Economic Data
(AU) AUSTRALIA OCT EMPLOYMENT CHANGE: 10.7K V 0.5KE; FULL TIME EMPLOYMENT: 18.7K V 34.5K PRIOR; PART TIME EMPLOYMENT CHANGE: -8.0K V -19.0K; UNEMPLOYMENT RATE: 5.4% V 5.5%E; PARTICIPATION RATE: 65.1% V 65.2%E
(NZ) NEW ZEALAND Q3 UNEMPLOYMENT RATE: 7.3% V 6.7%E (13-year high); EMPLOYMENT CHANGE Q/Q: -0.4% V +0.3%E (largest decline in 7 quarters); Y/Y: 0.0% V 0.8%E; PARTICIPATION RATE: 68.4% V 68.4%E
(NZ) NEW ZEALAND OCT QV HOUSES PRICES Y/Y: 5.7% V 5.3% PRIOR
(JP) JAPAN SEPT TOTAL CURRENT ACCOUNT: ¥503.6B V ¥761.8BE; ADJUSTED CURRENT ACCOUNT TOTAL: -¥142.0B V +¥206.2BE (*First deficit since 1981*)
(JP) JAPAN SEPT MACHINE ORDERS M/M: -4.3% V -2.1%E (biggest decline in 4 months); Y/Y: -7.8% V -4.9%E
(JP) JAPAN OCT TOKYO AVERAGE OFFICE: 8.7 V 8.9 PRIOR
(JP) JAPAN OCT BANK LENDING INCL TRUSTS: 0.9% V 1.0% PRIOR (first decline in 5 months); BANK LENDING EX-TRUSTS: 1.1% V 1.1%E
(JP) JAPAN SEPT TRADE BALANCE - BOP BASIS: -¥471.3B V -¥413.5BE
(JP) Japan Oct Eco Watchers Current Survey: 39.0 v 40.5e; Outlook: 41.7 v 42.7e
(JP) Japan investors Buying net ¥56.0B in Foreign Bonds last week vs bought net ¥251.8B prior week; Foreign Investors sold net ¥27.7B in Japan stocks last week vs sold ¥15.4B in prior week
(JP) Japan Finance Ministry: Merchandise trade in first 20 days of Oct is down about 11% y/y at ¥308B - Nikkei News
(KR) SOUTH KOREA OCT BANK LENDING TO HOUSEHOLD (KRW): 460.5T V 458.5T PRIOR (biggest rise in 5 months)
(KR) SOUTH KOREA SEPT L MONEY SUPPLY Y/Y: 0.3% V 0.2% PRIOR; M2 Y/Y: 0.1% V 0.9% PRIOR
(MA) MALAYSIA SEPT INDUSTRIAL PRODUCTION Y/Y: 4.9% V 0.6%E
Markets Snapshot (as of 05:00GMT)
Nikkei225 -1.7%
S&P/ASX -0.7%
Kospi -1.5%
Shanghai Composite -1.0%
Hang Seng -1.4%
Dec S&P500 +0.4% at 1,394
Dec gold +0.3% at $1,718/oz
Dec Crude Oil +0.7% at $85.04/brl
Notes/Observations
Asian equity markets are in the red across the board, tracking broadbased losses in Europe and US bourses. Post-election hangover that dogged S&P futures following Governor Romney's concession overnight spilled over to the biggest declines in US indices in weeks, as focus shifted to the impending fiscal cliff and the potential continued partisan standoff, even though House Speaker Boehner opened the door to "new revenues" if the Democrats relented on some of the entitlement provisions.
Earlier in Europe, disappointing industrial production from Germany and downbeat commentary from ECB Pres Draghi reminded investors European economy is still in shambles. Even the narrow passage of the austerity vote by the Greek parliament could not reverse the risk averse sentiment, keeping the euro pinned near $1.2750. The vote did see 6 lawmakers cast out from the coalition parties ahead of Sunday's 2013 budget vote.
