Economic Data
(NZ) NEW ZEALAND Q4 RBNZ 2-YR INFLATION EXPECTATION: 2.8% V 2.9% PRIOR (second consecutive quarter of decline)
(KS) SOUTH KOREA Q3 EXTERNAL SHORT-TERM DEBT: $138.5B V $153.9B PRIOR
(JP) JAPAN OCT SUPERMARKET SALES Y/Y: -0.9% V -3.6% PRIOR
(NZ) NEW ZEALAND OCT NET MIGRATION SA: -650 V -680 PRIOR
Markets Snapshot (as of 04:30GMT)
Nikkei225 -0.7%
S&P/ASX -0.7%
Kospi unchanged
Taiwan Taiex -0.7%
Singapore Straits Times Index unchanged
Shanghai Composite -0.9%
Hang Seng -1.0%
S&P Futures +0.3% at 1,194
Dec Gold unchanged at $1,678/oz
Dec Crude -0.3% at $96.63
Overview/Top Headlines
Asian markets were mixed to the downside today. World Bank but its growth forecasts for the region include China and ex-China. Markets lacked a clear direction especially Taiwan, Korea, and Singapore. As expected the US Super Committee was unable to reach a deal on debt reduction. Super Committee co-chairs Hensarling and Murray confirm they were not able to reach a debt reduction deal. "Deeply disappointed" that a deal could not be reached; we do agree that the country's "fiscal crisis must be addressed." President Obama vowed to veto any bill that would remove the $1.2T in spending cuts. Moody's came right out saying that there would be no impact on the US's AAA sovereign rating. Fitch said it will conclude review of US sovereign rating by the end of Nov; As previously indicated failure to reach an agreement by the SuperCommittee would likely result in negative ratings action.
With risk aversion continuing to rule the roost USD/JPY saw a spike higher, USD also held its ground against the other majors, though was down against the Singapore Dollar. Japan Fin Min Azumi commented about a former Boj's members comments suggesting a ¥50T fund, saying that any foreign bond buying would be the same as an intervention.
A report in the FT indicated that China property tax transactions have fallen very close to the stress test levels, currently transactions are -39% y/y v the tested 30% and 50% declines. Report suggesting a slump in China real estate would have severe ripples through global economy, as property construction accounted for 13% of China GDP last year.
Speakers/Geopolitical/In the press
(CH) PBoC Deputy Gov Hu Xiaolian: China's economy faces uncertainty; EU growth poses a challenge to growth; Will fine tune monetary policy at the right time
(CH) China PBoC adviser Xia Bin: Sees China 2012 GDP at 8-9%; May have a trade deficit
(HK) Hong Kong Financial Secretary: Soft landing likely in Hong Kong property market
(TT) Taiwan Financial Supervisory Commission (FSC) tightened short selling rules to support the market ahead of Presidential elections - Taiwan press
(CH) PBoC expands currency swap deal with Hong Kong from CNY200B to CNY400B
Equities
Osaka Securities Exchange8697.JP: Has reached an agreement with Tokyo Stock Exchange to merge; Merger to take place in January 2013 - financial press
Samsung Electronics, 005930.KS: President: In final talks with Google to launch Google TV; Will unveil OLED TV at CES in January
Guangzhou Automobile, 2238.HK: Setting up a JV with Fiat, called Guangqi Fiat, production will start in July - HK Standard
BSL.AU: To offer A$600M in common stock at A$0.40/shr (about 53% of market cap)
US Equities
HPQ: Reports Q4 $1.17 (adj) v $1.13e, R$32.1B v $32Be; -2.3% after hours after the company gave incomplete guidance
BRCD: Reports Q4 $0.16 v $0.10e, R$550M v $527Me; +5.6% after hours
JACK: Reports Q4 $0.49 v $0.40e, R$504.2M v $492Me; +0.75% after hours