Economic Data
NORTH AMERICA SEMI BOOK TO BILL RATIO: 0.87 V 0.94 PRIOR (2nd reading below parity, 4th consecutive m/m decline)
(KR) SOUTH KOREA JUL DEPARTMENT STORE SALES Y/Y:-1.3% V -2.0% PRIOR; DISCOUNT STORE SALES Y/Y: -8.2% V -7.2% PRIOR (4th consecutive decline)
(SG) SINGAPORE JUL ELECTRONIC EXPORTS Y/Y: 2.0% V 0.6%E; NON-OIL DOMESTIC EXPORTS M/M: -3.6% V -5.7%E; Y/Y: 5.8% V 5.0%E
(NZ) NEW ZEALAND Q2 PRODUCER PRICES: INPUTS M/M: 0.6% V 0.3% PRIOR (matches 1-year high); OUTPUTS M/M: +0.3% V -0.2%E (1-year high)
(CL) CHILE CENTRAL BANK LEAVES NOMINAL OVERNIGHT RATE TARGET UNCHANGED AT 5.00%; AS EXPECTED
(CO) COLOMBIA JUN TRADE BALANCE: -$191M V -$100ME; IMPORTS: $5.06B V $5.4B PRIOR
(KR) South Korea Jun Conference Board Leading Economic Index m/m: 118.7 v 119.9 prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.9%
S&P/ASX +0.6%
Kospi -0.6%
Shanghai Composite -0.1%
Hang Seng +0.5%
Taiwan Taiex -0.1%
Straits Times Index +0.1%
Sept S&P500 -0.1%% at 1,412
Dec gold -0.1% at $1,618/oz
Sept Crude oil -0.6% at $95.07/brl
Overview/Top Headlines
Asian Equities were mostly higher with Samsung Electronics dragging the Kospi lower as it nears damage claims in its trial with Apple. New Zealand PPI came in higher than expected; NZD was mostly unchanged in the session around $0.8105 at the bottom. AUD/USD was slightly weaker after the Australian Treasury said that intervention would not work on the currency and if it needed to be weaker the RBA would have to cut rates. The Treasury also thought it would not be prudent to create a sovereign wealth fund at this point. Crude fell 0.5% in the session, attributed mostly to profit taking. Analysts think that focus will start to shift a bit more to activity in the Middle East and any possible disruption to the oil supply chain as a result. EUR/USD stayed in a 20 pip range, markets were pleased with comments from German Chancellor Merkel's comments supporting the euro area and single currency. USD/JPY continued to inch higher testing ¥79.40 in the session, Japan and Korea to head to court over disputed island visit. Japan is also considering cancelling fx swap agreement. With more support for riskier assets, the yen should continue to weaken. Markets continue to expect that the PBoC will announce a rate cut to support the slowing economy. China July property figures will come out after the New York close today. Singapore dollar weakened against the greenback, following the trend of its neighbors. July electronic exports from the country rose better than expected by 2% y/y, non-oil exports were also stronger. Corn and soybeans were lower, while wheat gained over 0.4% to $8.65. Spot gold was slightly higher, while the silver front month contract was slightly weaker to $28.10.
Speakers/Geopolitical/In the press
(CN) PBoC may opt to cut its 1-year policy rates before another RRR rate cut - Chinese press
(CN) China August export growth may be worse than July, below 1% - Chinese press
(JP) Japan Govt updates forecasts: Sees FY13/14 Nominal GDP at 1.9%, FY12/13 Real GDP 1.7%, GDP deflator 0.2%
(KR) South Korea Fin Min Bahk: Will ease debt-to-income housing sector restrictions to support the property sector
(US) Fed's Kocherlakota (non-voter): Comfortable with Fed's pledge to keep rates low through 2014
(CO) Colombia Fin Min Echeverry: Sees 2012 GDP at 4.3-4.8%; Trying to devalue COP
Equities
ANZ.AU: Reports 9-months Net A$4.5B v A$4.2B y/y
APN.AU: Exec: Will cut 100 jobs in 2012 (has cut 400 positions over last 3-yrs)
Sharp, 6753.JP: Exec: Considering various options as part of turn around plan, will give details when they are formed
STO.AU: Reports H1 Net A$262M v A$269Me, Rev A$1.52B v A$1.15B y/y
TWE.AU: Reports FY12 Net A$89.9M v A$64.1M y/y, Rev A$1.68B v A$1.47B y/y
QBE.AU: Reports H1 Net A$760M v A$742Me; Rev A$8.93B, -2% y/y
US Equities
MRVL: Reports Q2 $0.24 v $0.27e, R$816M v $849Me; -9.6% after hours
BRCD: Reports Q3 $0.14 (adj) v $0.12e, R$555.3M v $538Me; -1.6% after hours
GPS: Reports Q2 $0.49 v $0.47e, R$3.58B v $3.58Be; +1.3% after hours