Economic Data
(NZ) NEW ZEALAND JUL TRADE BALANCE (NZ$): +15M V -41ME (6-month low surplus); TRADE BALANCE 12-MTH YTD: -853M V -891ME; Exports: 4.0B v 3.7Be (4.2B prior); Imports: 3.99B v 3.8Be (3.9B prior)
(SG) SINGAPORE JULY INDUSTRIAL PRODUCTION M/M: -9.1% V -4.4%E; Y/Y: 1.9% V 6.8%E
(AU) AUSTRALIA JUN CONFERENCE BOARD LEADING INDEX M/M: 0.2% V 0.3% PRIOR
(JP) JAPAN JUL CORPORATE SERVICE PRICE INDEX M/M: -0.2% V -0.2%E
(VN) VIETNAM AUG CPI M/M: +0.6% V -0.3% PRIOR; Y/Y: 5.0% V 4.7%E
Markets Snapshot (as of 04:30GMT)
Nikkei225 -1.1%
S&P/ASX -0.9%
Kospi -1.4%
Shanghai Composite -0.7%
Hang Seng -1.1%
Taiwan Taiex -0.3%
Straits Times Index -0.3%
Sept S&P500 little changed at 1,400
Dec gold -0.2% at $1,669/oz
Oct Crude oil -0.5% at $95.81/brl
Overview/Top Headlines
Asian markets recorded widespread losses in Friday's session after weaker economic data from the US and uncertainty over global central banks plans, to take action to boost the economic recovery, continues. Markets will keep an eye on China's PBoC today for a cut to rates or RRR (PBoC typically takes action on Friday) after yesterday's disappointing HSBC Flash manufacturing data. China has taken steady stimulus action at a local level since mid-July, so it is unclear as to what the next step will be. Corn (+0.8%), wheat (+1%), soybeans (+0.8%) and copper (-0.8%) all showed some volatility as well.
Japan and South Korea continue to feud over President Lee's visit to the disputed islands. Japan has said it is unsure if it will extend fx swap agreement or buy South Korea govt bonds. Japan's lower house also passed a resolution protesting South Korea President Lee's visit to disputed islands. USD/JPY and EUR/JPY both traded in a 20 pip range. KRW fell 0.4% to the USD KRW1,134.
Attention was focused on speaks from down under, including New Zealand Finance Minister English, who expects "minimal" change in RBNZ policy agreement, rules out change to 1-3% inflation target; Does not want to raise inflation expectations. NZD/USD was little changed in the session around $0.8125, AUD/NZD however fell to a 5-week low below NZ$1.2825.
Following yesterday's comments from Aussie Resource Minister Ferguson, saying that the resource boom was over, RBA Gov Stevens said the peak of resource investment boom will occur in the next 1-2 years; not seeing any signs that resource boom is over. Australia Treasurer Swan said he expected an export boom to follow the resource investment boom and Australia has reached peak in terms of trade. The RBA gov said that he was prepared to act in response to "significant deviations" from economic outlook. A$ declined against its peers, falling to $1.0422 to the greenback.
Speakers/Geopolitical/In The Press
(JP) Japan Fin Min Azumi: Japan agreed to forex swap after South Korea request; Deal helped to stabilize Korea's economy
(CN) China Housing and Urban-Rural Development: Considering new measures to boost govt control of the housing market - Shanghai Daily
(GR) German finance ministry leading a "working group" studying the potential impact of a Greek exit - FTD
(CN) China govt report indicating 2012 CPI may rise only about 2.8% - Chinese press
(CN) HSBC cuts China 2012 GDP target from 8.4% to 8.0%; 2013 cut from 8.8% to 8.5%
(CN) PBoC Gov Zhou: China still faces large pressure on the economy, international situation is grim
Equities
005930.KR: South Korea court rules Apple violated 2 Samsung patents, Apple fined KRW40M (about $35K) and must stop selling infringing products
WHC.AU: Tinkler Group will not go ahead with a formal binding proposal of A$5.20/shr cash
WOW.AU: Reports FY12 Net A$1.82B v A$2.0Be; Rev A$57.06B v A$56.3Be
FXJ.AU: Shareholder Gina Rinehart unsuccessfully attempted to sell 5% of her stake at A$0.50/shr (A$0.01/shr discount to close) - The Australian
BHP: CEO: Conceded that debt financing is likely in the near term to help finance $22B in expected CAPEX and $6B in dividend for FY12/13 vs $24B expected op cash flows - financial press
TEL.NZ: Reports FY12 Net NZ$1.6B; Rev NZ$4.54B, -8.9% y/y
US Equities
ADSK Reports Q2 $0.48 v $0.49e, R$569M v $594Me; -21.3% afterhours
CRM: Reports Q2 $0.42 v $0.39e, R$732M v $728Me; -5.1% afterhours