Chinese Property Tax Expansion, Greek Uncertainty Cloud Markets

(AU) AUSTRALIA OCT NAB BUSINESS CONDITIONS: -5 V -3 PRIOR; NAB BUSINESS CONFIDENCE: -1 V 0 PRIOR (second straight decline)

(JP) JAPAN SEPT FINAL INDUSTRIAL PRODUCTION M/M: -4.1% V -4.1% PRELIM; Y/Y: -8.1% V -8.1% PRELIM; CAPACITY UTILIZATION M/M: -5.5% V -2.6% PRELIM

(NZ) NEW ZEALAND OCT FOOD PRICES M/M: -0.6% V -0.9% PRIOR (second straight decline)

(PH) PHILIPPINES SEPT TOTAL EXPORTS: 22.8% V 4.6%E; TOTAL MONTHLY EXPORTS: $4.8B V $3.8B PRIOR

(UK) UK OCT RICS HOUSE PRICE INDEX: -7% V -15%E (smallest decline since June 2010)

Markets Snapshot (as of 05:00GMT)
Nikkei225 -0.6%

S&P/ASX -1.2%

Kospi -0.9%

Shanghai Composite -1.4%

Hang Seng -0.9%

Dec S&P500 -0.7% at 1,369

Dec gold -0.6% at $1,724/oz

Dec Crude Oil -0.6% at $85.04/brl

Notes/Observations
Asian equity markets are down sharply despite the flat trading in US hours as investors are turning increasingly exasperated over any lack of meaningful progress on securing the next tranche of loans for Athens. Despite the passing of 2013 budget by the Greek parliament over the weekend, ECOFIN meeting produced no visible commitment to release the €32B tranche, just as Athens comes to face a €5B repayment deadline this Friday. Moreover, European officials denied earlier reports that there would be another Greece-specific meeting later this week, while the ECB did some damage of its own by denying that it would broaden collateral for Greece ELA.

Greece Fin Min Stournaras said he was certain the IMF and eurozone will find the way to finalize aid by Nov 26th following the Troika report on NOv 17th, just as IMF's Lagarde welcomed the political progress from Greek parliament and acknowledged remaining disagreements on proper measures for Greek debt sustainability. EU's Juncker said he was confident Greece will be able to meet the €5B debt redemption and granted Greece 2 more years to achieve the 120% debt/GDP fiscal target. EUR/USD fell to 2-month lows below $1.2680 late in the day, down over 30 pips from session highs.

Regionally, China equities underperformed after local press reports indicated the govt is keeping its focus on inflationary forces in the housing sector. Specifically, Housing Minister Jiang said the ministry is actively considering expansion of property tax program, remaining in the state of high alert on worries that transaction volume and home prices may still increase substantially.

AUD tracked the broad market selloff to fall below $1.04, as investors further took notice of decline in NAB Business Conditions. USD strength was closely tracked by that of the Japanese yen, weighing on precious metals and basic materials.

Fixed Income/Currencies/Commodities
(JP) Japan's MoF sells ¥2.29T in 0.2% 5-yr notes; Avg yield: 0.0189% v 0.195% prior; Bid to cover: 4.96x v 5.51x prior

USD/CNY: (CN) Yuan hits the upper limit of its daily 1.0% range on OTC market at 6.2262 (19-year high)

SLV: iShares Silver Trust ETF daily holdings fall to 10,055 tons from 10,075 tons (first decline since Nov 4th)

Speakers/Political/In the Papers
(CN) China Ministry of Housing: Actively considering expansion of property tax program - Shanghai Daily

(CN) According to China state researcher Fan Jianping, Q4 GDP likely higher than Q3 - Chinese press

(CN) S&P analyst: China new yuan loans to remain stable in Nov and Dec around CNY500-600B per month v CNY509B in Oct - SCMP

(AU) RBA's Kearns: There are tentative signs housing investment to improve

(JP) Japan Econ Min Maehara: There is a need for firm response to the economic difficulties

(JP) Japan Fin Min Jojima: Additional budget may be necessary at some point

(JP) Japan PM Noda: Lower house to be dissolved by year-end; DPJ party has reached tentative agreement with opposition on deficit-financing bill - Nikkei News

(JP) Japan Fin Min Jojima to meet South Korea Fin Min Bahk on Nov 24-25 to discuss improving bilateral relations - Nikkei News

(ID) Indonesia Central Bank: Sees additional capital inflow in coming quarters; sees no urgency to raise deposit facility rate

(KR) South Korea Fin Min Bahk: Global political uncertainty is receding; Concerned US may become more protectionist

(KR) North Korea reported to have been testing missile engines, continuing long-range missile development (update) - financial press

(KR) Moody's: Korea banks' 2013 profit likely to be lower than prior year - financial press

Asia Equities
Kajima 1812.JP: Reports H1 Net ¥9.1B v ¥6.1B y/y, Op Profit ¥17.4B v ¥14.6B y/y, Rev ¥685B v ¥659B y/y

Toyo Engineering 6330.JP: Lowers FY12/13 guidance; Op profit to ¥7.5B from ¥8.5B prior; Rev to ¥270.0B from ¥300.0B prior

Marubeni 8002.JP: Signs 30-year geothermal energy contract in Indonesia - Nikkei News

Sumitomo 8053.JP: Awarded ¥30B seawater desalination plant contract in Oman - Nikkei News

Panasonic 6752.JP: Panasonic's Sanyo Electric unit planning to sell digital camera business - Japan press

RIO: Exec: Current economic environment is complex and volatile; Hard to secure long-term capital

BHP: Granted extension to make decision on Olympic Dam expansion - financial press