeover proposal; Talks have ceased - financial press; -16%
- Softbank: No truth to press speculation agreement on Sprint investment is made; Remaining in talks; -17%
- Fast Retailing 9983.JP: Chairman: Aims for FY13 sales across Asia (ex-Japan) to rise to ¥170B - Nikkei News;
- Takeda 4502.JP: May report H1 Op profit at ¥100.0B v ¥100Be, Rev ¥780.0B v ¥784Be - Nikkei News
- AMD: Reports prelim Q3 Rev -10% q/q (implies R$1.27B v $1.38Be); cites weaker than expected demand; -9.1% afterhours
- JBHT: Reports Q3 $0.65 v $0.67e, R$1.29B v $1.28Be; +5.7% afterhours
- PCS: Softbank considerating acquisition of PCS once the deal with Sprint has been completed - Japan press