Economic Data
(NZ) New Zealand Aug Net Migration SA: -340 v -660 prior
(AU) AUSTRALIA JUL CONFERENCE BOARD LEADING INDEX M/M: 0.0% V 0.5% PRIOR
(NZ) NEW ZEALAND AUG CREDIT CARD SPENDING M/M: +0.1% V -1.5% PRIOR; Y/Y: 1.9% V 0.0% PRIOR
Markets Snapshot (as of 04:00GMT)
Nikkei225 +0.6%
S&P/ASX +0.3%
Kospi -0.9%
Shanghai Composite +0.5%
Hang Seng +0.8%
Dec S&P500 +0.2% at 1,457
Dec gold +0.2% at $1,773/oz
Nov Crude oil +0.6% at $92.96/brl
Notes/Observations
Asian equity markets are trading mostly higher going into the weekend as traders scale out of their overnight bearish bets following the release of that disappointing China HSBC manufacturing PMI. Most notably, Shanghai Composite opened lower by 0.2% - a fresh 3.5 year low - before reversing those losses to turn in modest gains.
The tech-related sector was particularly outstanding, as traders point to the release of the iPhone 5 benefiting regional supply chain. Despite its decline on the session, LG Display was profiled as one of the expected bigger beneficiaries of the new Apple devices by a Tier1 firm, as analysts take note of expanded market share for iPad panels at the expense of Apple patent adversary Samsung Electronics.
In currency trading, USD was on the defensive across the board since late US session hours. Euro was spurred higher after FT Deutschland speculated Spain was drawing near to a formal rescue plan that may be unveiled as early as next week. Press report also indicated Spanish government has formulated a specific economic reform program that was being discussed behind the scenes among EC and Spanish govt officials. Separately, IMF's Lagarde speculated Spanish banking recapitalization would be somewhere in €40-80B range, below the €100B secured from European officials.
Over in Germany, a report out of the finance ministry forecasted slower growth and more moderate inflation. In Greece, finance ministry was said to be willing to raise retirement age to 67 from 65 and highlighted progress in talks with the Troika inspectors. Late in the Asia session, EUR/USD traded about 10 pips shy of the $1.30 handle, gaining about 50 pips from the narrow range of the US trading range. Among the Asia Pacific pairs, AUD led the way with a 50pip gain above $1.0470, while USD/JPY kept to a 20 pip range around ¥78.30.
Fixed Income/Currencies/Commodities
(US) Weekly Fed Balance Sheet Assets Week ending Sept 19th: $2.804T v $2.805T prior; M1: -$14.5B v +$97.8B prior; M2: +$34.6B v +$16.8B prior
(CN) China Aug coal production decreased 2.5% y/y; YTD increased 4.4% y/y - Xinhua press
SLV: iShares Silver Trust ETF daily holdings rise to 9,940 tons from 9,883 tons (highest since 9,954 in Oct of 2011)
GLD: SPDR Gold Trust ETF daily holdings rise by 3.0 tons to 1,308.4 tons (highest since 1,309.9 in Aug of 2011)
Speakers/Political/In the Papers
(CN) China Securities Journal front page editorial calling for PBoC to abstain from further loosening of its monetary policy
(CN) China city of Beijing bans anti-Japanese protests - Yomiuri
(CN) Barclays: China Q3 GDP may slow further to 7.3% from 7.6% in Q2 - Shanghai Daily
(CN) Some China cities to unveil large scale land sales - Chinese press
(JP) Japan PM Noda may replace DPJ Sec-Gen Koshiishi as part of cabinet reshuffle as early as this month - Nikkei News
(KR) IMF has cut South Korea 2012 GDP target to 3.0% from 3.25% estimated in June - Korean press
(US) Fed's Bullard (FOMC alternate, hawkish): Inflation expectations have moved up sharply; Would have voted against QE3
(IE) Ireland think tank ESRI: Raises 2012 GDP forecast to 1.8% from 0.6% prior, cuts 2013 GDP to 2.1% from 2.2% prior
Asia Equities
NCM.AU: Announces temporary reduction to production capacity at Lihir mine to 25% due to electrical system issue; Full production to be restored in 10 days; trading -3.3%
Sharp 6753.JP: Said to be in discussions with INTC regarding possible capital tie-up; discussions for INTC to invest over ¥30B (approx 13%+ of market cap) - financial press; trading +5.0%
TM: Targets output of 1.2M hybrid vehicles in 2012, twice the 2011 levels, amid expansion into Asian markets - Nikkei News
US Equities
CTAS: Reports Q1 $0.60 v $0.59e, R$1.05B v $1.06Be; +1.2% afterhours
ORCL: Reports Q1 $0.53 v $0.53e, R$8.21B (non-gaap) v $8.42Be; +0.3% afterhours
MCD: Raises dividend by 10% to $0.77/shr from $0.70/shr prior
TXN: Raises dividend 24% from $0.17 to $0.21