Economic Data
(CN) CHINA SEPT TRADE BALANCE: $27.7B v $20.7BE (3-month high)
(CN) CHINA SEPT PRODUCER PRICE INDEX (PPI) Y/Y: -3.6% V -3.5%E (biggest decline in 35 months)
(CN) CHINA SEPT CONSUMER PRICE INDEX (CPI) Y/Y: 1.9% V 1.9%E; M/M: 0.3% v 0.4%e
(CN) CHINA SEPT M2 MONEY SUPPLY Y/Y: 14.8% V 13.6%E V 13.5% PRIOR; M1 MONEY SUPPLY Y/Y: 7.3% V 4.7%E; M0 MONEY SUPPLY Y/Y: 13.3% V 10.0%E
(AU) AUSTRALIA AUG HOME LOANS M/M: 1.8% V 1.5%E (8-month high); INVESTMENT LENDING: -0.8% V -1.6% PRIOR; OWNER-OCCUPIED HOME LOAN VALUE: +1.3% V -0.9% PRIOR
(AU) AUSTRALIA SEPT NEW MOTOR VEHICLE SALES M/M: 4.7% V 4.3% PRIOR (14-month high); Y/Y: 14.4% V 6.6% PRIOR
(KR) SOUTH KOREA SEPT EXPORT PRICE INDEX M/M: 0.3% V 0.2% PRIOR; Y/Y: -1.9% V 1.1% PRIOR; IMPORT PRICE INDEX M/M: 0.9% V 1.7% PRIOR; Y/Y: -2.4% V 0.3% PRIOR (biggest decline in 30 months)
(NZ) NEW ZEALAND SEPT PERFORMANCE SERVICES INDEX: 49.6 V 50.0 PRIOR (first contraction since Jul 2010)
(UK) UK OCT RIGHTMOVE HOUSE PRICES M/M: +3.5% V -0.6% PRIOR (8-month high); Y/Y: 1.5% V 0.7% PRIOR
Markets Snapshot (as of 03:30GMT)
Nikkei225 flat
S&P/ASX flat
Kospi -0.2%
Shanghai Composite -0.5%
Hang Seng -0.2%
Dec S&P500 -0.1% at 1,420
Dec gold -0.8% at 1,745/oz
Nov Crude Oil -0.9% at $91.08/brl
Notes/Observations
Asian equity markets are trading little changed at the start of the new week, as several economic datapoints out of China for the month of September are hardly moving the needle in the region. Shanghai Composite appears to be the most affected by mixed reports, falling about 0.5% and briefly dragging AUD/USD back to $1.02 handle. September trade balance came in at a 3-month high and the exports growth was twice the expected rate, however imports - typically the more critical component - was a tepid 2.4%, reminding investors internal consumption has yet to take a firm hold in the economy clamoring for a shift to a more domestically driven model.
Iron ore imports growth was also modest at 4% m/m, sending the basic metals complex to 1-month lows. Separately, inflation data remained soft but in line with estimates, likely keeping Chinese central bank on the sidelines in terms of acting outside its recent preference for liquidity operations. Indeed, both PBoC Gov Zhou and Vice Gov Yi stressed inflation as the focus of the central bank, also calling on global authorities to rein in excess liquidity. NDRC official Xu commenting after the release of inflation figures said the CPI is unlikely to see a significant rebound for the remainder of the year.
Among the more notable developments regarding Europe on the heels of the Tokyo summit, German Fin Min Schaeuble said a sovereign default by Greece can be ruled out, even as the more staunch proponent of austerity, Netherlands Fin Min De Jager, reiterated his call for Greece to meet its reform commitments. Troika inspectors appeared to be increasingly more pragmatic, endorsing a 2-year extension for Greece to complete its adjustment.
European Commission in particular was seen as the more optimistic of the 3 bodies, forecasting Greece being able to achieve debt to GDP ratio of 128% by 2020 vs 140% projections by ECB and IMF. Despite the positive sentiment, EUR/USD entered a new week on the defensive, falling as much as 50 pips to briefly test below the $1.29 handle.
Fixed Income/Currencies/Commodities
(AU) Australia Newcastle weekly coal exports for week ended Oct 14th: -1% w/w
(CN) China Stats Bureau: Pork prices in early Oct rose 0.5% - financial press
Speakers/Political/In the Papers
Asia
(CN) PBoC Gov Zhou: Calls on global central banks to drain excess liquidity to eliminate long-term risks of inflation - China Daily
(CN) According to China State Electricity Regulatory Commission, power generation in Sept was at 394.5B kw/h - China Daily
(JP) BoJ Yamaguchi: Must take measures to make use of household savings
(KR) South Korea Fin Min Bahk: There are no plans for further economic support measures
(KR) Bank of Korea (BOK) Gov Kim: Potential GDP growth for domestic economy estimated at 3.8% - Korean press
(KR) South Korea Fin Min Bahk: Global economic slowdown may push South Korea GDP below 3% - Korean press
Europe
(ES) Spain govt seeking more time from euro zone officials to reach fiscal goals; Concerned may not be able to achieve deficit of 6.3% of GDP this year - financial press
(EU) Thousands of protesters marched again in Spain and Portugal on Sat against govt austerity measures - financial press
(EU) Japan may consider buying ESM bonds - financial press
IMF's Lagarde: Recent easing in US, Japan, and Europe are right policy steps in the right direction; May cause "asset price bubbles"
(US) Fed Chairman Bernanke: Fed is providing "additional monetary accommodation to achieve its dual mandate of maximum employment and price stability"
(US) Treasury Sec Geithner: China needs to boost its consumption; Europe needs to implement its plans into action - financial press
Asia Equities
ICBC 1398.HK: Asia unit targets 20% annual loan growth - HK press
ZTE 763.HK: Expects to post large losses in Q3 amid falling revenues and profit margins - Shanghai Daily
Yamato 9064.JP: May report lower H1 op profit to below ¥20B from ¥23.5B prior - Nikkei News
Komatsu 6301.JP: May report H1 Op profit at ¥111B, -17% y/y; Would be in line with company targets - Nikkei News
US/Europe Equities
S: Softbank said to have reached an agreement with Sprint to take a 70% stake for $20B at $7.30/shr - financial press