Economic Data
- (JP) JAPAN SEPT NATIONAL CPI Y/Y: -0.3% V -0.4%E; NATIONAL CPI CORE Y/Y: -0.1% V -0.2%E (5th month of decline)
- (JP) JAPAN OCT TOKYO CPI Y/Y: -0.8% V -0.8%E; TOKYO CPI EX-FRESH FOOD: -0.4% V -0.5%E (15-month of decline)
- (NZ) NEW ZEALAND OCT NBNZ ACTIVITY OUTLOOK: 25.5 V 29.3 PRIOR; NBNZ BUSINESS CONFIDENCE: 17.2 V 17.0 PRIOR
- (NZ) NEW ZEALAND SEPT TRADE BALANCE (NZ$): -791M V -850ME (2nd consecutive deficit); EXPORTS: 3.3B V 3.3BE; IMPORTS: 4.1B V 4.2BE
- (KR) SOUTH KOREA OCT CONSUMER CONFIDENCE: 98 V 99 PRIOR (9-month low)
- (KR) SOUTH KOREA Q3 PRELIMINARY GDP Q/Q: 0.2% V 0.2%E (lowest since Q4 of 2009); Y/Y: 1.6% V 1.7%E
- Markets Snapshot (as of 04:00GMT)
- Nikkei225 -0.9%
- S&P/ASX -0.5%
- Kospi -1.4%
- Shanghai Composite -1.7%
- Hang Seng -0.7%
- Dec S&P500 -0.8% at 1,397
- Dec gold -0.3% at 1,707/oz
- Dec Crude Oil -0.6% at $85.56/brl
Asian equities are down sharply in the final session of the week as investors pare their bets on emerging markets over rising concern regarding the tech sector. Apple was the canary in the coalmine for the tech-heavy Taiwan and South Korea bourses, missing on top and bottom lines and also guiding next quarter well below consensus. Earlier, an official with Apple's biggest supplier Hon Hai said the Taiwan tech giant is looking to diversify its revenue away from some 40% reliance on Apple products. Samsung Electronics, despite winning some smartphone market share, was also seen as somewhat disappointing despite topping estimates, as shares fell by over 2% - more than the Kospi Composite. South Korea economy, long seen as fairly resilient for its exposure to tech and benefiting from Sino-Japanese tensions, posted disappointing prelim Q3 GDP that saw the slowest sequential growth in nearly 3 years.
Nikkei225 has reversed much of the overnight gains as traders bid the recent weakness in JPY following slightly higher than expected Japan inflation figures. USD/JPY retreated back toward the ¥80 handle, just as Japan cabinet unveiled a larger than expected ¥750B stimulus package. Econ Min Maehara said the stimulus portion details will be drawn up next month but overall estimated a 0.1% GDP increase in Japan's economy. The focus shifts to next week's BOJ decision on Oct 30th amid solidified expectations of about a ¥10T increase in its asset purchase program.
NZD/USD fell some 60 pips early in the day to as low as $0.8160 after the new RBNZ Gov Wheeler backtracked from overnight policy statement by suggesting the central bank will not rule out additional easing and may also intervene in the markets if conditions are met. Losses in the Kiwi were tracked by the Aussie selloff later in the day, as AUD/USD led the decliners among the major to the benefit of the greenback with a 50 pip drop toward the $1.03 handle.
Fixed Income/Currencies/Commodities
- USD/CNY: Falls 1% below CNY6.25 from official midpoint to downside limit or wider trading band for second consecutive session; Highest Yuan level since 2005 revaluation
- (AU) Australia MoF (AOFM) sells A$800M in 2024 bonds ; avg yield 3.41%; bid-to-cover 3.56x (update)
- iShares Silver Trust ETF daily holdings rise to 9,923 tons from 9,893 tons (highest since Oct 2nd)
- (KR) South Korea foreign currency official: Concerned KRW recent movements are one-sided
- (US) National Hurricane Center (NHC): Hurricane Sandy continues to move northward; strom warnings in effect for Florida
- (US) Weekly Fed Balance Sheet Assets Week ending Oct 24th: $2.823T v $2.829T prior; M1: +$29.1B v +$42.8B prior; M2: +$28.9B v -$12.5B prior
- (JP) Japan cabinet approves ¥750B stimulus package
- (JP) Japan Econ Min Maehara: Stimulus portion of plan expected to be drawn up in Nov; stimulus may increase GDP by 0.1%
- (KR) South Korea Fin Min Bahk: Economy remains in sluggish mode; Consumption is fairly good but investment still weak - Korean press
- (NZ) RBNZ Gov Wheeler: RBNZ has the scope to lower rate if required; Prepared to intervene in FX if all conditions are met
- (GR) Greece official: Greece requires additional €30B through 2016 to close financing gap - financial press
- Kia Motor 000270.KR: Reports Q3 Net KRW829.5B v KRW648B y/y, Op Profit KRW861.2B v KRW828B y/y, Rev KRW11.6T v KRW10.0T y/y
- Samsung Electronics 005930.KR: Reports Q3 final Net KRW6.56T v KRW6.2Te; Op KRW8.12T v KRW8.1Te; Rev KRW52.2T v KRW52Te
- 9104.JP: Mitsui OSK and other shippers may miss FY targets; Mitsui may see FY12/13 net loss of over ¥10B vs profit ¥3B prior target - Nikkei News
- Toshiba 6502.JP: May report H1 op profit around ¥70B, down 10% y/y and below prior target of ¥90B; Rev seen down about 10% of prior target of ¥3T - Nikkei News
- MQG.AU: Reports H1 net A$361M v A$375Me; Op income A$3.1B, -5% y/y
- WHC.AU: Reports Sept quarter coal output 1.91MT; sales 1.6MT
- BHP: To reduce workforce at Australia Nickel West facility - financial press
- DECK: Reports Q3 $1.18 v $1.02e, R$376M v $412Me; -14.6% afterhours
- CSTR: Reports Q3 $1.26 v $1.17e, R$537.6M v $563Me; -8.6% afterhours
- AMZN: Reports Q3 -$0.23 (adj) v -$0.08e, R$13.81B v 13.9Be; -1.0% afterhours
- KLAC: Reports Q1 $0.84 v $0.87e, R$720.7M v $752Me; -0.2% afterhours
- AAPL: Reports Q4 $8.67 v $8.85e, R$36.0B v $36.2Be; Guides Q1 $11.75 v $15.67e, R$52B v $55.1Be; flat afterhours
- DV: Reports Q1 $0.49 (unclear if comparable) v $0.30e, R$483M v $481Me; +12.9% afterhours
- EXPE: Reports Q3 $1.32 adj v $1.25e, R$1.20B v $1.20Be; +15.5% afterhours