Economic Data
(NZ) NEW ZEALAND Q3 RETAIL SALES EX-INFLATION Q/Q: -0.4% V +0.4%E; Core retail sales -0.3% v +0.6%e
(NZ) NEW ZEALAND OCT NON-RESIDENT BOND HOLDINGS: 62.4% V 62.4% PRIOR
(AU) AUSTRALIA Q3 WAGE COST INDEX Q/Q: 0.7% V 0.8%E (1-year low); Y/Y: 3.7% V 3.8%E
(AU) AUSTRALIA NOV WESTPAC CONSUMER CONFIDENCE INDEX: 104.3 V 99.2 PRIOR; M/M: 5.2% V 1.0% PRIOR (largest increase in 12-months)
(KR) SOUTH KOREA OCT UNEMPLOYMENT RATE (SA): 3.0% V 3.1%E
(JP) Japan Sept Conference Board Leading Economic Index m/m: -0.4% v -0.5% prior
(CL) CHILE CENTRAL BANK LEAVES NOMINAL OVERNIGHT RATE TARGET UNCHANGED AT 5.00%; AS EXPECTED
Markets Snapshot (as of 04:30GMT)
Nikkei225 flat
S&P/ASX +0.3%
Kospi flat
Shanghai Composite -0.2%
Hang Seng +0.9%
Dec S&P500 +0.3% at 1,375
Dec gold +0.2% at $1,727/oz
Dec Crude Oil +0.1% at $85.42/brl
Notes/Observations
Asian equity markets are trading mixed as positive results from the Greek auction overnight and chatter over outsized €44B disbursement to Athens put a floor under the fall in risky assets. Instead, the focus seems to have shifted to some modest strength in the recently beleaguered tech sector.
Cisco Systems traded up nearly 8% after beating on top and bottom lines, even though Q2 guidance was generally seen as cautious. Over in Japan, shares of Sharp spiked higher on speculation that Intel and Qualcomm may partner in a capital tie-up with the firm for as much as ¥40B.
Down under, New Zealand retail sales continued a streak of underwhelming economic reports, sending kiwi dollar back below $0.82 against the greenback. NZD/USD remains supported by 100-day EMA, unable to break below that average on two separate tests over the past month. In Australia, wage cost index was just below expectations but, as indicated by HSBC economists, not sufficiently disappointing to push the RBA closer to easing policy again early next month.
AUD/USD returned above $1.0450 level and AUD/JPY above ¥83 handle. Other USD majors saw modest weakness, as greenback gave up about 0.2% in EUR/USD and USD/CHF pairs to $1.2725 and CHF0.9455 respective high/low.
In China, Pres Hu concluded the 18th Communist Party congress, just as local press leaked out some of the names for the Central Committee that included Xi Jinping and Li Keqiang, the first step for the next-generation leaders toward respective positions of president and premier. The 7 to 9 members of the Politburo Standing Committee - the highest decision-making body - will be formally unveiled tomorrow.
Fixed Income/Currencies/Commodities
(CN) China Dept of International Econ Affairs of Min of Foreign Affairs's Gao Wei: There is a need to raise gold reserves - Chinese press
(CN) China Finance Ministry sells 50-yr bonds; avg yield 4.35% - financial press
(CN) China Iron and Steel Association (CISA): Sees steel demand likely to imporve in Q1 due to stimulus
USD/CNY: (CN) Yuan hits the upper limit of its daily 1.0% range on OTC market at 6.2252 (19-year high)
SLV: iShares Silver Trust ETF daily holdings fall to 10,030 tons from 10,055 tons (lowest since Nov 8th)
(AU) Australia MoF (AOFM) sells A$600M in 5.5% 2023 bonds; avg yield 3.0535%; bid-to-cover 5.52x
NZD/USD: Falls over 20 pips below $0.8170 after negative New Zealand retail sales
Speakers/Political/In the Papers
(CN) According to NEA, China power consumption in Oct rose 6.1% y/y to 399.8B KWH - financial press
(KR) South Korea Ministry of Knowledge Economy: October production of autos by 5 main automakers fell 4.3% y/y to 397K units; Exports fell 6.3% y/y to 258K units - Korean press
(KR) South Korea International Trade Association (KITA): Exporters' Q3 profitability declined to 92.9 from 94.1 in Q2 mainly due to strong KRW - Korean press
(KR) Bank of Korea (BOK) Gov Kim: Must control and reform househould debt; Growth may accelerate in H2 of 2013
(JP) Standing Officers Council of Japan's ruling DPJ party said to be opposed to parliament elections promised to the opposition by PM Noda - Nikkei News
(US) Fed's Yellen (Voter, dovish): Optimal policy to keep rates near zero until early 2016; Supports having policy triggers for inflation and employment to help public adjust expectations; 2% inflation goal cannot be the ceiling but rather a central tendency with a slightly higher and lower range.
(US) Fed's Fisher (hawkish, non-voter): There is a limit to what the Fed can do for the economy; Fed Yellen's earlier comments do not represent the committee - CNBC interview
Equities
CSCO: Reports Q1 $0.48 (adj) v $0.46e, R$11.88B v 11.8Be; Guides Q2 Rev +3.5-5.5% y/y v +5.2%e (implies $11.9-12.1B v $12.1Be); +7.5% afterhours
MOS: Updates Q2 sales volume guidance; Cuts Q2 Phosphates Sales volume guidance to 2.9M-3.1M tons (3.0-3.4M prior); prices expected to be in the upper end of $535-$550/ton; -5.1% afterhours
Sharp 6753.JP: Nothing yet decided on capital injection; No truth to talks on capital alliance (NOTE earlier: 6753.JP: Follow up: Intel, QCom said to be in discussions to invest up ¥24B); +7.7%
TM: To recall 1.5M units in Japan, 2.5M globally due to steering problem; recall to include Prius
Mitsubishi Motor 7211.JP: Holder Mitsubishi Heavy has converted some of its preferred shares into common stock to increase voting rights - Nikkei News
Aeon 8267.JP: To maintain expansion plans in China despite recent Japan/China tensions - Nikkei News
Sumitomo Mitsui Trust Holdings 8309.JP: Reports H1 Net ¥60.7B v ¥128.1B y/y, Rev ¥560B v ¥623B y/y
PKX: Spokesperson: May acquire stake in Arcelormittal Canada mines - financial press
Hankook Tire 000240.KR: Exec: Proceeding with plans to build a tire plant in the US - Korean press
FMG.AU: Exec: 2012 a record year; sees no debt repayment until Nov 2015; Expresses confidence in China over the long-term - AGM
LEI.AU: Could encounter cashflow problems, profit downgrades due to issues with tunnel project - The Australian
FCG.NZ: New Zealand govt announced tighter rules over how much dairy products Fonterra must sell to small participants
RENN: Reports Q3 -$0.04 v -$0.05e, R$50.4M v $50.5Me