The start of China Communist Party's 18th National Congress set an ambitious agenda of rooting out corruption and doubling the nation's GDP by 2020 from its 2010 levels. President Hu said that financial reform and decentralized govt would also be among the new state objectives. Separately, a vice governor with China's central bank said there is no timetable for interest rate easing but additional liberalization of rates needs to take place.
Dep Gov Yi Gang, also pointed to improving loan demand and normalcy of cross-border capital flows, just as the markets brace for major economic data for October out of China, including key CPI and industrial production metrics, late in tomorrow's session.
Outside the mainland, Australia and New Zealand saw remarkably varying employment data. The former posted a decline in jobless rate, albeit with lower participation rate, and a sequential growth in employment. New Zealand, on the other hand, saw a 13-year high rate of unemployment, prompting some reassuring commentary from Moody's and Fin Min English.
Economic data out Japan was also alarming, with adjusted current account total falling into deficit for the first time in over 30 years. Japanese Yen remained firm on overall risk aversion however, keeping USD/JPY pair below the psychologically key ¥80 handle.
Fixed Income/Currencies/Commodities
BHP: Exec: Will not lower iron ore annual output target despite slowing China demand; Affirms FY12/13 iron ore output of about 160M MT, rising to 220M MT by FY14/15 - China Daily
(CN) China Iron and Steel Association (CISA): Daily output from China's major steelmakers in late Oct was down about 5.4% y/y at 86.6K MT
(CN) China CASS researcher Lu: PBoC may let yuan float after 2015 - Chinese press
(NZ) Moody's comments on New Zealand; Remains comfortable with current Aaa rating; Household debt to income is a vulnerability
NZD/USD: Falls over 50pips to $0.82 handle on much weaker than expected NZ employment data
AUD/USD: Rises about 30 pips above $1.0420 after better than expected employment data from Australia
(JP) Japan MoF: Japanese investors bought most amount of foreign treasuries for the month of Sept since Sept of 2011
JGB: Japan MoF sells ¥399.6B in 2.0% 40-yr bonds, bid to cover 3.82x v 3.48x prior
GLD: SPDR Gold Trust ETF daily holdings rise by 2.7 tons to 1,337.2 tons (highest level since Oct 12th)
Speakers/Political/In the Papers
(CN) China President Hu: China should be able to double its 2010 GDP by 2020 - financial press
(CN) China PBoC Dep Gov Yi Gang: No timetable for interest rate easing, but the pace of liberalization should be accelerated; China will "definitely" meet 2012 GDP target of 7.5; Inflation is "not bad"
(CN) China Stats Bureau (NBS) Chief: No large inflation risks in Q4 and 2013, but need to remain alert
(CN) According to Centaline, existing home prices in China's top 6 cities in Oct have risen m/m for 7th consecutive month - financial press
(KR) South Korea state-run think tank Korea Development Institute (KDI): Economy facing continued slump in investment despite improving exports and consumer spending - Korean press
(IN) India central bank (RBI) Gov: Reiterates sees scope for additional easing in Q4 - financial press
(AU) JPMorgan analyst: Still believes RBA will cut rates in December despite better than expected Oct employment data - SMH
(NZ) New Zealand Fin Min English: Unemployment rate is too high; New Zealand remains on track for moderate growth
(NZ) New Zealand Employment Min Joyce: Increased household saving is slowing NZ economy
Asia Equities
NAB.AU: CEO Clyne said to be considering a taskforce to identify some ''bold'' cost-cutting initiatives - SMH
Sumitomo 8053.JP: Awarded ¥28B order for train cars in US - Nikkei News
US Equities
QCOM: Reports Q4 $0.89 v $0.82e, R$4.87B v $4.67Be; +7.8% afterhours
WFM: Reports Q4 $0.60 v $0.60e, R$2.91B v $2.90Be; raises dividend 43% ; mantains FY13 guidance; -2.0% afterhours
ATVI: Reports Q3 $0.15 adj v $0.08e, R$751M v $708Me; +2.3% afterhours
CTL: Reports Q3 $0.66 adj v $0.59e, R$4.57B v $4.57Be; +1.6% afterhours
CBS: Reports Q3 $0.65 v $0.60e, R$3.42B v $3.50Be; +1.5% afterhours