Disappointing NFP And Weaker Data From The region Tow Markets Lower

(CN) CHINA JUNE CONSUMER PRICE INDEX (CPI) M/M: -0.2% V -0.3% PRIOR; Y/Y: 2.2% V 2.3%E (lowest since January 2010)

(CN) CHINA JUNE PRODUCER PRICE INDEX (PPI) M/M: -0.7% V -0.4% PRIOR; Y/Y: -2.1% V -2.0%E (biggest decline since November 2009)

(JP) JAPAN MAY CURRENT ACCOUNT TOTAL: ¥215B V ¥493BE; ADJ CURRENT ACCOUNT: ¥282B V ¥401BE (4-month low); TRADE BALANCE: -¥848B V -¥837BE

(KR) SOUTH KOREA JUNE PRODUCER PRICE INDEX (PPI) M/M: -1.4% V -0.6% PRIOR (biggest decline since 2008); Y/Y: 0.8% V 1.9% PRIOR

(JP) JAPAN JUNE BANK LENDING EX-TRUSTS Y/Y: 0.8% V 0.4% PRIOR; BANK LENDING INCLUDING TRUSTS Y/Y: 0.7% V 0.3% PRIOR (3-month high)

(JP) JAPAN MAY MACHINE ORDERS M/M: -14.8% V -2.6%E (biggest decline since Apr 2005); Y/Y: +1.0% V 7.0%E; Japan government cuts assessment for machine orders

(UK) UK JUNE LLOYDS EMPLOYMENT CONFIDENCE INDEX: -51 V -59 PRIOR (1-year high)

(JP) JAPAN JUNE ECO WATCHERS SURVEY: CURRENT: 43.8 V 47.5E (3rd consecutive decline); OUTLOOK: 45.7 V 48.1 PRIOR (second consecutive decline)

(JP) JAPAN JUNE BANKRUPTCIES Y/Y: -16.3% V 7.2% PRIOR

(AU) AUSTRALIA JUNE ANZ JOB ADVERTISEMENTS M/M: -1.2% V -2.6% PRIOR (third consecutive m/m decline)

Markets Snapshot (as of 04:30GMT)
Nikkei225 -1.0%

S&P/ASX -0.9%

Kospi -1.2%

Taiwan's Taiex -0.9%

Singapore Straits Times -1,1%

Shanghai Composite -1.1%

Hang Seng -1.4%

September S&P -0.3%

August gold +0.2% at $1,582/oz

August crude oil +0.4% at $84.77/brl

Overview/Top Headlines
Weaker-than-expected payrolls from the US on Friday led Asia's session lower with Australia, Japan, Korea, Hong Kong and Singapore all lower by more than 1%. US Fed's Rosengren sees a possibility for QE3 depending on upcoming data, as the June jobs data was disappointing.

The session opened with the conclusion of a multi-day meeting of Greek lawmakers ahead of a confidence vote in the new government. The confidence vote was passed with 170 in favor and 121 against. Greece PM Samaras, in his pre-vote speech, said that Greece has received €500B of aid over the last 2-yrs from EU and IMF, will push ahead with privatization plans and ask for an additional 2 years to meet fiscal targets which will probably require additional funds from lenders. PASOK party leader Venizelos is calling for an additional 3-years for budgetary announcements. EUR/USD tested a 2-year low to $1.2250 ahead of EU Finance Minister meeting to talk about measures discussed at the summit in June. Press is reporting that EU supervisory authority framework is relatively in place, including a proposed hierarchy.

CPI y/y fell to its lowest level since Jan 2010 and was also lower than expected, both food and non-food CPI increased. China producers price index saw its biggest decline since November 2009 both m/m and y/y seeing declines. South Korea also saw a decline in PPI, attributed to falling commodity prices. China trade balance data is expected on the 13th. AUD/USD fell 20 pips testing $1.0180.

USD/JPY traded in a 50 pip range, Japan's May trade balance came in worse than expected at a deficit of ¥848B, machine orders for the month saw their biggest decline since April 2005 and this saw the government cut its assessment for machine orders. Should be noted that April 2005 is when comparable data became available.

Corn and wheat continue their gains as hot dry weather continue to threaten the crop outlook. Silver futures gained 0.9% to $27.13 while copper gained a modest 0.3%.

Speakers/Geopolitical/In The Press
(TH) Thailand Central Bank Governor Prasarn: Capital flows into bonds are at normal levels.

(CN) China Securities Regulatory Commission (CSRC) Chairman Guo: No reason to be pessimistic about China's economy, the government is achieving its macroeconomic policy goals and the optimization and upgrading of the industrial structure is progressing. - Chinese press

(JP) Japan PM Noda: To consider compiling additional budget if required.

(AU) Australia Treasurer Swan: A legal challenge in the Supreme Court to the mining tax will not get anywhere.

(CN) Former PBoC Advisor Li Daokui: China does not need new stimulus. - Chinese press

Equities
RIO: Cuts New Zealand aluminum smelter output by 15%.

XTA.UK: May delay the vote regarding $60B merger with Glencore until September. - FT

Chimei InnoLux, 3481.TW: CFO: Raising employees salaries to retain workers, declines to give amount of raise. - financial press

AAPL: China's Zhizhen Network Technology has filed a lawsuit over Siri patents that it claims to own since 2006; this could lead to a suspension of iPhone sales in China while being resolved. - London Times

(CN) China top 4 banks secured CNY1.8T in new deposits in June after seeing loss of deposits in the first 2-weeks of the month. - Chinese press