Markets Positive, Cautious Ahead Of Central Bank Meeting, China Data

(JP) JAPAN JUN CURRENT ACCOUNT TOTAL: ¥433B V ¥415BE; ADJ CURRENT ACCOUNT TOTAL: ¥773.6B V ¥715BE (3-month high); CURRENT ACCOUNT BALANCE Y/Y: -19.6% V -24.0%E; TRADE BALANCE: ¥112B V ¥120BE

(AU) AUSTRALIA JUN HOME LOANS M/M: 1.3% V 2.0%E (6-month high); INVESTMENT LENDING Y/Y: +4.9% V -4.6% PRIOR; OWNER-OCCUPIED HOME LOAN VALUE M/M: 1.2% V 0.2% PRIOR

(JP) JAPAN JULY BANK LENDING EX-TRUSTS M/M: +1.0% V 0.8%E; BANK LENDING INCLUDING TRUSTS M/M: 0.7% V 0.6% PRIOR

(JP) JAPAN JULY ECO WATCHERS CURRENT SURVEY: 44.2 V 43.2E; OUTLOOK SURVEY: 44.9 V 44.0E

(ID) INDONESIA JULY FOREX RESERVES: $106.6B V $106.5B PRIOR

(JP) JAPAN JULY BANKRUPTCIES Y/Y: -5.1% V -16.3% PRIOR

(MA) MALAYSIA JUN TRADE BALANCE (MYR): 9.2B V 5.2BE

(KR) SOUTH KOREA JUN MONEY SUPPLY L Y/Y: 1.1% V 0.9% PRIOR; M2 Y/Y: 0.4% V 0.3% PRIOR

(KR) SOUTH KOREA JUL BANK LENDING TO HOUSEHOLDS (KRW): 457.8T V 457.1T PRIOR

(PH) PHILIPPINES JULY CPI M/M: 0.3% V 0.3%E; Y/Y: 3.2% V 3.1%E; CORE CPI Y/Y: 4.1% V 3.7% PRIOR

Markets Snapshot (as of 05:00GMT)
Nikkei225 +0.9%

S&P/ASX +0.5%

Kospi +0.8%

Shanghai Composite -0.1%

Hang Seng -0.2%

Taiwan Taiex +0.2%

Straits Times Index -0.5%

Sept S&P500 -0.2%

Dec gold -0.1% at $1,612/oz

Sept Crude oil -0.5% at $93.17/brl

Overview/Top Headlines
A positive mode reigned over Asian equities, tracking gains from New York and Europe. EUR/USD was little traded and stayed slightly to the downside in Far East trading even with S&P cutting Greece's sovereign outlook to negative, affirming CCC rating. Heading into the second half of the session most markets are off their highs with only Hong Kong and Singapore dipping into negative territory. Singapore dollar was weaker to the Greenback by 0.2% to S$1.2433. Slower than expected Australia home loans failed to impact the ASX, AUD/USD hit a 3-month high at $1.0563 before becoming range bound ahead of key trading partner, China, release of economic data in tomorrow's session.

Japan current account on an adjusted basis was a 3-month high, Trade surplus for June was slightly lower than expected at ¥112B. USD/JPY continued to trade in a small (less than 20 pip) range, EUR/JPY cross venturing only a few pips further in the session to ¥97.25/97.50. Tomorrow will conclude the BoJ policy meeting, the first with the 2 new members. There is hope that the BoJ's two new dovish members may be able to give more clarity to the central bank's policies tomorrow. Markets widely expect no change in rate or fresh easing measures. Both 10 and 20 year JGB yields hit fresh 1-month highs.

South Korea Fin Min Bahk reiterated that the country will focus on policies that will boost domestic growth and will start to implement measures to prepare for the aging population. Bank of Korea will also give their rate decision in tomorrow's session. USD/KRW was weaker for another consecutive day to KRW1,126.40

Commodities were weaker from corn to silver; spot gold fell over $2 in the session to $1,609. Crude oil fell 0.5% to $93.25, brent contract held on to gains.

Speakers/Geopolitical/In The Press
(JP) Japan Chief Cabinet Sec Fujimura: Not clear if recent political developments are related to the rise in long term rates

(CN) China Financial News editorial: Timely and decisive action is needed to prevent growth from slipping outside target of 7.5%

(PH) Philippines Central Bank Gov Tetangco: Inflation is still near the lower end of target range and remains manageable

(JP) Japan DPJ Diet Affairs Chief: Willing to hold a poll in the near future in exchange for tax bill support

Equities
Hong Kong Exchanges & Clearing, 388.HK: Reports Q2 Net HK$1.07B v HK$1.08Be; Rev HK$1.90B v HK$2.07B y/y

QAN.AU: FY12 underlying results will be profitable; Will cut 2.8K positions and save A$300M

Advanced Semiconductor, 2311.TW: Reports July Rev NT$15.7B v NT$15.4B m/m

FRNM.SG: Follow Up: Thailand's Kindest Place offers S$55/shr for stake in Asia Pacific Breweries, deal worth S$1.03B

FMG.AU: CEO: Targeting gearing of 30-40% by FY14; Clear signs China will focus on GDP growth

000270.KR: Workers at Hyundai and Kia may stage a partial strike this week - financial press

US Equities
PCLN: Reports Q2 $7.85 v $7.36e, R$1.33B v $1.35Be; -14.8% afterhours

DIS: Reports Q3 $1.01 v $0.93e, R$11.09B v 11.2Be; -0.8% afterhours

CREE: Reports Q4 $0.25 v $0.23e, R$306.8M v $307Me; +0.2% afterhours

URS: Reports Q2 $1.00 (adj) v $0.93e, R$2.69B v $2.56Be; +5.0% afterhours

ESRX: Reports Q2 $0.88 v $0.82e, R$27.7B v $26.4Be; +7.0% afterhours

RAX: Reports Q2 $ 0.18 v $0.18e, R$319M v $318Me; +11.7% afterhours

CQB: Reports Q2 $0.27 v $0.36e, R$833M v $815Me; +14.6% afterhours