Economic Data
(JP) JAPAN CABINET NOVEMBER MONTHLY REPORT; CUTS ECONOMIC ASSESSMENT FOR 4TH CONSECUTIVE MONTH (AS EXPECTED)
(SG) SINGAPORE Q3 FINAL GDP Q/Q: -5.9% V -2.9%E (first contraction in 4 quarters); Y/Y: 0.3% V 0.9%E
(SG) SINGAPORE OCT ELECTRONIC EXPORTS Y/Y: -0.8% V -9.1%E; NON-OIL DOMESTIC EXPORTS M/M: -1.2% V -1.2%E; Y/Y: 7.9% V 3.1%E
(KR) SOUTH KOREA SEPT LEADING INDEX CHANGE M/M: +1.2% V -0.6% PRIOR
(US) North America OCT SEMI book to bill ratio: 0.75 v 0.81 prior (5th reading below parity, 7th consecutive m/m decline)
Markets Snapshot (as of 04:30GMT)
Nikkei225 +2.0%
S&P/ASX -0.3%
Kospi -0.4%
Shanghai Composite -0.9%
Hang Seng +0.3%
Dec S&P500 -0.1% at 1,350
Dec gold -0.1% at $1,712/oz
Dec Crude Oil flat at $85.42/brl
Notes/Observations
Asian equity markets are trading mixed once again, and for the second consecutive session, weak JPY has sent Nikkei225 sharply higher. USD/JPY was up to fresh 6.5 month highs overnight above the ¥81 handle on continued expectations that LDP party leader Abe will become the 7th Japanese Prime Minister in 6 years and subsequently force the Bank of Japan into a more aggressive easing.
Japan's PM Noda is set to dissolve the lower house of Parliament on Friday, leading to national elections set for December 16th. His party is widely expected to lose control due to weak economy - in fact, the cabinet office has cut its economic assessment for the 4th consecutive month, including the consumption, business investment, corporate profits, CAPEX, employment and bankruptcies sectors.
Separately, Japan Fin Min Jojima said PM Noda has instructed the Finance Ministry to compile a new fiscal stimulus package by Nov 30th, with package made up of funds left over from the fiscal 2012 budget. The LDP also released its mid-term Economic Revival Report, calling for changing the Bank of Japan law and raising inflation target from 1% to 2%, with policy aimed to achieve 3% GDP. USD/JPY traded rangebound, with any dip toward the ¥81 level promting immediate buying.
Singapore reported disappointing Q3 final GDP that marked the first sequential contraction in 4 quarters after Q2 was revised slightly higher into positive territory. Singapore Ministry of Trade also lowered its 2012 GDP target to 1.5% from 1.5-2.0% and noting further risks if external demand weakens. Despite the weak growth, Singapore Central Bank said monetary policy remains appropriate, while Singapore dollar fell about 0.4% or 50pips against the dollar to S$1.2285.
In Europe, financial press reported that German Chancellor Merkel's CDU party is calling on ECB to limit bond buys from highly indebted states, referring to the OMT program as a temporary instrument. EUR/USD pared its US session gains, though losses were contained to $1.2760s.
Fixed Income/Currencies/Commodities
(AU) Australia MoF (AOFM) sells A$600M in 6.0% 2017 bonds; avg yield 2.5375%; bid-to-cover 5.64x
iShares Silver Trust ETF daily holdings fall to 9,985 tons from 10,030 tons (lowest since Nov 6th)
GLD: SPDR Gold Trust ETF daily holdings rise by 3.3 tons to 1,339.6 tons (highest level since Oct 8th)
(US) Weekly Fed Balance Sheet Assets Week ending Nov 14th: $2.859T (highest since April) v $2.812T prior; M1: -$22.4B v +$15.5B prior; M2: +$36.4B v +$45.5B prior
Speakers/Political/In the Papers
(CN) China Vice Fin Min: US fiscal cliff is a big threat to China economy
(CN) China NDRC researcher: Rebound in China economy during Sept may be temporary - Chinese press
(JP) Japan govt passes deficit funding bill following DPJ-LDP agreement - financial press
(JP) Japan Fin Min Jojima: PM Noda has instructed govt to compile a new fiscal stimulus package by Nov 30th - financial press
(AU) IMF report: Aussie dollar has put pressure on non-mining sectors in Australia; Support Australia's budget tightening, but delaying return to surplus should be an option if outlook deteriorates sharply.
(EU) German chancellor Merkel's CDU party calling on ECB to limit bond buys from highly indebted states - financial press
(US) Fed's Plosser (hawk; not an FOMC voter): Economic thresholds for monetary policy could create more confusion than clarity
Equities
(JP) Japan Auto Association chief / Toyota president Toyoda: Seeing some signs of improvement in China; Not changing business plans for China - financial press
All Nippon 9202.JP: President: Travel to China in Oct fell about 24% y/y; Overall traffic down 2% y/y (first decline since Apr 2011) - Yomiuri
Samsung Electronics 005930.KR: Court ruling Samsung can include Apple's iPhone5 in its patent claim - financial press
Whitehaven Coal WHC.AU: To scale back its business development unit in Brisbane - financial press
SINA: Reports Q3 $0.17 v $0.10e, R$152.4M v $153Me
US equities
DELL: Reports Q3 $0.39 v $0.39e, R$13.72B v 13.9Be; -1.9% afterhours
AMAT: Reports Q4 $0.06 v $0.03e, R$1.65B v $1.60Be; +0.5% afterhours
INTU: Reports Q1 -$0.06 v -$0.06e, R$647M v $640Me; +1.8% afterhours
MRVL: Reports Q3 $0.20 v $0.20e, R$780.9M v $774Me; +3.2% afterhours
GPS: Reports Q3 $0.63 v $0.63e, R$3.86B v $3.84Be; raises FY12 outlook; +3.6% afterhours