Economic Data
(AU) AUSTRALIA AUG EMPLOYMENT CHANGE: -8.8K V 5.0KE; UNEMPLOYMENT RATE: 5.1% V 5.3%E; FULL TIME EMPLOYMENT CHANGE: 0.6K V 9.2K PRIOR; PART TIME EMPLOYMENT CHANGE: -9.3K V 4.8K PRIOR; AUSTRALIA AUG PARTICIPATION RATE: 65.0% V 65.2%E
(KR) SOUTH KOREA Q2 FINAL GDP Q/Q: 0.3% V 0.4% PRELIM; Y/Y: 2.3% V 2.4% PRELIM
(JP) Japan investors purchase ¥875B of foreign bonds v bought ¥1.05T prior week; Foreign investors sold ¥44.8B vs sold ¥135B last week
(JP) JAPAN AUG TOKYO AVERAGE OFFICE VACANCIES Y/Y: -9.2% V 9.3% PRIOR
(CO) COLOMBIA AUG CPI M/M: 0.0% (flat) V 0.0%E; Y/Y: 3.1% v 3.1%E
Markets Snapshot (as of 03:00GMT)
Nikkei225 flat
S&P/ASX +0.9%
Kospi +0.6%
Shanghai Composite +0.3%
Hang Seng +0.2%
Taiwan Taiex +0.2%
Straits Times Index -0.1%
Sept S&P500 +0.3% at 1,407
Dec gold +0.4% at $1,700/oz
Oct Crude oil +0.8% at $96.10/brl
Overview/Top Headlines
Asian equity markets opened the session to the upside on positive tone from Wall St, but are since paring their opening gains. Risk appetite stemmed from a press report in early US hours indicating ECB Pres Draghi has the support of the governing council to launch the next round of bond buying.German opposition also appeared to be waning, as Chancellor Merkel suggested that buying short maturities on a temporary basis is acceptable. The stage has been set for Pres Draghi to reveal the widely speculated program for short-term maturities of up to 3 years.
Economic data out of Australia sparked a rally following the release of better than expected employment data. Despite the no change in net jobs, unemployment rate fell to a 3-month low 5.1%, largely on the decline in participation rate from 65.2% to 65.0%. AUD was back above $1.02 after an initial stab lower and kept its gains, as traders anticipate more USD weakness in the wake of ECB. In the corporate sector, Qantas rose over 5% after formally unveiling its partnership with Emirates, even though neither company takes equity in the other. Qantas is also terminating its partnership with British Airways in conjunction with the deal.
Speakers/Geopolitical/In The Press
(CN) According to Century 21 China Real Estate, Shanghai existing property sales in Aug fell to 17.8K units, -15.5% m/m (first decline in 4 months) - Shanghai Daily
(CN) EU Commission launches anti-dumping investigation into China solar panel imports
(KR) Bank of Korea (BOK)'s Jung: Recent economic data has shown weakness
(EU) MOODY'S ADJUSTS IRELAND CEILING TO A3 FROM AAA (3 notches), PORTUGAL CEILING TO BAA3 FROM AAA (9 notches)
(NZ) New Zealand govt: Employment to rise 2.1% in FY13/14 - financial press
(NZ) According to Realestate.co.nz, New Zealand Aug listings rose 10% m/m; Inventory of unsold homes flat m/m - financial press
(JP) Environment Min Hosono considering contesting DPJ party leadership post against PM Noda - Nikkei News
Equities
Qantas QAN.AU: Formally announces global aviation partnership with Emirates; Neither company to take equity in the other; Terminates partnership with British Airways effective 31st March - financial press
Sharp 6753.JP: Places its HQ, Kameyama facility, and nearly all its other domestic properties as collateral - financial press
Lenovo 992.HK: CEO: Sees more opportunity in emerging markets for PCs - financial press
Honda HMC: To invest £267M investment at the Swindon facility, UK; plans to double production by year-end; increases workforce by over 16% - British press
Marubeni 8002.JP: Expected to be awarded ¥280B pulp plant contract in Russia - Nikkei News
Konica Minolta 4902.JP: Allocates ¥40B on M&A activity for FY12/13, up from ¥10B in FY11/12 - Nikkei News
US Equities
OCZ: Guides Q2 prelim R$110-120M v $134Me (vs $130-140M prior guidance range); -21% afterhours
PAY: Reports Q3 $0.75 (adj) v $0.70e, R$493.2M v $499Me; -11% afterhours