Economic Data
(AU) AUSTRALIA JUL NAB BUSINESS CONDITIONS: -3 V -1 PRIOR; NAB BUSINESS CONFIDENCE: +4 V -3 PRIOR (3-month high)
(JP) BANK OF JAPAN (BOJ) JULY 11-12TH MEETING MINUTES: REITERATES VIEW THAT BOJ HAS BEEN PURSUING POWERFUL EASING
(NZ) NEW ZEALAND Q2 RETAIL SALES EX-INFLATION Q/Q: 1.3% V 0.7%E
(KR) SOUTH KOREA JUL EXPORT PRICE INDEX M/M: -1.3% V -1.6% PRIOR; Y/Y: 2.2% V 2.2% PRIOR; IMPORT PRICE INDEX M/M: -0.8% V -3.6% PRIOR; Y/Y: -1.0% V -1.2% PRIOR (2nd consecutive decline)
(NZ) NEW ZEALAND JUL NON RESIDENT BOND HOLDINGS: 62.8% V 62.0% PRIOR
(AU) AUSTRALIA JUL NEW MOTOR VEHICLE SALES M/M: -0.8% V -1.0% PRIOR; Y/Y: +5.0% V 18.1% PRIOR
(JP) JAPAN JUN TERTIARY INDUSTRY INDEX M/M: +0.1% V -0.3%E
(UK) UK JULY RICS HOUSE PRICE BALANCE Y/Y: -24% V -23%E (9-month low)
Markets Snapshot (as of 04:30GMT)
Nikkei225 +0.4%
S&P/ASX +0.3%
Kospi +0.7%
Shanghai Composite -0.4%
Hang Seng +0.2%
Taiwan Taiex +0.4%
Straits Times Index +0.1%
Sept S&P500 +0.1%% at 1,403
Dec gold +0.1% at $1,614/oz
Sept Crude oil unchanged at $92.72/brl
Overview/Top Headlines
Markets opened stronger today ahead of a busy European and US session but remained relatively directionless with no major fresh catalyst in the Asia session. EUR/USD rose to $1.2361. Kospi saw the largest gain at the opening with strong presence of foreign buyers noted. Commodities were stronger corn and wheat gaining to $7.86 and $8.62 respectively. Copper gained 0.4% to $3.37 and silver up about $0.03 to $27.80.
One of Australia's top 4 banks, National Bank of Australia (NAB) reported Q3 net profit of A$1.4B (ex-items) was in line with last year. Executives noted subdued business and consumer confidence in the domestic market and ongoing challenges in the global market. NAB (which also has UK units) noted that the higher cost of funding in the UK impacted overall numbers.
Second quarter retail sales in New Zealand came in stronger than the expected 0.7% at 1.3%, this gave the NZD/USD a 15 pip jump above $0.8110, gains retreated later in the session but the kiwi remained stronger than the Greenback for most of the session.
In China focus seems to be returning to local government debt. Fitch warned that debt accrued by China state owned companies is the main risk to local and regional governments. Noted the root cause of the debt was stimulus measures during the peak of the global economic downturn. PBoC remains muted in its currency settings with the last new yuan high since July 2005 being set on May 1st.
The Bank of Japan in its July meeting minutes reiterated that it stands ready to take appropriate action and remains worried about EU debt risk impact on the domestic economy. The BoJ also reiterated that their current policy is pursuing power easing. The yen weakened against all its crosses, losing 0.2% against the dollar to ¥78.40 and ¥96.91 against the euro.
Speakers/Geopolitical/In the press
(CN) Article in PBoC backed paper warned on risks related to rise in bad loans
(AU) NAB raises Australia 2012 GDP forecast higher from 3.1% to 3.6%; Sees RBA keeping rates on hold until mid-2013 and then raising
(CN) Morgan Stanley cuts China 2012 GDP target from 8.5% to 8.0% - financial press
(PH) Philippines Central Bank Gov Tetangco: Recent rain may impact food prices; Will assess if there is a need to adjust policy
(KR) South Korea Fin Min Bahk: Food price uncertainty is increasing; heat is pushing prices on fruits and vegetables higher
(JP) Japan GDP estimated to rise 2.3% in FY12/13 - Nikkei News
Equities
NAB.AU: Reports Q3 Net A$1.4B (ex items) v A$1.4B y/y
STEL.SG: Reports Q1 Net S$945M (ex items) v S$923Me
MTR Corp, 66.HK: Will accelerate efforts to expand overseas business; Capex for the next 3-yrs will be HK$50B - HK press
Toshiba, 6502.JP: Will change Windows RT device plans due to component delays
CAT: Exec: Still confident in a soft landing scenario in China; Govt taking appropriate steps to drive a rebound in Q4 - China Daily
Swire Properties, 1972.HK: Parent, John Swire and Son, to sell 234M shares (4% of shares outstanding) at HK$21.53 (discount of 9.73%); cutting stake in half
China Resources Cement, 1313.HK: Exec: Expects prices to rebound in H2 - Chinese press