China Housing Prices Increase M/MEconomic Data
(CN) CHINA JUNE NEW HOME PRICES M/M: FELL IN 21 OF 70 CITIES V 43 PRIOR; Y/Y: FELL IN 57 OF 70 CITIES V 54 PRIOR
(JP) BANK OF JAPAN (BOJ) JUNE 14-15 BOARD MEETING MINUTES: HAVE BEEN PURSUING POWERFUL EASING
(AU) AUSTRALIA MAY WESTPAC LEADING INDEX M/M: 0.8% V 0.5% PRIOR (largest increase since December 2010)
(JP) Japan June Tokyo Condominium Sales y/y: +16.4% v -14.9% prior
(NZ) New Zealand June online skilled job vacancies m/m: -2.1% v +9.5% prior
(CO) Colombia May Trade Balance: $20.2M v $400Me; Imports: $5.4B v $4.5B prior
Markets Snapshot (as of 05:25GMT)
Nikkei225 +0.3%
S&P/ASX -0.4%
Kospi -0.8%
Taiwan's Taiex -1.0%
Singapore Straits Times -0.1%
Shanghai Composite -0.1%
Hang Seng -0.9%
September S&P -0.4%
August gold -0.7% at $1,579/oz
August crude oil -0.7% at $88.64/brl
Overview/Top Headlines
Markets started off to the upside after a stronger close in the US, as the session went on declines accelerated. Korea equities and the won came under pressure after North Korea said it would make an important announcement, which turned out to be Kim Jong Un appointed as the Head of State, Marshall of North Army. After the non-event the Korean won gained 0.4% against the USD before giving back most of its gains. In Australia BHP reported record iron ore production for Q4 and FY12, however the stock fell over 2% as investors worry that record production will not help the major miner in a market showing weakening demand and prices. BHP also dragged down Rio Tinto and Fortescue.
Japan Economic Minister Furukawa reiterated yesterday's comments from Finance Minister Azumi that the economy will suffer if the yen rises and that Japan must closely watch the yen's strength. Taiwan Central Bank said to have again cut overnight lending rates by 2bps, the most recent rate on the central bank website shows 0.442%.
A front page editorial in China as well as a separate news source both expect that at the upcoming China Economic Work Conference, China could shift monetary policy from "prudent" to "moderately loose" due to slowing economic growth. The PBoC's "prudent" monetary approach came into effect in December 2010, replacing its earlier "moderately loose" monetary policy. China Stats Bureau (NBS) indicated that China will not allow property prices to rebound. Calling on property speculation curbs to be part of long-term policy. China overall new home prices in June were flat m/m which is a 9-month high and fell 1.5% y/y.
Speakers/Geopolitical/In The Press
(CN) China Ministry of Commerce Researcher: Q3 export and import growth may be "low." - Chinese press
Equities
BHP: Reports Q4 Iron Ore production 40.9M tons v 37Me v 37.9M tons q/q, +15% y/y; FY12 Iron Ore production 159.5M tons, +19% y/y
China Shipping Container, 2866.HK: Raises Asia-US east rates by $700/FEU; Raises Asia-US west rates by $500/FEU
Samsonite, 1910.HK: CEO: Hoping that acquisition of High Sierra will double the size of the company, will add $80-90M in sales this year; Hope to close another 1-2 acquisitions
AIR.NZ: Chairman Palmer: Domestic demand is flat
WES.AU: CEO: Competition for labor is intense, putting pressure on wage costs; Chemicals unit is losing skilled workers to rivals who are offering 30% more in compensation - Australian press
US Equities
VVUS: FDA approves Qnexa weight loss drug; -6.8% after hours
INTC: Reports Q2 $0.54 v $0.52e, R$13.5B v $13.6Be; -1.0% after hours
YHOO: Reports Q2 $0.27 v $0.22e, R$1.08B v $1.1Be; -0.3% after hours
EMC: Reports prelim Q2 $0.39 v $0.40e, R$5.31B v $5.3Be; names new executives; +6.8% after hours
ROVI: Reports prelim Q2 $0.35-0.38 (adj) v $0.57e; Rev $158M v $183Me; Cuts FY12 $1.60-1.90 v $2.50e; Rev $650-680M v $765Me; -24.7% after hours
WYNN: Reports Q2 $1.38 v $1.48e, R$1.25B v $1.33Be; +0.7% after hours
VMW: Reports Prelim Q2 Rev $1.12B v $1.11Be; names CEO successor, effective Sept 1; +8% after hours
CSX: Reports Q2 $0.49 v $0.47e, R$3.01B v $3.05Be; +1.4% after hours