Economic Data
(CN) CHINA JUNE PMI MANUFACTURING: 50.2 V 49.9E (7-month low)
(CN) CHINA JUN HSBC MANUFACTURING PMI: 48.2 V 48.4 PRIOR (lowest since November) v 48.1 flash
(CN) CHINA MAY LEADING INDEX: 100.0 V 99.9 PRIOR
(CN) China June home prices m/m: +0.1% vs -0.3% prior - Soufun
(JP) JAPAN Q2 TANKAN LARGE MANUFACTURING INDEX: -1 V -4E (3-quarter high); LARGE ALL INDUSTRY CAPEX: 6.2% V 3.6%E; LARGE MANUFACTURING OUTLOOK: +1 V -4E
(JP) JAPAN JUN VEHICLE SALES Y/Y: 40.9% V 66.3% PRIOR
(AU) AUSTRALIA MAY RPDATA-RISMARK HOUSE PX ACTUAL M/M: +1.0% V -1.4% PRIOR (multi-month high)
(AU) AUSTRALIA JUNE TD SECURITIES INFLATION M/M: -0.2% V 0.0% PRIOR (biggest decline since Oct 2008); Y/Y: 1.6% V 1.8% PRIOR (lowest since Oct 2009)
(AU) AUSTRALIA JUNE AIG PERFORMANCE OF MANUFACTURING INDEX: 47.2 V 42.4 PRIOR (first m/m increase in 5 months; 3-month high)
(IN) INDIA MAY TRADE BALANCE: -$16.3B V -$16.3BE; Exports Y/Y: -4.2% V +3.2% prior; Imports Y/Y: -7.4% v +3.8% prior
(IN) INDIA JUN MARKIT MANUFACTURING PMI: 55.0 V 54.8 PRIOR (4-month high)
(KR) SOUTH KOREA JUNE HSBC MANUFACTURING PMI: 49.4 V 51.0 PRIOR (first contraction in 5 months)
(KR) SOUTH KOREA JUNE CONSUMER PRICE INDEX (CPI) M/M: -0.1% V +0.2%E (first decline since March); Y/Y: 2.2% V 2.5%E (lowest since Oct 2009); CORE CPI Y/Y: 1.5% V 1.6% PRIOR
(TW) TAIWAN JUNE HSBC MANUFACTURING PMI: 49.2 V 50.5 PRIOR (first contraction in 5 months)
(ID) INDONESIA MAY TOTAL TRADE BALANCE: -$490M V +$311ME; EXPORTS Y/Y: -8.6% V -9.0%E
(ID) INDONESIA JUNE INFLATION M/M: 0.6% V 0.4%E; Y/Y: 4.5% V 4.4%E; CORE INFLATION Y/Y: 4.2% V 4.1%E
(TH) THAILAND JUNE CONSUMER PRICES (CPI) M/M: 0.2% V 0.1%E; Y/Y: 2.6% V 2.6%E; CORE CPI Y/Y: 1.9% V 2.0%E
(VN) VIETNAM JUNE HSBC PMI MANUFACTURING: 46.6 V 48.3 PRIOR
(UK) UK JUNE HOMETRACK HOUSING SURVEY M/M: 0.0% V 0.2% PRIOR (4-month low); Y/Y: -0.5% V -0.6% PRIOR (highest since Oct 2010)
(UK) UK JUNE LLOYDS BUSINESS BAROMETER: -12 V -21 PRIOR
Markets Snapshot (as of 04:45GMT)
Nikkei225 +0.3%
S&P/ASX +1.1%
Kospi +0.1%
Taiwan's Taiex +0.8%
Shanghai Composite +0.1%
Hang Seng closed
Sept S&P Futures -0.2% at 1,354
Aug gold -0.7% at $1,593/oz
Aug Crude oil -1.3% at $83.89/brl
Overview/Top Headlines
Asian equity markets are up marginally following slightly better than expected China PMI data. Official manufacturing prints avoided the expected decline below the critical 50-mark, while the HSBC figures saw a marginal 0.1pt uptick from the flash 48.1 result, showing some slight improvement in H2 of June.
Japan Q2 Tankan was also stronger than expected with a 3-quarter high for manufacturers and a 4-year high for non-manufacturers. Japanese yen firmed up heading into the close of trade in Tokyo, shrugging the telegraphed departure of the former DPJ leader Ozawa from the ruling party. Note that the fallout from the breakup is below the critical 54 votes in the lower house, preserving DPJ majority and preventing a no-confidence vote for Noda govt.
Spanish and French fin mins warned with downbeat estimates for GDP - a short-term downgrade (Q2) by the former and a longer term window (2012, 2013) for the latter. ECB's Asmussen was unyielding in calling for Greece to keep its commitment to fiscal targets. Notably, UK PM Cameron turned increasingly more vocal in opposition to deep EU involvement, a sign of concern over potential European oversight over the UK financial sector.
Speakers/Geopolitical/In the press
(AU) According to one survey, economists are unanimous in expectation for RBA to leave rates unchanged at tomorrow's meeting following 2 consecutive cuts - Australian press
(CN) China has confirmed it is easing QFII eligibility for foreign investment funds to enter into mainland stock and bond markets - SCMP
(CN) China Vice Premier Li Keqiang: Property controls need to continue - Chinese press
(HK) Leung Chun-ying sworn in as the new chief executive of Hong Kong; Replaces Donald Tsang (as expected)
(MX) According to exit polls, Mexico's Institutional Revolutionary Party (PRI) candidate Enrique Pena Nieto is projected to win today's presidential elections by about 11pts (as expected)
(JP) Former DPJ party leader Ozawa to launch a new political party as early as within a week - Japan press
(JP) According to quarterly Nikkei News survey, about 25% of corporate execs see global economy deteriorating vs only 7% in April - Nikkei News
In Europe
(ES) Spain Econ Min de Guindos: Reiterates view that Q2 GDP contracted slightly more than -0.3% in Q1 - financial press
(FR) France Fin Min Moscovici: To lower 2013 GDP target to 1.0-1.3% range vs 1.7% prior target; Sees 2012 GDP at 0.4% or less vs 0.5% prior target - financial press
(UK) PM Cameron: Would support a referendum on renegotiation of UK's involvement in EU - UK press
(EU) ECB's Asmussen (Germany): Reiterates view that Greece must fulfill 100% of the targets agreed upon to remain in the euro - financial press
(DE) According to most recent political polls, German Chancellor Merkel's CDU party support remains at 35%; Coalition FDP support at 4% - financial press
Equities
QAN.AU: Reports May passenger traffic +3.1% y/y vs 4.6% prior
992.HK: Bernstein Research: Consumers in China's rural markets to provide Lenovo with steady growth in the next 5 years - SCMP
SNE: To open access for domestic downloads of its music content to iPhone and other Apple devices - Nikkei News
LLC.AU: Guides FY12 operating profit A$485-505M v A$440M prior forecast
Weekend M&A
AMLN: Bristol-Myers Squibb to acquire Amylin for $31.00/shr in cash of $5.3B; Total value including contractual payment obligation to Eli Lilly is $7B
CELL: BrightPoint to be acquired by Ingram Micro for $9.00/shr in all cash deal valued at $840M; accretive to EPS
QSFT: Dell is close to reaching a deal for Quest Software - US financial press
LNCR: Germany's Linde AG to acquire Lincare Holdings for about $4.6B in cash or $41.50/shr - financial press