Economic Data
(CN) CHINA AUG NEW YUAN LOAN (CNY): 704B V 600BE
(AU) AUSTRALIA AUG NAB BUSINESS CONDITIONS: +1 V -3 PRIOR; BUSINESS CONFIDENCE: -2 V +3
(JP) JAPAN Q3 BSI LARGE ALL INDUSTRY Q/Q: +2.2% V -3.1% PRIOR; BSI LARGE MANUFACTURING: +2.5% V -5.7% PRIOR (1-year high)
(JP) JAPAN AUG MONEY STOCK M2 Y/Y: 2.4% V 2.3%E; M3 Y/Y: 2.1% V 1.9%E
(NZ) NEW ZEALAND AUG QV HOUSE PRICES Y/Y: 4.8% V 4.6% PRIOR (multi-month high)
(NZ) NEW ZEALAND AUG NZ CARD SPENDING - RETAIL: 3.0% V 0.8%E; TOTAL: 2.4% v 1.0%E PRIOR
(UK) UK AUG RICS HOUSE PRICE INDEX: -19% V -23%E
(PH) PHILIPPINES JUL TOTAL EXPORTS: +7.8% V -1.0%E; TOTAL MONTHLY EXPORTS: $4.8B V $4.3B
Markets Snapshot (as of 04:30GMT)
Nikkei225 -0.8%
S&P/ASX -0.1%
Kospi -0.2%
Shanghai Composite -0.9%
Hang Seng -0.6%
Sept S&P500 -0.3% at 1,422
Dec gold flat at $1,732/oz
Oct Crude oil -0.3% at $96.24/brl
Overview/Top Headlines
Asian equity markets are under modest pressure, tracking final hour decline on Wall St amid continued profit taking going into the Fed decision and ESM ruling in Germany later in the week. Also in Europe, Dutch elections will be closely monitored today for any signs of heightened tensions related to the most recent ECB actions.
Peripheral spreads were tighter again, with Portugal 10-year yields rising off the Friday lows. The euro pierced below $1.28 and was unable to rise back above that level, with technicians pointing to the apparent resistance of teh 200-day MA - EUR/USD has not traded above that level since October of 2011.
The Shanghai Composite is the weakest among the regional indices as the fallout from disappointing trade data continued to play out. An analyst with CITIC Securities indicated the deceleration in China August imports was not expected, reflecting "weakening domestic demand." China State Council has taken note of the weak report, announcing it would further encourage domestic spending while targeting annual retail sales growth of 15%.
China Commerce Ministry was increasingly skeptical of being able to meet 2012 trade growth target of 10%. Better than expected new lending data from China hardly inspired confidence as investors await detail on whether the loans favored municipalities or reflected a rise in consumer confidence. AUD/USD saw some brief strength above $1.0350 after the lending data before retreating back below $1.0330. USD/JPY remains supported above ¥78.20, but still unable to gather much upside momentum ahead of the FOMC meeting despite the modest uptick in US yields.
Speakers/Geopolitical/In The Press
(KR) South Korea Fin Min Bahk: Reiterates possibility of additional budget is low for 2012
(EU) IMF Dep Dir Zhu: Strongly supports ECB bond buying program; China has "a lot of policy space" in euro crisis
(NZ) New Zealand Fin Min English: Current NZD level is uncomfortable; does not agree that NZD should be devalued
(CN) China Ministry of Commerce (MOFCOM) researcher: Meeting trade target is difficult
(JP) Japan Fin Min Azumi: To observe economy for a little longer before determining if government action is required
(JP) Japan PM Noda: Government to compile new energy strategy later this week - Nikkei News
Equities
Sharp 6502.JP: Settles claims of alleged antitrust violations in LCD business; To pay $30M to settle US lawsuit - financial press
Mitsubishi Materials 5711.JP: To launch a business by 2015 that reclaims rare earths from hybrid vehicles; Partnering with Honda Motors - Nikkei News
US Equities
AIG: US Treasury prices 553.8M shares of common stock in public offering at $32.50/shr