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Reports Asia

Asian stock market, economy and companies update (October 08, 2012)

October 8, 2012, Monday, 05:30 GMT | 00:30 EST | 10:00 IST | 12:30 SGT
Contributed by Trade The News

***Markets Snapshot (as of 03:30GMT)***
- Nikkei225 closed
- S&P/ASX -0.3%
- Kospi -0.8%
- Shanghai Composite -0.8%
- Hang Seng -0.7%
- Dec S&P500 -0.2% at 1,452
- Dec gold -0.4% 1,773/oz
- Nov Crude oil -0.5% at $89.47/brl

- Asian equity markets are in the red across the board, tracking late-day Friday selloff on Wall St as investors reprice potential retreat from open-ended accommodative stance by the Fed following lower than expected unemployment data. With no new policy easing from the PBoC announced during the week, Shanghai Composite returned from a long holiday break to lead the decline. World Bank lowered its China GDP forecast to 7.7% from 8.2% in 2012 and to 8.1% from 8.6% in 2013, also cutting its target 2013 GDP for developing east Asia-Pacific to 7.6% from 8.0% prior.

- Among the more volatile currency pairs, AUD/USD opened the week at near 3-month lows below $1.0150, while EUR/USD saw some pronounced weakness later in the day to fall back below $1.30 level. Markets will continue to monitor talks between the troika inspectors and the Greek govt set to resume this week, as Fin Min Stournaras conceded there are still deviations between the positions of the two sides. JPY also firmed against USD late in the day, sending USD/JPY pair down about 20 pips to 78.20. China-Japan tensions continue to weigh on Japanese automakers, with Nissan suspending its overnight shift and both Toyota/Honda planning to keep Chinese output at around half their usual levels.

***Fixed Income/Currencies/Commodities***
- (AU) Australia Newcastle weekly coal exports for week ended Oct 7th: -20.0% w/w
- (IR) Iran imposes a fixed dollar rate of 25K rials bid - 26K offer - financial press
- BP, BG Group, Total, and Tullow Oil sign a $1.65B offshore oil exploration deal with Uruguay govt - US financial press

***Speakers/Political/In the Papers***
- (KR) According to one poll, 83% of analysts surveyed see BOK cutting rates by 25bps to 2.75% at its upcoming decision - Korean press
- (KR) South Korea Fin Min Bahk: Economy may have bottomed out in Q3 and to show recovery down the road; May not happen quickly in H2 of 2012 - Korean press
- (KR) US to allow South Korea to extend its missile range - Sky News
- (JP) Former Japan PM Aso to meet with South Korea Pres Lee to diffuse territorial tensions - financial press

- (AU) RBA Gov Stevens seen as a contender to become the next Governor of Bank of England (BOE) - financial press
- (CN) China Beijing Sept homes prices +0.2% m/m; Shanghai home prices +0.1% m/m - Soufun

- (GR) Greece's 2 largest unions GSEE and ADEDY, have called for a 3-hour work stoppage from noon Tuesday, the 9th so members can take part in a rally at Syntagma Square in central Athens during German Chancellor Merkel's visit - ekathimerini
- (GR) Greece Fin Min official: "There was good progress in discussions with the troika... Talks will continue over the next week and the week after that... We have not closed yet, but we are close."
- (EU) ECB's Asmussen: Sees no risk of inflation or currency depreciation - German press

***Asia Equities***
- (KR) Hyundai and Kia combined China sales in Sept rose to new monthly record high of 127.8K vehicles - Korean press
- Kia Motor 000270.KR: To begin selling pickup trucks in the US beginning in 2013 - financial press
- QR National QRN.AU: To buy back about A$1B in shares (about 12% of market cap) in conjunction with A$500M placement by Queensland govt treasury - financial - press
- Asahi Glass 5201.JP: Halted production at solar cell glass plant in Tennessee - Nikkei News
- Foxconn 2317.TW: Workers at Zhengzhou, China plant directly involved in manufacture of iPhone5 have waged a brief strike - financial press
- Huawei 002502.CN: US law officials see company as a security threat - Nikkei News

***US/Europe Equities***
- LUX: CEO: At least half a billion people worldwide are wearing our glasses - CBS 60 Minutes feature
- BBY: Geek Squad service partnering with eBay and Target - NY Post
- NAV: Interim CEO: Preparing to roll out an upgraded line of truck engines ahead of its April schedule; May announce new financial targets - US financial press
- GEN: To hold meetings with NRG Energy in November on potential merger; Deal would be an all-stock transaction valued around $1.7B - financial press
- DEXB.BE: CEO: Bank will soon be in need of recapitalisation - De Tijd

***Economic Data***
- (AU) AUSTRALIA SEPT ANZ JOB ADS M/M: -2.8% V -2.4% PRIOR (biggest decline in 4 months)
- (ID) Indonesia Sept Consumer Confidence Index: 117.7 v 115.7 prior - update
- (TH) Thailand Sept Consumer Confidence Economic: 67.5 v 68.4 prior - update
- (NZ) New Zealand Sept REINZ house prices m/m: 0.6% v 1.3% prior; home sales y/y: 8.0% v 16.2% prior

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