Case Weakened For More RBA Rate Cuts By Strong Aussie, Chinese Data

(CN) CHINA OCT HSBC FLASH MANUFACTURING PMI: 49.1 V 47.9 PRIOR (3-month high; 12th month of sub-50 contraction)

(AU) AUSTRALIA Q3 CONSUMER PRICES (CPI) Q/Q: 1.4% V 1.0%E (6-quarter high); Y/Y: 2.0% V 1.6%E; CPI TRIMMED MEAN Q/Q: 0.7% v 0.6%e (5-quarter high); y/y: 2.4% v 2.2%e

(AU) AUSTRALIA SEPT DEWR INTERNET SKILLED VACANCIES: -3.7% V -3.4% PRIOR (sixth consecutive monthly decline)

(HU) HUNGARY OCT GKI BUSINESS CONFIDENCE: -14.6 V -16.4 PRIOR; ECONOMIC SENTIMENT: -24.6 V -25.0 PRIOR

Markets Snapshot (as of 03:00GMT)
Nikkei225 -0.3%

S&P/ASX -0.7%

Kospi -0.8%

Shanghai Composite +0.2%

Hang Seng -0.2%

Dec S&P500 +0.5% at 1,413

Dec gold +0.2% at 1,712/oz

Dec Crude Oil +0.5% at $87.09/brl

Notes/Observations
Asian markets slumped early in the day, taking cue from another session of large declines in US indices where the story was more downbeat earnings from blue chips such as DD and MMM. Shanghai Composite is the notable gainer here late in the session however, bouncing off the lows in the wake of improved HSBC flash manufacturing PMI for October.

Coming in at a 3-month high of 49.1, the PMI figure also saw new orders rise to a 6-month high of 49.7. And while this still marks 12th consecutive month of contraction, China data seems to confirm analysts' expectations of a trough in mainland Q3 GDP. Moreover, US futures are pointing to a brighter trading day on Wednesday, with Dec SP500 contract rising some 6 handles to 1,415.

AUD/USD was the clear outperformer among the dollar majors, rising about 60 pips on the day above the $1.03 handle. Earlier in the day, better than expected Q3 CPI got the ball rolling for an AUD rebound, coming in well above expectations and at multi-quarter highs on sequential basis for both the headline and core prints.Following the CPI data, fixed income markets expectations for RBA rate cut in November fell from 95% to about 75%. Likewise, analysts from major banks now see next month's easing a much closer call.

Japanese yen pairs have continued their recent decoupling from risk-off sentiment on expectation of an aggressive policy response from the BOJ next week. Early in the day, Nikkei News citing a QUICK corp survey saw leading analysts forecast BOJ to raise asset purchase program from ¥80T to ¥85-90T. Report further noted that if the easing is ¥5T, it would likely be comprised primarily of long-term government bonds - a ¥10T program would be equally divided with short-term bonds as well

EUR/USD was contained below $1.30 level, however the dollar may come under renewed pressure on further signs of stability from European periphery. A report out of German press noted the EMU may have come to terms to allow Greece two additional years to meet fiscal targets to achieve 3% budget deficit to GDP target. This would lower the privatization burden on Athens for 2015 to €8.8B vs €19B estimated earlier. The deal was also said to pave the way to the €32B tranche of funds to be released in November.

Fixed Income/Currencies/Commodities
AUD/USD: Rises about 20pips above $1.0310 after rebound in China Flash PMI

AUD/USD: Rises about 30pips following higher than expected CPI data

SLV: iShares Silver Trust ETF daily holdings rise to 9,918 tons from 9,888 tons (highest since Oct 10th)

(US) API PETROLEUM INVENTORIES CRUDE: +313K V +2ME (6th consecutive week of build); GASOLINE: +180K V +1ME; DISTILLATE: -900K V -500KE

Speakers/Political/In the Papers
(GR) EMU said to allow Greece two additional years to meet fiscal targets - German press

(JP) According to a survey by QUICK corp, all leading analysts expect additional policy easing from the BOJ at its Oct 30th meeting - Nikkei News

(AU) Australia Treasurer Swan: CPI data confirms inflation is contained

(AU) Former RBA member McKibbin: Inflation continues to be a risk; RBA needs to be aware

(CN) According to a financial press survey, PBoC likely to forego another 1-year rate cut this year; Q4 GDP seen rising to 7.7% from 7.4% in Q3

(CN) Barclays, UBS, and BofA/ML economists see Q3 as the trough in China growth - China Daily

(AU) Australia retailers criticize govt on tax changes - The Australian

Asia Equities
Hynix 000660.KR: Reports Q3 Net KRW2.0B v loss KRW33Be, Op loss KRW15B v loss KRW57Be, Rev KRW2.4T v KRW2.5Te

ANA 9202.JP: May report H1 op profit around ¥70B, +40% y/y; Rev seen around ¥760B, +10% y/y - Nikkei News

Nissan NSANY: Plans to invest ¥30B to build a new Thailand plant to increase production to 400K units - Japan press

SNP: To restart 100K bpd Dongxing refinery following 1-month long maintenance shutdown - financial press

SNP: Exec: Weak economy to limit China demand for oil products - financial press

BBG.AU: Exec: Reaffirms prior FY13 EBITDA guidance A$100-110M; Q1 trading results in line with guidance

AAPL: Both Softbank and KDDI to offer the iPad Mini in Japan - financial press

US Equities
NFLX: Reports Q3 $0.13 v $0.05e, R$905M v $905Me; -16.3% afterhours

BWLD: Reports Q3 $0.57 v $0.60e, R$246M v $254Me; -11.3% afterhours

NSC: Reports Q3 $1.24 v $1.23e, R$2.69B v $2.70Be; -2.3% afterhours

ALTR: Reports Q3 $0.49 v $0.46e, R$495M v $483Me; -2.2% afterhours

BRCM: Reports Q3 $0.79 v $0.77e, R$2.13B v $2.09Be; +0.3% afterhours

JNPR: Reports Q3 $0.22 v $0.17e, R$1.12B v $1.06Be; +0.7% afterhours

AFL: Reports Q3 $1.77 adj v $1.66e, R$6.85B v $6.43Be; increases quarterly dividend by 6.1% to $0.35 from $0.33; +1.6% afterhours

AMGN: Reports Q3 $1.67 adj v $1.49e, R$4.32B v $4.23Be; +2.4% afterhours

VMW: Reports Q3 $0.70 v $0.63e, R$1.13B v $1.13Be; Jonathan Chadwick Appointed CFO; +2.6% afterhours

PNRA: Reports Q3 $1.24 v $1.19e, R $529M v $522Me; +5.6% afterhours

FB: Reports Q3 $0.12 adj v $0.11e, R$1.26B v $1.23Be; +12.9% afterhours