Economic Data
(CN) China Aug Power Consumption: 449.5B kwh, +3.6% y/y - NEA
(HK) Hong Kong Monetary Authority (HKMA) Leaves Base Rate at 0.50% (tracking FOMC, as expected)
(NZ) NEW ZEALAND SEPT ANZ CONSUMER CONFIDENCE INDEX Y/Y: -1.9% V 3.3% PRIOR; 111.9 V 114.1 PRIOR
(NZ) NEW ZEALAND AUG FOOD PRICES M/M: 0.1% V 0.2% PRIOR
(NZ) NEW ZEALAND AUG NON RESIDENT BOND HOLDINGS: 61.0% V 62.8% PRIOR
(KR) South Korea Aug Export Price Index m/m: 0.2% v -1.3% prior, y/y: 1.1% v 2.2% prior; Import Price Index m/m: 1.7% v -0.8% prior; y/y 0.3% v -1.0% prior
(JP) Japan Aug power output 85.8B KWh, +2% y/y (-1.2% prior) - US financial press
(CO) Colombia July Trade Balance: -$214M v $200.0Me
(CL) CHILE CENTRAL BANK LEAVES NOMINAL OVERNIGHT RATE TARGET UNCHANGED AT 5.00%; AS EXPECTED
(US) Weekly Fed Balance Sheet Assets Week ending Sept 12th: $2.805T v $2.804T prior; M1: +$97.8B v +$6.8B prior; M2: +$16.8B v +$26.3B prior
Markets Snapshot (as of 03:30GMT)
Nikkei225 +1.9%
S&P/ASX +1.1%
Kospi +2.6%
Shanghai Composite +0.5%
Hang Seng +2.5%
Dec S&P500 +0.2% at 1,453
Dec gold +0.2% $1,722/oz
Oct Crude oil +0.8% at $99.11/brl
Notes/Observations
Asian equity markets, precious metals, energy, and risky FX are all screaming higher after a generous helping of QE3 from helicopter Ben - Korea's Kospi gains topped 3%, gold was up nearly $40/oz, and EUR/USD is back above $1.30, just to name a few of the impressive moves in today session. FOMC announced $40B in agency MBS and extended the low rate pledge through mid-2015, all the while indicating it would err on the more aggressive side to bring unemployment down quicker.
Over in Asia, Japan is clearly unenthused by the Fed action despite the strong gains on the Nikkei. A press report suggested BOJ checked rates in the wake of FOMC announcement in an apparent preparation for another round of intervention and top currency official held a meeting with Fin Min Azumi, who in turn called on the BOJ to take closer note of global developments in its decision next week.
Separately, Japan cabinet office downgraded its assessment of the economy for the 2nd consecutive month, also cutting its industrial production and consumption sectors. USD/JPY fell briefly in the wake of the Fed decision, but has subsequently bounced above ¥77.60. On the geopolitical front, PM Noda summoned an emergency meeting and lodged a formal protest after 2 Chinese patrol boats entered the disputed South China Sea waters around the contested Senkaku islands.
Fixed Income/Currencies/Commodities
(JP) JAPAN CABINET OFFICE SEPT ECONOMIC REPORT: CUTS ECONOMIC ASSESSMENT FOR THE 2ND CONSECUTIVE MONTH
(KR) S&P RAISES SOUTH KOREA SOVEREIGN RATING TO A+; OUTLOOK STABLE
(CN) S&P: China's top corporates have significant financial risks
(CN) PBoC included 28-day reverse repos as part of its liquidity operations overnight for the first time since Dec 2002 - Shanghai Daily
(NZ) New Zealand sells NZ$150M in 2023 bonds, avg yield 3.62%; Bid to cover 3.47x
Commodities
(CN) China discovers 70 tons of gold in inner Mongolia
GLD: SPDR Gold Trust ETF daily holdings rise by 3.0 tons to 1,292.4 tons
SLV: iShares Silver Trust ETF daily holdings fall to 9,768 tons from 9,791 tons
JJC: Dec copper contract extending gains above $3.80/lb; Up over 2% in Asia session
Speakers/Political/In the Papers
(EU) ECB President Draghi: Already seeing positive results from announcement of OMT bond buying plan, as confidence in euro has risen; Reiterates would be against haircut on Greece's debt held by ECB - German Press
(CN) Vice President Xi Jinping resurfaces with comments through the state media agency, no comment made as to where he has been or his health
(CN) PBoC Official Deputy Dir Guo Jianwei: QE3 could spark global inflation, though it is logical for the US recovery and jobs
(CN) China Finance Ministry researchers: Borrowing by China's local govts is expected to rise further - Chinese press
(HK) Hong Kong Financial Sec Tsang: Govt needs to monitor risks of excessive credit growth - HK press
(JP) Japan Fin Min Azumi: To watch US more closely than any other economy; ECB has provided a sense of relief
(JP) BOJ Gov Shirakawa: BOJ has been easing policy and will continue to take appropriate action; To keep easy policy until 1% CPI target is in sight.
(JP) Japan Econ Min Furukawa: Watching economy with increased concern given expectations of near-term weakness
(JP) Japan lodges formal protest against China related to Chinese ships entering Japan's waters - Japan press
(JP) Japan PM Noda is likely to win party election - Nikkei News
(US) House of Reps approves stop-gap govt funding to prevent govt shutdown for 6 months; Senate vote to take place next week - financial press
(GR) ECB's Asmussen (Germany): Greece exit would be very costly for Europe and Germany; Should refrain from "frivolously talking about an exit" - German press
Asia Equities
HIT: May boost its H1 dividend from ¥3/shr to ¥5/shr - Nikkei News (Update)
Sharp: 6753.JP: No progress on talks to sell its stake to Hon Hai
US Equities
HD: Closes Seven Big Box Stores In China; To record related charge in Q3 of $0.10/shr; Affirms FY12 EPS $2.95 (ex charge) vs 2.96e
WDC: Lowers Q1 Rev guidance to $3.9-4.0B v $4.3Be (guided 4.2-4.3B prior); initiates dividend and share buyback program - Investor day presentation; -1.7% afterhours
WERN: Guides Q3 $0.33-0.36 v $0.44e; -8.3% afterhours