Economic Data
(AU) AUSTRALIA JUN TRADE BALANCE (A$): +9.0M V -375ME (1st surplus in 6-months)
(AU) AUSTRALIA JUN RETAIL SALES M/M: 1.0% V 0.7%E (3-month high); Q2 RETAIL SALES EX-INFLATION Q/Q: 1.4% V 0.9%E
(NZ) NEW ZEALAND JUL ANZ COMMODITY PRICE INDEX M/M: -0.5% V -2.4% PRIOR (5th month of decline)
(JP) JAPAN JUL MONETARY BASE Y/Y: 8.6% V 5.9% PRIOR (5-month high, 3rd consecutive increase)
(KR) SOUTH KOREA JUL FOREIGN EXCHANGE RESERVE: $314.4B V $312.4B PRIOR
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.1%
S&P/ASX +0.2%
Kospi -0.4%
Shanghai Composite -0.5%
Hang Seng -0.7%
(TW) Taiwan Taiex closed due to the approaching typhoon
Sept S&P500 +0.2%
Dec gold -0.2% at $1,604/oz
Sept Crude oil -0.1% at $88.84/brl
Overview/Top Headlines
Asia equity markets are treading water for the third consecutive trading session, with the focus now turning to the all-important ECB decision after the Fed whiffed on more aggressive policy easing. FOMC largely stuck to the script, most notably keeping its low-rate pledge to 2014 vs extending it to 2015 as expected by a number of Fed-watchers. Equity markets and precious metals briefly sank while the dollar rallied in the aftermath of the Fed - the statement's only changes revising economic outlook to 'decelerated somewhat' from 'expanding moderately this year' and also showing slightly more willingness to 'provide additional accommodation as needed'. ECB rate decision and the subsequent statement from Mario Draghi - all along the more important event of the two policy decisions - is in the spotlight, as investors prepare to digest whether Europe has the means to back up leaders' pledge to do 'all that they can' and to 'save the euro'. An increasing number of analysts are turning pessimistic on Draghi's ability to meet market expectation in light of its mandate constraints and the back-and-forth from German officials, keeping the euro under pressure below $1.23.
Australia posted an unexpected trade surplus for the first time in 6 months, as exports came in flat while imports fell 2%. Shipments to China were surprisingly strong at A$7.49B v A$7.33B prior, even as iron ore exports fell 4% from last month to A$5.2B. In China, the housing sector continued to exhibit remarkable resilience, with July home prices in 100 cities reported rising 0.3% m/m. Analysts attribute renewed property market strength to more liquidity in the wake of two PBoC interest rate cuts, suggesting the gains could keep the central bank on the sidelines over the near term.
Japanese yen consolidated its recent gains, with USD/JPY testing above 78.50 after the IMF called on the BOJ to ease policy to address deflation. Japan's economy has shown signs of a tepid recovery, as Japan Center for Economic Research (JCER) reported June GDP rising for the 2nd consecutive month. Separately, BOJ's Morimoto reiterated the policymakers are prepared to conduct 'powerful easing' in defense of financial stability amid continued state of elevated uncertainly. Recall the next BOJ policy decision is set for next week and will feature two newly appointed and extra-dovish board members.
Speakers/Geopolitical/In the press
Yen verbal intervention
USD/JPY: (JP) Japan Econ Min Furukawa: Govt will deal with the strong yen, will not tolerate an appreciating yen - Nikkei
USD/JPY: (JP) Japan Fin Min Azumi: Reiterates IMF shares Japan's view on excessive yen strength
Sovereign Actions
(DE) S&P AFFIRMS GERMANY AAA SOVEREIGN RATING; OUTLOOK STABLE
(CY) S&P CUTS CYPRUS SOVEREIGN RATING BY ONE NOTCH TO BB FROM BB+; OUTLOOK NEGATIVE
China
(CN) Credit Suisse research analyst: Recent rise in China property prices are the result of easier monetary policy; Prices will continue to rise since the govt is unlikely to announce new curbs - SCMP
(CN) According to Nielsen, China Consumer Confidence in Q2 fell to 105 from 110 - Shanghai Daily
(CN) China Industry Ministry (MIIT): New orders received by China shipbuilders in H1 fell 50.3% y/y to 10.74M DWT - Chinese press
Equities
GAME: CEO: To establish a new operations center in Europe; May seek M&A opportunities - Shanghai Daily
Mitsubishi Corp 8058.JP: Reports Q1 Net ¥98.1B v ¥100Be, Op Profit ¥17.6B v ¥71Be, Rev ¥4.80T v ¥5.04Te
Sharp 6753.JP: May be considering cutting 5,000 jobs (about 9% of workforce) - financial press
005380.KR: Hyundai-Kia group may reach its 1M US sales mark sooner than expected - Korean press
LEI.AU: Awarded $412M contract for a people mover system in Qatar
BHP: Follow-up: Head of iron ore division disclosed to staff the firm is reviewing development table of key growth projects
US Equities
ANF: Guides Q2 $0.15-0.18 v $0.33e, Rev $951M v $1.01Be, SSS -10%; -16.2% afterhours
WTW: Reports Q2 $1.36 v $1.35e, R$485M v $500Me; lowers outlook; -12.9% afterhours
RIG: Reports Q2 $0.72 (adj) v $0.44e, R$2.575B v $2.48Be; +1.1% afterhours
TSO: Reports Q2 $2.87 (adj) v $2.28e, R$8.1B v $6.90Be; Announces $500M share repurchase program (12.9% of market cap); +4.6% afterhours
CAR: Reports Q2 $0.94 (ex-items) v $0.70e, R$1.90B v $1.90Be; +6.4% afterhours
GMCR: Reports Q3 $0.52(adj) v $0.50e, R$869M v $875Me; Board approves $500M buyback (18% of market cap); +12.7% afterhours
YELP: Reports Q2 -$0.03 v -$0.06e, R$32.7M v $30.7Me; +14.8% afterhours
FSLR: Reports Q2 $1.27 v $0.89e, R$957M v $805Me; +18.9% afterhours